A new survey shows that 92% of Americans think developing and using solar power is important. The results cross political boundaries and favor solar over all other energy sources.

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Clean tech has passed biotech and IT as the top venture capital (VC) investment category in the world. This is after investments in leading clean tech markets increased by 10% in the third quarter of this year.

Cleantech Group released findings on Wednesday showing that the cleantech sector “accumulated $1.59 billion across 134 companies” and this was 10% more than the $1.2 billion it had accumulated in the second quarter.

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French energy minister Jean-Louis Borloo will announce a plan on Thursday for the country to invest 1 billion Euros ($1.46 billion US) in the infrastructure needed to encourage the adoption of electric cars. That investment will buy 4.4 million charging stations, upgrade the power grid, purchase a government fleet of electric cars, and provide subsidies to EV buyers and auto manufacturers.

France hopes that this amount of investment will be enough to get 2 million electric cars on its roads within 10 years.

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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.

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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.

Read more of this story »

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.

So what does this world presently look like? For one, It is not as easy to quantify as the Deloitte’s of the world would want it to be. In fact, Christopher Park from the company referred to standard accounting metrics as “a warm blanket” when compared with the confused and nascent metrics which provide assessment in this space.  Secondly, these markets are not as tested as traditional investment options. The oldest of these players, Calvert Foundation has only been around for ten years in it’s current form. The new-kid-on-the-block-phenomenon is both Social Capital’s largest asset, since apparently Wall Street pre-2008 logic wasn’t exactly perfect, as well as being it’s biggest challenge. Though the perception of Social Capital investments as a novelty, coupled with a palpable unfamiliarity with the valuations make this space seem unlikely to attract traditional capital, maybe ‘Social Investing’ is just a new word for a very old idea.

From the start of capitalism there have been players whose goals were multiple. From the massive endowments of the Rockerfellers and Carnegies to the educational scholarships committed by what today are called ‘high net-worth individuals.’ These acts of philanthropy were the yin to the yang of free-market capitalism. The question now is whether metrics and forcastable, and market-rate ROI can be properly delivered by such investments. Fittingly, Rockerfeller Foundation and Deliotte among others are behind the current push to bring the metrics of high finance down into the social sphere. One such project, called IRIS for ‘Impact Reporting and Investing Standard’s’ goal is to set agreeable metrics so comparing between these investments will be simpler. These metrics will require reporting of data such as: job’s created, revenue, etc., and are the underlying piece to developing the GIIRS, or ‘Global Impact Investing Rating System’, which will be similar to rating agencies in other asset classes. These new elements will undoubtedly smooth the road between capital and investments, if only just through the process itself introducing these actors to one another. There will have to be strong deliberative processes since the space constitutes of everyone from hedge funds to single social entrepreneurs.

While metrics and ratings are one solution to the problem of moving capital into the social sphere, other problems remain. One refrain at the conference was that investors feel comfortable either maximizing their investment returns or giving away money to charity. Oddly enough investors who were asked to invest in these blended value products had so much difficulty bridging these two worlds that they often wanted to  offer the money as a charitable donation. Though there are some reasons for making donations above proper investments due to tax laws, by-in-large this kind of response is nonsensical. Social funds not only infuse money towards inherently sustainable models, which need seed or growth funds, but they can often provide returns on the investments which in some cases exceed market-rate.

To combat this cultural wall, members of the Social Capitorati made the case that in order to attract capital, would-be ambassadors must use only the language of traditional finance. Jed Emerson of Uruhu Capital, who has espoused such social investments for many years discussed how at his fund he only speaks in phrases like ‘risk management’ and ‘qualitative assessment’ which, while they might seem euphemistic, could succeed in bringing down the barriers present for capital infusion into the space.

What is unclear still is how these investments will fit into the traditional investment paradigm-if they eventually are seen as being reasonable options for investors. One way to frame this comes from Skoll Foundation’s Dan Chrisafulli, who said that small and medium enterprises are “durable assets which are very good as part of a blended portfolio.” This seems to be the view of many with regard to the micro-finance space already. What was said as a goal for the sector at the conference is an eventual infusion of between 5 and 15 percent of total assets under management. My question is, what are the distinct borders of the space? As companies large and small begin to analyze more of their unintended consequences, and non-profits find that relying on grants limits their growth possibilities, aren’t we all moving closer to the middle by default?

