The collective sigh of disappointment from advocates lobbying for a comprehensive climate and energy bill from the US Senate, has drawn a gray cloud over global climate change discussions. While disappointment is rightly justified, there are at least five big reasons to be optimistic that we will transition the world to a cleaner, smarter world. 

 

1. The #1 venture capital investment area is clean tech. Dominated by a few big players like VantagePoint, Kholsa Ventures and The Westly Group, clean tech has surpassed IT and biotechnology in a big way in 2010 despite the recession. Q1 2010 saw $2.9 billion in VC and private equity investment in clean technology, the largest Q1 investment in history and the 3rd biggest quarterly investment ever.

 

2. Corporate balance sheets are in the best shape in 60 years. GE has invested $10 billion in electric vehicle infrastructure, energy monitoring and wind.   IBM, Johnson Controls, Google, Cisco and many others have made similar investments. 

 

3. There is a new power plant in town. Unlike solar PV fields and wind farms who ‘supplement’ natural gas, coal and nuclear power stations, Brightsource, the concentrated solar power company, provides electricity straight to the grid.  It doesn’t supplement a large power plant - it is a large power plant. 

 

4. National Investment. National stimulus packages dedicated to clean energy and energy efficiency in 2009 totaled $177 billion. Korea committed 80% of its stimulus package to clean energy while China committed 40%. Additionally, new private investment in clean energy has grown from $35 billion in 2004 to $160 billion in 2009 and is predicted to surpass $200 billion in 2010.

 

5. The sneaky LED. Before the Beijing Olympics the majority of the world had never seen an LED. The semi-conductor supported lighting service does not resemble the 132 year old incandescent bulb in your light socket. LEDs are a favorite of the VC community and their price plummeted below $20, sold at your local Home Depot this week. The pleasant light that appeals to consumers and the federal lighting efficiency law combined to bring the LED to market.

 

While it is certainly unsatisfactory that the US Senate cannot pass a comprehensive climate and energy policy, there are plenty of reasons to be hopeful that we will have a cleaner, smarter future. The world is changing before our eyes. Policy will catch up soon enough.