Clean tech investments pull in 10 percent of US venture capital

June 6 - ars technica - Two groups that track and promote environmentally-friendly investments, cleantech and E2, have released a report on the state of the market in what they term cleantech venture capital. The report suggests that a combination of high energy prices, governmental encouragement, and public awareness of climate change have combined to cause this sector to explode. Investors who were surveyed for the report, however, fear that inconsistent government policies may leave the sector at risk of a future downturn.

The report defines cleantech as anything that uses innovative or novel technology to make better use of natural resources in a way that provides economic value. This definition is broad enough to include basic manufacturing and shipping. The numbers, however, make clear that it means one thing in practice: energy generation, storage, and distribution. This sector accounted for nearly three-quarters of the $2.9 billion of venture capital that flowed into the US cleantech field in 2006. Read More.