According to data released last week by the Pew Environment Group, clean energy investment globally has experienced growth of 230 percent since 2005, but Australia is lagging behind other G-20 nations.
Last year, China invested USD $34.6 billion in the clean energy economy, nearly double the United States’ investment and making it the world leader of G-20 countries. Rebounding from a sharp downturn in the last quarter of 2008 and first quarter of 2009, clean energy investments in the G-20 averaged a robust USD$32 billion in each of the last three quarters of 2009. Clean energy investments are forecast to grow by 25 percent to $200 billion in 2010.
The Pew report says countries with strong nationwide policy frameworks, including renewable energy standards, carbon markets, priority loans for renewable energy projects and clean energy targets, such as China, Brazil, Spain, United Kingdom and Germany, have the strongest clean energy sectors as a percentage of their economies. Countries without such policy frameworks including the United States, Japan, and Australia lag behind.
Australia’s clean energy sector recovered from a 50 percent drop in 2008 with clean energy investment of USD $1 billion in 2009. However, even with its considerable renewable energy resources, it ranks 14th among the G-20 members and the USD$1 billion only represents 0.9% of the G-20 investment total.
Pew says in order for Australia to reach its 20 percent renewable energy target for 2020, substantially increased finance and investment will be needed in the next decade. In 2009, Australia’s renewable energy contribution was only 3.1% of the nation’s power capacity and 1.2% of the G-20 total. More than 250 gigawatts of renewable energy generating capacity have been installed around the world, producing six percent of global energy.
The data in the Pew report was compiled and reviewed by Pew’s research partner, Bloomberg New Energy Finance.