Lastly, more capital will not mean that social entrepreneurs will have any less challenges- quite the contrary. Just as venture capital creates a few winners (in the neighborhood of ten percent of funded companies really find those 20x returns which fuel the industry), so too will social ventures find challenges along the road to high impact. Juggling multiple goals makes reaching each one infinitely more complex, and without the simplicity of singular attention on profits, running either a business or social enterprises now will  be a much more multifaceted endeavor. This hearkens true for the supply-side of capital as well. While old investments really could boil down to ROI over the short-term, liabilities are everywhere for companies making an impact ( which is inherently larger at scale). The days of only focusing on the bottom line are done. The flip side is that we are no longer living in a bifurcated world where money and meaning are painted as mutually exclusive. While definitions of value will have to become hammered out through intense deliberative processes, only two eventualities could possibly exist: either irreconcilable challenges will emerge, or reasonable fusions are going to be found.

One thing is sure, when the convener of the conference Kevin Jones called Social Markets “the intersection of money and meaning” a year ago at the first SoCap conference, a nebulous middle-path emerged which could-with enough work-make the science of economics just a little less dismal.

Image courtesy Flikr user Sociate via creative commons licensing.

Santa Monica, California-based EV start-up Coda Automotive has raised a cool $24 Million to support the development and 2010 California market entry of its all-electric sedan and funding of its battery manufacturing joint venture.

The funds came after a successful bid under the Series B Investment Round, backed by a team including former U.S. Treasury Secretary Henry M. Paulson, Jr. & Farallon Capital Founder Thomas F. Steyer.

In a press release Kevin Czinger, president and CEO, Coda Automotive said, “Coda’s ability to raise capital under challenging market conditions and the caliber of our investors attest to the strength of our business model (video) and the opportunity that exists in the electric car and battery sectors.”

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Major US renewables company Astonfield is set to invest a massive $2 billion in India over the next five years, the largest single cash-injection in renewable energy ever seen in the sub-continent.

The deal will generate about 1,000 MW of power, most of it from solar sources.

Much of the proposed $2 billion investment will go towards building solar-photovoltaic powered projects with a capacity of 500 MW.

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Electric transport and infrastructure company ECOtality has made a move to expand its manufacturing and distribution operations for electric vehicle charging systems in China by entering into a joint venture with the Chinese firm Shenzhen Goch Investment to establish a manufacturing base in China.

In return for a $10 million investment, Shenzhen Goch Investment will have exclusive sale and distribution rights for ECOtality’s charging stations in China.

The Chinese government has instituted incentives designed to leapfrog the gasoline-based car industry. The state electricity grid has been ordered to set up electric car charging stations in Beijing, Shanghai and Tianjin, and government research subsidies for electric car designs are increasing rapidly in China.

And an interagency panel is planning tax credits for consumers who buy alternative energy vehicles. Already the Chinese government is offering subsidies of up to $8,800 to taxi fleets and local government agencies in 13 Chinese cities for each electric (or hybrid) vehicle they purchase. Shah Agassi’s Better Place is also moving into the potential tipping point Chinese EV charging market.

The New York Times noted a report by McKinsey & Company last fall estimated that replacing a gasoline-powered car with a similar-size electric car in China would reduce greenhouse emissions by “only 19 percent” (since the country gets three quarters of its electricity from coal).

But 19 percent is actually a pretty sizable reduction in carbon emissions. And there is always the chance; (by  adding more wind and solar on a massive scale) of being able to increasingly green the grid in the future.

By contrast, gasoline cars will increasingly run on rivers of blood as we begin to scrape the bottom of the peak oil barrel.

Image via ECOtality

South Korea yesterday announced plans to invest a staggering Won107,000bn ($85 billion) on ‘green growth’ industries over the next five years.

The government predicts the unprecedented cash-injection, around 2 per cent of the country’s entire gross domestic product, will create up to 1.8 MILLION new jobs in renewable energy and environmentally-friendly projects.

In a presidential statement, the country’s leader, Lee Myung-bak, said that the so-called Green New Deal will significantly boost growth and jobs in an effort to ride out the economic slump.

“The aim is for South Korea to become the world’s seventh most competitive country by 2020 in terms of energy efficiency and ability to adapt to climate change,” he said.

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Women entrepreneurs, don’t miss the Keiretsu Forum’s 4th Annual Summer Solstice panel discussion tonight about “How Women Investors and Entrepreneurs Will Revive the California Economy.”

