Global corporations understand that in order to profit from an economy that is less dependent on fossil fuels, they need to make investments in new energy technologies now.
Shareez Haji, President of research and consulting firm Cleantech Group, says global giants such as Chevron, IBM, Google and Dow Chemical are realizing that investing in clean tech “‘is actually a good way to reduce our energy consumption, a way to reduce our water consumption’ [and] is aligned with ‘we can have some financial returns.'”
Many companies with cash on their balance sheets are looking to invest in the industry and its promising sub-sectors, including energy efficiency, water management, renewable power, energy storage and smart grid. All together, the global market for these applications is expected to double by 2020 to reach nearly $3.6 trillion.
Corporations see massive potential in new electricity production methods and the smart grid, which Cisco sees as a $20 billion+ business within the next five years. In addition, corporate executives running global operations chains recognize that core business activities could be adversely affected by resource and water scarcity around the world.
In contrast to many policymakers who appear to be “dragging their feet” on clean energy, many of the world’s biggest corporations “actually seem to be taking action, it seems to be real, and they don’t seem to be pulling back,” says Dan Bakal, director of electric power program at Ceres, a network of investors and environmental organizations that is emphasizing increased attention to climate change and other sustainability issues.