Finally, some good news for Australia's beleaguered listed clean-technology sector.
In a rare result, the Australian CleanTech Index rose 6.1 per cent in August and outperformed the share market.
Clean-tech stocks have consistently underperformed the S&P/ASX 200 and Small Ordinaries indices over four years.
The clean-tech index hit its all-time low in July, ironically in the same the month the carbon price became effective, as interest in listed clean-tech stocks seemingly evaporated.
Biofuel, waste and geothermal were the worst-performed clean-tech segments in 2011/12, posting falls of 30 per cent to 45 per cent.
These contain many small, non-revenue-earning companies that were hit harder than the broader share market as investors shunned riskier stocks.
Uncertainty about carbon pricing, despite its legislation, and a fierce public debate on its merits in 2011/12, took a heavy toll on the listed clean-tech sector.
Initial public offerings of clean-tech companies on the Australian Securities Exchange (ASX) have dried up and the SIM VSE, an emerging specialist clean-tech exchange in Australia, still has only two listings.
There appears to be much more capital-raising action by private clean-tech companies.
A bounce in the listed clean-tech sector is desperately needed, although one positive month does not make a trend.
The Australian CleanTech Index, a measure of 72 ASX-listed stocks, has lost 20.3 per cent over six months, compared to a 1.2 per cent gain in the ASX 200 Index. The three-month performance is also poor.
The sector's combined market capitalisation slumped from $16.3 billion in July 2007 to $6.5 billion in August 2012.
Poor share-price performances from the largest clean-tech stocks in the capitalisation-weighted index, such as Sims Metal Management, weighed on the index over the past few years.
Another problem for institutional investors is the high number of speculative, micro-cap clean-technology companies in the index that are not investable for large funds.
Better opportunities have arguably emerged in private clean-tech companies and projects in Australia and offshore.
Nevertheless, it may be time to pay more attention to the listed clean-tech sector.
Sector observers hoped the carbon price's introduction in July would bring more focus to companies developing and commecialising clean technologies. And after such a long period of underperformance, aggregate clean-tech valuations are more attractive.
Another important dynamic is the resources sector. Speculative clean-tech and life sciences companies have been overshadowed by the mining investment boom in recent years.
However, recent falls in bulk commodity prices, and big drops in key mining-stock indices, might lead to speculators focusing more on technology sectors that have been left behind.
Nobody is holding their breath, but the stars are slowly aligning for clean-tech.
The Australian CleanTech Index's performance in August was driven by 11 index members gaining more than 15 per cent.
Infigen Energy jumped 36 per cent, Geodyamics rose 29 per cent and Dyesol gained 20 per cent.
A 9.9 per cent gain in Sims Metal Management also boosted the result.
The gains were offset by 12 companies posting losses of more than 15 per cent. Most of the losses came from micro-cap clean-tech companies.
