With decreasing government support and subsidies for renewable energy, venture capitalists are shifting their focus away from clean energy projects toward low-risk projects, which could leave more long-term innovative technology initiatives without funding, according to a recent report in MIT Technology Review.

Technology Review reports that dozens of venture capitalists recently stopped making initial investments in clean technology companies, according to Dow Jones Venture Source, and many who continue to invest in clean technology are moving to areas such as energy efficiency, which includes low-capital projects like software for monitoring and reducing energy consumption.

One reason cited for the move away from renewable energy investment is that the most promising companies are already largely funded and another is that big investments in conventional technologies are making it more difficult for new companies to enter the market. In addition, U.S. funding for clean energy from the 2009 stimulus legislation is soon to run out, and the deadline for projects to get funding from a loan-guarantee program worth tens of billions of dollars is next month.

To read the full Technology Review article, click here.