FT columnist Martin Wolf argues, quite persuasively, that Copenhagen follow-through will be essential to end climate change. And by follow-through Wolf means incentives -- big subsidies -- for green technology and new technology.

First, Wolf effectively refutes any confidence climate change doubters may have: it's not enough to question the science, because the risks of you being wrong far outweigh the risks if climate change is not occurring. That's because, if the doubters are wrong, there is a climate catastrophe up ahead: a destructive and irreversible climate shift. Conversely, if fossil fuel-based climate change is not occurring, the consequence from cleaner technologies will be the universal use of green energy and renewable energy resources.

The clean technology private equity momentum continues. In New York, a group of partners has launched NewWorld Capital Group, a private equity firm that will focus on mid-market investments in clean energy infrastructure companies in the United States and selectively in Europe.

The new fund will work closely with Ambienta, a European environmental assets private equity firm in Italy. Both said they plan to collaborate on finding and analyzing investment opportunities -- with NewWorld taking care of the United States and Ambienta addressing Europe.

Well, what have you done for me lately, right? Investors, less than thrilled with the returns that venture capital funds have been delivering, are taking their money and going home. The number of new funds launching has thus dropped precipitously, and it looks like the industry will be smaller, with fewer players, according to the National Venture Capital Association.

Of course, the next wave will attract many to ride it, and that could be enough to turn the tide (once again).

Rajendra Pachauri, U.N. climate scientist, has good news and bad news. I'll give you the latter first: eat less meat. Doing so will help slow global warming. The good news, also related to climate change, is that Pachauri, chairman of the Intergovernmental Panel on Climate Change for the United Nations, investing in green technologies now is a smart move. So, by following Pachauri's advice, you cut down on your meat but reward yourself with a decent investment return.

If you take his advice as a whole (pretending you don't know you can do one part without the other), it's like getting paid to eat your veggies. Everyone who's been five years old at some point knows that being given green to eat green is ample motivation. The fun part, here, is that you're financing it by investing in green. It all matches!

Venture capital investment in clean technology grew 10% from the second quarter to the third this year. According to a report by the Cleantech Group and Deloitte, 134 companies received investments of $1.59 billion – up from $1.2 billion in the second quarter. The sector's upward trajectory continues, with last quarter marking the second in a row of double-digit growth. In the first quarter of 2009, venture capital investment in cleantech companies hit a low of $1 billion.

The strong third quarter has made the cleantech sector the largest in the venture capital business, according to the Cleantech Group, pulling ahead of biotech. Twenty-seven percent of venture capital funds invested in the second quarter of 2009 went to cleantech companies – up from 3% at the beginning of 2004.

If you want to feel like what you do for a living makes a difference, you'll soon face an embarrassment of riches.

The alternative energy industry -- the green business -- is about to ramp up its hiring, with the next year likely to show an increase in demand, according to U.S. Labor Secretary Hilda Solis.

We're still in the early stages of this trend, but it's pretty clear that the green energy sector is fast becoming a venture capital darling. Today, for example, five deals were announced in one publication alone (three VC, two acquisitions). The three investments account for $47.4 million in VC investment. And only yesterday, Solazyme picked up another $57 million in its Series C round.

In what remains a capital-constrained market, the cash is still flowing. In the private equity space, investments in clean technologies have remained steady from 2007 to 2008, despite broader economic calamity. Such commitment this early in the game may hint at what the next bubble will be.

Internet search titan Google Inc. (NASDAQ: GOOG) is apparently closing in on its goal to produce renewable energy at a price point cheaper than coal. In an interview with Reuters Tuesday, Google's green energy czar, Bill Weihl, said that the odds of success have improved during the past year, and predicted, "In three years, we could have multiple megawatts of plants out there."

After announcing in late 2007 its quest for "green" energy, the company's Google.org division began investing in solar thermal, geothermal, and wind technologies. The tech firm's keen interest in alternative energy sources was a contributing factor last year when President Obama named Google CEO Eric Schmidt as one of his advisers.

Over the past few months, as election rhetoric heated up and the economy has cooled, one of Barack Obama's recurring themes has been that the secret to America's future will be the development of an alternative-energy economy. To a populace that has grown increasingly weary of the lackadaisical government approach to economic disaster, this has been particularly galvanizing, and was undoubtedly a major influence on the election. Now that Obama has won, however, the next question is how he will transform those exciting New Deal-esque words into concrete action.

