The G20 countries accounted for more than $110 billion of investment in the clean energy sector in 2009, or more than 90% of worldwide finance and investment, excluding basic research and development.

Relative to the size of their economies, on a percentage basis, Spain invested five times more than the US last year, and China, Brazil and the United Kingdom invested three times more, the study said.

"In all, 10 other G-20 members devoted a greater percentage of their gross domestic product to clean energy than the US in 2009," it said.

Over the last several years, China has moved to a virtual tie with the US in installed renewable energy capacity, according to the report.

The US, with $11.2 billion in asset financing, trailed China which invested $29.2 billion. Asset financing is typically associated with the installation of clean energy equipment and generating capacity. It is the dominant class of clean energy finance and a "key barometer of clean energy deployment," the report said.

While total investments in 2009 declined 6.6% globally from 2008 because of the economic downturn, the clean energy sector outperformed the oil and gas industry, which saw investment declines of 19%. However, such investments in the US fell 40%, compared to 2008.

"Even in the midst of a global recession, the clean energy market has experienced impressive growth," said Phyllis Cuttino, director of the Pew Environment Group's Global Warming Campaign. "Countries are jockeying for leadership."

The US "doesn't have clear, predictable policy instruments the private sector is looking for," Cuttino said in a telephone briefing. "It's a race in which policy matters a great deal."

The policy framework in the US for reducing global warming pollution and increasing renewable energy remains uncertain, with comprehensive legislation stalled in Congress, the report said.

Other nations have adopted policies and are assuming leadership positions in the clean energy sector, according to the report.

"With a mixed policy framework, the US has a comparatively weak clean energy economy given the relative size of its overall economy," the report said.

"The US with 0.13%, is 11th among G20 nations in clean energy investment intensity for 2009 -- clean energy investment as a percentage of a nation's GDP. However, with significant cultural and intellectual resources and a strong culture of entrepreneurship, a strengthened policy framework could enable the US to regain a leadership role in the coming years."

The US did lead G20 countries in venture capital and private equity investment associated with technology innovations, investing $3.9 billion in 2009. Brazil was a distant second at $0.7 billion, while such investments in China and India were $0.2 billion and $0.1 billion, respectively.

"What this new report confirms is that ideas are being developed in the US and being brought to scale in other countries," Cuttino said.

--Gerald Karey, gerry_karey@platts.com