Investments in clean technologies reached another record as venture capitalists in North America and Europe invested $1.74 billion in the third quarter of 2007, according to analyst firm the Cleantech Group. This brings the year-to-date level of investment to $3.64 billion, a 13% increase over the same period in 2006.

North American VCs invested $1.26 billion, up 36% from Q306. Venture capitalists in Europe surprisingly decreased investments during the quarter by 13% decrease to $472 million.

Energy Generation continues to be the largest category, with $1.2 billion invested in Q307. Solar investment reached $410 million in North America, a 16% increase over Q2 while biofuels companies raised $215 million in North America.

New state renewable portfolio standards and concerns about energy independence and greenhouse gas emissions will likely keep the investments increasing by double digits for the foreseeable future. A new energy policy after the 2008 election could push these numbers even higher.