The Clean-tech boom is concentrated in the industrial world. If emerging and developing economies judiciously shift investment strategies and concentrate on green research, they can achieve equivalence with the developed world. Otherwise Clean-tech may become instrumental in perpetuating North-South divide on one more parameter.

Signposts:

P      Carbon trading has grown tremendously to $11.2 billion in 2007. US and Europe have a monopoly in this regard accounting for over 50%.

P      Low interest among business leaders of the developing economies to look ahead and invest in exploring break-through technologies.

P      Growing interest in emerging economies to stay ahead of the Clean-tech race:

R            China – Solar water heating

R            India – Wind turbines

R            Brazil – Ethanol

Drivers:

P      Clean energy technologies are becoming cost competitive with their counterparts

P      Clean- tech revolution is diverse and spans from wind energy, green buildings, hybrid cars, hydrogen cells to mass transit systems, waste treatment, organic farming, sustainable forestry etc. Therefore these technologies will have worldwide diffusion.

P      High import dependency along with financial constraints and risks of accidents undermine the prospects of coal and nuclear energy. Emerging economies are bound to shift to renewable sources and energy saving production technologies.

P      Increase in oil prices in 2005 – 2007 led to an ethanol frenzy, with private equity investments in bio fuels shooting to $ 1.1 billion

Impact:

P      The spread of clean tech will lead to new politics and new security debate in the world

P      Green politicians may revise the basic concept of security and advocate sustainable relationships within and between societies.

P      Emerging and developing economies will be able to use clean tech as a leveller of global economy and create a relatively equitable world.