CSR

Massive surge in renewable energy investment

Investment capital flowing into renewable energy climbed by a massive $20bn during 2006, prompted by climate change concerns, high oil prices and increasing government support, analysis by the United Nations environment programme (UNEP) has found.

Investment in renewable energy and energy efficient industries rose to $100bn in 2006, meaning that while renewable sources produce only about 2% of the world's energy, they account for around 18% of world investment in power generation.

Furthermore, rather than be an industry dominated by the developed world, close to 10% of such investments are in China, and in total around a fifth in the developing world.

However, the US and EU together accounted for more than 70% of sustainable energy investment during 2006.

The report also credit the increased investment to the November 2006 US mid-term elections, which it said confirmed renewable energy as a "mainstream issue" and moved it up the political agenda.

Achim Steiner, UNEP executive director, said: "One of the new and fundamental messages of this report is that renewable energies are no longer subject to the vagaries of rising and falling oil prices - they are becoming generating systems of choice for increasing numbers of power companies, communities and countries irrespective of the costs of fossil fuels".

July 2007