It is also our way to demonstrate a mark of confidence and our optimism in the future of “Cleantech” in spite of the severe worldwide crisis. This also serves as an occasion to celebrate the birth of our Demeter 2 fund.
Having returned from the world board meeting of the Cleantech Venture Network in the US, of which Demeter is one of the “pioneer” members, I retain two contradictory feelings:
On one side, the daily inner-feelings of the crisis: fewer people in the stores, a higher number of economical cast-offs in the streets, some difficulties for the companies in solar, wind or biomass projects to obtain bank credits. In comparison, the current situation in France seems definitely less critical, at least at this stage, in regard to the social and economical aspects.
On the reverse side, the craze caused by the recovery plan of OBAMA which makes sustainable development and more particularly renewable energies one of the three great pillars of his massive $800 billion economic recovery plan.
The 850 participants of the Cleantech Venture Network Congress in San Francisco (record of attendees since its creation in 2002) were all filled with enthusiasm by this new green gold-rush.
Particularly in solar energy with increased tax legislation and incentives which will allow the innovating projects to multiply: participates showed a strong interest for thin film layers, but also solar thermodynamics (CSP1 with more than 20 projects in order to cover the Californian, Nevadan and Arizonan deserts) and more astonishing for Americans, a strong interest for green buildings and low carbon emission transportation.
All of this is encouraging and is the sign of the beginning of a change of attitude, even if the first reflex doesn’t consist of tackling the design (buildings, vehicles, etc...)but rather the optimization of the existing through a plethora of computing components and electronics.
By expanding our sight on a worldwide level, one notes the same contradictory elements and, from our standpoint, the same reasons to hope.
On one side: a crisis of an exceptional intensity, which brings doubt on the system itself.
A figures arises particularly: since the beginning of the American Stock market exchange statistics which represents 184 stock exchange years, 2008 is the worst year with 1931 (– 45%) for the annual performance!
The industrial companies are crumbling all over the place, leading to massive job losses and to a loss of know-how which will be even harder to reconstitute. Even the private equity field is in an awkward situation and 2009 will most likely see several LBO funds in great difficulty.
On the reverse side: contrary to what one could have feared, the governments and populations did not give up their environmental consciousness and are still keeping environmental issues among their priorities. This is how a European political agreement was reached last December on the climate-energy package, and we are confident in the fact that the Copenhagen Summit will be as successful one as the United States is returning to the negotiation arena with very constructive intentions.
In France, the law enforcement of the Grenelle, still have unanimous support, so rare in France, among the policies and decision makers and concrete initiatives are already coming into force in the LEED field (0% interest loan) and in the green transportation field (acceleration of the tenders to bid of La Poste).
Moreover, the consumers’ behaviors seem to be geared toward the ecological, but not only because of financial constraints.
In short, Tomorrow will not necessarily be our doomsday but it is on the other hand certain that the new business cycle which will be engaged will be greener that the preceding one.
At Demeter, we are convinced that European Cleantech SMEs and particularly French ones are well positioned to face the great industrial green stakes, primarily solar, green transportation, green buildings, biomass recovery and recycling and waste recovery.
We will devote ourselves to do that with Demeter 2 as we did it with Demeter 1.
Good surfing on our new website and do not hesitate to send us your comments and provide feedback!
Olivier Dupont
Chairman of the Management Board
