‘Clean technology’ has captured the attention of government, corporate and financial leaders, with spending on related R&D rising to 33 billion Euros in 2006, up 9% from 2005.

The warning signs of a bubble in the energy segment come from the initial public offerings (IPO), the combined value of which rose from 1.1 billion Euros in 2005 to 2.8 billion in 2006. At the same time, venture capital funding raised went from 426 million Euros up to 1.02 billion, primarily on solar and biofuel deals.

“The energy segment looks overheated,” says Lux Research president Matthew M. Nordan. “There’s no way that more than a fraction of the 930 energy start-ups operating worldwide can possibly succeed.”

In contrast, other clean sectors are a bit in the shadows. Lux Research mentions the waste segment, which accounted for 32% of merger and acquisition value in 2006, but only 1% of the IPO value and 4% of the venture capital value. So, it might actually be a good idea to put your money into the forgotten opportunities in the waste sector.

More Information:

Website Lux Research Cleantech

Press release Clean Technology report