John Podesta, co-chairman of the Obama/Biden transition team, may provide a useful insight into this question. In his day job, Podesta is president of the Center for American Progress (CAP), a liberal think tank that is based in Washington D.C. CAP has already drafted a green-energy stimulus plan; with several programs that are ready to go, it would create 2 million jobs, and would cost a relatively meager $50 billion. While there is no guarantee that CAP's plan will be adopted, given Podesta's proximity to the presidency, it seems likely that at least part of it will become reality within the next year. For a savvy investor, this could be a blueprint for industries that are, potentially, poised to explode with a massive influx of new funds.

Green Autos: Obama has made it very clear that he intends to directly tie any automotive bailout to the development of green technologies. CAP's plan calls for a 4% per year increase in fuel-efficiency standards, as well as investment in new battery technology for plug-in hybrids. With this in mind, it's worth seriously considering which automakers are best poised to go forth with more fuel-efficient models. Furthermore, programs like CAP's "Cash for Clunkers" could be a major boon for companies that process or deal in recycled metals.

"We've looked at several ways to play anticipated growth in wind energy; we've also considered titanium makers for that industry's ties to the production of lightweight, modern aircraft," notes Bill Martin.

In his BullMarket.com, he explains, "While the two trends might not appear to have much in common at first glance, Hexcel Corp. (NYSE: HXL) offers a way to play both the aircraft and wind markets.

"The connection is the lightweight, composite materials Hexcel makes that are used by producers in both sectors. Hexcel develops and manufactures advanced structural materials.

"It is the largest U.S. producer of carbon fiber; the world's largest weaver of reinforcement fabrics; and the number-one producer of composite materials.

"Its product was initially developed for the aerospace industry, but is now used in a wide range of applications -- from golf clubs to satellite arrays, and from the rotor blades of wind turbines to life-saving monocoques for Formula 1 race cars.

"It's been a rollercoaster ride for Hexcel's stock in the past 12 months. The shares hit their one-year peak of $27.19 in December 2007; by January 22nd they had plummeted to $17.. The shares rebounded through May, only to fade again. Year to date, HXL is off about 15%.

"Geothermal energy, or heat from the earth, is largely non-polluting, and is renewable and reliable," says Ashley Winters and John Parke.

In Stephen Leeb's The Complete Investor, they look at a trio of plays on geothermal energy: Chevron (NYSE: CVX), Calpine (NYSE: CPN), and Ormat Technologies (NYSE: ORA).

"Throughout the globe, heat is continually produced in a layer far below the earth's crust. Large power plants can capture and use this steam to provide electricity on a fairly large scale.

"In Iceland, by some estimates, 50% of all energy needs are met through an alternative energy source that has been known for a long time.

"Geothermal is used in many other places as well. The largest system in operation is in California just north of San Francisco, in an area known as the Geysers.

"Efforts are also underway to use geothermal heat via 'hot dry rock' technology. Rocks are broken up by pumping water through them at high pressure; water is then pumped through the broken rocks so that it can be heated by the earth's energy.

While the long-term, prospects of biotech are strong, it's not an easy business in light of the high capital costs and FDA compliance. The biotech industry is therefore making some changes by applying the concepts to new categories, such as energy.

Take a look at Range Fuels. The company has technologies that convert biomass (which includes waste materials and non-food sources) into fuel-grade ethanol. A key is that the process converts all the biomass into fuel (which means that there is less energy expended). The upshot is cellulosic fuel that is renewable and green.

Range Fuels is targeting a huge market opportunity. To get there, it has raised more than $100 million in a Series B round. The investors include Passport Capital, BlueMountain, Khosla Ventures, Leaf Clean Energy Company and PCG Clean Energy & Technology Fund.

What's more, the valuation on the deal was healthy. According to the Private Equity Data Center, the post-money valuation on Range Fuels was about $276 million and the transaction had fairly "investor-friendly" terms.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Dell, Inc. (NASDAQ: DELL) has announced that its entire corporate headquarters is now running on "green energy," as the computer maker continues to become one of the most ecologically-conscious companies on the planet. It has competition in the retail sector, though, from Wal-Mart Stores, Inc. (NYSE: WMT) and internet search king Google, Inc. (NASDAQ: GOOG).

All 2.1 million square feet of Dell's Round Rock, Texas headquarters facility is now powered by renewable energy sources -- no fossil fuel burning is present. To get there, Dell has about 40% of its headquarters power needs supplied by a gas-to-energy plan from leading waste disposal company Waste Management, located in nearby Austin. The other 60% of its power needs comes from wind energy supplied by TXU Energy.

