Sustainable Energy Investment 2007

UNEP (2007). Global Trends in Sustainable Energy Investment 2007. UNEP Sustainable Energy Finance Initiative and New Energy Finance Limited.

• Reviews high and growing levels of private investment in RE&EE, with wind, solar, and biomass biggest targets.
• Emphasizes that investment is driven by policy.
• Volume of investment flowing into clean energy sector dwarfs the dotcom boom. Has also lasted longer.
• Asset financing largest source of sustainable energy investment - 40% of 2006 total of $70.9 billion. Wind is area with most asset financing. Biofuels dominated venture capital/private equity investment in 2006, followed by solar.
• US has more VC/PE than any other region. EU27 has more assets financing.
• RE accounts for 18% of power generation investment but only 2% of installed capacity.
• Notes China's "bias" toward domestic manufacturers - says it is a source of uneven RE development
• Marine technology not attracting much investment yet
• 26 "Experience form other industries, such as telecoms, software and biotech, has shown that the rate of innovation and speed of commercialisation are dramatically accelerated by the presence of a healthy population of earlier-stage companies."
• Talks about U.S. and Israel as countries with strong incubator traditions
• 29 "The 'Kyoto Effect' can be observed, with quoted renewable energy companies in countries that have ratified the Protocol outperforming those in non-ratifying countries by 41.3%"
• Competition for wind asset financing driving innovation in financial markets
• Mergers and Acquisitions: Vertical integration - large wind companies buying suppliers. India and Australia net buyers of RE companies in 2006; EU-27, US, China and Latin America net sellers
• UK is clear leader in carbon fund management; US second
• Efficiency: EU aims to cut energy use by 20% by 2020 (not sure what baseline is). China wants to cut energy consumption by 20% w/in five years. Energy intensity four times US's in 2004.
• Multilateral dev't banks important source of funding for energy efficiency; also, public sector backed venture capital funds
• Small sections on China, INdia, Brazil, Africa