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The future for clean and green technology investment

More mature renewable energy sub-sectors such as solar, onshore wind and energy efficiency are attracting the majority of equity and debt while less advanced subsectors are finding it harder to obtain financing.

A new report, published today by Taylor Wessing, discusses this crowding-out effect.  It is driving a wedge between novel technologies and those market sub-sectors which have moved somewhat beyond the arena of technological risk into that of regulatory, land acquisition, planning and development uncertainty.  Scale-up and consolidation within these sectors is capital efficient and of a scale sizeable enough to interest the Venture Finance community.

Less mature technologies are however less likely to receive funding, as investors increasingly see renewable energy as a done deal.  The survey reports an early-stage funding gap for European companies, especially in the biofuels, marine and green transportation sectors.

Should I be surprised that investment propositions based upon wind farm development should be more attractive than those relating to new wind turbine technology?

One Response to The future for clean and green technology investment

  1. I don’t think you should be surprised AT ALL! I think this entirely reflects the relatively risk-averse nature of investment, which so often, and so sadly, prefers the roll-out of proven technology to the creation of new [technical] value.

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