Global clean energy finance and investment grew significantly in 2010 to $243 billion, a 30% 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's record $54.4 billion in investments in 2010 represents a 39% increase from 2009. Germany was second in the G-20, up from third last year, after experiencing a 100% 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,’ says 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, and that create long-term certainty for investors.’
The U.S., which had maintained the top spot until 2008, fell another rung in 2010 to third with $34 billion. The U.K. experienced the largest decline among the G-20, falling from fifth to 13th. The report suggests that uncertainty regarding clean energy policies in these countries is causing investors to look elsewhere for opportunities.
Italy attracted $13.9 billion in clean energy financing last year, improving its global standing to fourth, from eighth in 2009. For the first time, India joined the top 10 ranking, attracting $4 billion, a 25% increase.
Wind power continued to be the favored technology for investors at $95 billion. However, the solar sector experienced significant growth in 2010, with investments growing 53% to a record $79 billion and more than 17 GW of new generating capacity globally.
SOURCE: The Pew Charitable Trusts