Do you know what cleantech actually means?



When I first started studying the green economy, everyone around me seemed to "know" what the term cleantech referred to, but no one I asked could give me a clear definition.

These are questions I've wrestled with:

- Do cleantech and greentech mean the same thing? (Short Answer: No, not quite.)

- Is cleantech the same as green? Or are they different? (Short Answer: Yes and No)

- Do they refer to an industry? A sector of the economy? A business model? (There is no short answer to this question.)

- Can you find a job in cleantech, even if you aren't highly technical yourself? (Short Answer: Yes)

Definition of CleanTech

It's important to point out that even the experts in this field agree that there is no standard definition of cleantech or clean technology. There are, however, a few definitions that are frequently referenced.

Clean Edge, a clean-tech research firm, defines cleantech as

"A diverse range of products, services, and processes that harness renewable materials and energy sources, dramatically reduce the use of natural resources, and cut or eliminate emissions and wastes."

Pernick and Wilder, authors of The Clean Tech Revolution: The Next Big Growth and Investment Opportunity, give this definition:

"Any product, service, or process that delivers value using limited or zero non-renewable resources and/or creates significantly less waste than conventional offerings."

The Cleantech Group describes cleantech in this way: http://cleantech.com/about/cleantechdefinition.cfm

Cleantech represents a diverse range of products, services, and processes, all intended to:

- Provide superior performance at lower costs, while - Greatly reducing or eliminating negative ecological impact, at the same time as - Improving the productive and responsible use of natural resources

Although each of these definitions is slightly different, we can glean a few important facts from these definitions.

1. Cleantech refers to products, services, and processes. Some cleantech companies may be manufacturers, while others will be companies that provide a service or complete a process for others.

2. Cleantech products, services, and processes are moving beyond business as usual. Although each definition describes the end goal in slightly different words, in each case there's a move toward renewable energy and sustainable resources, reducing the ecological impact, and creating less waste.

3. One definition, created by the investment firm The Cleantech Group, also includes a bullet about creating "superior performance at lower costs."

Let's take another look at the questions I posed at the beginning of this article:

- Do these cleantech and greentech mean the same thing?

No. Although there was a time when both words were used interchangeably, most experts now believe cleantech and greentech refer to different fields. There's some history to this conclusion. If you want to understand the history of the terms, I recommend that you read this blog post by Neal Dikeman ( http://news.cnet.com/8301-11128_3-10012950-54.html

- Is cleantech the same as green? Or are they different?

Some components of cleantech are definitely green - renewable energy, reducing waste, using resources responsibly. In some of the articles I've read, there's a sense that cleantech is more than green. In addition to embodying environmentally sound measures, they are also striving for cost efficiencies and superior performance.

- Does cleantech refer to an industry? A sector of the economy? A business model?

o Most people talk about cleantech as if it is an industry, but it is not.

o In the purest sense, cleantech is actually an investment category. Reports on venture capital investments provide insights into how much money is being invested in this sector of the economy. At least one of the key sources of information about cleantech is an investment group, rather than a trade or industry group.

o Others, such as Elevance (http://www.elevance.com/glossary.htm) refer to cleantech as a business model in their definition: "Cleantech is a business model utilizing technology to improve performance and productivity while reducing costs, energy consumption or waste, and environmental impact."

What Does This Mean for Your Career?

From a career point of view, I believe it helps to think of cleantech as a meta-industry that is made up of a variety of separate industries. The individual industries don't fall into a simple categorization, they are diverse and far-ranging.

If you are interested in working in cleantech, you must understand the industries that are included in the meta-industry. When you know what elements of cleantech interest you, you'll need to immerse yourself in those industries to learn where your skills are an asset.

Even if you aren't highly technical, don't shy away from cleantech as a possible career direction. Remember that all companies, especially those who have moved beyond research and development, will need professionals from all areas of business to ensure they have a strong business.