UNEP SEFI and New Energy Finance are pleased to release this year's Global Trends in Sustainable Energy Investment 2008 Report. The report provides an overview of capital flows and an analysis of the trends in sustainable energy investment activity.

Global investment in sustainable energy broke all previous records in 2007, with $148.4 billion of new money raised, an increase of 60% over 2006. Total investment in sustainable energy, including acquisition activity, was $204.9 billion.

Asset finance – investment in new renewable energy capacity - was the main driver for this surge in investment, rising 68% to reach $84.5 billion in 2007, fuelled mainly by the wind sector. Public market investment also raced ahead in 2007, with investment of $23.4 billion in 2007, more than double the $10.5 billion raised in 2006.

In early 2008, investment growth continues amid the turmoil in the global fi nancial markets. This healthy investment environment bodes well for the continued growth of the sustainable energy sector. The report provides an overview of different types of capital fl ows and an analysis of the trends in sustainable energy investment activity in developed and developing Countries.

The information is intended to be a strategic tool for understanding the status of the sustainable energy sector’s development and for weighing future public and private commitments to the sector.

Download Global Trends in Sustainable Energy Investment 2008

PDF format, 2.3MB, 70Pages.

Analysis of Trends and Issues in the Financing of Renewable Energy and Energy Efficiency

Copyright © United Nations Environment Programme and New Energy Finance Ltd. 2008

AUTHORS:
Rohan Boyle
Chris Greenwood
Alice Hohler
Michael Liebreich
Virginia Sonntag-O’Brien
Alice Tyne
Eric Usher

Contents:
Foreword 3
Methodology and Defi nitions 6
1. Overview of Investment Trends 12
2. Putting Sustainable Energy Investment into Perspective 18
3. Underlying Changes in the Finance Sector 21
4. Venture Capital and Private Equity 24
5. R&D and Clean Energy Incubators 28
6. Public Markets 31
7. Asset Financings 36
8. Corporate Mergers & Acquisitions 40
9. Investment Funds 43
10. Carbon Finance 46
11. Investment in Developing Countries 49
11.1 Investment in China 52
11.2 Investment in India 54
11.3. Investment in Brazil 56
11.4. Investment in Africa 58
12. Special Focus: Energy Effi ciency – Investment Status and Opportunities for Growth 62

Visit Global Trends in Sustainable Energy Investment 2008 Download Page

Foreword:

Investors Continue to Create the Climate for Change

The numbers from the 2008 Global Trends in Sustainable Energy Investment Report are impressive and continue to break new records in the evolving clean energy sector –nearly $150 billion of new money in 2007. The message these numbers present is clear: sustainable energy is now a mainstream and accelerating investment sector.

This edition of Global Trends shows that investment fl ows have not only continued to grow – more than 60% compared to 2006 – they have broadened and diversifi ed, giving the sustainable energy sector greater breadth, depth and scale. The only sector that has taken a downturn is biofuels amid rising concerns of feedstock availability, price and environmental sustainability.

The record overall investment, however, comes despite the recent ‘credit crunch’ and is a true cause for hope that rising concerns over climate change and energy prices are leading to a fundamental change in the way we produce and use energy. These fi gures show that the fi nance sector’s forward view may be better at seeing the “disruptive change” of new technology.

Indeed, energy analysts that look backward see that renewable energy “only” supplies 5% of global energy. Renewable energy, however, accounted for 9.4% of global energy investment and for 23% of new electricity generating capacity in 2007. Investment levels are on track to reach $450 billion a year by 2012 and $600 billion a year in 2020.

In terms of climate change, the numbers in Global Trends point to the most cost-effective solutions if carbon emissions are to be reduced in time to avoid the most dangerous climate change scenarios. The twin thrusts from renewable energy and improved energy effi ciency can be the sustainable energy engine of a global economy without dangerous carbon emissions.

Rather than waiting for new technology to clean up the current energy infrastructure, the job can be done now from existing solar, wind, geothermal and other currently commercial technologies. Investment fl ows into sustainable energy have recently increased by more than $100 billion. This is a positive signal that the investment sector will be able to raise the $200-210 billion per year the UNFCCC Secretariat says is needed to return global GHG emissions to current levels.

Global Trends comes at a crucial time for international climate diplomacy with less than 17 months to go to the pivotal Copenhagen meeting of the climate convention. Here governments must reach agreement on a new and decisive climate agreement.

The message from the report is one of confi dence--confi dence that deep and meaningful emissions reductions are achievable and if the clean energy markets are given the oxygen to evolve.

Renewable energy and energy effi ciency really are the light at the end of the climate tunnel that illuminates the most cost-effective and timely ways to reduce carbon emissions across the global economy. The challenge now is to accelerate efforts to develop the policies and signals that will continue to create the climate for change.

Achim Steiner
Executive Director
United Nations Environment Programme

About SEFI:

UNEP is working to create the policy and economic framework whereby sustainable energy can increasingly meet the global energy challenge. Changing attitudes and helping mainstream fi nanciers to consider sustainable energy investments are key components of the energy work within UNEP and the starting point for the UNEP Sustainable Energy Finance Initiative.

SEFI provides current and targeted information to fi nanciers and facilitates new economic tools that combine social and environmental factors – both risks and returns – as integral measures of economic performance.

SEFI is modelled as a platform to provide fi nanciers with the tools, support and networks to drive fi nancial innovation that improves the environmental performance of the energy mix. The overall strategy is to use this platform and modest amounts of capital to convene fi nanciers, engage them to do jointly what they may have been reluctant to do individually, and to catalyze public-private alliances that together share the costs and lower the barriers to sustainable energy investment.

SEFI is managed jointly by the UNEP Energy Branch in Paris, the UNEP Finance Initiative in Geneva and BASE, a UNEP Collaborating Centre located in Basel.

www.sefi.unep.org

About New Energy Finance:

New Energy Finance is a specialist provider of analysis to the world’s leading investors in renewable energy, biofuels, low-carbon technologies and the carbon markets. The company’s research staff of 45 (based in London, Washington, New York, Beijing, Shanghai, New Delhi, Tel Aviv and Perth) tracks deal fl ow in venture capital, private equity, M&A, public markets and asset fi nance around the world.

New Energy Finance covers all sectors of clean energy: renewables (wind, solar, marine, geothermal, mini-hydro); biomass & biofuels; energy architecture (supply- and demand-side effi ciency, smart distribution, power storage, carbon capture & sequestration); hydrogen & fuel cells; carbon markets and services.

Services include the New Energy Finance Briefi ng, New Energy Finance Desktop, Newswatch daily news service and Focus Reports on sectors and countries. New Energy Finance co-publishes the world’s fi rst global clean energy market index, the WilderHill New Energy Global Innovation Index (ticker symbol NEX). New Energy Finance’s subscriptionbased Insight Services providing deep market analysis to investors in Wind, Solar, Biofuels, Biomass, China, VC/PE, Public Markets and the US. The company also undertakes bespoke research and consultancy, and runs senior-level networking events.

New Carbon Finance, a division of the company, provides analysis and price forecasting for the European, global and US carbon markets.

www.newenergyfinance.com

Comments (0)

Show/Hide comments

Name

Email

Website

Title

Comment

smaller | bigger

Add Comment