Clean energy financing by the world's development banks increased 19% in 2012 to reach $109 billion, according to new research from Bloomberg New Energy Finance (BNEF). The top three banks were Germany's KfW, China Development Bank and the Brazilian Development Bank.
The 26 institutions covered by the analysis have financed a total of $425 billion in renewable energy, energy efficiency and electrical transmission and distribution since 2007.
BNEF estimates that clean energy financing by development banks has grown at a compound rate of 25% per year over the last five years. This trend is expected to continue, especially as the larger development banks such as the European Investment Bank and World Bank are scaling down their investments in coal projects, which should leave more of their finite capital available for clean energy projects.
‘This year we expect at least another 15 percent growth in development bank financing. There is potential for an even bigger increase in the longer term if other institutions – such as a possible BASIC-country development bank – become active,’ says Abraham Louw, clean energy analyst at BNEF.
The executive summary of the report can be downloaded here.