The clean energy race is on. The investment and finance data presented in this report show that countries are jockeying for a leadership position in this growing and increasingly competitive sector. Countries with clear, consistent and constructive clean energy policies are powering investment forward.
This report examines key financial, investment and technological trends related to clean energy in the world's leading economies, also known as the Group of Twenty (G-20). Our primary focus is on investment, which is the fuel that propels the innovation, commercialisation, manufacturing and installation of clean energy technologies. The data have been compiled and reviewed by Pew's research partner, Bloomberg New Energy Finance, a market research firm focused on renewable energy.
Our research shows that the clean energy sector around the world has roared back from flat recessionary levels, increasing 30 percent from 2009 to achieve a record US$243 billion1 worth of finance and investment in 2010. More than 90 percent of all clean energy investments were directed to companies and projects in the G-20. Excluding research and development funding, clean energy finance and investment in the G-20 countries totalled US$198 billion, 33 percent more than was invested in 2009.
Europe leading recipient of clean energy finance
Collectively, the European region was the leading recipient of clean energy finance, attracting a total of US $94.4 billion. Europe's leadership position was solidified by more than 100 percent growth in investment in small-scale solar installations in Germany and Italy. Rising among the ranks of top-10 countries for private clean energy investment, Germany and Italy attracted US$41.2 billion and US$13.9 billion, respectively.
Although small-scale solar energy investments helped Europe maintain its position as the leading region for clean energy finance in 2010, the Asian region is closing the gap rapidly and is expected in the coming months and years to become the center of gravity for clean energy investment. Overall clean energy investment in the Asian region increased 33 percent to US$82.8 billion in 2010.
Asia/Oceania's emergence is fuelled in large part by the rapid rise of China as the world's clean energy superpower. Private investment in China's clean energy sector increased by 39 percent in 2010 to a world leading producer of wind turbines and solar modules. In 2009, it surpassed the US as the country with the most installed clean energy capacity.
The Americas region is a distant third in the race for clean energy investment, attracting US$65.8 billion overall in 2010. Investments in the US rebounded 51 percent over 2009 levels to reach US$34 billion, but the US continued to slide down the top 10 list, falling from second to third. Given uncertainties surrounding key policies and incentives, the US' competitive position in the clean energy sector is at risk. Growth is sharper in Latin America, where private clean energy investment in Argentina increased by 568 percent and in Mexico by 273 percent, the highest growth rates among G-20 members.
Where the 2010 investments went to
Technologically, 2010 investments notably increased for solar energy, particularly for small-scale and residential projects. In the G-20, a record US$79 billion was invested by the private sector in solar technologies, facilitating the installation of more than 17 gigawatts (GW) of new generating capacity. Compared with 2009, solar energy investments in 2010 increased by 53 percent, while investments in the wind sector increased by a more modest 34 percent. Still, wind energy remains the favoured technology for private investment in the G-20 countries, accounting for 48 percent of total investments, or US$95 billion.
Clean energy funding allocated by governments to help stimulate growth in response to the global economic recession rose sharply in 2010 to US$75 billion, from US$20 billion the prior year. Corporate and government research and development funding increased globally by 24 percent to US$35 billion. Venture capital/private equity funding in the G-20 also rebounded strongly in 2010, up 26 percent over the previous year to US$8.1 billion. Investment in G-20 small-scale distributed capacity rose 100 percent in 2010 to US$56.4 billion2.
Installation of 40GW of wind and 17GW of solar helped drive worldwide clean power generating capacity to 388GW in 2010.
This report documents the continued growth and dynamism of clean energy investment in the world's leading economies. It follows recent Pew research showing that policy priority for clean energy is well-placed: Investment in clean power assets alone could reach US$2.3 trillion over the 2010-20 period3. Countries that succeed in attracting investment can realize the economic, security and environmental benefits of the global race to harness clean, renewable energy sources.
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1 All monetary values are 2010 United States dollars (USD) unless otherwise noted. This figure includes all investment--public and private (including research and development) and G-20 as well as non-G-20 countries.
2 Small-scale distributed capacity investments refers to solar projects of less than 1 megawatt (MW).
3 "Global Clean Power: A $2.3 Trillion Opportunity", The Pew Charitable Trusts, December 2010. www.PewEnvironment.org/CleanEnergy
This executive summary of the “Who's Winning the Clean Energy Race, 2010 Edition: G-20 Investment Powering Forward” report, first published on 29 March 2011, was reproduced with permission from The Pew Charitable Trusts.
By : The Pew Charitable Trusts