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WASHINGTON (AFP) — Global investments in renewable energy overtook those in carbon-based fuels for the first time in 2008, attracting a record 155 billion dollars, a UN report said Wednesday.
Of that sum, 36 billion dollars was invested in producing clean energy in emerging economies such as China, a increase of 27 percent compared to 2007.
And 105 billion dollars was spent directly developing power generating capacity from wind, solar, small-hydro, biomass and geothermal sources.
The 2008 investment was more than four times higher than that in 2004 according to the report Global Trends in Sustainable Energy Investment 2009, prepared for the UN Environment Programme's (UNEP) Sustainable Energy Finance Initiative.
Wind power attracted the highest new investment with 51.8 billion dollars, although solar energy made the largest gains, 49 percent up to 33.5 billion dollars. Biofuels registered a nine percent fall to 16.9 billion dollars.
But amid the global recession, new investments in green energy in the first quarter of 2009 fell by 53 percent to 13.3 billion dollars compared to the same period in 2008.
"Without doubt the economic crisis has taken its toll on investments in clean energy when set against the record-breaking growth of recent years," said Achim Steiner, UN Under-Secretary General.
Some signs of an upswing in activity has been seen in 2009 but the sector could fall behind the levels seen in the previous two years, the authors warned.
Stimulus packages put together by governments to shore up their economies are helping to boost the sector with many of them pumping funds into green projects and research into renewable energy sources.
"However, the biggest renewables stimulus package of them all can come at the UN climate convention meeting in Copenhagen in just over 180 days time," said Steiner, referring to the UN-hosted climate change conference in December.
"This is where governments need to seal the deal on a new climate agreement -- one that can bring certainty to the carbon markets, one that can unleash transformative investments in lean and clean green tech," he added.
The United States and China have led the field putting up some 67 billion dollars each into sustainable energy. But more could be done, argued Michael Liebreich, chairman of New Energy Finance.
"There is a strong case for further measures, such as requiring state-supported banks to raise lending to the sector, providing capital gains tax exemptions on investments in clean technology, creating a framework for Green Bonds and so on, all targeted at getting investment flowing," he said.
"What's most important is that stimulus funds start flowing immediately, not in a year or so."
Copyright © 2009 AFP. All rights reserved
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A farmer rides his motorcycle near wind turbines in May |
