Jefferies

Press Release

FOR IMMEDIATE RELEASE
Jefferies Investor Survey Finds that Government Subsidies and a Capital Markets Recovery are Key to the Future Growth of the Global Cleantech Industry

LONDON and NEW YORK, 10 February 2011. Jefferies today announced the results of its CleanTech Investor Survey, which was conducted at Jefferies. 10th Global CleanTech Conference with more than 200 European institutional investors in attendance representing over $400 billion of assets under management.

Key findings of the survey include:
 

  • Stable government subsidies and regulation are seen as being the most important growth driver for the CleanTech sector.
  • Nearly 20% of investors are concerned that there will not be a full recovery of the IPO market for renewable energy and sustainable technology companies before 2013, with only 50% of investors expecting a recovery this year.
  • While China has developed a clear cost leadership position, Europe continues to be seen as the hub of innovation ahead of North America and the emerging markets of China, India and Latin America.
  • More than 90% of survey participants believe that 20 gigawatts or more of offshore wind power will be built by 2020, up from 350 megawatts today.
  • Over 75% of investors expect mass adoption of electric vehicles by 2025. Interestingly, this year's investors appeared to be less optimistic about the mass adoption of electric vehicles by 2015 as compared to investors surveyed at our 2009 conference: 8% vs. 47%, respectively.
  • Nearly 75% of investors believe that water will be a mass investible theme by 2020, with 35% believing that we may see this by 2015. However, 10% are skeptical and think that it is unlikely to ever become a major investment theme.
  • Unsurprisingly, Europe and North America are expected to lead emerging economies in the deployment of smart grids.

In a joint statement, Bruce Huber and Amy Smith, Global Co-Heads of Jefferies' CleanTech Investment Banking Group, commented: "The findings of our survey highlight the importance of both a capital markets recovery and consistent government policy to the future growth of the CleanTech industry. Investors are divided as to whether we will see a recovery in the IPO markets this year, with almost 20% of them concerned that a recovery is unlikely until 2013. Consequently, CleanTech companies will need more sector specialist support and access to more diverse pools of capital to ensure the continued growth of their businesses."

Jefferies Group, Inc. (NYSE: JEF), a global securities and investment banking firm, has served companies and investors for 49 years.

For further information and to see the full survey results, please contact:

 

Tom Tarrant, Jefferies, 203 708 5989, ttarrant@jefferies.com
Desiree Maghoo, Jefferies, 44 20 7029 8085, dmaghoo@jefferies.com