Due to the global warming effects, broad international
actions are underway, including research and development,
international agreements and the promotion of national,
regional and global policy to reduce hothouse gas emission all
over the world.
The Kyoto Protocol has
already initiated a global long-term budget-intensive process,
of many hundreds of billions of dollars, addressed at the
reduction of hothouse gases.
This process creates a demand
for technologies, products and services that directly or
indirectly reduce CO2 emissions, while products and
technologies that are CO2 emission intensive, will
be increasing rejected.
In this early stage of the
market, there are great opportunities for companies with
emission-reducing technologies and resources. To support this
emerging market, diverse financing, insurance and trade
mechanisms are being developed, including exchanges, brokers,
financiers, analysts and testing resources.
Key Industry Data
Environmental
technologies are one of the fastest growing industry sectors
worldwide. The global market for environmental technologies
currently is projected to grow from about $400 billion today
to approximately $600 billion by the year 2010.
The largest world ET
markets are the United States, Japan, Europe, Canada, South
Korea, the China Economic Area, Brazil, and Mexico. U.S.
exports of about $10 billion support some 170,000 U.S. jobs.
While the U.S. is a
leading producer of ET, it exports only about 6 percent of its
ET output; key competitors such as Japan and Germany export
more than 20 percent of their output.
International
demand for environmental technologies is large and growing
because of:
§Continuous creation and
modification of foreign countries, domestic environmental
regulations;
§Greater attention to
local environmental problems and needs;
§Recently concluded
international environmental regimes requiring the use of
environmental technologies to address global environmental
problems;
§International commitments
to achieve the goal of sustainable development;
§
Industry interest in creating environmental "goodwill" and
using the environment as a marketing tool;
§
Public demand for environmental accountability and improved
environmental quality of life.
According to New Energy Finance,
specialist provider of information and research to investors
in renewable energy, low-carbon technology and the carbon
markets, Renewables and low-carbon technology attracted a
record $100 billion in finance during 2006. In the article,
published in December 2006,
the consultancy said that $70.9 billion of new investment came
into the market in 2006, up 43% on 2005. A further $29.5
billion came from mergers and acquisitions, leveraged buyouts
and refinancing of assets. Some of the most substantial deals
were done on the stock markets, with $10.3 billion raised via
initial public offerings (IPOs), up from $4.3 billion in 2005
and $0.7 billion in 2004.
Frankfurt saw the most IPO activity,
registering 15 clean energy deals, between them raising $2.6
billion. NASDAQ came in second, with 21 deals worth $1.7
billion, followed by the London Stock Exchange's AIM, with 29
deals worth $1.2 billion.
The volume of venture capital and
private equity investment activity grew 167% compared with
2005, to more than $7 billion.
