Private investments in G-20 clean power projects could total $2.3 trillion by the end of the decade, according to a report released by The Pew Charitable Trusts. Massive energy demand and strong clean energy policies will drive investment to Asia, led by China and India. However, by adopting such policies, every G-20 member has the opportunity to attract more private investment in clean power projects and compete more effectively for business in this emerging global industry.
The report, titled ‘Global Clean Power: A $2.3 Trillion Opportunity,’ examines projected private investment in wind, solar, biomass, small hydro, geothermal and marine energy projects.Â
The underlying data for this report were compiled by Bloomberg New Energy Finance. The report modeled three policy scenarios to determine future growth through 2020: business-as-usual with no change from current policies; policies to implement the pledges made at the 2009 international climate negotiations in Copenhagen; and maximized policies designed to stimulate increased investment and capacity additions.
‘The message of this report is clear: Countries that want to maximize private investments, spur job creation, invigorate manufacturing and seize export opportunities should strengthen their clean energy policies,’ says Phyllis Cuttino, director of the Pew Climate and Energy program.
The report found that the clean energy sector continues to be an immense economic opportunity. G-20 members have the potential to gain an additional $546 billion in clean power project investments over the next decade compared to a business-as-usual scenario.Â
Under the enhanced clean energy scenario, the projected $2.3 trillion investment in clean power projects would be equivalent to adding the entire gross domestic product of the U.K. to the global economy. Over that same time span, total renewable energy capacity additions in the G-20 are projected to reach 1,180 GW, almost four times the amount of renewable energy capacity that exists today.
Asia became the top regional destination for clean power finance this year – with China and India leading the way due to strong clean energy policies. By 2020, China, India, Japan and South Korea will account for approximately 40% of global clean power project investments. The report also found that the U.S. is among those countries with the most to gain from passing strong clean energy policies. For example, the U.S. has the potential to attract $342 billion in clean power project investments over the next 10 years under the enhanced clean energy scenario. That would represent an additional $97 billion compared to attracted investment under a business-as-usual scenario, a 40% increase in investment. Only India and the U.K. have the potential to increase investments at a higher rate.
SOURCE: The Pew Charitable Trusts