With Bear Stearns and Northern Rock having already fallen victim to the global credit crunch and doom mongers predicting recession could be on the way, can the cleantech sector continue its recent investment boom?

BusinessGreen.com asks some of the City's leading green investors whether cleantech has the potential to ride out the recent financial turmoil.

Stuart McKnight, director of Ascendant Consulting
"There is no sign the credit crunch is curbing the appetite for cleantech investment; if you look at the source of capital for cleantech investment, much funding comes from venture capital investments, there's been no change in the level of investment – in fact, if anything, it's increased. That said, the [credit] problems could affect large infrastructure projects such as wind farms and other projects that require debt. Large biomass and recycling plants could also be more vulnerable.

Matthew Clayton, investment manager at Triodos Bank
"If anything, high oil prices should strengthen the renewable energy sector and encourage people to invest in clean energy that is cheaper and more secure, long term. I have no massive concern for companies getting funding. On the cleantech side the picture is a little different and pioneering technology coming to market could face difficulties as there is a restraint on the appetite for risk. In development stage there is more scope for short-term problems."

Ian Simm, chief executive of green investment company Impax
"There are regulatory frameworks in place in many parts of the world that mandate minimum levels of installation of renewables over the medium term. This will keep demand high despite the credit crunch. For example, the EU is close to finalising legislation that will require that at least 20 per cent of power is derived from renewable sources by 2020. This is expected to lead to at least €150bn of additional investment. Similarly, the waste sector is seeing huge capital expenditure, particularly as local authorities struggle to meet governmental requirements to divert biodegradable waste from landfill. These areas are unlikely to suffer heavily in a recession as the investment is underpinned by legally binding targets."

Simon Webber, fund manager of the Schroders Global Climate Change Fund
"The demand outlook is good, but access to capital is marginally more difficult for companies than before, and that is a factor. However, we're not seeing much of a slowdown; there are even some new markets emerging."

Terry Coles, manager of F&C’s Global Climate Change Opportunities Fund
"We saw a big sell off in the solar space recently due to risk aversion. Valuations were getting very stretched and coupled with market turbulence and fears of recession there were worries about the demand side. However, now interest rates are so low, financing is more stable. It's only the short-term sentiment that hit the stocks.

Mark Shorrock, chief executive of Low Carbon Accelerator
"Overall the cleantech sector is still relatively free of the crunch. The credit crisis is mostly associated with consumer spending and consumers don’t usually think, 'Ooh, I’ll go and buy a wind farm'. If you look at areas like solar it is definitely here to stay with large incentives in sunny states in the US, Italy, Greece and Spain driving interest."