RELEASE: United States Slipped to Third in Clean Energy Race

United States Slipped to Third in Clean Energy Race

Global Investment in Sector Reached Record $243 Billion in 2010

For immediate release

Tuesday, March 29, 2011

WASHINGTON – The U.S. competitive position in the clean energy sector is deteriorating, as the country slipped to third place in terms of the amount of private investment directed to the G-20 economies, according to a new report released today by The Pew Charitable Trusts. Until 2008, the U.S. had held the top spot, which is now firmly held by China. Globally, 2010 clean energy finance and investments grew by 30 percent to a record $243 billion.

The United States received $34 billion in equity last year, a 51 percent increase from 2009. However, the gap with China, which attracted a record $54.4 billion, continues to widen. Germany also attracted more money than the U.S. with $41.2 billion, claiming the number two spot, up from third the previous year.

“The United States’ position as a leading destination for clean energy investment is declining because its policy framework is weak and uncertain,” said Phyllis Cuttino, director of Pew’s Clean Energy Program. “We are at risk of losing even more financing to countries like China, Germany and India, which have adopted strong policies such as renewable energy standards, carbon reduction targets and/or incentives for investment and production. In today’s global economic race, the United States can’t afford to be to be a follower in this sector.”

Michael Liebreich, CEO of Bloomberg New Energy Finance, added, “The United States remains the global leader in clean energy innovation, receiving 75 percent of all venture capital investment in the sector, a total of $6 billion in 2010, but the U.S. has not been creating demand for deployment of clean energy. As a result it is losing out on opportunities to attract investment, create manufacturing capabilities and spur job growth. For example, worldwide, China is now the leading manufacturer of wind turbines and solar panels.”

This research shows that the United States is in the middle of the pack on a variety of key clean energy indicators, including asset financing (an important barometer of clean energy deployment, manufacturing and job growth), installed renewable capacity and five-year growth rates. China led the G-20 in this type of financing with $47.3 billion, more than double the U.S. ($21 billion). China also surpassed the United States in installed renewable capacity. In addition, the United States trails leading countries in five-year rates of clean energy capacity additions, investment growth and intensity (a measure of investment dollars compared to gross domestic product).

With underlying data compiled by Pew’s research partner Bloomberg New Energy Finance, Who’s Winning the Clean Energy Race? 2010 Edition examines the key financial, investment and technological trends in relation to the clean energy portion of the world’s leading economies. Known as the Group of Twenty (G-20), these members account for 90 percent of global clean energy finance and investment.

Other key findings from the report include:

• Worldwide clean energy investment and finance has grown 630 percent since 2004.

• Regionally, Europe remained the leading recipient, attracting $94.4 billion, led by Germany ($41.2 billion) and Italy ($13.9 billion).

• Italy ranked fourth, attracting $13.9 billion. It is the first country in the world to achieve grid parity, or cost-competitiveness, for solar energy.

• The Asia/Oceania region, led by China, continued its sharp rise, attracting $82.8 billion, a 33 percent increase over the previous year.

• The Americas also saw investment grow 35 percent, but as a region it remains a distant third, attracting $65.8 billion.

• Investments in small-scale, residential solar in G-20 countries grew by 100 percent to $56.4 billion. Germany accounts for more than half the total, followed by Japan, France, Italy and the United States.

• Installed generating capacity increased to 388 gigawatts from wind, small-hydro, biomass, solar, geothermal and marine, with China accounting for more than 25 percent of the global total.

Read the entire report, including country profiles, interactive graphics and video, at www.PewEnvironment.org/CleanEnergy.

Bloomberg New Energy Finance is the world’s leading provider of news, data and analysis on clean energy and carbon market finance and investment. www.BNEF.com

The Pew Charitable Trusts is driven by the power of knowledge to solve today’s most challenging problems. Pew applies a rigorous, analytical approach to improve public policy, inform the public and stimulate civic life. www.pewtrusts.org

CONTACT:

Tracy Schario, tschario

Shannon Pao, spao

# # #

Mallory Shelter

Media Communications Fellow, Pew Environment Group

The Pew Charitable Trusts | www.pewtrusts.org

901 E St., NW, 10th Floor, Washington, DC 20004

p: 202-540-6538 | e: mshelter@pewtrusts.org | www.PewEnvironment.org

Advertisements

Leave a Reply-Scotty will respond asap

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s