Cutting Through the Hype, Searching for Cleantech’s Trillion-Dollar Potential
If we look at the history of any emerging industry, such as the Internet or biotech, it’s plain to see that there is always as much hype as promise. What we’re all calling “clean tech” is no different. But the promise of clean tech is compelling.
We have viable energy production through solar, wind and biomass. Smart-grid technology can more efficiently allocate existing energy output. And building design advances have made remarkable progress in boosting energy efficiency and decreasing pollution. Clean technology innovators are on the move. That’s why so many smart people believe clean tech has trillion-dollar potential.
As CEO of the Washington Clean Technology Alliance, I believe we can cut through the clean tech hype and find some remarkable business potential, especially for Washington state.
Two reasons: First, the U.S. has the basic economic and technological resources in place; second, Washington state has impressive comparative advantages to leverage. But sustained, concerted action between the private sector and government is vital. The risks are real, but so are the economic and environmental dividends, and they’re within reach.
Clean tech is finally achieving economies of scale, which have been so critical in establishing all major industries. Technology and best practices become standardized, expertise develops and costs go down. And clean tech is experiencing some growth spurts. For example, Washington is now the fourth-ranked state in wind capacity. Nationally, wind-energy capacity has quadrupled since 2005.
Along with economies of scale, American federal and private capital spending is impressive. According to Clean Edge, an industry research firm, about $100 billion of the $787 billion stimulus package will go to clean tech investment, according to Clean Edge, an industry research firm. And the United States has the lion’s share of global clean tech venture capital. According to the Cleantech Venture Network, North America got $10 billion of the $17 billion total in global clean tech venture capital in 2009—$5 billion went to Europe and $2 billion went to the rest of the world.
Technology improves as economies of scale are achieved and serious public and private capital is invested. So it’s no surprise that clean tech is more useful and cost-effective than ever before. Solar, smart grid output and green-building practices are examples of clean tech that are becoming cheaper, more recognized and desirable among consumers, utilities and … Next Page »