Investment in “clean” technologies is skyrocketing around the world, according to a new venture capital report from consultant Ernst & Young.
About $1.28-billion (U.S.) was invested in 2006 in emerging clean-technology companies in China, Europe, the United States and Israel, close to double the $664-million invested in 2005, the report said.
There are many reasons for this spike, the Ernst & Young report said, including concerns over climate change, high oil prices, and the increased willingness of consumers and governments to pay for and use green technologies.
A financial environment that gives venture capitalists a lucrative exit strategy is also a factor, it said.
The sector includes technologies for energy production, air and water treatment, efficiency improvements in industry, and waste management.
The market is truly global, the report said, with particularly strong demand in industrializing countries such as China and India. While most innovative technologies will come from Europe and North America, some developing countries will also generate innovative products.
Richard Blackwell
© The Globe and Mail
