Clean Energy Investments Starting to Rise in 2Q 2009

June 11, 2009

Email this story Print this post Add your comments

New investment in the global clean energy sector in the second quarter of 2009 has already surpassed investments made in the first quarter by a third, according to new research by New Energy Finance. Clean energy investments in the first quarter of 2009 were down 44 percent from the fourth quarter of 2008 and down 53 percent from the investment peak in the first quarter of 2008.

New Energy Finance expects clean energy investments for 2009 to end up in the range of $95 billion to $115 billion, a drop of 26 to 39 percent from last year.

However, a recent report, “Green Investment: Towards a Low-Carbon energy Infrastructure,” published earlier this year by New Energy Finance and World Economic Forum, shows that annual investments in clean energy need to reach $500 billion by 2020 to ensure that global carbon emissions peak before that date.

The report identifies eight emerging, large-scale clean energy sectors that are expected to significantly contribute to a clean energy infrastructure: onshore wind, offshore wind, solar photovoltaic, solar thermal electricity generation, municipal solar waste-to-energy, sugar-based ethanol, cellulosic and next-generation biofuels, and geothermal power.

New Energy Finance’s first full-year forecast for 2009 shows that the financial crisis and recession have negatively impacted the sector. The good news, says the company, is that investments in clean energy companies in the second quarter have rallied with more than $2 billion of completed secondary issues for companies such as Vestas, SunPower, Q-Cells, Evergreen Solar and Suntech Power.

New Energy Finance says green stimulus money from government programs will help, but the group estimates that more than two-thirds of this money will be spent in 2010 and 2011, with 15 percent or less or about $28 billion this year. Yet, the World Economic Forum warns that at least $515 billion annually needs to be invested in clean energy between now and 2030 to keep temperatures from rising by two degrees globally.

Jobs in the clean energy economy grew at a national rate of 9.1 percent, while traditional jobs grew by only 3.7 percent between 1998 and 2007, according to a new study by The Pew Charitable Trusts. The report also finds that this sector is poised to expand significantly, driven by increasing consumer demand, venture capital infusions, and federal and state policy reforms.

Venture capital investment in clean technology crossed the $1 billion threshold in 2005 and continued to grow substantially, reaching a total of about $12.6 billion by the end of 2008, according to the Pew report.

Email this story Print this post Add your comments

Advertisers

Enhance Sustainability. Improve Profitability.

Learn how at the SAP Sustainability Resource Center. >>

Unclear about the EPA's new GHG Rule?

Learn how it could affect your business. >>

EPA mandatory emissions reporting starts Jan 1st

CSA Standards can help your organization get ready for compliance. Find out how. >>

Survey Results: Product Environmental Compliance Best Practices

How to achieve compliance at a significantly lower cost. Download the full report. >>

Join the Discussion

Recent Daily News [ see all ]

11/20/2009
11/19/2009
11/18/2009

Charts [ see all ]

European Paper Industry Cuts CO2 Emissions by 42% since 1990

S. America Takes Most Urgent View of Copenhagen Talks

Nike Tops Annual Climate Action Scores

Oceans May Trap more Carbon than Forests

Jobs

View All Jobs >> Post a Job >>

Comments and Discussions

Stevenson on News Corp. Taps Hara for Energy Efficiency, Environmental Management
"All of us should think of ways to save energy now. It is not a myth,..."

Trade Association on Trade Group on EPA Chemical Regs: ‘If Everything is a Priority, Then Nothing is a Priority’
"Seriously… that..."

Gary Markowitz on Supermarkets Tackle Emissions Reductions, Fuel Efficiency
"Supermarkets waste over 10 percent of their energy through improper..."

peter in ireland on Ontario May Follow California’s Lead on TV Energy Efficiency
"Governor Schwarzenegger is shooting himself in the foot! 1...."

Environmental Leader on S. America Takes Most Urgent View of Copenhagen Talks
"The survey respondents (the PDF report mentions 4,000 respondents in 38..."

Jake on UPS Trying New Hydraulic Hybrid Trucks
"A point of clarification: the Reuters press release referenced herein reports that 20 UPS will purchase..."

Custom Organic Shirts on S. America Takes Most Urgent View of Copenhagen Talks
"90% of North Americans believe it is urgent to get a global climate..."

Environmental Leader