Business and Environment
Second Quarter 2009
Vol. 15, Number 2
Investments in clean energy companies and projects worldwide, excluding large hydropower projects, reached a total of $155 billion in 2008, marking a four-fold increase in renewable energy investments since 2004, according to a new UN report.
The report, entitled "Global Trends in Sustainable Energy Investment 2009" and released by the United Nations Environment Programme's (UNEP) Sustainable Energy Finance Initiative also revealed that renewable energy drew more investment than fossil-fueled energy technologies in 2008.
Wind attracted the highest new investment ($51.8 billion, 1% growth on 2007), although solar made the largest gains ($33.5 billion, 49% growth) while biofuels dropped somewhat ($16.9 billion, 9% decrease). Total transaction value in the sustainable energy sector during 2008 was $223 billion, an increase of 7% over 2007.
The rise in clean energy of investments came in the backdrop of extremely difficult financial market conditions that prevailed last year as a result of the global economic crisis. Nevertheless, the report pointed out that investment in clean energy topped 2007's record investments by 5% in large part as a result of major investments in China and other emerging economies.
"Without a doubt, the economic crisis has taken its toll on investments in clean energy when set against the record-breaking growth of recent years. Investment in the United States fell by 2 percent and in Europe growth was very much muted. However, there were also some bright points in 2008 especially in developing economies-China became the world's second largest wind market in terms of new capacity and the world's biggest photovoltaic manufacturer," said Achim Steiner, Executive Director of UNEP.
In its regional highlights, the report cited last year's signing in the Philippines of a new Renewable Energy Law, which offers specific incentives (mainly tax breaks) for renewable generation-a first for Southeast Asia. It added that Thailand and Malaysia have been talking about introducing renewable energy legislation for some time; and other countries are planning biofuel blending mandates, similar to those introduced by the Philippines in 2007 and subsequently by Thailand
For more information, visit www.sefi.unep.org
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