Even as worldwide venture investments in clean technology plunged more than 40 percent in the first quarter of 2009, a report has highlighted that governments globally are allocating historic amounts of capital to clean technologies through stimulus packages, loan guarantees and tax incentives, which will enable the cleantech industry to continue to develop.
A report titled `Towards a Global Green Recovery’, which was scheduled to be presented at the G20 Summit in London recently, indicated that almost $400 billion of some USD $2.6 trillion in economic stimulus allocations announced so far by G20 nations are earmarked for clean technologies such as renewable energy.
Overall, first-quarter venture investments in clean technology in North America, Europe, China, and India totaled $1 billion, down 41 percent from the previous quarter and down 48 percent from the year-ago period, according to preliminary figures released Wednesday by San Francisco-based Cleantech Group, a research and media company, and accounting and consulting firm Deloitte & Touch. Solar technologies raised $346 million in the first quarter, with SolFocus raising $67 million from Apex Venture Partners, NEA and NGEN.
The financing in this sector is being characterised by diversified funding sources, as the global recession and liquidity issues impact venture investors.
According to Scott Smith, Leader of CleanTech for Deloitte, utilities are also stepping up to fill the funding void and making equity investments in companies.
