The year 2011 proved to be a year for clean technology deployments but the sector underperformed due to concerns about sovereign debt, regulatory changes, and increased competition. But, the clean technology industry is expected to benefit in 2012 and could be an important avenue for long-term investors.
Clean Technology encompasses a wide range of industries including solar, wind energy, smart grids, LEDs and biofuels. The industry stands to benefit from powerful secular trends in favor of more efficient use of resources with lower carbon footprints.
"We believe 2012 will be better and note that long-term secular drivers (depleting hydrocarbons, environmental concerns, energy cost arbitrages, etc.) should continue to drive further investment," Jefferies analyst Jesse Pichel wrote in a note to clients.
Following are some tips from Pichel over stock selection within clean tech industry: