Until 2008, the U.S. held the top position in the world in
private investment of clean
energy, but its position is deteriorating.
In 2010, China took the top spot, followed by Germany.
"The United States' position as a leading destination for clean
energy investment is declining because its policy framework is weak
and uncertain," says Phyllis Cuttino, director of Pew's Clean Energy
Program, which released a report today.
"We are at risk of losing even more financing to countries like
China, Germany and India, which have adopted strong policies such as
renewable energy standards, carbon reduction targets and/or
incentives for investment and production."
Globally, 2010 clean energy finance and investments grew by 30% to a
record $243 billion. The US received $34 billion in equity last
year, a 51% increase from 2009. However, the gap with China, which
attracted a record $54.4 billion, continues to widen. Germany also
attracted more money than the U.S. with $41.2 billion, claiming the
number two spot, up from third the previous year.
"The United States remains the global leader in clean energy
innovation, receiving 75% of all venture capital investment in the
sector, a total of $6 billion in 2010, but the U.S. has not been
creating demand for deployment of clean energy. As a result it is
losing out on opportunities to attract investment, create
manufacturing capabilities and spur job growth. For example,
worldwide, China is now the leading manufacturer of wind turbines
and solar panels," says Michael Liebreich, CEO of Bloomberg New
Energy Finance.
PEW's report shows the US is now in the middle of the pack on a
variety of key clean energy indicators, including asset financing
(an important barometer of clean energy deployment, manufacturing
and job growth), installed renewable capacity and five-year growth
rates.
China led the G-20 in this type of financing with $47.3 billion,
more than double the U.S. ($21 billion). China also surpassed the US
in installed renewable capacity, and the US trails leading countries
in five-year rates of clean energy capacity additions, investment
growth and intensity (a measure of investment dollars compared to
gross domestic product).
Who's Winning the Clean Energy Race? 2010 Edition
examines the key financial, investment and technological trends in
relation to the clean energy portion of the world's leading
economies. The G-20 accounts for 90% of global clean energy finance
and investment.
Other key findings from the report include:
- Worldwide clean energy investment and finance has grown 630%
since 2004.
- Regionally, Europe remained the leading recipient,
attracting $94.4 billion, led by Germany ($41.2 billion) and
Italy ($13.9 billion).
- Italy ranked fourth, attracting $13.9 billion. It is the
first country in the world to achieve grid parity, or
cost-competitiveness, for solar energy.
- The Asia/Oceania region, led by China, continued its sharp
rise, attracting $82.8 billion, a 33% increase over the previous
year.
- The Americas also saw investment grow 35%, but as a region
it remains a distant third, attracting $65.8 billion.
- Investments in small-scale, residential solar in G-20
countries grew by 100% to $56.4 billion. Germany accounts for
more than half the total, followed by Japan, France, Italy and
the US.
- Installed generating capacity increased to 388 gigawatts
from wind, small-hydro, biomass, solar, geothermal and marine,
with China accounting for more than 25% of the global total.
Read the report: