China Lead in Clean Energy Investments

CHINA leads the world in global clean energy investments, topping $54.4 billion in 2010, leaving the UK and US trailing, according to research from The Pew Charitable Trusts.

Global clean energy finance and investment grew significantly in 2010 to $243 billion, a 30 percent increase from the previous year. China, Germany, Italy and India were among the nations that most successfully attracted private investments, according to new research released by The Pew Charitable Trusts.

China continued to solidify its position as the world's clean energy powerhouse. Its record $54.4 billion in investments in 2010 represents a 39 percent increase from 2009. Germany was second in the G-20, up from third last year, after experiencing a 100 percent increase in investment to $41.2 billion.

"The clean energy sector is emerging as one of the most dynamic and competitive in the world, witnessing 630 percent growth in finance and investments since 2004," said Phyllis Cuttino, director of Pew's Clean Energy Program. "Countries like China, Germany and India were attractive to financers because they have national policies that support renewable energy standards, carbon reduction targets and/or incentives for investment and production that create long-term certainty for investors."

The United States, which had maintained the top spot until 2008, fell another rung in 2010 to third with $34 billion. The United Kingdom experienced the largest decline among the G-20, falling from fifth to 13th.

Italy attracted $13.9 billion in clean energy financing last year, improving its global standing to fourth, from eight in 2009. Italy is the first country to achieve grid parity, or cost-competitiveness, for solar energy. For the first time, India joined the top 10 ranking, attracting $4 billion, a 25 percent increase.

Other key findings from the report include:

  • Regionally, Europe remained the leading recipient, attracting $94.4 billion, led by Germany ($41.2 billion) and Italy ($13.9 billion).
  • The Asia/Oceania region, led by China, continued its sharp rise, attracting $8.2 billion, a 33 percent increase over the previous year.
  • The Americas also saw investment grow 35 percent, but as a region it remains a distant third, attracting $65.8 billion.
  • Excluding research and development funding ($35 billion), investment totaled $198 billion.
  • Increasing 15 percent to $118 billion, asset financing accounted for the majority of private investment in G-20 countries.
  • Public market financing grew 27 percent to $15.9 billion, as companies launched public stock offerings to raise capital for expansion.
  • Venture capital/private equity investments in clean energy increased 26 percent to $8.1 billion. The U.S. led with $6 billion, three-quarters of the G-20 total.
Willow energy crop and Cottam power station (Katy Walters) / CC BY-SA 2.0

Tuesday 5th April 2011

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