Clean Tech May 22, 2009, 3:53PM EST

Climate Change Summit: Green Investing Returns

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The prospect of tapping those funds already has encouraged utilities such as Spain's Iberdrola Renovables (IBER.F) and Portugal's EDP Renováveis (EDPR.LS) to increase their multibillion-dollar commitments to the U.S. market. Other government-led initiatives, particularly in China and Europe, also have spurred additional private-sector spending.

Green Biz Likely to Lead a Recovery

The investment reawakening hasn't been limited to utilities. On Apr. 28, Denmark's Vestas (VWS.CO), the world's largest wind-turbine manufacturer, easily raised $1 billion through an equity-rights issue to fund growth and expansion. And on May 6, Germany's Q-Cells (QCEG.DE), the No. 1 maker of solar cells, pocketed around $740 million for current and future needs by selling its 17% stake in Norwegian solar company Renewable Energy Corp. (REC.F).

Indeed, analysts now see green energy as an industry that's likely to recover sooner than construction or real estate. Share prices of major renewables companies have leaped almost 75% since the start of the year as investment pours back in.

Another corner of green business likely to attract investor attention is residential and commercial energy efficiency. According to Colette Lewiner, global energy, utilities, and chemicals leader at consultancy Capgemini (CAPP.PA), two-fifths of total energy consumption worldwide is in buildings, so investments to improve efficiency, including so-called smart meters that let companies and consumers better monitor energy usage, could lead to business opportunities for both utilities and technology companies.

The Obama Administration has put aside $4.5 billion of its stimulus money for smart meter investment. And Minneapolis-based Xcel Energy (XEL) already is piloting the technology in Boulder, Colo., with plans to expand the project to other cities nationwide.

These business opportunities will form the basis of discussion at the Copenhagen conference from May 24 to 26. No doubt the recession has hit green energy and clean tech investments. But with signs of a recovery under way, investors are likely to focus more on the enticing prospect of making money while helping to save the planet.

Scott is a reporter in BusinessWeek's London bureau .