B
Bret Cahill
Guest
Someone must have done the numbers.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Green Energy Overtakes Fossil Fuel Investment, Says UN
by Terry Macalister
\
Green energy overtook fossil fuels in attracting investment for power
generation for the first time last year, according to figures released
today
by the United Nations.
Wind, solar and other clean technologies attracted $140bn (Ł85bn)
compared
with $110bn for gas and coal for electrical power generation, with
more than
a third of the green cash destined for Britain and the rest of
Europe.
The biggest growth for renewable investment came from China, India and
other
developing countries, which are fast catching up on the West in
switching
out of fossil fuels to improve energy security and tackle climate
change.
"There have been many milestones reached in recent years, but this
report
suggests renewable energy has now reached a tipping point where it is
as
important - if not more important - in the global energy mix than
fossil
fuels," said Achim Steiner, executive director of the UN's
Environment
Programme.
It was very encouraging that a variety of new renewable sectors were
attracting capital, while different geographical areas such as Kenya
and
Angola were entering the field, he added.
The UN still believes $750bn needs to be spent worldwide between 2009
and
2011 and the current year has started ominously with a 53% slump in
first
quarter renewables investment to $13.3bn.
Counting energy efficiency and other measures, more than $155bn of new
money
was invested in clean energy companies and projects, even though
capital
raised on public stock markets fell 51% to $11.4bn and green firms saw
share
prices slump more than 60% over 2008, according to the report, Global
Trends
in Sustainable Energy, drawn up for the UN by the New Energy Finance
(NEF)
consultancy in London.
Wind, where the US is now global leader, attracted the highest new
worldwide
investment, $51.8bn, followed by solar at $33.5bn. The former
represented
annual growth of only 1%, while the latter was up by nearly 50%
year-on-year.
Biofuels were the next most popular investment, winning $16.9bn, but
down 9%
on 2007, as the sector was hit by overcapacity issues in the US and
political opposition, with ethanol being blamed for rising food
prices.
Europe is still the main centre for investment in green power with
$50bn
being pumped into projects across the continent, an increase of 2% on
last
year, while the figure for America was $30bn, down 8%.
But while overall spending in the West dipped nearly 2%, there was a
27%
rise to $36.6bn in developing countries led by China, which pumped in
$15.6bn, mostly in wind and biomass plants.
China more than doubled its installed wind turbine capacity to 11GW
of
capacity, while Indian wind investment was up 17% to $2.6bn, as its
overall
clean tech spending rose to $4.1bn in 2008, 12% up on 2007 levels.
A number of Green New Deals - government reflationary packages
designed to
kickstart economies and boost action to counter climate change - have
been
laid out by ministers around the world.
The slump in global renewable investment during the first quarter of
2009
has alarmed the UN and New Energy Finance, the London-based
consultancy
that compiled the figures for the UN.
Michael Liebreich, chief executive of NEF, said the second quarter
had
revealed "green shoots" of recovery, which indicated this year could
end up
with investment at the upper end of a $95bn to $115bn range, but still
a
quarter down on 2008 at the least.
About $3bn of new money had been raised via initial public offerings
or
secondary issues on the stock markets in the second quarter, compared
with
none in the first three months of this year.
The New Energy Index of clean tech stocks, which had slumped from a
450 high
to 134 by March, had since bounced back to 230, while more project
financing
had been raised in the last six weeks than in the 13 before that, he
said.
But Steiner and Liebreich are still anxious that politicians do more
to
stimulate growth.
"There is a strong case for further measures, such as requiring
state-supported banks to raise lending to the sector, providing
capital
gains tax exemptions on investments in clean technology, creating a
framework for Green Bonds and so on, all targeted at getting
investment
flowing," said Liebreich.
It is important stimulus funds start flowing immediately, not in a
year or
so, he added: "Many of the policies to achieve growth over the medium-
term
are already in place, including feed-in tariff regimes, mandatory
renewable
energy targets and tax incentives. There is too much emphasis amongst
some
policy-makers on support mechanisms, and not enough on the urgent
needs of
investors right now."
guardian.co.uk Š Guardian News and Media Limited 2009
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Green Energy Overtakes Fossil Fuel Investment, Says UN
by Terry Macalister
\
Green energy overtook fossil fuels in attracting investment for power
generation for the first time last year, according to figures released
today
by the United Nations.
