Abstract
Already, the market for cleaner fuels and more efficient devices to improve
generation, delivery, and performance now accounts for between 20 percent and
25 percent of all global energy investment. While the cleantech catchword was
created only about five years ago, the sector it describes already generates
approximately $200 billion a year. The cleantech market is the third largest
venture-capital investment category, behind only biotech and software. Not
surprisingly, some of cleantech' s biggest proponents are the same
entrepreneurs behind earlier venture-funded breakthroughs in computing,
telecommunications, and the Internet.
The current global market for cleantech products and services is about $284
billion, growing to over $1.3 trillion in 2017. Of this amount more than
one-third ($467 billion) is attributable to renewable energy sources, such as
biofuels, solar, tidal, and wind power. Together these segments are expected
to grow from a current value of $104 billion to approximately $467 billion in
2017.
From a growth standpoint, the outlook through 2017 is strong for clean
technologies, and is expected to grow at about 16.7% over the next decade.
Since 2001, clean technology' s global share of overall venture capital
investments has more than doubled. For example, in the United States, clean
technology' s share of investment increased from 1.4% in 2001 to 5.4% in the
first six months of 2007. Similarly, clean technology in Europe has enjoyed
robust growth rates, and its share of investment there has increased from 1.6%
in 2001 to 4.4% in first half of 2007.
Universities, national laboratories, and the commercial sector (both national
and international businesses) continue to increase investment in clean
technologies for air pollution control, vehicle power, industrial and
residential power, environmental remediation, and many other applications.
Governments around the globe have identified cleantech as both a key economic
driver in the next century and as a social and moral responsibility. The
Kyoto Protocol and similar international agreements are driving governments to
enact far-reaching legislation to support and expand the use of green and
clean technologies, from automotive engines to electricity production and air
pollution. The European Union tends to lead the world in terms of regulatory
oversight in this area, but the United States and Japan are also very active.
As a rapidly emerging economy, China has a particular need to engage
cleantech, but is lagging in terms of governmental oversight, basic R&D and
commercial development.
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