Green technology expected to grow to $800 billion by 2012

Access to clean technology remains the focus for the global transition to a resource-efficient and green economy. In 2009, global investments in renewable energy power generation ($140 billion) far exceeded that of fossil-fuelled power generation ($110 billion).

New analysis from Frost & Sullivan finds that the global market value of traditional environmental goods and services, renewable energy and emerging low-carbon activities was estimated at $7,770 billion in 2007-2008, with a growth potential of 45.0 percent by 2015.

With the rise in energy costs and escalating threat of global warming, many businesses are recognizing that the use of green technology will help them reduce their carbon footprints and minimize waste.

Over the last decade, many countries in the Asia Pacific have stepped up initiatives to preserve the environment. Japan, South Korea and Australia are at the forefront of this drive, while emerging economies such as China and India intend to sustain their current pace of public and private investment in all areas of the environment sector including renewable energy, waste management and green technologies.

China and India, with the highest emission intensity index of 1.51 and 1.17, respectively, have vast potential for improvements in the implementation of green practices. Stringent government policies as well as heavy investments in green energy will raise the level of commitment in the public and private sectors.

Emerging economies such as Indonesia and Vietnam tend to accord low priority to environmental issues due to their more pressing concerns regarding high poverty levels and weak governance systems. Thailand still lacks consistency in the development and resolution of environmental issues even though it was among the first Southeast Asian countries to promote an industrialization policy based on fostering foreign investment.

Despite the lackadaisical performances of certain countries, the overall outlook for the environment industry is positive.