What is Cleantech?
Clean Technology (or Cleantech) is an umbrella term encompassing the technology, and also the investment asset and business sectors, which utilize clean energy, environmental and sustainable products or services. It defines a sector that includes significant and high growth industries such as solar, wind, and biofuels. It also includes technologies such as natural gas engines, electric vehicle storage, energy meters, desalinization technologies, LED manufacturing equipment, water purification, and many other creative approaches. Cleantech improves efficiency while reducing costs, inputs, energy consumption, waste or pollution.
Venture Capitals Spurs Cleantech
The Cleantech sector had global revenues estimated at US $150 billion in 2005. Its boom has origins with venture capital investors who saw Cleantech as the next trend in technology investing after the collapse of the tech boom in 2001. Venture capital investment in global solar and wind industry alone rose 18% between 2009 and 2010, and global investors put US $1.66 billion into the 2010 solar market. While companies have been active in the Cleantech industry for decades, the major focus on Cleantech is fairly recent and is in response to several developments in the world economy and geopolitical systems.
Business Mindset for Cleantech
Cleantech contributes to a cleaner, more energy-efficient environment and produces goods and services that optimize the use of natural resources while reducing environmental impact and adding economic value by significantly lowering cost. It provides customers with solutions to global challenges. Cleantech has now beenpurchased primarily for non-environmental reasons even though it may offer significant environmental benefits. The popularity of clean technology, as an innovation and an investment has been strong. The availability and success of CleanTech have made companies no longer look at environmental compliance as a burden, but a way to improve their triple bottom line. More and more businesses have transformed their mindset to seek these new opportunities. Energy Secretary Steven Chuhas advocated for three ways that the government can keep the momentum going: Investing in research in energy and education, enacting a clean energy standard for speeding renewable energy projects, and creating a Clean Energy development agency. Vice President Joe Biden said in 2011 at the National Clean Energy Summit in Las Vegas, “Our nation has a simple choice. A choice about what country we are going to be. A country that rises to the occasion, overcomes the odds, and leads the world. Or are we going to be a follower nation?”
Associated Renewable can help clients take part, and benefit, from the emerging Cleantech industry. Contact us to learn more about investment, project financing, renewable energy development, or using energy efficiency technology on your commercial or residential properties.