The event will bring together the Bay Area’s most talented minds to:

•          Foster a collaborative atmosphere between women and the angel community
•          Confront the critical issues facing women entrepreneurs and investors today
•          Drive the recovery of the California economy
•          Build businesses and invest in thought out ventures
•          Explore compelling investment opportunities

In addition to a networking reception, attendees will hear brief presentations and a panel discussion regarding the larger role women investors and entrepreneurs need to play in the California economy. More than ever, the angel community is eager to attract women investors. Women investors are considered a largely untapped market that is critical to “financial and mentoring support for new companies.”

REGISTRATION


Please register at http://summersolstice.eventbrite.com $25 by June 26, $40 thereafter.

PANELISTS AND KEYNOTE SPEAKERS

The Summer Solstice will feature a unique panel of business women who will discuss a myriad of issues confronting the entrepreneurial community today. The panel itself will be comprised of notable members and entrepreneurs from the Keiretsu Forum and Women’s Initiative.

Agenda

5:30-6:30pm     Registration, Networking, and Booth Exhibitors

6:45-6:50pm      Welcome and Opening Remarks

6:50-7:10pm     Key Note Speaker

7:10-7:20pm     Panelist introductions

7:20-8:00pm     Panel Discussion

About the Keynote Speakers

Amanda Wallis is the Managing Director, Market Executive for the Northern California and Nevada Regions of U.S. Trust, Bank of America Private Wealth Management.  Wallis is a member of Bank of America’s San Francisco Leadership Team, comprised of the company’s top executives in the market. The team manages the bank’s ongoing relationships with local community leaders and organizations and makes decisions about how to use Bank of America’s resources to support the San Francisco community.

With more than 30 years of financial services experience, Wallis joined U.S. Trust from American Express in London where she served as executive director, and Europe, Middle East, Africa Region Head of the American Express Private Bank. In that role she led a region with seven international locations.  Prior to her role at American Express, Wallis spent over 10 years at the legacy Private Bank of Bank of America. During this period Wallis served in several leadership roles in San Francisco and London.

Wallis earned her undergraduate degree from Smith College and completed the executive program in Leadership and Managing Change at Stanford Business School. In 2007 she was named one of the “20 Most Influential Women in European Wealth Management” by Global Investor Magazine.

Rashmi Sinha is co-founder and CEO for SlideShare, the world’s largest community for sharing presentations and documents. SlideShare is growing rapidly (more than 18 million monthly uniques) letting everyone from marketers, conference speakers and academicians share presentations and connect with others. Rashmi has a PhD in Cognitive Psychology from Brown University and did research on search engines and recommender systems at UC Berkeley. She is a frequent speaker at conferences such as Web 2.0 Expo and Future of Web Apps. She writes a blog at rashmisinha.com about running a startup.

Nissan has announced plans to launch the large-scale production of electric cars and batteries in the United States, with a massive 50 billion Yen ($516 million) facility in Smyrna, Tennessee.

The site will be capable of knocking-out an impressive 50,000 to 100,000 EVs by 2012, with investment possibly DOUBLING to 100 billion Yen (more than $1 Billion).

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A new way to treat wood has trees back in the limelight: a hardwood’s reliability that even a rain forest mahogany tree can love.

The above picture is of the world’s first heavy traffic road bridge made from Accoya® wood. The bridge, located in Sneek in the Netherlands, is “the first wooden bridge in the world that can support the heaviest load class of 60 tons”.  At this week’s Wall Street Green Trading Summit, a panel on forestation introduced a new way of thinking about how to deal with destruction of the rain forest.

>> More from the recent Wall Street Green Trading Summit:   Opening, Carbon Markets, Weird Investments and Solar Panels for All.

I think we can all agree that planting trees is a good way to go environmentally green (they capture carbon like crazy), but lets take a look at that other green for a moment: the green of cash.  Forestation can turn a profit quickly, given that it is one of the few industries in the United States that we know for sure will be cross marketable as a carbon offset industry. 

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Even for a group focused on Investing First and Green Second, this is getting a little silly.

The longer I am here at the Wall Street Green Trading Summit, the less this feels like anything to do with environmentalism.  At some point, when does off-setting stop being feasible, and when does carbon reduction become the name of the game?

>> More Wall Street Green Trading Summit:   Opening, Carbon Markets, Solar Panels and the Electric Grid

This was driven home to me by a presentation on the investment opportunities presented by species banks.  Now, I didn’t even know what a species bank was until today, but apparently you can purchase an offset credit to get around the fact that your company is destroying the natural habitat of an endangered species.  And, there is an entire market based around this principle.

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We’re coming at you no-longer-quite-live at New York’s very own Wall Street Green Trading Summit.

The summit is over for today, but I wanted to throw some concluding thoughts out after an afternoon spent discussing good business models for producing alternative energy and for overhauling our current electrical grid.

