Climate change policy is indeed frozen, given the political gridlock of Washington. While it is easy to dismiss the direction for clean tech as lackluster given the political climate, the case for clean technology investing is stronger than ever. Globally, clean tech investment is at an all-time high, and mergers and acquisitions are also at record highs, as larger multi-nationals acquire clean technologies that they can leverage and take to market. Clean tech movement in the US at the state and local level is also at a record high, as municipalities and regional public utility commissions scale-up renewable energy requirements. With federal support weakening for clean tech, the States are moving forward, with 22 states implementing clean energy funds, to allow the broadening of clean tech commercialization.
Clean tech companies will be the dynamic growth industry of our generation, as the world must supplement fossil fuel demand given the rapid growth of the emerging economies. Economic growth is the primary catalyst for clean tech, rather than climate change legislation. The only way to power an economy is with British Thermal Units of energy (BTUs), and energy demand from the emerging markets surpassed developed market demand in 2006. This growth will cause the emerging markets to surpass developed market share of GDP growth by 2013. Thus, all marginal demand for global energy will come from emerging markets, led by China and India. This secular trend is why oil consumption has dropped in the developing world, yet the prices are still strong in the wake of the Great Recession. When global growth returns to parity, this trend will catalyze, and global natural resource prices will inflate further. We call this the new paradigm for global natural resources. Clean tech will be the key ingredient for this new paradigm, as the secular shifts take place in China and India. The rise of 3 billion new middle class consumers, moving to cities while driving and eating beef will give increased focused on clean tech implementation.