"The United States’ competitive position is at risk in the emerging clean energy economy,” said Phyllis Cuttino, who directs the Pew Environment Group’s Global Warming Campaign.
“Our nation has a critical choice to make: pass the federal policies necessary to position us as the world leader in the large and growing global clean energy market or continue to watch as China and other countries race ahead…Countries are jockeying for leadership. They know that investing in clean energy can renew manufacturing bases, and create export opportunities, jobs and businesses.”
We know, of course, what the right policies are: a strong renewable electricity standard (RES), which China and most European countries have. The challenge is getting Congress and the Administration to make the push for the legislation this year.
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China Leads G-20 Members in Clean Energy Finance and Investment
For the first time, China led the United States and other G-20 members in 2009 clean energy investments and finance, according to data released today by The Pew Charitable Trusts. Last year, China invested $34.6 billion in the clean energy economy – nearly double the United States’ total of $18.6 billion. Over the last five years, the United States also trailed five G-20 members (Turkey, Brazil, China, the United Kingdom, and Italy) in the rate of clean energy investment growth.
In Who’s Winning the Clean Energy Race? Growth, Competition and Opportunity in the World’s Largest Economies (PDF), Pew examines key financial, investment and technological trends related to G-20 members and the clean energy economy. The report tracks and measures global investment activity – ranging from venture capital, initial public offerings from companies seeking to expand, mergers and acquisitions and lending for large-scale projects – in this sector. Pew found that the global clean energy economy has experienced remarkable growth:
* Globally, clean energy investments have increased 230 percent since 2005.
* Investment by nearly all G-20 members grew by more than 50 percent over the past five years.
* Despite a worldwide recession, global clean energy investments reached $162 billion in 2009.
* G-20 members accounted for more than 90 percent of worldwide clean energy finance and investment.
* More than 250 gigawatts of renewable energy generating capacity have been installed around the world, producing six percent of global energy.
* Global clean energy investments are projected to reach $200 billion in 2010.
“Even in the midst of a global recession, the clean energy market has experienced impressive growth,” said Phyllis Cuttino, who directs the Pew Environment Group’s Global Warming Campaign. “Countries are jockeying for leadership. They know that investing in clean energy can renew manufacturing bases, and create export opportunities, jobs and businesses.”
“The facts speak for themselves,” said Bloomberg New Energy Finance Chief Executive Michael Liebreich. “2009 clean energy investment in China totaled $34.6 billion, while in the United States it totaled $18.6 billion. China is now clearly the world leader in attracting new capital and making new investments in this area.”
Countries with strong nationwide policy frameworks, including renewable energy standards, carbon markets, priority loans for renewable energy projects and mandated clean energy targets, such as China, Brazil, Spain, United Kingdom and Germany, have the most robust clean energy sectors as a percentage of their economies. Countries without such policy frameworks including the United States, Japan, and Australia lag behind.
“The United States’ competitive position is at risk in the emerging clean energy economy,” said Cuttino. “Our nation has a critical choice to make: pass the federal policies necessary to position us as the world leader in the large and growing global clean energy market or continue to watch as China and other countries race ahead.”
The United States’ clean energy finance and investments lagged behind 10 G-20 members in percentage of gross domestic product. For instance, in relative terms, Spain invested five times more than the United States last year, and China and the United Kingdom three times more.
The United States did lead G-20 members in venture capital and private equity investments associated with technology innovation. However, it trailed in 2009 asset financing, with only $11.2 billion, while China led with $29.8 billion. Asset financing serves as a key barometer of clean energy deployment, job creation and business growth.
Pew published Who’s Winning the Clean Energy Race? to highlight how G-20 members are participating and where they rank in the clean energy economy. The data have been compiled and reviewed by Pew’s research partner, Bloomberg New Energy Finance, the world’s leading independent provider of news, data, research and analysis to decision-makers in renewable energy, carbon markets, energy smart technologies, and carbon capture and storage. The report’s primary focus is on investment as it is the fuel that propels the innovation, commercialization, manufacturing and installation of clean energy technologies.
The wind energy sector was the primary recipient of clean energy investment in 2009, reflecting its mature status as a large-scale power generation source. Wind power accounts for more than 50 percent of worldwide clean energy investment and almost half of installed clean energy capacity worldwide. Recognized as a clean, safe, pricecompetitive resource, wind energy is being deployed as an important new source of electricity generation in the leading clean energy economies.
The solar sector, on the strength of U.S., Spanish and European Union investments, also figures prominently in G-20 investment portfolios. Although smaller in size than its wind energy counterpart, the solar sector is poised to expand. Solar energy prices have declined significantly in recent years, and the potential of new, thin-film technologies positions solar for significant growth.
The total global renewable energy capacity is 250 GW. Key observations include:
-At the end of 2009, the United States led the world in installed wind turbines, biomass and geothermal power capacity but was very close to losing its lead in overall installed capacity to China. Despite pioneering development of numerous key solar technologies, the United States lags well behind G-20 leaders in installed solar capacity.
-Germany is currently the undisputed leader in the solar power sector with a total installed capacity of 5.3 GW. Japan and Spain, both with about 2.1 GW, were the next-leading countries for installed solar power capacity.
-China doubled its wind farm capacity in 2009 in pursuit of an ambitious target of installing 30 GW of wind by 2020. China also led the G-20 in small hydro capacity and moved aggressively in the solar sector.
-The advent of regional and global carbon trading markets, along with strong policy frameworks in countries such as Spain, Brazil, India and China, account for the relative strength of these nations’ clean energy sectors.
By Chris Madison,
www.awea.org/blog/ www.pewtrusts.org/uploadedFiles/wwwpewtrustsorg/Reports/Global_warming/G-20%20Report.pdf
