An Index to track the performance of more than 75 Australian-listed stocks in the cleantech industry with a combined market capitalisation of more than $13 billion was launched today in Melbourne, reflecting the importance of a rapidly emerging industry.

The ACT Australian Cleantech Index, the first of its kind in Australia, will provide investors with a vehicle to diversify into the emerging cleantech investment category.

The new Index is an initiative of Australian CleanTech which provides assessment and investment analysis for the cleantech sector.

Mr John O’Brien, Managing Director of Australian CleanTech, said concerns about climate change and energy consumption have led to greater interest in the cleantech industry and an increase in the economic value of clean technologies.

“For the first time we will be able to provide a picture of the Australian cleantech industry’s growth in a single measure,” Mr O’Brien said.

“In 2007 a trialled ACT Australian Cleantech Index outperformed both the ASX 200 as well as the ASX Small Ords,” he said.

“The growth of the renewable energy sector in Australia will be driven by the Federal Government’s commitment to achieve 20 per cent of energy generation from renewable sources by 2020.”

The ACT Australian Cleantech Index includes over 75 companies, large and small, from Sims Metal Group with a market capitalisation of over $3 billion to Skydome Holdings with a market capitalisation of $5 million – plus a few outstanding performers with CBD Energy posting a 147 per cent increase in returns over a six-month period to December 2007.

The ACT Australian Cleantech Index monitors companies across 14 industry sectors: solar; wind; biofuel; water; waste management/ recycling; energy efficiency, green buildings, biomaterials; energy storage, fuel cells; wave, tidal hydro; biogas generation; vehicle technologies; geothermal; carbon trading; environmental service providers; and ‘other’ additional companies providing sustainable outcomes.

WilsonHTM Investment Group Director of Equity Capital Markets, Mr Jamie Taylor, said he believes the growth prospects for the cleantech sector are strong.

“We are seeing greater activity in this sector and many firms are now looking towards IPOs to provide the capital to fund their growth prospects. It is a trend that we believe is likely to increase in momentum as we see a more supportive regulatory environment emerge in Australia,” Mr Taylor said.

“It is important for cleantech companies seeking investment not to move toward a listing too early. Often a VC investor is a more natural partner at the earlier stages as they can provide both financial support and advice on preparing for life as a public company. There are now a few VC’s in Australia actively looking for opportunities in the cleantech sector,” he said.

According to the US-based Cleantech Network, international investor momentum in the Cleantech industry reached an all time high in 2007 with American and European venture capitalists investing a record US$1.74 billion in the third quarter, bringing the total to more than US$3.5 billion in 2007, an increase of 13 per cent on the previous year.

The ACT Australian Cleantech Index will be updated each month and published on the Australian CleanTech website at www.auscleantech.com.au. Comments on performance will be released on a quarterly basis.