Showing posts with label Green Economy. Show all posts
Showing posts with label Green Economy. Show all posts

Japan's Rare Earth Recycling Efforts

Japan is the world's leading importer of rare earth elements or REEs. To compensate for its lack of indigenous REEs, the Japanese government and some of the country's leading companies are working on REEs recycling programs. In 2010 Hitachi first revealed its REEs recycling program than in 2012 Honda announced that it would be launching a program of its own.

One of the primary reason Hitachi has developed the system is to reduce it reliance on China's supply of REEs (China has a virtual monopoly on REEs producing 97 per cent of the world's supply). Hitachi is hopeful that the recycled minerals will supply 10 per cent of its REE needs.

REEs are commonly used to manufacture important renewable energy infrastructure including wind turbines, solar panels. They are also instrumental in the manufacturing of electric vehicles. They are also used for common technologies like smartphones and computers.

In 2012, the Japanese government offered a total of $100 million in subsidies. The government sees real opportunties in the nation's waste. According to Japan's Environment Ministry, the country discards 650,000 tons of products containing REEs. The government believes that they can recycle 280,000 tons of rare earth and other metal resources which are worth ¥84.4 billion [$1.03 billion].

Tokyo-based Hitachi has a REE recycling plan that is cost effective and less environmentally harmful than traditional methods. In 2010, the Japanese electronics and engineering company announced that it was developing machinery for the purpose of recycling REEs. Its mineral harvesting machinery came online in 2013, and is capable of extracting about 100 rare earth magnets per hour from old hard disk drives. The new automated process is eight times faster than traditional manual approaches. The company also indicated it has developed more efficient cutting and demagnetising equipment designed to extract rare earth magnets from compressors.

Hitachi's new system is both more cost effective and less environmentally destructive than traditional methods of extracting rare earth metals from discarded machinery. Rather than use acids and chemicals the company uses a new dry extraction method.

In 2012 Honda and Japan Metals & Chemicals Co. started the first mass-production process to recapture rare earth metals from used Honda parts. In particular, Honda is focusing on used nickel-metal hydride batteries (NiMH). According to Honda their process can recover 80 percent of rare earth metals contained in the used NiMH batteries.

While Japanese companies are looking towards recycling of REEs, South Korean company Samsung is seeking alternatives. Through its Future Technology Cultivation Project, the massive manufacturing conglomerate is financing 27 projects, including research on materials that can substitute the use of rare earths.

While Hitachi is actively recycling REEs, they are also looking into developing REE free technology.  In 2012 they produced an energy-efficient motor that does not use rare earth elements.

© 2013, Richard Matthews. All rights reserved.

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Rare Earth Recycling In Europe

Nowhere is the recycling of Rare Earth Elements (REEs) more of an active concern than in Europe. REEs recycling in increasingly being seen as an important way of harvesting these scarce metals. China has largely cornered the market in REEs with an estimated 35-40 percent of global reserves. With restrictions on their export from China and increasing worldwide demand, REEs recycling is seen as a way around import dependence. REEs include 17 metals essential in the production of many high-tech products including electric cars and wind turbines.

In February 2012, the European Commission highlighted the importance of technological innovation including reycling as a means of securing raw materials. In September 2011 resolution, the European Parliament specifically pointed to the importance of REE recycling.

REE recycling is still in its infancy and a number of technological and regulatory challenges will need to be addressed.

For more information on the issue of REEs recycling see the document entitled ‘Rare earth elements and recycling possibilities‘, which provides a comprehensive overview of what REEs are, and the current challenges faced by the EU with regard to REE supply and recycling.

© 2013, Richard Matthews. All rights reserved.

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Climate Change as an Investment Risk or Opportunity

Climate change is a material investment risk or opportunity and it has emerged as a strategic issue for asset owners and asset managers. The vast majority of investors now incorporate climate change into their risk assessments. This is the conclusion of a report, titled the Global Investor Survey on Climate Change, conducted by Mercer and commissioned by the Institutional Investors Group on Climate Change (IIGCC), the Investor Network on Climate Risk (INCR) and Investor Group on Climate Change (IGCC). This report clearly illustrates that climate change is increasingly a salient part of the investment practices of asset managers and asset owners.

