Rising oil prices and increasing investor confidence have encouraged US clean technology market, says report by Cleantech Group
Ben Bryant
guardian.co.uk, Wednesday 6 April 2011 12.09 BST
Global investment in US clean technology has reached its highest level since 2008, while investment in UK companies has dropped sharply, quarterly figures show.
Increasing investor confidence and rising oil prices have helped investment in North American companies more than double compared with the previous quarter, according to a report by Cleantech Group, an international firm that works to accelerate the development and market adoption of clean technologies.
Sheera Haji, CEO of Cleantech Group, said: "I absolutely think rising oil prices have had some important impacts. We've seen decent uptake in transportation."
He added: "We're seeing a good rebound as public markets are doing well, companies are doing well, and investors are raising funds and investing them. We're also seeing a real skew towards bigger deals."
While North America flourishes, investment in companies in Europe and Israel dropped by 60% compared with the previous quarter. Investment in British companies has plummeted to its lowest level since 2003, with only nine deals secured all year.
Haji described the period as a "very weak" quarter for the UK. He said: "I have not been following the UK closely, but there's been some uncertainty around what's happening in the UK – around the economic recovery and growth – and that has impacted on the vibrancy of the start-up economy."
The news comes a week after a report from the US Pew Environment Group showed that Britain's private investments in green energy projects fell by 70% last year, causing it to fall from third to 13th place in the league of countries developing clean technology.
Haji said Japan's nuclear crisis could have a "pretty significant impact" on the next set of quarterly figures, and that it may boost investment in clean technology and coal.
He added: "We think it's a setback for the building of new reactors."
Friday, 8 April 2011
Green bankers can help to restore City's reputation
Such traders can help Britain earn its way in a competitive global economy while supporting the realisation of a greener and more sustainable future
Ben Caldecott guardian.co.uk, Thursday 7 April 2011 11.45 BST After the events that led to the credit crunch and our current fiscal situation, the last thing people want is more bankers. But what if they were green bankers?
Green bankers could lead a new approach to finance, helping Britain earn its way in a competitive global economy while supporting the entrepreneurs and businesses that are going to deliver a more sustainable future for everyone.
Restoring financial services, especially in London, as a key driver of Britain's economic success should be in all of our interests. Not only does a successful financial services sector buoy tax receipts, but a thriving financial capital underpins growth by creating high-value jobs and economic activity throughout the country. For the last 45 years, the trade in financial services has brought a large surplus of money into the UK - even during the crash - despite the overall balance of payments having been negative for the last 25 years.
So as we look for a way to create a sustainable economic recovery, it would be hard to ignore the potential role of financial services. In the same way that London has played a leading role in financing international industrialisation and development, we can do the same for the capital-intensive global transition to a low-carbon and sustainable economy.
Although this sector is immature, the international market on which it is based is already large and growing rapidly. According to a recent Bloomberg/Pew Center report on global clean energy investment, there was a record $243bn worth of finance and investment in 2010. In Europe, €1 trillion of energy infrastructure investment is estimated to be required in this decade alone and globally, $46tr in additional investment is thought to be required by 2050 to tackle climate change.
British efforts to gain market share in these large and growing green markets should extend to every sector, from services to manufacturing to R&D. But we are lucky that in financial services Britain's capital has an excellent foundation on which to build. London is already the world's leading green financial capital, but this privileged position was achieved almost entirely by accident.
As the largest financial centre within the European Union emissions trading scheme (ETS) and being part of a developed country that unlike the US signed the Kyoto protocol, London by default became the centre of both the EU and international carbon market.
Another critical factor has been the active promotion of green and climate change-related policies by successive British and EU governments. Not only does this create a plethora of green investment opportunities in a large and close hinterland - the European market - that can be accessed by London based professionals, but it also means that London has become a leading green policy hub and ideas machine. Green policy ideas started by London's thinktanks, NGOs, and academic institutions are quickly picked up by UK politicians, disseminated through London's international media hub and then promoted in other European member states and internationally. Britain can be proud of this nexus of green innovation.
But London's promising start in this new sector could be successfully challenged. We will be seriously tested by other ambitious financial capitals, including cities that missed out the first time round, such as New York, Chicago and Sydney, or by those that have identified this as a key growth area, such as Frankfurt, Shanghai, Hong Kong, Singapore and Tokyo. That's an intimidating mix of competitors by any standard.
So what can we do to support this early success? An essential prerequisite is sustaining the capital's overall health as a financial centre, for example, by ensuring London is a well-regulated and affordable place to do business. But beyond these generic factors we can and must do more.
