NYT: Clean Tech Leads Silicon Valley Renaissance

The New York Times today has a great article outlining how energy/clean tech investment is leading a rebound in Silicon Valley:

In Silicon Valley, investment in clean technology — from alternative energy products, like solar panels and hybrid cars, to the use of nanotechnology to solve environmental problems — went from $34 million in the first quarter of 2006 to $290 million in the third quarter, according to an annual report released Sunday by Joint Venture: Silicon Valley Network, a research organization in San Jose, Calif.

And this...

Stephen Levy, an economist with the Center for the Continuing Study of the California Economy, said the growing demand for clean technologies might well make this emerging boom cycle a lasting trend. Developments on the legislative front may help stimulate that growth. In September, California lawmakers set a goal of cutting the state’s greenhouse emissions 25 percent by 2020.

Energy Investment Goes Up, Up, Up

The numbers keep coming. According to a report issued last week by IDC's Energy Insights:

Venture capital (VC) investment in the energy industry through 3Q06 was triple the level of investment in all of 2005, making the energy sector the third-largest VC investment category after biotech and software. Leading VC firms from outside the energy sector are starting to make significant investments in "clean tech."

This echos the December report from the well-regarded VentureOne/Ernst & Young team, which found that "$761.4million has been invested in clean technology on a worldwide basis so far this year, up 50% from $504.1million invested after the first three quarters of 2005."

In the U.S. alone, according to this report, $585.6 million was invested in 60 companies focused on clean tech through Q3 2006, 30% more than was invested in all of 2005.

The Energy Insights report says "Climate change concerns top the list as the key prediction to watch for 2007..."

No surprises there.

Green Agencies Eschew Greenwashing

The New York Times ran an article last week about green ad agencies that must have the folks at Dwell Creative walking on air. The article, "How Looking Green is Looking Good," prominently features this ad from Dwell, which is part of an ad series to promote a recycling program in Maine.

The article profiles a number of boutique firms such as Dwell, Green Team and Big Think Studios (sporting the tagline, "Advertising and design for social change"), which are focused on companies with green products, non profits and foundations. The big agencies haven't totally missed the boat, as BBDO handles GE's Ecoimagination campaign.

These agenices are on the watch for firms that are simply looking to greenwash their products -- "putting a positive public image to putatively environmentally unsound practices."

The folks who have founded these green agencies are not your typical ad guys; they've gone green for a reason:

Leaders of agencies in the green niche say that is because they care as much about the mission as the money. “We want our advertising to inspire true change,” said Mr. Rooks, who said Dwell had rejected assignments that smacked of greenwashing.