Green Options

Even a year gone since the failure of Lehman, fundamental questions remain regarding the core underlying assumptions of our financial system.

Though currently derivatives trading and black boxes appear out of favour, what will replace them in terms of helpful and productive uses of capital still has yet to be determined. This question was what the Conference on Social Capital Market’s, or SoCap09 tried to give some structure to; while the trend towards sustainable investments and long-term ROI seems to have taken the place of actively managed funds seeking 20x returns.

Even a year gone since the failure of Lehman, fundamental questions remain regarding the core underlying assumptions of our financial system. Though currently derivatives trading and black boxes appear out of favour, what will replace them in terms of helpful and productive uses of capital still has yet to be determined. This question was what the Conference on Social Capital Market’s, or SoCap09 tried to give some structure to; while the trend towards sustainable investments and long-term ROI seems to have taken the place of actively managed funds seeking 20x returns.

Even a year gone since the failure of Lehman, fundamental questions remain regarding the core underlying assumptions of our financial system. Though currently derivatives trading and black boxes appear out of favour, what will replace them in terms of helpful and productive uses of capital still has yet to be determined. This question was what the Conference on Social Capital Market’s, or SoCap09 tried to give some structure to; while [...]

Where is the grid going, big or small?

There were many viewpoints this weekend at TIE’s annual ‘pow-wow’ TIEcon 2009 when it came to cleantech, but if I were to boil them down (in a electric stove running on renewable energy) I would say the essence can be summarized as this: the mundane matters.

I say this not because there was a lack of enthusiasm in the air-absolutely the opposite-rather I say it because a more zoomed-out perspective on cleantech has begun to crystallize, and with that everyone from VC’s to the entrepreneurs bootstrapping their way through the battlefields of innovation has recognized the value of niches within the ‘ecosystem’ of cleantech.

This, of course, is a fitting metaphor for the area of innovation hoping to save us from ourselves. The area of innovation slated to reinvigorate our intuitions about what it means to work alongside nature as opposed to taking it for granted. At the same time, the principles of business and innovation surrounding growth of capital via monetization requires these innovations to return deep profits for those invested. Here’s how that duality played out in real-time:

As the Economist wages the largest debate about bio-fuels in memory, another market opportunity appears to be showing itself in the bio production space as well. Bio plastics have been sprouting up in various applications, but a recent study puts the total market of green packaging at $43.9Billion by 2013. The highest growth gains in this market will be in bio plastics for reasons of price stability and increased capacity the report said. Bio plastics will, it is reported, preform at an annual growth rate of thirteen percent. This spells big news for an industry which currently holds only about .1% percent market share.

Part of the reason for this growth will be due to policy changes which restrict the use of some of the most environmentally damaging materials, but the largest effect seems to be coming from packaging producers themselves. Corporate social responsibility leader Coca Cola has developed a new bottle which is composed of around thirty percent bio plastics with the intended goal of developing a one hundred percent renewable option in the future. Likewise, Wal-Mart has begun sourcing toys and children’s goods made from bio plastics.

The draw is that decomposition coupled with less petroleum based material seems to be better environmentally, but some counter this analysis. According to the Guardian Newspaper, foods producers in the UK such as Innocent Drinks have chosen to stop using bio plastics due to lack of recycling options for the products at present. Likewise there have been claims that bio plastics can be environmentally damaging on par with their petroleum based counterparts. Recent innovations have made it so less energy is needed to create bio plastics and thus it seems the growth of the sector makes environmental sense. Followers of Bill McDonough’s cradle to cradle concept often tout the re-usability and closed-loop life cycle of these products, while others derided their historically slow decomposition rates.  Some applications in the burgeoning bio plastics space are: