Private investors are putting almost $1 trillion annually into green businesses and technologies, bringing the total invested worldwide since 2007 to $3.6 trillion as of July, according to the latest update from Ethical Markets Media.
The organization’s Green Transition Scoreboard keeps tabs on investments that support the development of an economy based on principles of equity, sustainability and design informed by nature. That includes Green Building, Renewable Energy, Smart Grid, Energy Efficiency and Cleantech.
Ethical Markets expects the $1 trillion annual pace of investments to continue into 2020.
Germany, Japan and the US lead in private green investments and China, Brazil and India lead among emerging nations.
Research and development on products meant to satisfy the evolving purchasing interests of green consumers accounts for 6.7% of the money tracked, or about $241 billion. That’s more than for Smart Grid, Energy Efficiency or Cleantech.
“I believe $241 billion understates by half real global R&D private investments,” says Rosalinda Sanquiche, executive director at Ethical Markets. That’s because some R&D investments aren’t reported for competitive reasons or because they are below reporting thresholds.”
Ongoing brand research estimates that about 30% of Americans are interested in combining pragmatism and purpose.
R&D investments are strongest in the automotive, semiconductor, and electrical components and equipment sectors, reports Ethical Markets.
The full August 2012 report and update can be found here: