In the past, the world viewed clean technology as the industry of the future. Experts believed it would save the world from utter ruin. However, slow innovation eventually ate up any significant amount of money put into it. Its glory gradually diminished as investor interest dwindled.
Thankfully, giant corporations like Apple, Google, and Tesla have pulled the green energy industry out of the abyss. Their investments in earth-friendly technology highlight its importance today.
“Interest in clean energy is driven by sustainability issues, oil depletion and energy security concerns. Political decisions, like the Kyoto Protocol and concerns about global climate change, are also increasing interest in this sector,” wrote Zoe Van Schyndel of Investopedia.
The challenge ahead
Nevertheless, clean tech firms have their work cut out for them. It takes a lot of money to convince customers that their products are efficient as they claim them to be. In the past, companies like Aquavive, REV, and Tekion admitted losing millions from bad pitches, and some industry-related problems.
In Tesla’s case, the challenge lies in encouraging enthusiasts to ditch fuel-hungry cars for more energy-efficient models. It has never been an easy cause for Elon Musk. In the past, the company had lost money when the luxury car segment experienced an unprecedented bull market rally.
However, falling investments in the sector do not mean demise at all. This is, in fact, a good sign if you ask the experts.
“The recent fall in clean tech investments is partly driven by the fact that renewable energy has become much cheaper in the past few years. You can buy more energy output for less cash than you could have two or four years ago,” Letha Tawney, Bharath Jairaj and Xuege (Cathy) Lu once wrote in a piece published in World Resources Institute.
“In short, the renewable energy industry is maturing—and investors are starting to take notice. Investors like Citigroup are becoming more optimistic in the industry, claiming that the age of renewables has begun. Green bonds—which direct investment towards environmentally friendly projects—are becoming more and more popular.”
Is the market ready?
Global demand for clean tech is growing. The attention it needs is already here. Data from the UK Department of Business, Innovation and Skills revealed that the total global annual market for low-carbon and environmental products and services is over $5 trillion. This eradicates the idea that renewable energy is just a small, niche market. Sooner or later, a new wave of clean tech industries will spring from the current ones we are seeing, making it more massive that it is now.
Everyone is looking for the “technology of the future.” Take your pick: a self-driving hybrid car, or a solar-powered gadget. Perhaps even a cost-effective treatment of industrial waste, among other things. If you are looking for to invest in an industry, it is undeniable that clean tech is once again on the rise, and might be worth your while.
Corona crisis causes cannabis prices to soar in Berlin
The ban and exit restrictions in Germany are taking effect in stopping the coronavirus pandemic. However, the pressure to prosecute...
Biotech company Evotec is showing strong performance on the stock market
Evotec shares are showing a strong performance, as the price increased by 5.15% this week. The company is expanding its...
The private sector in Algeria on the verge of disaster
The combined effects of the Hirak Movement and the Covid-19 health crisis make companies in Algeria fear the worst in...
AscensionX launched a crowdfunding campaign to build an artificial respirator
The four professionals behind the 3D electronics, modeling and printing studio AscensionX, in Longueuil, wanted to put their skills to...
Public and private collaboration will be the norm as COVID-19 is contained
To reset the economy in 2020, trillions of dollars will be sent to state and local governmental entities. Congress is...
Featured4 days ago
The corona crisis increases demand for loan via Fintech platforms
Featured5 days ago
The Italian FinTech sector is rapidly evolving
Business5 days ago
3 business intelligence trends to watch for in 2020
Biotech6 days ago
Genfit is adapting its activities in accordance to the coronavirus pandemic