In finance, the term cleantech — short for clean technology — is used to refer to various companies and technologies aimed at promoting environmental sustainability. Using the term has varied over the years, with some users treating it in the same way with terms such as “green technology” to refer to renewable energy sources, new recycling methods, and other ecological processes.
Sometimes, the term refers to ways to reduce the negative environmental impact of common technologies, such as coal or natural gas. In this context, terms such as “clean coal” or “clean energy” are commonly used, although many naturalists question the validity of these uses.
The term cleantech has its origins in the venture capital (VC) investment community, which first used the term in the late 1990s and early 2000s. It became famous for Nick Parker and Keith Raab, who founded the Cleantech Group in 2002. Today, the organization – a research and consulting company headquartered in San Francisco – operates as an integrated body of work in the field.
Historically, cleantech was used to refer to a variety of technologies and methods, from solar and wind production to processing improvements that could increase the efficiency of supply chains and production lines. Today, the common denominator of natural phenomena often uses words that have a specific meaning, such as “green technology” or “environmental technology.” However, cleantech indicators remain popular in finance, VC, and business communities.