Based on survey responses from 44 asset owners and 46 asset managers with collective assets totaling more than $12 trillion, the report found that 87 percent of asset managers and 98 percent of asset owners now incorporate climate change risk assessments into their investment processes.

Although we are seeing a strong trend across the board, the results of this study indicate that the US is lagging behind their counterparts in other parts of the world, notably Europe, Australia and New Zealand.

The increase in climate risk assessment is being driven by demand from institutional investors including pension funds. Over three quarters of asset owners (77%) want to see climate change considerations integrated into their investments.

Despite this interest there is still very little in terms of contractual requirements as only a small number of asset owners (18%) have developed a formal process to assess prospective managers’ climate efforts.

To properly address the risks and opportunities arising from climate change, investors need tools to help them make accurate comparative assessments. Investors need stable and transparent policy frameworks which provide clarity and certainty.

From a policy perspective, barriers to low carbon investment need to be removed and there is a need to create a relatively predictable price on carbon.

© 2013, Richard Matthews. All rights reserved.



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Smog Pollution Mutes Chinese New Year Celebrations

The Chinese Lunar New Year is usually celebrated with a barrage of fireworks, but this year due to serious smog pollution problems, Beijing has been forced to scale back celebrations. In the Chinese capital there were 23 days of record breaking smog in January, which is twice the recent average.

Last year's pyrotechnical display sent 2.5 microgram pollution levels as high as 1,500 parts per milion in Beijing. This year the reduction of fireworks appears to have had a significant impact as Sunday's readings showed levels around 200 which is well below the readings of more than 700 that were seen last month.

The Lunar New Year's eve celebrations on Saturday February 9th started later than usual and they were shorter in duration. Fireworks are intended to scare away evil spirits but it seems that the Chinese have decided that reducing smog is more important that warding off evil spirits.

The smog was so bad in Beijing in January that schools canceled outdoor activities. The smog also caused a large number of respiratory problems, elevated blood pressure and heart complaints. This prompted the government in Beijing to shut down 103 heavily polluting factories and take almost a third of government vehicles off roads.

In addition to closing factories, and taking cars off the road, China is taking more serious long term action. Because car emissions are one of the major contributors to smog, China is putting a new gas standard in place that caps sulfur content.  This will take effect at the end of the year, with a grace period extending to the end of 2017.

As part of a drive to cut energy consumption by 300 million tonnes of coal,  in August 2012, China announced that it is planning to invest $372 billion into energy conservation projects and anti-pollution measures over the next three-and-a-half years. The government has earmarked almost half of that amount ($155 billion) for projects that reduce energy consumption.

China is already almost halfway to meeting its target of cutting energy intensity 16 percent below 2010 levels by 2015. They have also targeted a 21 percent energy intensity reduction for industry.

The State Council plan said steel producers must reduce their energy use per unit of production by a 25 percent over the five years, coal-fired power plants by 8 percent and cement manufacturers by 3 percent. Seven Chinese cities and provinces will also launch CO2 emissions trading schemes over the next two years ahead of a national scheme set to commence later in the decade

However more will need to be done to curb the soaring fossil fuel consumption that is powering China's prodigious economic growth. At present China is the world's biggest emitter of greenhouse gases (GHGs) However, the nation plans to cut its CO2 emissions per unit of GDP by 40-45 percent from 2005 levels by 2020.

To achieve these goals China has phased out thousands of old, inefficient factories and fossil fuel-fired power plants while becoming the world's biggest producer of renewable energy.

Despite these efforts China's GHG emissions continue to rise. In 2011 China's carbon output grew by 800 million tonnes to 9.7 billion tonnes, or 29 percent of the world's total CO2 emissions. These levels of emissions are expected to keep rising until 2030.

© 2013, Richard Matthews. All rights reserved.

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Event - Carbon Professional Path: Fast Track

Carbon Professional Path – Fast Track will take place on Feb 26 to Wed Feb 27, 2013, in Toronto, Ontario. The 2-Day program offers CSA Groups globally recognized, professional GHG Inventory Quantifier Certification. Completion of  ‘Carbon Professional Path – Fast Track’ program builds competence to develop, quantify, assess and report GHG Inventories.

