Emerging Economies Lead The World in Green Investments

By: EW News Desk Team   Date: 13 July 2011

About The Author

EW News Desk Team

Always on the look out for the latest news to monitor the state of the world economy.

EconomyWatch, News Desk Team

 

  • Dot Div
  •      
13 July 2011

According to the latest report by the United Nations Environment Programme, developing countries have overtaken advanced economies as the largest investors in clean energy projects.

In 2010, global investments in renewable energy rose to US$211 billion – one third more than the US$160 billion invested in 2009, and a 540 percent rise since 2004.

China was the world’s largest investor in renewable energy resources, investing nearly US$48.9 billion in 2010 – an increase of 28 percent from the previous year.

However, other parts of the emerging world also demonstrated strong growth in the field with South and Central America increasing its green investments by 39 percent to US$13.1 billion, India seeing investment growth of up to 25 percent to US$3.8 billion, Middle East and Africa showing remarkable growth of 104 percent to US$5 billion, while Asian developing countries – excluding China and India – saw an increase by 31 percent to US$4 billion.

"The continuing growth in this core segment of the Green Economy is not happening by chance,” said UN Under-Secretary-General and UNEP Executive Director Achim Steiner.

“The combination of government target-setting, policy support and stimulus funds is underpinning the renewable industry's rise and bringing the much needed transformation of our global energy system within reach.''

Udo Steffens, President of the Frankfurt School of Finance and Management, added that the level of green investments from developing countries was “not only leading to innovations in renewable energy technologies” but also “facilitating a range of new business models and support entrepreneurship in the developing world."

This is the first year whereby emerging economies have out-invested their developed counterparts in green investments. According to the report, a further drop in the prices of solar and wind technologies will continue to boost the sector’s growth though low natural gas prices may hurt the Green industry.

Furthermore, the report added that while investments may have gone up, worldwide corporate research, development and deployment dropped by 12 percent to US$3.3 billion “as companies retrenched in the face of economic hard times.”


  • Dot Div
  •      

Most Popular in World Economy

Related Links
blog comments powered by Disqus