Takeaways from the Guardian UK Cleantech Summit

Last week, more than 200 delegates convened at the Guardian UK Cleantech Summit in London to meet some of the world’s top cleantech companies—drawn from the Global Cleantech 100—and discuss and debate some of the industry’s key trends. It was a lively mix of policymakers, entrepreneurs and venture capitalists. Here’s a summary of the highlights.

In his opening keynote, David Blood, senior partner at Generation Asset Management, called the transition to a low-carbon economy the most significant revolution in history: broader than the industrial revolution, and faster than the technology revolution. Such a task, however, came with key challenges, he said.

Among them was a pathological “short-termism,” blaming failures to date on poor incentive systems, poor governance and failures of leadership. “Short-term profit isn’t investing, it’s trading,” he said, urging politicians, businesses and investors to start thinking and planning for longer cycles. “We need to remind people that this is all about building long-term sustainable economies”.

A greater understanding of the scope and complexity of cleantech is also required, according to Blood. “We can’t solve this problem in the developed world alone; solutions must be applicable in developing markets too,” he said, noting that changes will touch every aspect of business and society.

Blood finished by making the point that it’s easy to say better politicians are needed, but that citizens have the responsibility to force the political will that is required.

Michael Liebreich, CEO of New Energy Finance, predicted a full year investment total for 2009 in clean energy of $130 billion (including VC/PE, asset financing and public market financing), down 16 percent from $155 billion in 2008. He noted that although clean energy investment levels have now recovered to about 2007 levels, stimulus money aimed at the sector will largely be disbursed in 2010-2011, and, as a result, will probably end up working pro-cyclical as the market recovers.

A new survey by the firm was also cause for optimism. Of 106 asset managers asked how their low-carbon investments will have changed in three years, three quarters said they expect it will have increased. A fifth said it would be about the same as it is currently, with only 3 percent expecting decreased investment.

A highlight of the event was a presentation by Nicholas Parker, Executive Chairman of the Cleantech Group, on trends to watch for in global cleantech in 2010. The company's predictions are now available online. Clients are able to download a full 12-page Cleantech Group report, Ten predictions for 2010, here. Non-clients may read a summary of the predictions here.

There was much discussion of the role of the UK in cleantech. There was awareness of the area’s strong natural resources, especially when it comes to wind and marine power, yet the poor translation of them to date into attractive end-markets. Speakers called for the policy framework to be clearer and more consistent. Key area strengths highlighted included a strong scientific base, strong existing companies and expertise in waste, energy and water industries, and some leading consumer companies, such as Tesco, that could embrace and drive cleantech forward.

Other points of interest from the event:

• George Coelho, Managing Director, Good Energies: Lighting is a very exciting area to be in (e.g. LED and flat-panel). Coelho said he’s just been beaten to two deals in this space by U.S. firms but is still on the lookout. He also highlighted sensors and chips for controlling management networks as an area of opportunity in the semiconductor space.
• Mark Williamson, Director of Innovations, Carbon Trust: Watch for innovations that allow onshore technologies to be taken offshore, such as bases for offshore wind turbines. Williamson said he also sees opportunities in offshore services to support new renewable deployments at sea.
• Mark Shorrock, CEO, Low Carbon Accelerator Fund: There are opportunities for new energy services companies, particularly in the UK. He also pointed out that in the energy efficiency space we hear a lot about household efficiency and tend to forget about industrial energy efficiency is also a mammoth opportunity.
• Alois Flatz, Partner, Zouk Ventures: Household energy use for heating and warming water represents more than twice that used for lighting. Flatz called it therefore strange that there is a bigger buzz about efficient light bulbs than about windows leaking heat.

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