Clean Technology Investors Reluctant to Commit Funds

From: Climate Wire - October 17, 2008

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The financial crisis has left capital available for clean technology investments for 2009 in a state of market limbo. Financiers are largely waiting out the storm, with most not committing any new funds to new projects for next year until signs emerge that the credit crunch is easing. And the new financial environment emerging from the collapsed U.S. housing market, featuring fewer banks and investment firms adopting more conservative lending practices, is forcing cleantech companies to scramble to adjust to higher borrowing costs and more intense competition for money.

 

Concerns are also growing that the business community will curb spending on energy efficiency and climate change initiatives next year as corporate executives brace for the possibility of a sharp recession in the United States and much slower global economic growth. Experts worry that disappointing retail sales statistics and growing uncertainty over whether federal government bailout schemes will work, reflected in the roller coaster ride that the New York Stock Exchange (NYSE) has become, will only reinforce the belt-tightening in the markets.

 

"This is a very tough market for any investors," said Andy Katell at GE Energy Financial Services. GE Energy Financial and other firms say they are still committed to complete financing for projects already in the works. That should ensure a healthy climate for clean energy's growth for the remainder of the year. But Katell also confirmed that most new projects seeking financial backing will have to wait until the economy has shaken off the fear that's dominating it now.

 

Related: http://seekingalpha.com/article/99468-sustainable-energy-after-the-correction