Cleantech on the rise

To succeed in the burgeoning cleantech sector, executives must balance an enormous and complex range of issues, challenges and opportunities. Grant Thornton focuses on four of the most critical areas in which these companies must excel:

Managing unknowns: The gap between governmental policy statements and practical, commercial applications of those policies is vast and fraught with uncertainty. Success in cleantech requires developing solutions that take into consideration government policy but that don’t rely heavily on public sources of funding or other forms of governmental support.

Leadership: Companies will need to assemble astute executive teams, managers, boards and advisers, who are proficient in their specialty areas, flexible enough to capitalize on shifting opportunities and committed for the long term.

Global operations: Decisions regarding investment capital, facilities location, talent recruitment, R&D operations and customer access frequently require international strategy and perspective. Yet operating globally means working with teams or people who have deep, thorough knowledge of local markets.

Sustained focus: Cleantech leaders must keep their eyes on the prize: Developing and commercializing core technologies.

For committed players that can master these four areas, the window of opportunity is wide open and vast.

Cleantech opportunities for 21st-century business “Cleantech” is still a young industry. The term “cleantech” is still imprecisely defined. In our experience, it is not unusual for cleantech market entrants to invest significant upfront time defining who they are — and who they are not — as they seek investors, talent and business alliances. The white paper “Cleantech on the rise” concentrates years of our firm’s professional experience on four areas we believe cleantech companies must excel at if they are to succeed in the sector: - the ramifications of global governmental policies; - global operational and funding opportunities; - corporate management and talent; and - the need to stay focused.

	Arab Spring reignites renewable energy debate Following the unrest in the Middle East and North Africa, and its impact on oil prices, 44% of businesses would now support increased government investment in renewable/alternative energy according to the latest research from Grant Thornton's International Business Report (IBR).

Optimistic cleantech sector Whilst the meeting of world leaders in Copenhagen in late 2009 did not ultimately produce a binding climate change accord, the importance of the cleantech sector to the world economy continues to grow. Both mature and developing economy governments are assigning large proportions of budgets to the sector both to massage public opinion and in the pursuit of economic growth.