>> More Wall Street Green Trading Summit:   Opening, Carbon Markets, Weird Investments.

Two presentations stuck out to me from the afternoon, Tioga Energy and Acorn (no, not that ACORN) Energy.  Without turning this into too much of a publicity-fest for either company, here’s what they were about.

Solar Panels for All

Tioga has gotten pretty good at a business model that I’ve actually heard about in a few different places: effectively, they lease people’s roof space and put solar panels up on homes and businesses.  Then, they sell the energy to the people in the home at a fixed rate (below market value for the customer) that goes up slowly over a 20 year period.  There are options for the owner of the property to purchase the solar panels if they would like to down the line, but until they do Tioga maintains everything for them. This means that the company soaks the initial start-up costs for people: often that prohibitive thing reinventing a small business or a home-owner from taking a plunge.

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We’re coming at you live with more special Red, Green, and Blue coverage from New York’s very own Wall Street Green Trading Summit.

It’s Lunchtime now at the WSGTS, and I just emerged from another dizzying bout of acronyms to find myself totally shocked by how little I know about big market investing. Fortunately, I stumbled on Open Carbon World, an open source project on carbon footprints that is here at the conference.  They have accumulated the following glossary of terms, acronyms and etc. to help novices like me navigate these crazy fast talking presentations.  If I drop one or two over the next few days, please forgive the frazzled brain, and give them a look up!  

>> More Wall Street Green Trading Summit:  The Species Bank?, Carbon Markets, Solar Panels and the Electric Grid

OCW is presenting tomorrow, so I’ll reserve final judgment ’til then, but expect a post on some sweet open source ideas having to do with footprints and offsets.

OCW is presenting tomorrow, so I’ll reserve final judgment ’til then, but expect a post on some sweet open source ideas having to do with footprints and offsets.

OK, so Carbon Trading, huh?

The murky mysteries of the market continue to elude me.  The second session today was all about the carbon offset market: where the money is, where the investment opportunities are and will be, and who is making the rules about what a carbon offset even means.

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China has announced plans to take on the US head-to-head in the race to develop low emission vehicles, with a massive $2.2 billion investment in electric cars over the next three years.

The news comes hot on the heels of President Obama’s announcement of a whopping $2.4 billion investment in electric vehicles in the United States.

The Chinese government hopes that the investment will help the country to make 500,000 all-electric and hybrid vehicles a year by 2011 - and encourage organizations like city governments and airport taxi firms to enjoy subsidies of more than $70,000 on fleets of new vehicles.

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Previous studies of a similar ilk, like the Stern Review, have incorporated social benefits to partially offset the cost of scaling up energy efficient and clean technologies. In contrast, the latest McKinsey report considers only technology-related costs and attaches a figure to the cost of green initiatives in China.

So what is the final damage? While costs are negative for upgrades in some industries, like buildings, due to the savings generated from energy efficiency improvements, a total 1.5-2 trillion yuan (USD 220-295 billion) would have to be spent every year until 2030 in order to reach McKinsey’s alternative scenario.

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Hong Kong tycoon Stanley Ho is most famous in business for his vast and infamous casino empire and unofficial title as one of Asia’s richest people (his estimated US$8 billion net worth earned him the 113th rank in Forbes’ 2007 list of “the World’s Billionaires”). Might news of his recent clean energy joint venture with Portugal’s top power company bring him a new title: “the Chinese T. Boone Pickens“?

According to Macauhub, a government-sponsored news publication-cum-commerce division that reports business-related news in the Pearl River region and in Portugese-speaking countries, Ho has created a renewable energy partner firm with Portugal’s Energias de Portugal (EDP), which will be known as EDP-Energy Solutions Asia.

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At first glance, the latest numbers from the Cleantech Group look like terrific news. After all, they conclude that 2008 was a record year for cleantech investments, with venture deals in North America, Europe, Israel, China and India reaching a total of $8.4 billion, up 38 percent from $6.1 billion in 2007.

But most of that money was dealt out in the first three quarters, with investment slowing significantly – as expected – in the fourth quarter.

According to preliminary numbers, venture capitalists in these regions committed $1.7 billion in 99 deals in the fourth quarter, down 35 percent from the third quarter and 4 percent from the fourth quarter of 2007. In North America, by far the biggest venture-capital region, fourth-quarter investments totaled $1.14 billion, a decrease of 38 percent from $1.83 billion in the third quarter and of 5.8 percent from $1.21 billion in the last quarter of 2007.

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