Global Clean Power Sector Could Attract $2.3 Trillion by 2020
Global Clean Power: A $2.3 Trillion Opportunity examined projected private investment in wind, solar, biomass/energy from waste, small hydro, geothermal and marine energy projects. The underlying data for this report were compiled by Bloomberg New Energy Finance, the world’s leading provider of news, data and analysis on clean energy and carbon market finance and investment. The report modeled three policy scenarios to determine future growth through 2020: Business-as-usual: no change from current policies; Copenhagen: policies to implement the pledges made at the 2009 international climate negotiations in Copenhagen and; Enhanced clean energy: maximized policies designed to stimulate increased investment and capacity additions. (Click here for a chart that illustrates how renewable energy investment would grow under each policy scenario by country)
“The message of this report is clear: countries that want to maximize private investments, spur job creation, invigorate manufacturing and seize export opportunities should strengthen their clean energy policies,” said Phyllis Cuttino, director of the Pew Climate and Energy program.
Watch a video about the report, narrated by Phyllis Cuttino
The report found that the clean energy sector continues to be an immense economic opportunity. G-20 members have the potential to gain an additional $546 billion in clean power project investments over the next decade compared to Business-as-usual. Under the Enhanced clean energy scenario, the projected $2.3 trillion investment in clean power projects would be equivalent to adding the entire GDP of the United Kingdom to the global economy. Over that same time span, total renewable energy capacity additions in the G-20 are projected to reach 1,180 gigawatts, almost four times the amount of renewable energy capacity that exists today.
In the G-20, total attracted clean power project investment is projected to be:
- Business-as-usual: $1.7 trillion by 2020
- Copenhagen: $1.8 trillion by 2020
- Enhanced clean energy: $2.3 trillion by 2020
“Strong and consistent policies in Asia have helped double private investment over the past two years. Asia is now the leading region for clean energy investment, and its lead is set to extend in the near future unless Europe and the US make a step change in their support for the sector,” said Michael Liebreich, CEO of Bloomberg New Energy Finance.
Under all three scenarios, China maintains its global leadership position and has the potential to attract cumulative clean energy asset investments of $620 billion over the next decade. Due to its clean energy policies, India rockets up to third place by 2020 under all scenarios after being ranked 10th in 2009. India could realize a 763 percent increase in investment under the enhanced scenario, the largest of all G-20 members.
Europe was an early leader in the global clean energy economy thanks to strong clean energy policies and targets. The report found investment in clean power projects in the European Union could total $705 billion over the next decade under the Enhanced clean energy scenario. The United Kingdom and Germany, traditional clean energy powers in Europe, rank in the top five globally of attracted clean power project investments under all three scenarios.
The report also found that the United States is among those countries with the most to gain from passing strong clean energy policies. For example, the U.S. has the potential to attract $342 billion in clean power project investments over the next 10 years under the Enhanced clean energy scenario. That would represent an additional $97 billion compared to attracted investment under Business-as-usual, a 40% increase in investment. Only India and the United Kingdom have the potential to increase investments at a higher rate.
Click here to read the U.S. press release
Click here to read the EU press release
Click here to read the UK press release
Click here to read the China press release; Click here to read the China press release translated into Chinese
Click here to read the Germany press release; Click here to read the Germany press release translated into German
Click here to read the India press release; Click here to read the India press release translated into Hindi