Washington, DC, USA — ESI-AFRICA.COM — 14 December 2010 – The latest American study shows that private investments in global clean energy projects could top US$2.3 trillion (R16 trillion) in 10 years’ time, with most of the investment taking place in Asia.
This is the opinion expressed in the newly released Pew Charitable Trust report on global clean power, which says the clean energy industry is looking at incredible growth in the next decade.
The report “’ entitled ‘Global Clean Power: A $2.3 Trillion Opportunity, examined projected private investment in wind, solar, biomass/energy from waste, small hydro, geothermal and marine energy projects. Data for the report was compiled by Bloomberg New Energy Finance.
Three scenarios were used to determine how much private investment each technology would garner:
- Business-as-usual (BAU): no change from current policies;
- Copenhagen: policies to implement the pledges made at the 2009 international climate negotiations in Copenhagen and;
- Enhanced clean energy: maximised policies designed to stimulate increased investment and capacity additions.
Pew found that in the G-20, total attracted clean power project investment was projected to be:
- BAU: US$1.7 trillion (R11.7 trillion) by 2020
- Copenhagen: US$1.8 trillion by 2020
- Enhanced clean energy: US$2.3 trillion (R16 trillion) by 2020
“Asia became the top regional destination for clean power finance this year – with China and India leading the way due to strong clean energy policies,” said Pew. “By 2020, China, India, Japan and South Korea could account for approximately 40% of global clean power project investments.”
‘Asia is now the leading region for clean energy investment, and its lead is set to extend in the near future unless Europe and the U.S. make a step-change in their support for the sector,” said Bloomberg New Energy Finance CEO Michael Liebreich.
In all three scenarios, China maintains its global leadership position and has the potential to attract cumulative clean energy asset investments of US$620 billion over the next decade, according to the report. Due to its clean energy policies, India moves up to third place by 2020 under all scenarios after being ranked 10th in 2009. India could realise a 763% increase in investment under the enhanced scenario, the largest of all G-20 members.
Europe “’ an early leader in the global clean energy economy thanks to strong clean energy policies and targets “’ could see investments in clean energy projects total US$705 billion over the next decade under the enhanced clean energy scenario. The United Kingdom and Germany, traditional clean energy powers in Europe, rank in the top five globally of attracted clean power project investments under all three scenarios.