Europe’s leaders have been urged to boost their policies for supporting renewable energy manufacturing, after the region lost its pole position in the market to China last year.

WWF will today publish the findings of its third annual study with consultancy Roland Berger comparing regions and countries on the basis of their sales value in the clean tech manufacturing chain.

The Clean Economy, Living Planet report will say that in 2011 the global sales value of the clean technology sector increased by 10 per cent to almost €200bn. It forecasts the market will reach between €240bn and €290bn in 2015, rivaling the oil and gas equipment market.

It found that China overtook the EU as the largest clean tech market in absolute terms, with sales growing by €13bn to €57bn in 2011. The emerging economy was also ranked as the second fastest growing manufacturing hub after Taiwan, which grew 36 per cent.

Sales in the US grew by 17 per cent making it the fifth fastest growing manufacturing hub, However, the report will say that the US is trailing China and the EU because of a lack of incentives to help any sector except biofuels.

In contrast, cleantech sales declined in most European countries last year as a result of the financial crisis, which increased investment risk and diverted attention away from the green sector.

The Netherlands saw sales decline 14 per cent, France fell 30 per cent, and in Spain sales dropped nine per cent. The exception was Denmark and Germany, buoyed by sales of wind turbines.

Denmark will retain its position as global clean tech leader, but China holds second place and is closing in on Denmark.

When ranked by absolute market size, the UK dropped one place to 12th position since last year, and now ranks 32nd in terms of sales relative to GDP, down from 28th place last year.

WWF global climate and energy policy leader Samantha Smith argued that countries that are growing sales such as China are successful not only because of lower labour and capital costs, but also because of stable government policies, innovation and well-developed supply chain.

“Political will is what separates winners from losers in the clean economy of the future, and that’s what the rankings show,” she said. “Their governments invested, and now the winners are getting the sales, jobs and technology.”

The report, however, predicts that European countries hit by the eurozone crisis will refocus their attention on strategic growth opportunities in the clean tech sector as they recover.

“The countries that are capturing global markets have all realised that clean tech is an important part of their energy policy, economic policy and industrial policy,” added Smith.

“These countries are supporting the clean energy technology industry, and have stable, long-term policies generating green investments. They incentivise the right areas, and now they’re reaping the rewards.”