Cleantech is a broad term used to describe a diverse range of products, services and processes that utilize renewable materials and energy sources in order to dramatically reduce the use of natural resources and minimize or eliminate harmful emissions and waste. Since coming into the spotlight around the turn of the century, investment in this vital technological sector has grown significantly. In 2007, the United Nations Environment Program reported that wind, solar and biofuel companies received roughly $148 billion in new funding as rising commodity prices and stiffening climate change policies encouraged investment in renewable energy. In a recent article, the Investing News Network placed a spotlight on the future of this pivotal market, particularly as world leaders inch closer to definitive cleantech commitments.
The 2015 United Nations Climate Change Conference, or COP21, is currently underway. Running from November 30 to December 11, the conference is intended to create a roadmap for the meaningful advancement of cleantech in the next 12 months and beyond. COP21 is the culmination of a full year of talks and negotiations between participating countries, and the early results have been promising. Last year, developing countries raised $62 billion to address climate change, putting them on course to reach $100 billion per year by 2020. However, not all progress has been quite so fluid.
A major snag for the world’s largest economies has come in the form of a legally binding accord. While some countries – including Russia and Great Britain – are pushing hard for an accord to enforce strict carbon emissions goals, others – including the United States – refuse to endorse such an agreement. According to Chief U.S. negotiator Todd Stern, legally binding targets “would have many countries unable to participate.” For this reason, it will be imperative for cleantech investors to support national leaders by jumping in and backing the ongoing development of the cleantech industry. The Breakthrough Energy Coalition, led by some of the biggest names in government, business and entrepreneurship, is doing just that.
Launching at the same time as COP21, the Breakthrough Energy Coalition has a mission of creating reliable, affordable and carbon-neutral energy by “developing new tools to power the world.” Led by Bill Gates, the initiative is made up of 28 cleantech investors committed to driving noteworthy progress in the months to come. Among the group are Jeff Bezos, founder and CEO of Amazon (NASDAQ: AMZN); Mark Zuckerburg, founder, chairman and CEO of Facebook (NASDAQ: FB); Marc Benioff, chairman and CEO of Salesforce.com (NYSE: CRM); Reid Hoffman, founder of LinkedIn (NYSE: LNKD); and Jack Ma, executive chairman of Alibaba Group (NYSE: BABA).
For cleantech investors, these two conferences could have a major impact on the performance of the sector in 2016. As big names continue to put their weight behind the industry, those in the space should feel confident moving forward. DreamTeamNetwork outlined its forecast for cleantech in an interview with the Investing News Network. While they anticipate sweeping policy changes at the national level, DreamTeamNetwork also pointed to growing demand for electric vehicles as an area of focus for the cleantech landscape in 2016.
“COP21 should give rise to sweeping new supranational incentivization for further sector growth,” DreamTeamNetwork noted. “Continued emphasis on renewables by China and India, as well as South Africa, the Middle East and Africa, will help to drive the conversation in a new and more open direction.”
To view the full article, visit http://investingnews.com/daily/tech-investing/cleantech-investing/cleantech-investors-2016-outlook
