Despite Economic Crisis, Clean Energy Emerging, Developing Countries Take the Lead

Sandia National Laboratory

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Investments in clean energy companies and projects worldwide reached $155 billion in 2008. Not including large hydro (which may be clean but is hardly green). However, investment in the second half of 2008 was down 17% on the first half and down 23% on the final six months of 2007, a trend continuing in 2009.

Nevertheless, UNEP reports $13.5 billion of new private investment in companies developing and scaling-up new technologies. Plus $117 billion of investment in renewable energy projects from geothermal, wind, solar and biofuels.

Altogether, 2008 saw more than four times the investment of 2004. The breakdown, according to Global Trends in Sustainable Energy Investment 2009:

  • $105 billion to developing 40 GW of power-generating capacity from wind, solar, small-hydro, biomass and geothermal sources
  • $35 billion to developing 25 GW of large hydropower
  • Renewables currently account for the majority of investment and over 40% of actual power generation capacity additions last year
  • China became the 2nd second largest wind market in terms of new capacity
  • China became the  biggest photovoltaic manufacturer
  • Rises in geothermal energy getting underway in Australia, Japan and Kenya
  • Wind attracted the most new investment: 51.8 billion, 1% growth on 2007
  • Solar made largest gains: $33.5 billion, 49% growth
  • Biofuels dropped: $16.9 billion, 9% decrease
  • The price of solar photovoltaic modules is predicted to fall by more than 43% in 2009
  • Carbon markets grew 87% during 2008, reaching a total of $120 billion

Regionally, investment in Europe rose 2% in 2008 to $49.7 billion. Investment in North America fell 8% to $30.1 billion, due to financing shutdowns—thanks, Wall Street—and the fact that tax-credit driven markets are ineffective in a downturn. Yet developing countries surged forward 27% over 2007 to $36.6 billion, accounting for nearly one third of global investments:

  • China led new investment in Asia with an 18% increase over 2007 to $15.6 billion, mostly in new wind and some biomass plants
  • Investment in India grew 12% to $4.1 billion in 2008
  • Brazil accounted for almost all renewable energy investment in Latin America in 2008, with ethanol receiving $10.8 billion, up 76% from 2007
  • Africa achieved a modest increase, with investments up 10% to approximately $1.1 billion

Although private sector investment stalled in late 2008, governments appear ready to take up some slack in 2009. Sustainable energy investments are a core part of key government fiscal stimulus packages announced in recent months, accounting for an estimated $183 billion of commitments to date.

  • The US and China remain the leaders, each devoting roughly $67 billion
  • Yet South Korea’s package is the greenest with 20% devoted to clean energy—illustrating the political will of an increasing number of governments to secure future growth through greener economic development, according to the report

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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