Many cleantech entrepreneurs are in the tough place we commonly call the Valley of Death. Stable, but underfunded, which they need for growth. If this describes your company, find out what you should do.
Mitch Tyson, Chairmen of Advanced Electron Beams and Co-Founder of the New England Clean Energy Council, addresses how the US can increase cleantech investment at Cleantech Kingpins, an event hosted by Green Light Distrikt. He explained that many business leaders see a price on carbon as an opportunity to unleash huge amounts of innovation, job creation, and exports that can fuel our country.
After a banner year in 2008 of investments directed to capital-intensive technologies like solar and wind, US venture capitalists backed away from that plan in 2009. So where are they putting their money now? Where the fastest payback is likely to be. New analysis shows a surge of investments in energy efficiency solutions—such as smart grid, and commercial and residential energy management.
Spending in the clean technology industry shows no signs of decline and in spite of the global economic situation, spending by the world’s biggest companies in this area looks set to increase. A recent survey – conducted by leading professional services organisation Ernst and Young – yielded these results from consultations with more than 300 executives worldwide from corporations with revenues in excess of US$1bn.
The alternative energy industry — the green business — is about to ramp up its hiring, with the next year likely to show an increase in demand, according to U.S. Labor Secretary Hilda Solis. All signs truly point in this direction. In addition to the development of the green energy business over the past several years, the amount of capital flowing into fledgling companies in this space is growing rapidly.
New Investment in clean energy worldwide rallied in the second quarter of 2009, reaching $24.4 billion, according to figures published recently by New Energy Finance. The data, which is based in actual deal and project transactions, show that during the second quarter, there was a big improvement on the first quart of 2009, when investment was just $13.3 billion. Despite this dramatic increase in investment, the investments of the second quarter were 37% below the investment amount from the same quarter last year, when the figure was $36.2 billion.
New investment in the worldwide clean energy sector in the second quarter of 2009 has already surpassed that in the first quarter by a third, with several weeks still to go in Q2, according to analysts at New Energy Finance. However, this is in comparison to a disastrous first quarter, which saw investment down 44% from the fourth quarter of 2008, and down 53% from the peak in the first quarter of 2008. Overall, new investment is expected to finish 2009 between US$95 billion and $115 billion, a drop of between 26% and 39% on last year’s total of $155 billion, says New Energy Finance.
ew research by the Carbon Disclosure Project (CDP) with responses from 80 of CDP’s signatory investors across the globe revealed that three-quarters factor climate change information into their investment decisions and asset allocations. Of these, more than 80% consider climate change to be important relative to other issues impacting their portfolio. Interestingly, some of the institutions surveyed revealed a willingness to go beyond requesting disclosure on climate change, such as asking companies to reduce their greenhouse gas emissions.