Bangalore: The economic slowdown has increased large corporate interest in investing in clean technologies because of the opportunities they offer in boosting operational efficiency and reducing costs.

According to a study undertaken by professional services organization Ernst and Young (E&Y) among 308 executives in global firms operating in the Americas, Europe and Asia-Pacific, clean tech expenditure has now risen to an average of between three and five percent of annual revenues. Two-thirds of those questioned indicated that the adoption of clean technologies was now undertaken at an enterprise-wide level, and that such initiatives were championed by senior managers, reports BusinessGreen.

A further 85 percent said that their organizations were either 'significantly' or 'moderately' accelerating their strategic response to climate change compared with two years ago. Most expected their companies to spend at least $10 million on clean tech investments by 2010, with 22 percent indicating that the figure would be more like $100 million.

Gil Forer, Global Director of Clean Tech at E&Y, said that the rising interest and activity of multibillion-dollar global companies in the clean tech arena underscored the increasing number of market opportunities available. "Making good on those opportunities will likely depend on identifying new partnership models that enable corporations and emerging clean tech companies to meet their own objectives while facilitating the arrival of a low-carbon and resource-efficient economy," Forer added.

A key driver behind the move in this direction is the growing demand for finite natural resources as a result of rising population numbers and the increase in middle-class consumers in emerging market economies. These factors, Forer said, were "driving the need for corporations to establish a resource-efficiency agenda to ensure sustainable long-term growth and competitive advantage."