Wind, solar and other clean technologies attracted $140bn (Ł85bn)
compared
with $110bn for gas and coal for electrical power generation, with
more than
a third of the green cash destined for Britain and the rest of
Europe.
The biggest growth for renewable investment came from China, India and
other
developing countries, which are fast catching up on the West in
switching
out of fossil fuels to improve energy security and tackle climate
change.
"There have been many milestones reached in recent years, but this
report
suggests renewable energy has now reached a tipping point where it is
as
important - if not more important - in the global energy mix than
fossil
fuels," said Achim Steiner, executive director of the UN's
Environment
Programme.
It was very encouraging that a variety of new renewable sectors were
attracting capital, while different geographical areas such as Kenya
and
Angola were entering the field, he added.
The UN still believes $750bn needs to be spent worldwide between 2009
and
2011 and the current year has started ominously with a 53% slump in
first
quarter renewables investment to $13.3bn.
Counting energy efficiency and other measures, more than $155bn of new
money
was invested in clean energy companies and projects, even though
capital
raised on public stock markets fell 51% to $11.4bn and green firms saw
share
prices slump more than 60% over 2008, according to the report, Global
Trends
in Sustainable Energy, drawn up for the UN by the New Energy Finance
(NEF)
consultancy in London.
Wind, where the US is now global leader, attracted the highest new
worldwide
investment, $51.8bn, followed by solar at $33.5bn. The former
represented
annual growth of only 1%, while the latter was up by nearly 50%
year-on-year.
Biofuels were the next most popular investment, winning $16.9bn, but
down 9%
on 2007, as the sector was hit by overcapacity issues in the US and
political opposition, with ethanol being blamed for rising food
prices.
Europe is still the main centre for investment in green power with
$50bn
being pumped into projects across the continent, an increase of 2% on
last
year, while the figure for America was $30bn, down 8%.
But while overall spending in the West dipped nearly 2%, there was a
27%
rise to $36.6bn in developing countries led by China, which pumped in
$15.6bn, mostly in wind and biomass plants.
China more than doubled its installed wind turbine capacity to 11GW
of
capacity, while Indian wind investment was up 17% to $2.6bn, as its
overall
clean tech spending rose to $4.1bn in 2008, 12% up on 2007 levels.
A number of Green New Deals - government reflationary packages
designed to
kickstart economies and boost action to counter climate change - have
been
laid out by ministers around the world.
The slump in global renewable investment during the first quarter of
2009
has alarmed the UN and New Energy Finance, the London-based
consultancy
that compiled the figures for the UN.
Michael Liebreich, chief executive of NEF, said the second quarter
had
revealed "green shoots" of recovery, which indicated this year could
end up
with investment at the upper end of a $95bn to $115bn range, but still
a
quarter down on 2008 at the least.
About $3bn of new money had been raised via initial public offerings
or
secondary issues on the stock markets in the second quarter, compared
with
none in the first three months of this year.
The New Energy Index of clean tech stocks, which had slumped from a
450 high
to 134 by March, had since bounced back to 230, while more project
financing
had been raised in the last six weeks than in the 13 before that, he
said.
But Steiner and Liebreich are still anxious that politicians do more
to
stimulate growth.
"There is a strong case for further measures, such as requiring
state-supported banks to raise lending to the sector, providing
capital
gains tax exemptions on investments in clean technology, creating a
framework for Green Bonds and so on, all targeted at getting
investment
flowing," said Liebreich.
It is important stimulus funds start flowing immediately, not in a
year or
so, he added: "Many of the policies to achieve growth over the medium-
term
are already in place, including feed-in tariff regimes, mandatory
renewable
energy targets and tax incentives. There is too much emphasis amongst
some
policy-makers on support mechanisms, and not enough on the urgent
needs of
investors right now."
guardian.co.uk Š Guardian News and Media Limited 2009