Clean Technology investment surges amidst global warming concern, high energy prices and new public policies

Venture Capital Spending up 78 percent in 2006; $19 billion projected by 2010

SAN FRANCISCO (June 5, 2007) – Investments in the clean technology sector soared in 2006, as venture capitalists increased spending by 78 percent to $2.9 billion. Experts say the market is hot amidst concern about global warming, higher energy prices, improved technology, and public policies enacted at the state and national levels. The findings were released today in a new study by the Cleantech Network™ , a Cleantech Group™ Company and Environmental Entrepreneurs (E2).

“It’s a bull market for clean technology,” said Bob Epstein, E2 co-founder and study co-author. “Investors see favorable investment opportunities for renewable energy and other technologies that offer solutions to global warming.”

The report found that cleantech growth in 2006 was driven almost entirely by the energy technology sector. A significant increase in investments during the second and third quarters was driven by capital targeted for companies moving into production. Cilion, Altra, Bloom Energy, Renewable Energy Group, and Nanosolar – all of which represent new renewable energy technology or biofuels – collectively accounted for more than $600 million in investment in 2006.

“Venture capital investments are a primary leading indicator of future economic growth,” said Nicholas Parker, chairman and co-founder of the Cleantech Group. “The nearly four-fold increase in venture investment over the past five years is clearly pointing to an economic mega-trend much larger than hightech and biotech. Sound public policy will serve to accelerate additional job creation and technologybased solutions which will address some of our most pressing environmental challenges.”

The report also found that:

• • • Cleantech is now the third largest venture investment category, ahead of telecommunications and
  • medical devices;
  • • Venture capital investments in the cleantech sector are projected to exceed $19 billion by 2010
  • and create up to 500,000 new jobs; and
  • • Public policy initiatives, such as cap-and-trade, a national renewable energy standard, and
  • increased public funding for research and development, are likely to accelerate cleantech
  • investments.
•  
• The cleantech industry encompasses a broad range of products and services, from alternative energy generation to wastewater treatment to more resource-efficient industrial processes. It is now an established investment category in the public markets. There are multiple stock indices including the Cleantech Capital Indices (CTIUS), WilderHill’s ECO, Ardour Capital’s Alternative Energy Indexes (e.g.AGINA, AGIGL), and Clean Edge’s CELS and CLEN indexes.

The full report, “Cleantech Venture Capital: How Public Policy Has Stimulated Private Investment,” is available at www.e2.org and www.cleantech.com

Environmental Entrepreneurs is a national network of business people who promote sound environmental

policies that stimulate economic growth. Working with its environmental partner, the Natural Resources

Defense Council (NRDC), E2 works through bipartisan efforts to shape state and national policy. E2

serves as a champion on the economic side of good environmental policy by taking a reasoned,

economically sound approach to environmental issues.

The Cleantech Network™, a Cleantech Group™ company, serves a global membership of 1500 of the

world’s premier investment houses with over $3 trillion in assets focused on financing and

commercializing clean technologies. The Cleantech Venture Network® defined and introduced cleantech

as an investment category in 2002. Members of the Cleantech Network have access to over 8,000

cleantech investors and 9,500 cleantech companies worldwide including proprietary deal flow. To

become a member or learn more, please visit: www.cleantech.com