Over the last two weeks, a substantial amount of journalism has covered stories that converge on a basic theme: China and India are planning for a world where a) Green Technology drives economic activity, and b) the need for Energy Technology, however “Green” will conflict with available natural resources and drive rapidly increasing investment outside of their borders, and equal demand for innovation on both sides.
For example, China is moving to take large amounts of solar generated power from California. Over the last three years, China’s share of the California market, in terms of supplied megawatts, has risen to 46 percent, from 2 percent, according to a preliminary report by Bloomberg New Energy Finance, a research and consulting firm.
At the same time, the share supplied in California by American companies has declined to 16 percent, from 43 percent.
And while sunshine is abundant in California, already we see the construction of large solar arrays impinging on endangered habitat. It might just be Tortoises now, but how long until it impacts agriculture, or water rights?
And while many indulge in arguments about whether Climate Change is real; China and India are already planning on its impact on their ability to produce food and as covered recently by Thomas Friedman, Technology.
Technology that will drive significant amounts of capital formation for the foreseeable future.