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Largest Institutional Investors, with Leadership from CA,
NY, PA & OR, Eclipse $1 Billion Clean Technology Investment Goal
Emerging Cleantech Venture Capital Investment Market
Forecast to Exceed $17 Billion Worldwide by 2010, with 500,000 Potential
Jobs Created and $85 Billion in Related Economic Growth
NEW YORK Sept. 21, 2006 - Seizing on a worldwide trend to develop
lower-polluting, climate-friendly technologies, the Investor Network on
Climate Risk (INCR) announced today that its members have allocated more
than $1 billion of their assets to clean technology ventures over the past
18 months. The investments, announced at the Cleantech Venture Forum XI in
New York, cover such technologies as hydrogen fuel cells, alternative and
renewable energy, water and advanced materials.
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Looking forward, the Cleantech Venture Network® forecasts that cleantech
venture capital investment opportunities for major institutional investors
globally through 2009 are estimated at $17 billion, with $10 billion in
North America, $5 billion in Europe and $2 billion for the rest of the
world. Cleantech Venture Network® research has also shown that for every
$100 million invested into venture-backed companies, 2,700 new jobs are
created and the overall economy receives a 5x positive impact in related
economic growth. (Please note that this research excludes project finance
and other private equity investment categories.)
Pennsylvania State Treasurer Robert P. Casey Jr.'s announcement last week to
pledge $90 million of state funds to a new Keystone Green Fund and other
clean technology investments brings INCR's total clean technology
investments to more than $1 billion since spring 2005. California's two
largest pension funds have led the way, along with state treasurers and
comptrollers from New York and Oregon. All are members of INCR, a
three-year-old alliance of 50-plus leading investors whose collective assets
total more than $3 trillion.
"INCR members are positioning themselves to take advantage of the vast growth
opportunities from the rapidly emerging cleantech and low-carbon global
economy," said Ceres President Mindy S. Lubber, who directs INCR. "We expect
even larger investments in the years ahead as promising clean technologies
gain a bigger foothold in the U.S. and across the world."
"Cleantech now resides with the heavyweights in the world of innovation and
investing," said Nicholas Parker, co-founder and chairman of the Cleantech
Venture Network®. "The $843 million in cleantech deals tracked by the
Cleantech Venture Network® in second-quarter '06 totaled 12.4 percent of
overall venture investment, placing cleantech behind only biotechnology and
software as venture capital investment categories. It is the first time
cleantech has surpassed telecommunications and medical devices and
equipment."
INCR members announced the $1 billion goal in May 2005, when 500 company,
investor and Wall Street leaders gathered at the Institutional Investor
Summit on Climate Risk at the United Nations in New York. The largest
investments have been made by the nation's two largest public pension funds,
the California Public Employees' Retirement System (CalPERS) and the
California State Teachers Retirement (CalSTRS). Details are as follows:
CalPERS, $700 Million: The CalPERS board has $500 million invested in
environmentally screened stock portfolios in the U.S. and overseas. An
additional $200 million has been targeted for private equity stakes in
environmental technology ventures in such fields as energy-efficient
materials, photovoltaics and other renewable energy technologies. Many of
the ventures are based in California.
"CalPERS is pleased that INCR members have reached the $1 billion allocation
target for clean technology and renewable energy, given the growing need for
energy solutions," said Charles P. Valdes, chair of CalPERS Investment
Committee. "This is a good start as we pursue compelling investment
opportunities to develop ways to conserve and augment diminishing resources
and seek energy alternatives that will meet rising market demand."
CalSTRS, $188 Million: CalSTRS has made $188 million of clean sector
investments, including about $150 million in renewable energy projects in
Europe and the U.S.
New York Retirement Fund: $30 Million: The New York State Common Retirement
Fund has made a $30 million commitment to the Carlyle/Riverstone Renewable
Energy Infrastructure Fund I. The fund has raised $600 million to invest in
renewable energy projects, including hydroelectric plants, wind systems,
geothermal and biomass facilities. The CRF has already invested in a wood
burning power plant, ethanol plants, geothermal and solar power plants
throughout North America.
"Investing in renewable energy companies is a sound long-term investment
strategy that will provide the New York State Common Retirement Fund with
strong returns," said New York State Comptroller Alan G. Hevesi. "Businesses
are finally realizing that global warming is not just a theory, but a
reality. Developing sound environmental technologies and businesses will
ensure companies' long-term profitability and help protect our natural
resources."
Oregon State Treasurer's Office, $50 Million: The Oregon Investment Fund this
year approved investments in First Reserve XI, which has extensive
alternative energy technology holdings, as well as Nth Power, a clean energy
capital venture fund that is backing more than a dozen alternative energy
companies.
"Clean technology investing is smart money for the long term," said Randall
Edwards, Oregon State Treasurer. "When you invest in clean technology, it is
first an investment for financial return, and it is also an investment in
energy independence and an installment in our human responsibility to leave
this world in a better condition than we found it."
Pennsylvania State Treasurer's Office, $90 Million: Last week, Pennsylvania
State Treasurer Robert Casey Jr. announced a new $90 million green
investment strategy. About $40 million dollars will be invested in a new
Keystone Green Fund that the treasury office is establishing to leverage
private sector investments in clean technology products that will help the
state's economy. An additional $50 million will be reallocated to investment
managers with a demonstrated track record on their investments in clean
technology stocks.
About INCR
The Investor Network on Climate Risk was launched by Ceres and a group of 10
institutional investors at the Institutional Investor Summit on Climate Risk
at the United Nations in November 2003. INCR now includes more than 50
institutional investors who collectively manage more than $3 trillion of
assets. The group is dedicated to promoting a better understanding of the
financial risks and investment opportunities from climate change. For more
information, visit http://www.ceres.org
or http://www.incr.com
About Clean Energy Investment Working Group
The Clean Energy Investment Working Group (CEIWG) supports INCR members who
are actively exploring new cleantech investment commitments. Ceres and the
Clean Energy Group coordinate the activities of the CEIWG. For more
information, please visit
www.cleaninvestment.org
About Cleantech Venture Network®, LLC
Cleantech Venture Network® LLC is a membership group that catalyzes
investment, business opportunities, and relationships driving the growth of
cleantech globally. The network has over 1100 affiliate members worldwide
who take advantage of the global Cleantech Venture Forums(TM), comprehensive
market research services and reports, online proprietary database of
pre-screened companies, online deal flow, and online directory of investors
active in cleantech. In addition, they provide information services
including the twice a month market intelligence newsletter Cleantech Capital
Alert and the quarterly Cleantech Venture Monitor® report that tracks and
analyzes all cleantech venture investments, M&As and IPOs in North America
and Europe.
Over $500 million has been raised by companies that presented at the Cleantech
Venture Forums(TM) since 2002. The organization has tracked and analyzed
more than $10.2 billion of North American venture investment in cleantech
since 1999 and all European cleantech investments over the past three years.
They have expanded their database to include all M&As and IPOs in cleantech
in North America and Europe.
Further information can be found at
www.cleantech.com or by calling (+1) 810-224-4310.
Contact:
for INCR
Ceres
Peyton Fleming, 617-247-0700 x20
fleming@ceres.org
or
for Cleantech
Matter Communications
Matt Landry, 978-499-9250, x 226
matt@matternow.com
Source: Cleantech
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