Jul 02 - Kyodo News International, Tokyo

Global investments in wind power and other new sources of energy grew 60 percent in 2007 from the previous year to $148 billion but Japan accounts for only around $1.2 billion of the total, less than 1 percent, according to a report prepared for release on Wednesday by the United Nations Environment Program.

Investments in new energy businesses are rising worldwide against the backdrop of increased awareness of global warming and high crude oil prices, the report said.

Japan, the world's second largest economy, lags behind even developing economies such as China and India in investments in the field, it showed.

While the importance of new sources of energy grows, the U.N.

report may highlight the low target set by the Japanese government in promoting such energies as well as the lack of enthusiasm by Japanese utilities to increase their reliance on new energies.

Tetsunari Iida, executive director of the Institute for Sustainable Energy Policies, a nonprofit research body, blamed the Japanese government for the sluggish investments in the country.

"The biggest factor is the low target of 1.64 percent of total power generation in 2014, set by the state (for introducing new energies)," he said, echoing criticism voiced by environment conservationists.

A power industry source said, "Even if a wind power generation facility is built, power companies are not eager to make purchases.

With this situation in Japan known worldwide, the Japanese market has completely lost its appeal for investors." The tally includes investments in development of wind power generation systems, research and development and construction of facilities for producing solar power batteries.

By region, the European Union spent the largest amount of around $55.8 billion, followed by some $26.5 billion in the United States and roughly $10.8 billion in China. Indian and Brazilian investments also expanded rapidly.

Global investments have been soaring from around $58.5 billion in 2005 and $92.6 billion in 2006. The figure is expected to grow further in the years to come. The U.N. body projects $450 billion in 2012 and $600 billion in 2020.

In 2007, wind power generation drew 34 percent of such investments, with solar power coming second at 19 percent.

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