HRCarbon’s Carbon Professional Path to CSA GHG Inventory Quantifier Certification Fast-Track Program includes the following two courses:

• Corporate Carbon Management
• CSA Examination Review

For more information click here or phone 416.628.4196 E-mail: courses(at)hrcarbon.com

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Event - Sustainable Communities Conference and Trade Show

The Sustainable Communities Conference and Trade Show will take place on Feb 13 - 15, 2013 at the Caesars Windsor, Windsor Essex, Ontario.

Hundreds of cities and communities across Canada are leading the charge towards local sustainability and the shift to a green economy. Every year, they come together to share their experiences and discuss the latest strategies for sustainable community development.

Be part of this exciting forum for municipal sustainability champions. Attend the 2013 Sustainable Communities Conference (SCC) and Trade Show hosted by the Federation of Canadian Municipalities. Themes and Streams for 2013

This year's conference theme, "Building Blocks for the Next Generation", focuses on best practices in sustainable development from a wide range of Canadian communities and regions, and highlights innovative projects. Sustainable communities are built upon sustainable infrastructure, including high-efficiency facilities; leadership to envision and implement change; the skills to manage physical and human assets; and a willingness to test and develop new technologies.

This year's Conference will explore three content streams:

1. The Culture of Leadership: Share examples of how leadership can effect changes in policy, process, scope, timelines, or partners, in the pursuit of local sustainable development. We encourage profiles of leadership driven by diverse stakeholders-including mayors, councillors, municipal staff, community groups, residents, businesses, etc.-that have increased citizen engagement, reached new constituencies, improved efficiency in managing public assets, and demonstrated new approaches to sustainable development.

2. Sustainable Infrastructure: Demonstrate viable options for building, retrofitting, repairing and maintaining infrastructure, to help it last longer while reducing its environmental impact and fostering sustainable living. We encourage examples that account for cost over the full lifecycle of the investment.

3. Innovation and Technology: Introduce new technologies and innovative approaches to advance sustainability in changing times. We invite demonstrations of technology in action, focusing on prototypes, pilot programs and applications that have been tested in a Canadian municipality. We encourage municipal practitioners and partners to share examples of innovation through processes, technologies and approaches that advance sustainability.

Why attend

Whether you're planning or have already begun your journey to a sustainable community, the SCC will help to put you on the fast-track to successful project design, implementation and cost recovery.

Gain insight into the latest trends on sustainable development Discover best practices for making communities more socially, ecologically and economically vibrant Network with other municipalities and sustainability experts from across Canada See leading-edge green products and services in the Trade Show

Who attends

The SCC brings together mayors, councillors, alderman/women, municipal staff, federal and provincial representatives, and private sector and not-for-profit sustainability professionals. More than 450 are expected for the 2013 conference. Why Hold the Sustainable Communities Conference in Windsor?

Windsor is a community in transition. As manufacturing declined, Windsor began a journey of renewal and economic transition. Applying expertise developed over decades of making automobiles, Windsor's companies have begun manufacturing solar panels, wind turbines and biomass generators. The City is also rehabilitating ecosystems degraded by earlier industrial practices. Through site visits and study tours, Windsor-Essex will showcase several of its green initiatives.

For more information click here.

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Will Obama's Actions Match his Words?

There are those who do not believe that President Barack Obama is serious about tackling climate change. Although President Obama made strong statements indicating his willingness to engage climate issues at the beginning of his first term, he ended up doing less than some had hoped. Similarly, during his inaugural address at the beginning of his second term he reiterated his commitment to reduce America's contributions to climate change.

During the 2012 election very little was said on environmental issues. This all changed on inauguration day when the President stated that he intends to act on climate issues. The President's position is supported by the science on climate change, which goes well beyond the fact that 2012 was the warmest year in US history or extreme weather events like Hurricane Sandy.

In his January 2011 State of the Union address, President Obama set a goal of reducing dependence on polluting fuels over the next quarter century. The plan’s central theme was to "Win the Future" through energy efficiency.

