Executive Summary
Investment in renewable energy and low carbon technology has more than doubled in the last two years. $48.9bn was invested globally in clean energy in 2005, up 62% from $30.1bn in 2004, making up around 10% of all investment in the energy industry worldwide. New Energy Finance estimates that this figure will grow by a further 30% to $63.3bn in 2006.
All financial asset classes are seeing rapid growth, especially public market investments (IPOs and Secondary Offerings), venture capital and private equity, and project finance. $14.3bn has been raised by funds targeting the sector, and a further $7.0bn has been raised by 50 carbon funds. Investment is growing in all geographies and practically all sectors of the clean energy industry, including renewable energy, biofuels, energy storage and
efficiency technologies, hydrogen and fuel cells and associated services.
This healthy investment environment bodes well for the continued growth of the clean energy sector. This paper aims to provide an overview of trends in investment activity, and highlight ten areas in which action is required in order to keep the investment from the financial sector flowing in.
Prepared for the Clinton Global Initiative
New York, 20-22 September 2006
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