G-20 Clean Energy Report
industry last year, which had investment declines of 19% in 2009, according to the International Energy Agency’s 2009 World Energy Outlook. Installed renewable energy capacity
increased in 2009 to 250 gigawatts (GW), enough to power an estimated 75 million households and equivalent to 6% of the worldwide total. Excluding basic research and development
(R&D), more than US$110 bn was invested in the G-20’s clean energy sector. Investment by virtually all G-20 countries has grown by more than 50% over the past five years. In an encouraging sign for the future, many
Table 3: Top 10 in Clean Energy Investment (bn)
China USA UK
$34.6 $18.6 $11.2
Rest of EU-27 $10.8 Spain Brazil
Germany Canada Italy India
governments prioritised clean energy within economic recovery funding, devoting more than US$184 bn of public stimulus investments to the sector. “The true impact of that support is still to come, with the bulk of the funds reaching innovators, businesses and installers in 2010 and 2011,” according to Pew.
China Takes the Lead China is emerging as the world’s clean
$10.4 $7.4 $4.3 $3.3 $2.6 $2.3
adopted national renewable energy and energy efficiency standards, feed-in tariffs, carbon reduction targets and/or financial incentives for investment and production, are assuming leadership positions in the clean energy sector. China, for example, has set ambitious targets for wind, biomass and solar energy. EU members have an economy- wide cap on emissions and ambitious reduction goals. Brazil has set ambitious targets for ethanol fuel. Other nations seeking to compete effectively
for clean energy jobs and manufacturing could mimic the array of policy mechanisms that can be employed to stimulate clean energy investment.
The US is a case in point. With a mixed policy framework (for
energy powerhouse. Having built a strong manufacturing base and export markets, China is working now to meet domestic demand by installing substantial new clean energy-generating capacity to meet ambitious renewable energy targets. The US ranked second in G-20 clean energy investments for
Installed renewable energy capacity increased in 2009 to 250 gigawatts
instance, no carbon policy and a patchwork of state renewable energy standards), the US has a comparatively weak clean energy economy given its relative size overall. However, “with significant natural 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,” insists Pew.
Wind & Solar Lead Investments The wind energy sector was again the primary recipient
the first time in five years, although clean energy investments fell 40%, compared with the previous year. Further declines were avoided through long-term extension of federal production and investment tax credits and initial funding from the American Recovery and Reinvestment Act, which helped to shore up investments in the latter half of 2009. “Despite this influx of investment, there are reasons to be concerned about the US competitive position in the clean energy marketplace,” say Pew.
Turkey Brazil China UK
Domestic Policy Choices Play Critical Role Domestic policy decisions appear to have
shifted the competitive positions of G-20 member countries. Nations such as China, Brazil, Germany and Spain, which have
worldPower 2010
Italy USA
France
Indonesia Mexico
Table 4: 5-Year Growth in Investment
Rest of EU-27 87%
of clean energy investment in 2009, reflecting its mature status as a large-scale power generation source. Wind energy accounts for more than 50% of worldwide clean energy investment and almost half of installed clean energy capacity worldwide. Recognised as a clean, safe, price-competitive resource, wind energy is being deployed as an important new source of generation in the leading clean energy economies. The solar sector – on the strength of US, Spanish and EU 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 rapidly. Solar energy prices have declined significantly in recent years, and the potential of new, thin-film technologies positions solar for significant growth. By contrast, the sharp spikes in biofuel
178% 148% 148% 127% 111% 103% 98% 95% 92%
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