Paul Bell, President of Dell Americas, said "Powering an entire campus with green power, in partnership with these two leading companies, is an important step in becoming the greenest technology company on the planet and the right thing to do for our shared earth." He's right, and Dell is expected to save about $2 million per year on energy costs alone with the green conversion of its Texas-based facilities -- along with cutting carbon dioxide emissions at the same time. That's what being green is all about.

I always tell my readers to keep an eye on the Hill in DC. Laws passed have huge effects on some sectors -- and renewable energy (ethanol, to be precise) -- is one such sector. Certain companies within these sectors will benefit -- and in this case, Xethanol Corporation (AMEX: XNL), a renewable energy company focused on alternative energy and new technology, is one such company.

The congressional energy bill passed by the Senate on July 21 and moving into the House this week has a great provision for makers of ethanol. Included in the bill is a provision requiring half of new cars be able to able to run on 85% ethanol or biodiesel fuels by 2015, and a requirement to produce 36 billion gallons a year of ethanol by 2022.

What is somewhat amazing is that the Hill continues to tout ethanol as the big great solution to clean fuel, when the jury is still out on whether or not it is environmentally better than traditional fuels. Some leading experts claim that it takes more energy to make a gallon of ethanol than to make a gallon of gasoline. While I'm eager to find ways to save the environment, I also know that my blog readers are interested in finding ways to line their wallets. So while ethanol may or may not be a realistic long-term energy solution, it is a moot point here: It may be a short-term winner due to Congressional support and public perception that it is a green fuel.

Why, of the biofuel makers, do I put Xenthanol as one of the top picks? For one, because of its focus on new technology: It works with scientists to license and acquire cutting edge technology. And for two, it uses organic waste, rather than the traditional use of corn, to create ethanol. Biomass is not only potentially much cheaper than corn, it also allows XNL to set up shop on the coasts, where demand for biofuel is growing, rather than in the corn-belt where many ethanol producers are located.

On Friday, Xethanol closed up 25%, and corrected 5% on Monday. It also announced the appointment of a new COO, Thomas J. Endres, who adds this title to his existing title of Executive VP. A former military man with many high-level operational posts, Endres was Director of Operations at the U.S. Military Academy at West Point, which meant he managed $2 billion in facilities, a $50 million budget, and hundreds of employees. No question, he is a capable commander of a company. Does he know enough science to run a biofuel company? I'm not sure if it matters, if our government continues to offer such great incentives to ethanol producers.

Type of Stock: A player in the renewable energy sector, Xethanol concentrates on new ethanol technology, producing ethanol from biomass, developing new production plants, and acquiring other alternative fuel companies. It may get a real boost from energy legislation pending in the House.

Stock Price: While the journey is still out regarding the long-term sustainability of ethanol (it is unclear if it is
truly green or not), as long as the Hill continues to support it with incentives, you can still make money on it. XNL's stock has swung wildly in the last year, and has hit as high as $10.50. Currently, it is a sweet buy at $1.35. Risky, yes, but if the House passes the energy bill, watch XNL soar back and hit $5 much sooner than anyone expects.

Hilary Kramer is a financial editor and money coach for AOL and an authority on investing. Visit her at www.hilarykramer.com.

Aleo Solar (Other OTC: AEORF) has negotiated a distribution deal with German thin-film solar module manufacturer Johanna Solar Technology. The five year agreement gives Aleo distribution rights for up to 80% of Johanna's thin-film solar modules. Aleo is widely recognized and well established in the manufacturing and marketing of solar technology.

Jeroen Haberland, executive director of Johanna Solar Technology, indicates confidence in Aleo Solar's marketing capabilities as the two companies set the stage for debut of Johanna's thin-film technology at the 22nd European Photovoltaic Solar Energy Conference in Italy this September. Haberland stated, "We are glad to have in Aleo Solar a long-established company on our side."

Aleo Solar has been growing steadily in both Germany and Spain with indications being that the company is proving itself by stepping outside the boundaries of their subsidized German environment. This gives credence to the idea that solar technologies are forcefully coming into their own age and that solar energy will continue to develop as a workable and profitable energy provision solution. Just this past May, Aleo announced the opening of a new production facility near Barcelona Spain by its subsidiary, Aleo Solar España. In 2006, Aleo was responsible for providing and assisting in the installation of 64 megawatts of solar electrical generation capacity in Spain.