In February 2011, the Better Buildings Initiative was announced with a goal to improve energy efficiency by 20 percent. This initiative included: New tax incentives for building efficiency, along with more financing opportunities for commercial retrofits. The President announced support for training the next generation of commercial building technology workers. And finally there was a challenge, a “race to green” for state and municipal governments that would streamline regulations and attract private investment for retrofit projects.

President Obama's second inaugural address put climate change front and center again:

“We, the people, still believe that our obligations as Americans are not just to ourselves, but to all posterity. We will respond to the threat of climate change, knowing that the failure to do so would betray our children and future generations. Some may still deny the overwhelming judgment of science, but none can avoid the devastating impact of raging fires, and crippling drought, and more powerful storms. “

The President also stressed the importance of renewable energy:

“The path towards sustainable energy sources will be long and sometimes difficult. But America cannot resist this transition; we must lead it. We cannot cede to other nations the technology that will power new jobs and new industries—we must claim its promise. That is how we will maintain our economic vitality and our national treasure—our forests and waterways; our croplands and snow capped peaks. That is how we will preserve our planet, commanded to our care by God. That’s what will lend meaning to the creed our fathers once declared.”

However, these words ring hollow for some who want actions not speeches. In fairness Obama did achieve a great deal in his first term. He is the greenest President in American history to date. In fact he did more in his first 100 days than most Presidents have done in their entire four year terms. There are good reasons why he was unable to do more. The first reason is that Republicans are climate deniers of the first order, and the second is that the GOP has been radicalized by Tea Party obstructionism.

Can we take the President at his word? Lisa P. Jacson the outgoing head of the EPA thinks so. According to a Reuters interview Jackson, says that she believes President Obama is serious about efforts to manage climate change.

Even without Congress Obama can do a great deal through the EPA and Executive Orders. However, to make the kind of progress the world needs to see on climate issues he will need the support of the American people.


As the President said in his inaugural address “You and I, as citizens, have the power to set this country’s course...You and I, as citizens, have the obligation to shape the debates of our time—not only with the votes we cast, but with the voices we lift in defense of our most ancient values and enduring ideals.”

“For now decisions are upon us, and we cannot afford delay.”


© 2013, Richard Matthews. All rights reserved.

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British PM Says Investment in the Green Economy is a Competitive Necessity

On February 4, 2013, British Prime Minister David Cameron made a speech in which he spoke to the competitive necessity of his government's investments in the green economy. Speaking at the official launch of the Department of Energy and Climate Change's (DECC) new Energy Efficiency Mission, Cameron boldly addressed his critics by saying

"So to those who say we just can't afford to prioritize green energy right now, my view is we can't afford not to. Far from being a drag on growth, making our energy sources more sustainable, our energy consumption more efficient and our economy more resilient to energy price shocks – those things are a vital part of the growth and wealth that we need."

Cameron made a compelling case for cleantech investment in front of an audience of business leaders. Cameron explained that in the near future, only the world's greenest nations will be able to compete in the global economic race towards a low carbon economy. Cameron further argued that the UK must prioritize investment in green energy and energy efficiency if it wants to be internationally competitive.

"Make no mistake, we are in a global race and the countries that succeed in that race, the economies in Europe that will prosper, are those that are the greenest and the most energy efficient," Cameron said. "Energy consumption is set to grow by a third over the next two decades alone. And in a race for limited resources it is the energy efficient that will win that race."

While some believe that the fragile state of the economy precludes such investment, Cameron flatly rejected that argument by saying that the promotion of the government's wide range of energy efficiency policies is a matter of economic competitiveness. UK currently has an array of policies for driving energy efficiency investments. They include the Green Deal, the carbon floor price, Climate Change Agreements, Enhanced Capital Allowances and the Carbon Reduction Commitment.

However Climate minister Greg Barker, said there was the need for a more "coherent" approach to promoting these initiatives. To that end Cameron is calling for a closer working relationship between businesses and government.

"Already today Britain is one of the best places for green energy, green investment and crucially for green jobs anywhere in the world," Cameron said.

