At this year's Consumer Electronics Show (CES) in Las Vegas, one of the prevailing themes was environmentally friendly products.

And the electronics weren't the only green thing at this year's show, the expo itself targeted going green--green cleaning products were used at the Las Vegas Convention Center, the floors were covered in recycled carpeting and all the utensils were made with non-toxic materials and recycled.

There was also exhibit floor space dedicated to green products in the 1.7-million-square-foot facility. That space included products like solar powered briefcases and fuel cells that power mobile phones.

According to CBS Tech Analyst Larry Magid, "Just about every exhibitor at the show tried to convince attendees that they are going green."

That was especially true of Nokia Corporation (NYSE: NOK), whose Head of Environment for North America, David Conrad, said consumers were actively asking about the environmental performance of his products.

Conrad said Nokia isn't just looking at the greenness of the end product, but also at an entire green supply chain. "We're talking about supply, we're talking about manufacturing and R&D, we've got design-for-environment engineers," he said.

Nokia is actively pursuing things like using less packaging, recycling metals and a having a message on their phones reminding customers to unplug them when fully charged.

Other companies were also showcasing their green products. Green Plug Inc. was showing off its flagship product that bears its namesake. Per their website, the Green Plug "eliminates wasted ‘phantom power' (power that is wasted when chargers are plugged in and either connected to devices that are fully charged or have no devices connected to them) and improves power utilization and efficiency."

But with so many companies and products racing to claim their green status, how are consumers supposed to know what's for real and what falls in the realm of creative marketing?

That's exactly the question that's spurred debate at the Federal Trade Commission (FTC), which has undertaken to update its green advertising guidelines a year in advance, given the wave of environmental marketing claims and increased consumer interest.

At its first hearing last Tuesday, the agency tackled the ever-growing business of carbon offsets, but electronics are expected to come under scrutiny as well.

And they should.

Noah Horowitz, Senior Scientist at the National Resources Defense Council (NRDC), said that consumer electronics comprise 15% to 20% of household energy bills. In fact, a digital video recorder like TiVo can consume up to 350 kilowatt hours (kWh) of electricity annually--about half as much as a refrigerator. And a 50-inch plasma television uses as much energy as the icebox.

Also according to Horowitz, the sheer numbers of computers, bigger TVs, video games and cable boxes are fueling their increased consumption of electricity. In 2009, televisions, in total, will consume nearly 50% more electricity than they did in 2005, rising from about 48 kWh annually to 70 kWh.

The recently-passed energy bill will require a label on electronics disclosing how much energy they consume. But will it be enough to induce long-term change?

Investing in Green Electronics

I like to think so. As stated earlier, consumers are already seeking out environmentally friendly electronics. When you throw skyrocketing energy costs and climate change fears into the mix, the result is a bright outlook for green electronics manufacturers and their suppliers.

Take Electro Energy Inc. (NASDAQ: EEEI), for example. The company has rallied as much as 169% in the past three months on the buzz about their rechargeable battery technology for military, automobile and consumer electronics applications. Take a look at the chart:

And plenty of others are busy trying to make a dent in this emerging market. Millennium Cell Inc. (NASDAQ: MCEL) designs hydrogen batteries for portable electronics and Mechanical Technology Inc. (NASDAQ: MKTY) is already shipping methane fuel cell prototypes to be used in Samsung's mobile phones. Each of those stocks trades under one dollar and has been traded for profit in the Alternative Energy Trader .

We'll continue to cover this potentially huge market over at Green Chip Stocks. Be sure to join us.

Until next time,

Nick

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