Norton Rose Publishes Survey on Cleantech and Private Equity

A new survey by Norton Rose and Cleantech Investor discusses how investment interest from the private equity and venture capital community in the Cleantech sector has increased dramatically over the last few years.

Growing political and commercial awareness of the need for investment in Cleantech, particularly to combat ever increasing environmental challenges, has continued to drive this activity. This has led to a steady rise in the number of dedicated Cleantech funds and to an increase in investment mandates from funds with a more generalist approach, viewing cleantech investment opportunities as part of a diversified portfolio.

The survey canvasses opinion from the private equity and Cleantech communities and has been undertaken to support an enhanced understanding of the challenges facing investment in this sector, to pinpoint some current trends that appear to be developing and to stimulate further discussion.

The survey’s findings are that:

 

• energy efficiency is expected to be the Cleantech sector that attracts the most

investment interest in the immediate short term

 

• wind will continue to be the main sub-sector in Cleantech energy generation, though solar has recently attracted more investment than any other sub-sector

 

• Cleantech generated electricity cannot immediately satisfy the world’s ever increasing energy needs; it is felt that it will take some considerable time to displace fossil fuel based technology; in reality the expectation is that it will require a mixture of different technologies to satisfy consumer demand

 

• the USA was identified as being the most likely beneficiary of private equity driven Cleantech investment

 

• Europe is perceived as offering the greatest incentives for Cleantech investment

 

• political and regulatory support by governments, and the financial incentives they provide for Cleantech innovation, are seen as crucial factors in the continuing growth of the Cleantech sector

 

• banks are still cautious about lending to the sector, despite proposals to support the green economy, and debt remains tightly controlled

 

The survey canvasses opinion from the private equity and Cleantech communities and has been undertaken to support an enhanced understanding of the challenges facing investment in this sector, to pinpoint some current trends that appear to be developing and to stimulate further discussion.

Ian Moore, a corporate finance partner at Norton Rose LLP, commented:

“Our respondents had very strong views about the need for an international treaty to provide sufficient regulatory and financial support to the Cleantech sector. While a number of individual countries have policies in place to support Cleantech, there is a demand for much greater policy certainty and for a binding global legislative framework to assist the sector to develop and grow, and to give greater confidence to investors.

“While there are some significant investment and regulatory challenges for Cleantech organisations, the sector is certainly not in crisis. Cleantech should not be mistakenly compared to the dot com bubble. There is an undeniable need for Cleantech as energy demands rise and traditional options falter. The weight of concerns about energy supply and climate change, mixed with faster technological innovation and growing global consumer demands for cleaner solutions, means that Cleantech developments are here to stay.

“A secure international legislative framework is needed especially given the long and costly research and development processes of many Cleantech technologies. We expect to see a steady transition towards a predominance of Cleantech energy rather than an abrupt change. There will need to be a portfolio of old and new technologies working alongside each other for some time yet.”  

You can view the complete survey here

 

 

 

 

 

 

 

 

 

 

 

Join the conversation

1 comment

Send me notifications when other members comment.

Please create a username to comment.

Hi, I´m Pam . I am a fourth grade teacher in Orange county. Nowadays , most people need to save up cash on their electricity bills and one of the most frequent methods is through utilizing solar energy. What can we, the average people do to aid save our World? The answer may sound strong, but it’s very simple. Build your own solar panel.
Cancel

-ADS BY GOOGLE

SearchCIO

SearchSecurity

SearchNetworking

SearchDataCenter

SearchDataManagement

Close