"But I want to go further... I want to bring these [policies] together and really explain to the world, and particularly investors, what is available here in Britain... Together we can make Britain a global showcase for green innovation and energy efficiency. Together we can do the right thing for our planet and, just as important, do the right thing for our economy too."

"It is the businesses that are best insulated from energy price shocks that will be the most successful, it is the consumers who are the least vulnerable to energy prices whose household bills will be the lowest and who can be the most confident about their future. And yes, it is the countries that prioritize green energy that will secure the biggest share of jobs and growth in a global low-carbon sector set to be worth $4trn by 2015."

"Businesses know that going green can boost growth. Our research shows that supporting the UK's low-carbon economy with the right policies could potentially add £20bn to GDP by 2015. said Rhian Kelly, director for business environment policy at the CBI. "Britain must maximize these opportunities to become the leading destination for low-carbon investment and strengthen our exports of green goods and services to the rest of the world."

This is the kind of leadership that should be a model for heads of state in democracies around the world.

© 2013, Richard Matthews. All rights reserved.

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The Green Elements of the First 2012 Presidential Debate

President Obama reiterated his desire to end tax breaks for big oil and reaffirmed his support for new sources of energy like solar, wind and biofuels. The President also stated that his administration has helped to create 5 million new private sector jobs. To increase these numbers the President wants to invest in education and create 2 million new places in community colleges.

For his part, Mitt Romney said "I like coal!" He wants to see the tar sands pipeline ferry dirty oil through the US. He repeated the old Republican refrain of energy independence through more fossil fuel. He also wants to do away with "excessive" regulations.

The President said we tried Romney's approach in 2001 and 2003 and what we got was the slowest job growth in 50 years. Romney chided Obama for 90 billion dollars worth of government investment in green energy.

Obama has offered a detailed plan for how he will achieve his goals, Romney is deliberately withholding specifics but as the President said his math does not add up.

Early polls among likely voters show that Romney won the debate with 67 percent of respondents giving him the victory while only 25 percent favor Obama.

Romney did make an impression. Time will tell whether it will be enough to win him the Presidency and fire-up America's coal powered future. A Romney Presidency will not only abandon clean air and water it will entrench conservatives on the supreme court. Not less than 2 supreme court justices will retire in the next four years and Romney will appoint new judges ensuring a conservative stranglehold on the highest court in the land.

Romney said he likes green energy too. If anyone believes that, they deserve 4 years of dirty air and water. But what about the rest of us, do we also deserve to have our air and water contaminated by 4 years of environmentally irresponsible leadership? Do we deserve a President who will grow a 19th century economy and undermine American competitiveness? Do we also deserve a President who will drive up GHG emissions?

American voters need to understand that a Romney administration will make America less competitive, it will also make it impossible to stave off runaway climate change.

See the related articles below to review Obama's green accomplishments. Below that you will find a summary of Mitt Romney and the GOP's war on the environment.

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The Corporate Sector can Save the World

The Business community may offer the best hope of saving the world from the ravages of environmental decay. In the context of the difficult economic times we are experiencing corporate initiatives may be our best hope for slowing the progression towards worsening environmental calamity. As reported in The Guardian, Peter Bakker corporate, the president of the World Business Council for Sustainable Business (WBCSD), "believes that the corporate sector currently offers the best opportunity for saving the world."In the wake of the disappointing outcome at Rio+20, Bakker is on a "mission to encourage business to implement change at scale." He believes that the short term fate of the world hinges on "the coalitions of the willing," comprised of local efforts, and responsible cities and countries.


Bakker flatly rejects criticism that the 1,000 businesses that descended on Rio are not serious about creating change. As Bakker points the corporate world has made significant progress towards developing their approaches to sustainability. Bakker wants to move the WBCSD beyond merely educating business towards real efforts that have meaningful impacts.

As Bakker points out there are good businesses that work to be more sustainable and there are bad businesses that work to undermine progress.  "The 20% of really bad guys we need to regulate out of existence."

Bakker has developed a four point plan to extend the WBCSD's sector led coalitions to the tire and chemicals industries the same way progress has been made in the cement and forest sectors. This involves sharing best practice and creating common measurement and reporting standards. He also wants to create cross-sector working groups that auger change at city level including public transport, construction and utilities."

