Global investment in clean energy hits record levels

www.theage.com.au
14 Jan 2012

DESPITE the turbulence in the global economy, the world invested a record $251 billion in clean energy last year, with the US streaking ahead of China in green spending and boosting confidence among climate action advocates. New figures from Bloomberg New Energy Finance showed the US spent $54 billion on clean energy, retaking the No. 1 spot it lost to China in 2009 and defying assumptions that the world's largest economy is flagging on greenhouse gas reductions. Australia also hit a record, spending $4.7 billion on clean energy in 2011, a jump of 11% on the previous year, mostly from increases in rooftop solar.

''Despite financial crisis, and even though carbon pricing schemes haven't developed quite the way they were expected to,.. investment keeps growing, which reflects the world view of many major economists that clean energy is going to be the major industrial driver of economic growth this century,'' said Kobad Bhavnagri, Bloomberg New Energy Finance's lead clean energy analyst in Australia.

He said Australia's investment was on track to rise to $6.8 billion next year and $45 billion by 2020, meeting the target of renewable sources such as solar, wind and geothermal making up 20% of energy supply. The indications of a rise in global investment in clean energy follows the pact by major greenhouse-emitting countries in Durban last month on a road map that would lead to a global climate change deal by 2015.

Erwin Jackson, deputy CEO of the Climate Institute, said: ''There are all these myths of the world not acting on climate change. All you have to do is follow the money.'' A spokeswoman for Climate Change Minister Greg Combet said the government's clean energy package was meant to ensure Australia ''does not miss out on the benefits of clean energy investments''.

''US President Barack Obama has committed to a Clean Energy Standard, which will double the share of clean energy sources in the electricity supply mix to 80% by 2035, and individual states across the US are also taking action,.. US investment in renewable energy grew 33% to $55.9 billion in 2011. This level of investment is likely to grow as California introduces its own emissions trading scheme.'' Coalition climate action spokesman Greg Hunt said Australia would reach its target of 20% renewable energy even without the carbon tax.

''With the carbon tax, we will still only achieve 20% renewable energy by 2020 but, along the way, the ALP will impose over $100 billion of additional taxes on electricity, gas and groceries.''