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Green investing beats the blues

2011 saw M&A in the cleantech sector bounce back. In 2010, it had seemed like the world was ignoring green companies, dismissing previous solar and wind project investment as a green bubble. David Prosser asks if investors are looking again at the sector’s long-term fundamentals.

Making investments in cleantech should have been a no-brainer. In a world that had finally come to terms with the threat posed by climate change, and the finite nature of fossil fuel reserves, how could companies with viable low-carbon technologies not succeed? But as developed world economies and their governments came under the fiscal cosh, investing in carbon reduction was no longer the number one priority.