Published on October 17th, 2013 | by Joshua S Hill2
Global Clean Energy Investment Down In Q3’2013
October 17th, 2013 by Joshua S Hill
New statistics released by Bloomberg New Energy Finance have shown that global investment in clean energy during the third quarter of 2013 was down 14% on this year’s second quarter and 20% below 2012’s Q3.
The information stems from Bloomberg New Energy Finance’s latest data on deals and projects, and blames the fall in investment on faltering “political will to decarbonise energy mix.” They further note that the third quarter’s decline in investment will push the year’s overall investment in renewable energy and energy-smart technologies down below 2012’s $281 billion, “a total that was itself 11% down from the record established in 2011″ they conclude.
The only regions to show any investment increase on both the quarter and the year were countries in the America outside of the US and Brazil, with Canada, Chile, and Uruguay ending the quarter with firm figures enough to bolster the region’s figures.
“After the slightly more promising second quarter, we now have a very disappointing third quarter figure for investment,” said Michael Liebreich, chief executive of Bloomberg New Energy Finance. “$45.9 billion is still a substantial amount of money, greater than that invested in the whole of 2004, but the loss of momentum since 2011 is worrying.”
“The latest setback reflects policy uncertainty in Europe, the lure of cheap gas in the US, a leveling-off in wind and solar investment in China, and a general weakening of political will in major economies. Governments accept that the world has a major problem with climate change but, for the moment, appear too engrossed in short-term domestic issues to take the decisive action needed.”
Interestingly, it appears that while investment data shows figures have fallen, clean energy shares on stock markets around the world are booming. Data measured by WilderHill New Energy Global Innovation Index, or NEX, shows that clean energy shares on the 9th of October nearly 47% up on the year so far and 74% above their respective lows reached in July of 2012.
Looking at specific Q3’2013 figures sees asset finance of utility-scale renewable energy projects at $26.4 billion, down from $31.9 billion in the second quarter of this year and a high of $34.8 billion in Q3’2012. Venture capital and private equity investment in specialist clean energy companies was down to just $724 million, while investment in clean energy companies via the public markets stood at 2 billion, down from a strong $3.8 billion in the second quarter of this year but above the Q3’2012’s $1.6 billion.
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