Cleantech investment should not only be provided by VC, but also government funding is necessary. The resources of the World will not sustain our population growth if you look at our system dynamics. If we don't do something to reuse the natural resources now, human population's standard of living will decrease when resources run out. Hence, it is critical that we plant some seeds now to save the future for our grandchildren and great grandchildren
Ashish, this is a very important factor that has contributed to China becoming the leader in cleantech production. In the US, for example, when acquiring lands to build wind farms, there is usually a long legal battle that can ensue to delay or halt a clean energy project, not to forget protests.In China, on the other hand, if the government decides that a specific tract of land is required as a candidate for a wind farm, they take it over, relocate the population and are not intimidated by protesters.There is no debate or drawn out legal battle or any concern of potential noise pollution or unsightly views.Clearly when a government can act like this, it can have a competitive advantage, so to answer your question Ashish, I do believe that this kind of policy is a major factor in their leadership position, but I also don’t want to take away from China’s strategic approach to this as well.
Right now China’s cleantech investments are money losers, but this is a long term strategic vision.Not many governments around the globe in today’s current economic environment can invest the way China is in cleantech.They intend to become the leading exporter of clean energy in the future and are on track to achieving this.The US government should be doing much, much more.
Having gone through the reports and charts you posted here,it looks like China is winning the Cleantech battle hands down(thanks to an extremely strong push from the Govt).
While our Politicians only talk about making America a cleantech superpower the Chinese are actually walking the Talk.
But how strong a factor are NIMBY(Not in my Backyard) in your opinion? like that one opposed by the now deceased Senator Kennedy in the North East who refused to allow offshore windfarms because it would spoil the view from his property there?
In China the Govt does'nt care about NIMBY,what the Govt wants it gets,regardless of opposition from the local people.
That takes it the question to philosophical heights. (or should I say depths?) Does one deserve credit for doing good if the motives were less than altruistic. It is a rare person indeed who only has the purest motives for his/her actions. Even when politicians pass laws that are beneficial to the public, they are also thinking about how popular that will make them, so it becomes a step towards re-election. I'm still influenced by Election Day, I suppose. In truth, though, it is almost impossible for an individual or a company to not take such considerations into account. I'm sure that corporate sponsors of the arts, parks, wildlife conservation, etc. do value what they promote, but they also must be thinking about the good will they gain when their names are up there, as well as the tax write-off.
Yep, Ariella, it's all about the profits. This goes back to some other discussions we've had on this site: As long as a company does the right thing, does the motivation matter? I'll admit I go back and forth on this matter. Sometimes, I feel the motivation to do do good is important; in others, as long as the result benefits the planet whatever spurred the action is cool. In yet others, companies need a kick in the pants in the form of a law or mandate.
These are questions well worth asking and worth discussion and thanks as always for your feedback!
I wonder if the fact that companies expect to profit from these investments will accelerate their development? I would think so, Barbara. With private sector investments, profit is the ultimate motivator. Concern for the environment alone is usually not enough to get companies to put money into clean technology, though I'm sure it is a factor. Another factor, of course, is the good will a company can gain with a reputation as a green company. But the payoff for those is not as tangible as the bottom line of the business.
To shed some more light on the subject on worldwide cleantech investing by country and sector, here is an interesting chart that provides a good overall picture, courtesy of the Pew Charitable Trusts, a non-profit think tank:
For those interested in more details on the subject of worldwide cleantech investing and China’s increased activity in this sector, the PEW Charitable Trusts released a very good report with a bunch more stats, which can be found here: http://www.pewglobalwarming.org/cleanenergyeconomy/pdf/PewG-20Report.pdf
Thanks, Dave, and you bring up a great point--expertise in cleantech is going to be exported around the globe as best practices and/or best technologies are adopted. It's also a shame that the issue is so policitized in the U.S. that private industry has to take the lead on this issue. I wonder if the fact that companies expect to profit from these investments will accelerate their development?
Hi Barbara, clearly China is on a spending spree since there are aggressive government mandates and targets to install solar power and wind turbines to meet its country’s demands for energy.They have a strong manufacturing base which allows them to build the devices and components necessary for solar power and for wind turbines, among other forms of renewable energy.While in the US, as you mentioned, the private sector is leading the spending on cleantech investments as the US outpaces the world in spending by the private sector.The US needs to spend more and the government has to set mandates, like China is doing, which will create jobs and enhance our position in the world in this sector.This has proven difficult because anytime cleantech or renewable energy is mentioned, it is usually lumped in with global warming concerns which then becomes politicized and stalls any moves by the public sector.The US needs to put global warming topics aside as it pertains to cleantech, and invest much more in this technology or the country will totally lose its competitive advantage.China is on its way to becoming the main exporter of cleantech technologies, which is what the US should be striving for.
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