Bakker is working on innovative approaches to standardized reporting and he is developing a common methodology for companies to integrate impacts on ecosystems and biodiversity into their accounting systems. More than 50 companies have already signed up to take part and companies like Puma are leading in this area.

New accounting frameworks require financial system to put a value on companies' sustainability performance which is why Bakker also plans to involve financial companies. "The valuation of a business has to change and that's why I need the banking sector to value these commitments," he says. "If the capital markets measured the sustainability of companies then people like Paul Polman at Unilever would be seen as a god."

© 2012, Richard Matthews. All rights reserved.

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Renewable Energy Education for Women

Ecotech Institute, a pioneer college dedicated to renewable energy and sustainability, offers a great environment for women to train for careers in renwable energy. On February 16th, Ecotech held a Women in Renewable Energy meeting to bring together women at the campus to “share ideas, help each other with classwork and empower one another as they embark on a green career.”

"We are focused on making Ecotech a welcoming environment for women because we know they have a lot to offer in current and emerging green careers," said Susan Pawlak, Ecotech's Director of Career Services. "Our Women in Renewable Energy Club is just one way that Ecotech encourages women to make a mark in wind, solar, renewable energy and other industries alongside their male colleagues."

The institution says that an increasing number of women are interested in pursuing a career in green businesses.

The Labor Department states that according to The National Center for O*NET Development, several green occupations are “Bright Outlook” occupations, meaning they are expected to grow rapidly from 2008 – 2018, with a combined increase of 100,000 or more job openings. Some jobs designated as “Bright Outlook” are wind turbine service technicians, solar photovoltaic installers and recycling coordinators.

Ecotech Institute is the first and only college entirely focused on preparing America's workforce for careers in renewable energy and sustainability. Launched in April 2010 in Denver, Colorado, the college offers seven associate's degrees and a certificate program designed by experts in the industry for people seeking careers in the emerging cleantech economy. Ecotech Institute is a division of Education Corporation of America.

To learn more about Ecotech Institute click here or call 877-326-5576.

© 2012, Richard Matthews. All rights reserved.

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Corporate Sustainability is Driving Green Businesses in the UK

Despite a slow economy, corporate spending on sustainability will grow green businesses in the UK. According to a report from research firm Verdantix spending on sustainability by large UK firms on energy, environment and sustainability initiatives will grow by an average of 16 per cent a year for the next three years culminating in a market worth £6.8bn in 2015.

The report predicts spending on sustainability among the 420 UK firms with revenues of more than £750m will rise 12 percent in 2012 to £4.3bn, 15 per cent in 2013 and 17 per cent in 2014 and 2015.

With the UK economy expected to grow at a rate of the 0.6 percent in 2012 the growth of sustainability is welcome news. Growth is being driven by cost savings and commercial benefits that result from green investments.

The report found that sustainable business spending is dominated by the retail, high tech and emissions intensive energy and heavy industrial sectors, which combined account for over three-quarters of the entire market.

The report also revealed considerable variations in the spending growth rate for different green technologies and services. For example, smart meters, electric cars, onsite renewable energy and product stewardship initiatives are all expected to enjoy compound annual growth rates of 22-23 per cent over the next four years, while social responsibility, employee engagement, and lobbying activity will see slower growth rates of around five per cent.

Government green policies are driving spending as well as the awareness in sectors such as retail that firms will face brand damage without a reputable sustainability strategy.

The report acknowledged that sustainable business spending would be in a healthier position, were it not for weaknesses in the wider economy.

© 2012, Richard Matthews. All rights reserved.

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Cleantech Partnerships and Collaborations

In cleantech as with most sectors, partnerships and collaborations are vital to drive innovation and move forward. This is particularly true during difficult economic times. This was certainly the case in 2011 and all indications are that it will be even more of an important trend in 2012.