The UK government and London mayor can directly and indirectly help. They must ensure that pioneering policies in the UK and Europe are successful, such as the EU ETS, new schemes to enable private investment in energy efficiency (the "green deal") and renewable heat (the renewable heat incentive). New initiatives, such as the Capital markets climate initiative launched by Greg Barker, a UK climate change minister, need to become successful long-term platforms for policy-makers and financiers to come together and help create solutions to climate change.
Government can also make sure that London's academic innovators in the climate change space, such as Imperial College, get the technology research funding they need to succeed. The greenest Olympics ever and the Olympic legacy can also be designed to support green and low-carbon entrepreneurs. In addition to these efforts, we must quickly send the right signals to businesses and investors that London is serious about success. The new UK green investment bank should be located in the capital, for example, and London's newly promised enterprise zone should be designed to attract and support green innovators over the long term.
These measures can help keep London ahead of the game and support our economic recovery. This will help Britain earn its way in the world, transform our planet for the better and, just perhaps, salvage something of the reputation of bankers.
• Ben Caldecott is the head of European policy at Climate Change Capital
Ben Caldecott guardian.co.uk, Thursday 7 April 2011 11.45 BST After the events that led to the credit crunch and our current fiscal situation, the last thing people want is more bankers. But what if they were green bankers?
Green bankers could lead a new approach to finance, helping Britain earn its way in a competitive global economy while supporting the entrepreneurs and businesses that are going to deliver a more sustainable future for everyone.
Restoring financial services, especially in London, as a key driver of Britain's economic success should be in all of our interests. Not only does a successful financial services sector buoy tax receipts, but a thriving financial capital underpins growth by creating high-value jobs and economic activity throughout the country. For the last 45 years, the trade in financial services has brought a large surplus of money into the UK - even during the crash - despite the overall balance of payments having been negative for the last 25 years.
So as we look for a way to create a sustainable economic recovery, it would be hard to ignore the potential role of financial services. In the same way that London has played a leading role in financing international industrialisation and development, we can do the same for the capital-intensive global transition to a low-carbon and sustainable economy.
Although this sector is immature, the international market on which it is based is already large and growing rapidly. According to a recent Bloomberg/Pew Center report on global clean energy investment, there was a record $243bn worth of finance and investment in 2010. In Europe, €1 trillion of energy infrastructure investment is estimated to be required in this decade alone and globally, $46tr in additional investment is thought to be required by 2050 to tackle climate change.
British efforts to gain market share in these large and growing green markets should extend to every sector, from services to manufacturing to R&D. But we are lucky that in financial services Britain's capital has an excellent foundation on which to build. London is already the world's leading green financial capital, but this privileged position was achieved almost entirely by accident.
As the largest financial centre within the European Union emissions trading scheme (ETS) and being part of a developed country that unlike the US signed the Kyoto protocol, London by default became the centre of both the EU and international carbon market.
Another critical factor has been the active promotion of green and climate change-related policies by successive British and EU governments. Not only does this create a plethora of green investment opportunities in a large and close hinterland - the European market - that can be accessed by London based professionals, but it also means that London has become a leading green policy hub and ideas machine. Green policy ideas started by London's thinktanks, NGOs, and academic institutions are quickly picked up by UK politicians, disseminated through London's international media hub and then promoted in other European member states and internationally. Britain can be proud of this nexus of green innovation.
But London's promising start in this new sector could be successfully challenged. We will be seriously tested by other ambitious financial capitals, including cities that missed out the first time round, such as New York, Chicago and Sydney, or by those that have identified this as a key growth area, such as Frankfurt, Shanghai, Hong Kong, Singapore and Tokyo. That's an intimidating mix of competitors by any standard.
So what can we do to support this early success? An essential prerequisite is sustaining the capital's overall health as a financial centre, for example, by ensuring London is a well-regulated and affordable place to do business. But beyond these generic factors we can and must do more.
The UK government and London mayor can directly and indirectly help. They must ensure that pioneering policies in the UK and Europe are successful, such as the EU ETS, new schemes to enable private investment in energy efficiency (the "green deal") and renewable heat (the renewable heat incentive). New initiatives, such as the Capital markets climate initiative launched by Greg Barker, a UK climate change minister, need to become successful long-term platforms for policy-makers and financiers to come together and help create solutions to climate change.
Government can also make sure that London's academic innovators in the climate change space, such as Imperial College, get the technology research funding they need to succeed. The greenest Olympics ever and the Olympic legacy can also be designed to support green and low-carbon entrepreneurs. In addition to these efforts, we must quickly send the right signals to businesses and investors that London is serious about success. The new UK green investment bank should be located in the capital, for example, and London's newly promised enterprise zone should be designed to attract and support green innovators over the long term.
These measures can help keep London ahead of the game and support our economic recovery. This will help Britain earn its way in the world, transform our planet for the better and, just perhaps, salvage something of the reputation of bankers.
• Ben Caldecott is the head of European policy at Climate Change Capital
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