In 2009, for the first time, China led the United States and other G-20 members in clean energy investments and finance, according to data released last week by The Pew Charitable Trusts.
Last year, China invested $34.6 billion in the clean energy economy--nearly double the United States’ total of $18.6 billion. Over the last five years, the United States also trailed five G-20 members (Turkey, Brazil, China, the United Kingdom, and Italy) in the rate of clean energy investment growth.
In "Who’s Winning the Clean Energy Race? Growth, Competition and Opportunity in the World’s Largest Economies," Pew examines key financial, investment and technological trends related to G-20 members and the clean energy economy. The report tracks and measures global investment activity--ranging from venture capital, initial public offerings from companies seeking to expand, mergers and acquisitions and lending for large-scale projects--in this sector. Pew found that the global clean energy economy has experienced remarkable growth:
Globally, clean energy investments have increased 230% since 2005. Investment by nearly all G-20 members grew by more than 50% over the past five years, and despite a worldwide recession, global clean energy investments reached $162 billion in 2009.
G-20 members accounted for more than 90% of worldwide clean energy finance and investment. More than 250 gigawatts of renewable energy generating capacity have been installed around the world, producing 6% of global energy.
Global clean energy investments are projected to reach $200 billion in 2010.
“Even in the midst of a global recession, the clean energy market has experienced impressive growth,” said Phyllis Cuttino, who directs the Pew Environment Group’s Global Warming Campaign. He said countries jockeying for leadership know that investing in clean energy can renew manufacturing bases, and create clean energy jobs and export opportunities.
Countries with strong nationwide policy frameworks, including renewable energy standards, carbon markets, priority loans for renewable energy projects and mandated clean energy targets--such as China, Brazil, Spain, United Kingdom and Germany--have the most robust clean energy sectors as a percentage of their economies.
Countries without such policy frameworks--including the United States, Japan, and Australia--lag behind, according to the report. “The United States’ competitive position is at risk in the emerging clean energy economy,” said Cuttino. “Our nation has a critical choice to make: pass the federal policies necessary to position us as the world leader in the large and growing global clean energy market or continue to watch as China and other countries race ahead.”
The United States’ clean energy finance and investments lagged behind 10 G-20 members in percentage of gross domestic product. For instance, in relative terms, Spain invested five times more than the United States last year, and China and the United Kingdom three times more.
The United States did lead G-20 members in venture capital and private equity investments associated with technology innovation. However, it trailed in 2009 asset financing, with only $11.2 billion, while China led with $29.8 billion. Asset financing serves as a key barometer of clean energy deployment, job creation and business growth.
The fulll report is available as a pdf at the link below.