As reported by Ernst & Young, key players in the electric vehicles (EV) space are collaborating to expand the accessibility and capabilities of EVs. Coulomb Technologies is allowing Dutch navigation systems firm TomTom to access their ChargePoint Network API to enable drivers to find the nearest available charging station and reserve it in advance. CODA Automotive is teaming up with Great Wall Motor Company to develop EVs, a collaboration that will involve integrating the Californian firm’s EV propulsion system with the vehicle platforms of Great Wall. In addition, Ford Motor and Toyota Motor are working jointly to develop a new hybrid drive-train system for light trucks and SUVs.

Here are some other collaborations in the EV sector:

The Crucial Role of Public Private Partnerships in US Battery Technology
Ford Collaboration with Zipcar
Ford and Toyota Collaborating on Hybrid Technology and Telematics
GM Collaborating with LG to Develop EVs
Fisker Buying Engines from BMW for New Cars
GM and BMW are Collaborating on Hydrogen Fuel Cell Development

Companies in the biofuels sector are also forming a series of important alliances to help advance the field. Dow Chemical and Mitsui & Company are creating a joint venture to produce ethanol and biopolymers in Brazil. ZeaChem and US carmaker Chrysler are combining efforts to accelerate the development and adoption of cellulosic ethanol. General Electric (GE) is teaming up with Virgin Australia, Renewable Oils Corporation, Future Farm Industries CRC and Canadian biofuels firm Dynamotive Energy Systems to develop commercial biofuel for the aviation industry.

© 2012, Richard Matthews. All rights reserved.

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California and Other US Leaders in Cleantech Investments

California is well known for its green orientation and this is borne out in the data for 2011. As the world's eighth-largest economy California has unmatched potential. More than any other state, in California the economy and the environment go hand in hand. Despite challenges, California continues to set the pace for policy, practice and green economic opportunity. A green revolution is unfolding, and California has the public support, technology innovation and history of commitment to sustainability to remain at the leading edge of this revolution. Here is a breakdown of the numbers for the US states leading cleantech investment.

According to Ernst & Young, California continued to lead national cleantech investment in 2011 with the state raising US$2.8bn. In Q3 2011 alone, California garnered 52 percent of all dollars with $583.0 million, a 74 percent increase from Q3 2010.

Massachusetts raised the second-highest level of annual investments with US$465.1m. This was a 63 percent increase from last year, said Spencer. Colorado came third in 2011, with investments in the state reaching US$363.3m.

In Q3 both Pennsylvania and Oregon had investments more than triple since Q3 2010, bringing their Q3 2011 investment levels to $85.4 million and $73.5 million respectively.

© 2012, Richard Matthews. All rights reserved.

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Leading US Cleantech Investment Sectors in 2011 Q3 and Q4

Overall 2011 was a good year for cleantech investments but some sectors fared better than others. According to Ernst & Young in 2011 the Energy Storage segment led cleantech investment in Q3, while the solar sub-segment led in Q4.

The energy storage segment raised $421.0 million during Q3 2011, representing a 1,932 percent increase during the same period last year and has raised a total of $865.2 million throughout 2011. Fuel cells led this segment with $225.5 million, representing nearly 54 percent of the overall investment in the Energy Storage segment in Q3 2011. The Energy Storage segment had the top three transactions of the quarter, the largest of which was the $150.0 million raised by Bloom Energy.

Cleantech companies in the Energy/Electricity Generation segment raised the second largest amount in Q3 2011 with $255.1 million, a 2 percent decrease from Q3 2010. The Solar sub-segment led investments with $195.8 million, accounting for 77 percent of the sector’s total investment.

In Q3 2011, the Energy Efficiency segment ranked third with respect to total amount invested, with $245.1 million, a 23 percent increase from Q3 2010. The segment, however, led the quarter in rounds of financing with 21 deals, a 31 percent increase from 16 deals in Q3 2010. The largest transaction in this segment was completed by Bridgelux, a provider of light-emitting diode (LED) solutions, which raised $60.0 million.

Companies in the Industry Products and Services segment attracted $132.0 million, a 22 percent decrease from Q3 2010. The segment ranked third in the number of deals with 15 rounds of financing this quarter compared to 13 in Q3 2010. Additionally, biofuel deals continue to lead the Alternative Fuels segment. With $23.5 million raised, HCL CleanTech Ltd., a North Carolina-based company that converts cellulosic biomass into fermentable sugars, secured the top biofuel deal for Q3 2011.

