Cleantech: Revolutionary impact on economy expected

The term Cleantech or Clean Technologies refers to products, technologies and services which increase output or productivity while simultaneously reducing costs, the use of natural resources, energy consumption as well as waste products or pollution. Despite the economic downturn, the rapid development of Cleantech in Europe has not slowed down. This is one of the findings of Cleantech, the Impact on Key Sectors in Europe, a study conducted by international law firm CMS Reich-Rohrwig Hainz and its CMS partner firms in cooperation with independent consulting company Oxford Analytica, which is of particularly great interest now, in light of the recent UN Climate Change Conference in Copenhagen. These new technologies provide important future-proofing tools for the economy especially beyond the financial crisis.

In particular, the Report examines the way Cleantech will develop in four key sectors each of which are on the front-line of today’s issues, namely (1) damage to the planet, including climate change, (2) energy security, (3) commodities, food and water security and (4) huge population growth and longevity. The Report examines the industry sectors Personal and Freight Transport, Real Estate and Construction, Agrichemicals and Water Management and Waste Management.

Central role of EU in development of Cleantech

The study particularly stresses the influence of EU regulations and policies on the development of clean technologies. The direct impact CO2 reduction targets and the Kyoto Protocol have had on companies is already enormous. Such regulations will increase in the future and play a crucial role in all areas of business life. Industries which fail to get on the Cleantech bandwagon and adapt their products to the new challenges will eventually fall by the wayside – as can currently be observed in the US automobile industry. CMS Reich-Rohrwig Hainz is closely following and participating in legal developments regarding Cleantech in the various branches. Given the firm’s presence across Europe and its detailed industry expertise, CMS Reich-Rohrwig Hainz offers its clients future-oriented, business-optimised solutions in this area.

The report also found that:

• Cleantech will have implications for businesses in relation to regulatory shifts, procurement decisions, reputational risks, lobbying needs, lifecycle costing and responsibility, investment opportunities, technology transfer and up-grading IT.
• Policy and regulation, commodity prices, the economic downturn and stakeholder attitudes are the megadrivers accelerating take up of Cleantech.
• Production reductions as a result of the economic downturn will raise commodity prices, providing renewed incentive to turn to Cleantech.
• Parallels with the Great Depression; new technologies that had previously been marginalised were commercialised and helped aid economic recovery.

If you have any questions about the study, please contact Bernt Elsner at bernt.elsner@cms-rrh.com or +431 40 443 1850.

You can download the full study for free here.