Green entrepreneurs on the look-out for investment will be pleased to here that clean energy backing makes up as much as 10% of VC finance.
A recent study by the Carbon Trust and energy advisers CT Investment shows European private equity investment in renewables reached a total of €2bn during the period 2003-2006.
This places the sector on a par with IT, biotech and semiconductors and marks a major rise in its development, the report found.
If the current rate of investment in the green energy continues to rise at this rate then it will be worth €3.5bn in 2007-2010 – a 75% increase.
Peter Shortt, managing partner, CT Investment Partners, said: “Five years ago, clean energy was not viewed as a sector that could offer good returns for investors.
“Today, it is a multi-billion Euro market where new technologies and business models are already exploiting the opportunities presented by the low carbon economy.
“What is really exciting is that the clean energy is still maturing so we can expect to see many other innovative ideas and high growth companies emerge over the next few years as part of a buoyant clean energy market in Europe.”
The UK is also an attractive place to invest as more than 40% of green energy deals are in this country, the report found.
© Crimson Business Ltd. 2007