The solar sub-segment received the largest share of cleantech capital in Q4 2011 with US$284.5m. This figure accounted for 91 percent of the sector's total investment of US$312.9m.

The industry products and services segment raised the second-largest amount in 2011, at $1.0bn, down 34 percent from 2010. In Q4 2011, the segment raised $256.2m. The largest deal was for the quarter was completed by Better Place, a Palo Alto, California-based provider of electric car networks, which raised US$201m.

The energy storage segment ranked third in terms of total amount invested in 2011, with US$932.6m invested. The batteries sub-segment led the sector in Q4. Companies in the energy-efficiency segment attracted $646.9m in 2011, a 29 percent decrease from 2010.

© 2012, Richard Matthews. All rights reserved.

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VC Investment in US Cleantech in 2011

Overall 2011 was a good year for cleantech in the US but the numbers indicate that there may be a cooling trend in investments for 2012. In 2011 we saw increased investment in green technology compared to 2010, but investment slowed in the fourth quarter.

Ernst & Young reports that US venture capital (VC) investment in cleantech companies increased by 73 percent to $1.1 billion in Q3 2011 compared to Q3 2010, while deals also increased by 36 percent to 76, according to an Ernst & Young LLP analysis based on data from Dow Jones VentureSource. On a consecutive quarter basis, dollars invested in Q3 2011 is 4 percent above the amount in Q2 2011.

These numbers led Jay Spencer, Ernst & Young LLP’s Americas Cleantech Director to say, “Confidence in cleantech investing continues despite the challenging investment market. We saw significant commitments in energy storage, which reflects a growing corporate focus on proactively managing their energy mix.”

However, Spencer said the 2011 VC investment represented a 29 percent increase from the US$3.8bn raised in 2009. But in Q4 2011, VC investment in clean tech reached US$940.5m with 70 rounds of financing, said Spencer. This was a decrease of 41pc compared to the US$1.6bn raised in Q4 2010.

"Clean tech is still in the early stages of a long-term journey," said Spencer. "We've reached a point where new products and services are ready to be launched, and as these products come to market, we're seeing renewed interest, innovation and opportunity in clean tech."

© 2012, Richard Matthews. All rights reserved.

What can be Done to Manage the Green Business Slowdown in 2012?

The 2012 State of Green Business Report anticipates a slowdown in 2012, but there are strategies to best manage the hard times ahead. Innovation is the key and this can be achieved through collaboration and cross-fertilization. Collaboration within industries and between industries is crucial to unlock the real potential of sustainable innovation. Cross-fertilization requires more synchronization of activity and adaptation planning, and a common paradigm to work towards.

According to Joel Makower and Ralph Thurm there are some things that can be done to deal with the slowdown in business anticipated. They believe that the answer lies with paradigm-oriented, outcome-oriented and multi-industry based (open innovation) platforms.

Makower is chairman and executive editor of GreenBiz Group Inc., producer of GreenBiz.com. He is also lead author of the annual State of Green Business report and hosts the State of Green Business Forum, the GreenBiz Innovation Forum, and other events.

Makower serves as a senior strategist for GreenOrder, a sustainability management consultancy, and is co-founder of Clean Edge, a cleantech research firm. He is author of more than a dozen books, including Strategies for the Green Economy. He also writes “Two Steps Forward” (www.readjoel.com), a popular blog on green business, clean technology, and green marketing. The Associated Press has called him “The guru of green business practices.”

For Makower the answer to the slowdown is VERGE, a platform to get sustainable innovation further aligned, with dots connected and the real needs discussed.

Thurm is a leading professional in sustainability strategies, operational sustainability and sustainability reporting with more than 20 years experience working for major corporates, industry federations, governments, NGOs and non-for-profit organizations.

Thurm and John Elkington are advocates of Zero Impact Growth. They believe that the Deloitte/Volans ZERO HUB is an open innovation platform that can help achieve this goal.

© 2012, Richard Matthews. All rights reserved.