Clean Tech Crash? Google, Boeing and Cisco Beg to Differ

If recent news provides any indication, reports of clean tech’s demise have been greatly exaggerated.

In case you missed it, 60 Minutes recently aired a provocative story on “the cleantech crash.”

While it sparked a lot of negative reactions from those in the clean energy and sustainability world, it also seemed to light a fuse.

Ever since the story aired, journalists, investors and analysts have been trying to set the record straight on the current state of clean tech investments.

Cleantech Group’s CEO Sheeraz Haji was so compelled by discussions with his clients as a result of the show that he wrote this convincing post on why clean tech is essential, massive, vibrant and desired.

In fact, his company’s latest report on the state of the market concluded that, “while total venture investment in clean tech firms fell year-on-year during 2013, investment rose quarter-on-quarter throughout the year.”

This means “early-stage investors are seeking to minimize their exposure to risk and are favoring companies operating in relatively low-capital sectors that can deliver rapid growth.”

That’s not-so-good news for ambitious, capital-intensive renewables and green infrastructure projects, but it’s great news for less carbon-intensive technologies that address areas like distributed generation, resource sharing, agriculture, and the most dominant market investment last year: energy efficiency.

And while government-funded clean tech investments have been of value, it’s increasingly obvious that the private sector is driving the technology solutions we require.

Google’s purchase of Nest Lab’s innovative technologies, Boeing’s announcement about using ‘green diesel’ for sustainable aviation and Cisco’s commitment to the Internet of Things is just the tip of the spear about companies’ growing interest in the sector.

Crash? Hardly.

About the Author
Elaine Hsieh, Program Director & Senior Analyst - VERGE - GreenBiz Group
Elaine Hsieh has more than 15 years of industry experience consulting with Fortune 500 companies on a wide range of sustainability, green building, and technology issues. She bring solid technical background with a understanding of the energy, construction, biotechnology, education, retail, manufacturing, and finance industries.