Investing in Green Technology—The Future Is Here

Toronto, Canada, April 16, 2015 (Newswire.com) - The country investing most heavily in renewable energy was China, which made investments totaling more than $83 billion. Closely following were the United States and Japan. What was once a mere glimpse into the future has indeed now become a reality as developing countries around the world make significant investments in green technology.

Hinsley Ford a Canadian Venture Capital company are looking to expand their borders and are looking toward China for investment opportunities in the renewable energy market. Phillip Greenwood Managing Director & Senior Analyst believes they are very close to funding one of China’s emerging companies but insists it must be a correct fit for both to achieve the level of success expected

What's Behind Green Technology Investing?

Green technology investing, also referred to as clean technology investing, typically involves the selection of investments in companies with sustainable and environmentally friendly practices and products/services. While some clean technologies offer improvements that increase resource productivity and efficiency, others decrease environmental impact. As green technology continues to emerge as a growing force, several strong industry clusters have emerged: water & waste water, energy, advanced materials, agriculture, transportation, energy efficiency, and manufacturing.

Last year, global green energy investment surged, following two years of decline. Growth in green technology investment was largely driven by the solar boom taking place in Japan and China. Investments in renewables climbed to more than $270 billion, according to a report released by UNEP. The report indicated that solar power investments accounted for almost $150 billion, while wind power investments stood at $99.5 billion

As political agendas become greener, much of the capital allocation choices of governmental bodies have been driven toward green technology such as those just mentioned, that are geared at the provision of renewable, efficient energy solutions. While government investments represent a significant portion of global investments in green technology, however, venture capital and private equity firms remain top players in this sector. Lux Capital, for instance, recently announced that it had closed a $350 million fund dedicated to investing in early-stage technology ventures.

Although investments in green technology have virtually exploded in the last few years, such investments are not without challenges. Along with determining which technologies have the potential to be the next big thing, prospective investors must also make their way through the quagmire of regulatory changes often associated with the green technology sector. In spite of those challenges, investors have found that green technology is a good market in which to invest. This is largely due to the fact that costs have continued to decrease, making green technology even more attractive as an investment opportunity. Among the most popular green technology sectors that tend to appeal to investors is solar energy.