Clean energy financing by the world's development banks increased 19% last year to $109 billion – breaking through the $100 billion-a-year barrier for the first time, according to new research from Bloomberg New Energy Finance (BNEF).
The top three banks were Germany's KfW, China Development Bank and the Brazilian Development Bank. BNEF says that clean energy financing by development banks has grown at a compound rate of 25% per annum over the last five years. This trend is expected to continue, especially as the larger development banks such as the European Investment Bank and World Bank are scaling down their investments in coal projects, which should leave more of their finite capital available for clean energy projects.
"This year, we expect at least another 15 percent growth in development bank financing," comments Abraham Louw, clean energy analyst at BNEF. "There is potential for an even bigger increase in the longer term if other institutions – such as a possible BASIC-country development bank – become active."