California Leads Nation in Clean Energy Policies, Captures 40% of Clean Technology Venture Investments Since 2006

SAN FRANCISCO, Sept. 27 /PRNewswire/ -- Cleantech Group™, LLC, the leading global research, advisory, and events firm focused on cleantech innovation, announced the public availability of a new research report, California in Perspective: A Review of State Energy Policies and Their Impact on High Growth Cleantech Markets.  The report analyzes the impact of the breadth and depth of state-by-state clean energy policies on clean technology venture investments.

Clean energy products and services represent an immense and growing market.  Highlighting four sub-sectors within clean energy as a proxy for overall market growth, the Cleantech Group's new report identifies at least $10 billion of market opportunity in 2010, growing to almost $80 billion of market opportunity in 2020.  The study notes that the overall market for clean energy is orders of magnitude larger than these exemplary sub-sectors and concludes that industry growth can be attributed to many factors, including rising fossil fuel costs, federal and state policy, lowered costs from increasing scale and technical achievements, and higher penetration into existing markets.  

The report finds that every state has enacted legislation in an attempt to accelerate the adoption of clean energy technologies. States are also seizing opportunities to attract new companies, jobs, and investment.  In this race for clean technology leadership, California has distinguished itself at the head of the pack and has reaped the benefits from increases in cleantech investment, employment, and widespread technology deployment.  The Global Warming Solutions Act (AB 32), passed in 2006, has been identified as one of the important catalysts for driving California's continued cleantech leadership.  

In collaborating with Cleantech Group on this report, Environmental Entrepreneurs (E2), a leading independent business voice for the environment, recognizes the market opportunities identified in the report:  "California has captured a larger than expected share of clean energy economic benefits because of clean energy policies like AB 32. These benefits include venture capital investment, new jobs, energy savings for businesses and customers, and improved public health with cleaner air," said E2 co-founder Bob Epstein, adding, "Going forward, more states are likely to pursue policies similar to California's to try to claim some share of these clean energy benefits. For California to maintain its lead in clean energy markets, it needs to continue implementation of AB 32 and other clean energy policies."

The report reveals that:

• From 2006 through June 2010, California clean technology companies have accounted for the most venture capital — both by number of deals and total dollars raised.  California companies received 40% of all dollars that have flowed into market categories related to AB 32.  
• On a state-by-state basis, clean energy policies are represented in every state.  In addition, out of a list of 15 identified clean energy policies, 22 states have 11 or more clean energy policies in place.  
• Clean energy legislation and clean technology is not limited to traditional venture-backed states like California, Massachusetts, and New York.  With New Mexico, Minnesota, and Wisconsin leading, we observe that some states in the sun-belt (Arizona, Texas, Utah, New Mexico, and Florida) and in the rust-belt (Pennsylvania, Ohio, Minnesota, Illinois, Michigan, and Wisconsin) have at least ten clean energy policies and are also up-and-coming leaders in clean technology investments.  
• Many companies have moved operations to California to take advantage of its clean energy policies and markets.  The report identifies four clean technology companies (Kyocera Solar, Silver Spring Networks, Electric Vehicles International, and Propel Fuels) as examples of leaders in their respective industries.

The complete report is available for download at the following link: http://info.cleantech.com/CA-Cleantech-Perspective.html

About Cleantech Group, LLC

Cleantech Group, the leading global research and advisory firm focused on cleantech innovation, pioneered the clean technology category in 2002. Today, it helps its clients make critical business decisions by providing the latest market intelligence through subscription-based research, custom advisory services, and global networking events. The company's growing international client base includes global corporations, investors, entrepreneurs, governments, and service providers. The company also produces the premier Cleantech Forum® and Focus™ events worldwide, including upcoming events in Paris, New York, Chicago, and Los Angeles. Details are available at http://www.cleantech.com.

About E2

Environmental Entrepreneurs (E2) is the independent business voice for the environment. E2 is a national community of individual business leaders who advocate for good environmental policy while building economic prosperity. E2 takes a reasoned, economically sound approach to environmental issues by relying on fact-based policy expertise. As the independent business voice in the debate, E2 is effective and delivers results at both state and national levels through its bipartisan efforts. http://www.e2.org    

SOURCE Cleantech Group, LLC