The Green Keeps Flowing to Green

By Rombel, Adam | Global Finance, May 2008 | Go to article overview

The Green Keeps Flowing to Green


Rombel, Adam, Global Finance


Financial turmoil and an economy on the brink of recession are testing US companies' determination to reduce their environmental impact.

Growing fears about a global economic slowdown and the credit crunch wreaked havoc on global financial markets in the first quarter of 2008. Some believe it may also put the brakes on the growth of the emerging green-business field, including alternative energy, technologies to combat pollution and global warming, and green-building techniques to promote energy efficiency.

However, many researchers, advisers and investors say the green-business movement will have staying power. They point to skyrocketing oil prices fueling interest and investment in renewable energy and energy efficiency, government policymakers' urge to combat global warming, and the desire of traditional, non-green businesses to embrace the "green" trend because it makes business sense.

"High energy prices, climate change and energy security are converging as the new engine driving the development of clean energy," Daniel Yergin, chairman of Cambridge Energy Research Associates (CERA) and executive vice president of research group IHS, said in a speech addressing the 2008 National Governors Association (NGA) winter meeting in Washington, DC. CERA, based in Cambridge, Massachusetts, advises energy companies, financial institutions, technology providers and governments on energy markets, geopolitics, industry trends and strategy.

"There is a major shift in public opinion toward clean energy, which is being bolstered by the growing conviction that new carbon policies will reshape the competitive landscape of the global energy business," Yergin said. Others agree that the public sector s backing of green energy is playing a big role and will help overcome the effects of a softer economy. Frank Morris, founder of Ecologic Advisors, a New York-based investment advisory firm specializing in environmental investing, says: "Political pressure to engage global climate change is the main driver of growth in renewable energy. We see these trends continuing, even in a generally weakening economy."

Governments are aggressively subsidizing the development of renewable energy to make it more price-competitive with conventional fossil fuels. And venture capitalists, private equity firms and big non-green companies such as Citi, Dow Chemical and a number of auto manufacturers have followed by pouring big money into green technology and initiatives.

Global investment in clean-energy technologies jumped 60% in 2007 to $148.4 billion, according to a recent report by London-based energy research firm New Energy Finance. This number was revised upward from the provisional estimate New Energy Finance made in December, forecasting a 41% rise in clean-energy technology investment.

The report found growth across all the primary categories of investment. Venture capital and private equity investment in clean-energy companies jumped 34% in 2007 to $9.8 billion. Equity finance provided by public market investors more than doubled to $23.4 billion, boosted in part by the smash-hit IPO of Spain's Iberdrola Renovables. The financing of assets like wind farms and biofuel plants climbed 68% to $84.5 billion, according to New Energy Finance. Government policies around the world to promote renewable power and cleaner fuels, as well as the impact of soaring oil prices and rising corporate and investor awareness of clean-energy opportunities, fueled the investment growth, the report said.

While North America and Western Europe continued to see strong growth, investment momentum spread to include other regions, such as Eastern Europe and Australia. "Even more significant was the pick-up in activity in emerging economies, with China moving strongly ahead with projects in wind, biomass and energy efficiency, Brazil seeing huge investment interest in its sugar-based ethanol sector, and Africa starting to see renewable energy and efficiency as partial answers to its power shortages," the report stated. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

The Green Keeps Flowing to Green
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.