Bookbinder Capital Management recently rolled out TerraVerde Capital Partners, a fund of funds that invests only in green hedge funds.

With the world still thirsty and eager to save energy, Energy Recovery Inc., a small-cap maker of flow efficiency devices for desalination plants, has seen its active project list grow more in the past five weeks than in the previous year.

Many investors have expected strong political action to combat climate change and turned bullish on the green-energy sector. But their optimism has softened amid political realities and the impact of the frozen credit markets.

EPA findings on CO2 emissions adds a sense of urgency for those looking to invest in clean technology.

The mix of generation sources may fluctuate, but the overall upward trend for energy-focused ETFs creates a compelling story for investors to follow.