Hydro, Solar, Wind Technology Investments Reach Landmark High

Landmark figures from the United Nations show that more capital was invested into renewable energy technologies than into traditional energy technologies in 2008 – an indication of the increasing attraction of environmentally friendly pursuits to investors.

Specifically, $110 billion in funding was injected into coal and gas-based technologies, but $30 billion more into hydro, solar and wind technologies, according to the UN’s Global Trends in Sustainable Energy publication, which was collated by London-based consultancy NEF (New Energy Finance).  Of this total of $140 billion, in excess of a third came from within Europe, but in terms of growth, the most substantial increases were recorded in countries like India and China.

“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”, UN Environment Programme Executive Director, Achim Steiner, explained.

In terms of individual energy technologies within the $140 billion...

• $53.8 billion was invested into developing new wind power technologies
• $33.b billion was invested into developing new solar power technologies
• $16.9 billion was invested into developing new biofuel technologies

Of these figures, the most significant was solar power, investment into which was almost 50 per cent higher than in 2007.

In terms of individual nations, Chinese investment into wind power in 2008 was almost twice that of the previous year.  Within the same timeframe, Indian investment into the same grew 17 per cent.

Within the overall picture, Steiner identified the fact that nations like Angola and Kenya were now investing in renewable energy technologies as especially welcome, since they hadn’t done so before.

Investment into Clean Technologies

However, the UN’s ideal investment-into-‘clean’-technologies projection for the period 2009-2011 is $750 billion overall and, so far, 2009 has not yielded very positive results. Between January and March 2009 (inclusive), renewable energy investment levels totalled $13.3 billion – a drop of over 50 per cent.

Politicians the world-over have been creating and implementing so-termed Green New Deals – packages aimed at revitalising national economies as well as supporting the development of clean technologies.  While, therefore, the initial three months of 2009 have been disappointing from a green investment perspective, NEF’s chief executive Michael Liebreich highlighted “green shoots” emerging for April-June.  In other words, signs of hope springing up from the ground. 

On this basis, he said, 2009 global renewable energy technology investment figures could reach $115 billion – better than some have forecast, but still substantially lower than 2008.