Canada: Clean Technology Coming Of Age

Last Updated: July 26 2007
Article by Cheryl L. Slusarchuk

Most Read Contributor in Canada, September 2018

This article begins an interesting four-part series on clean technology and its impact in today’s society. For some, clean technology is a passion. For others, it’s a commitment to their children and grandchildren. But for most of the players in the clean tech space, it’s about ‘doing good business,’ which includes making money.

Clean tech is broadly defined as knowledge-based products or services that improve operational performance, productivity or efficiency while reducing costs, inputs, energy consumption, waste or pollution. For example, clean tech includes alternative energies (such as wind and solar power), information technology, fuel cells, hybrid vehicles, biomass, biofuels, lighting and energy-efficient household appliances.

It’s difficult to underestimate the impact and potential of clean tech. Venture capitalists are increasingly investing in this area, which is significant because these investments are leading indicators of future economic growth. Many large global corporations have or are developing sustainability plans. The World Business Council for Sustainable Development is a CEO-led council of 200 of the world’s largest corporations ranging from insurance to petroleum companies with a collective market capitalization of over $5 trillion. Traditional industry sector companies such as Alcan, Transalta, BC Hydro and Suncor, as well as Oracle and IBM from the information technology sectors, participate in the World Business Council. The purpose of the Council is to develop strategies and provide thought leadership in dealing with sustainability and climate change from a business perspective. In addition to venture capital (VC) and direct business investment, governments are developing policies and funding incentives at the federal, provincial/state and municipal levels to promote clean tech adoption and foster development of those technologies.

North American VC investment in clean tech has more than doubled in the past two years to $2.9 billion, which makes it the third-largest category after biotech and computing. GE alone intends to double its current clean tech VC investment to $50 million by 2008 — and these are just the investments by its VC group. GE’s bigger plan is to double its overall investments in clean tech and renewable energy to $4 billion by 2010. During the first quarter this year, $237 million was invested in alternative energy deals in the US alone. For those who are counting, this represents the lion’s share of this quarter’s VC investment in the clean tech category.

Investment categories go through a number of phases as they evolve. Current data indicates that clean tech is emerging as a defined investment category at twice the pace of biotech’s rise in the 1980s and early 1990s. With the combination of rising energy costs, overall natural resource scarcity, growing demand for environmentally superior products and greatly improved clean tech alternatives, clean tech may capture up to 10 per cent of overall venture capital flows by 2009. It may also capture an increasingly large portion of both M&A and IPO activity. A clean tech market index, called the Cleantech Index (CTIUS) and traded on the American Stock Exchange, tracks this sector and represents approximately $300 billion of market capitalization.

Clean tech investment is ramping up through VC funding, public markets and government incentives. This funding is being consumed primarily by new business opportunities and traditional businesses retooling, and all business interests are optimizing for predicted consumer and social change. New business opportunities are arising, mainly in technology-related areas such as renewable energy, alternative fuels, water treatment, power storage and conditioning, and demand-side management tools.

Sustainability is a key driver in how traditional businesses evolve their products, services and approach to doing business, such as innovations relating to energy and water usage improvement in oil sands extraction. Several other traditional businesses, such as financial institutions, are also taking on clean tech and sustainability principles. Citigroup has committed to spend $50 billion over the next 10 years to address global climate change, and this year, the Bank of America launched a 10-year $20-billion green plan. Even icons of the information technology industries, including Google, are exploring alternatives to reduce their global footprint by providing for alternative energy solutions for energy-intensive aspects of their businesses, such as server farms.

Sustainability is also becoming an aspect of corporate governance for directors and senior executives. Initially, the focus covers the areas of risk management, corporate social responsibility and corporate reputation. Rising public awareness and sustainability concerns are effecting changes in business practice in certain traditional industry sectors. Engaging local communities and obtaining the legitimacy of a ‘social license’ from that community is now becoming standard practice. The Canadian mining industry has played a leadership role in setting global standards in this area.

In this article, we focused on VC and capital flows into the clean tech space. In the next Technology Law Quarterly, we will discuss the impact of clean tech and sustainability in traditional businesses and on corporate governance.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
In association with
Related Topics
 
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions