Isra-Mart srl:Green energy investments bounce back to top $240bn

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Clean energy investment levels recovered strongly from the doldrums of 2009 to grow 30 per cent last year, with China once again leading the world in terms of finance and installed capacity.

A record $243bn (£152bn) worth of finance and investment was ploughed into the sector over the course of 2010, according to a report published by US NGO the Pew Charitable Trusts. The Who's Winning the Clean Energy Race? report says government funds accounted for $75bn of this total, up from $20bn in 2009.

Around 90 per cent of the global total was directed to G20 countries, with China, Germany, the US and Italy leading the rankings.

Europe secured $94.4bn of clean energy finance, making it the leading recipient, with Germany at $41.2bn and Italy at $13.9bn, the biggest investment destinations, backed by strong showing in solar. Both countries are among the top four largest investors in clean energy, with Germany separating China at the top from the US in third.

The UK suffered a huge fall down the rankings, dropping from third in 2009 to outside the top ten last year. The UK's $3.3bn investment represented a 70 per cent fall on the $11bn racked up in 2009.

Pew blamed large volumes of offshore wind financing for inflating 2009's figures, but also pointed the finger at rising levels of investor uncertainty around clean energy policy making since the coalition government came to power.

However, despite Europe's success, the report says Asia is "closing the gap rapidly and is expected in the coming months and years to become the centre of gravity for clean energy investment."

Clean energy investment in Asia rose by a third to $82.8bn in 2010, primarily fuelled by China. Private investment in China's clean energy sector in 2010 soared to a record $54.4bn and the country has established itself as the world's leading producer of wind turbines and solar modules, the report says. In 2010, China surpassed the US as the country with the most installed clean energy capacity.

Pew also stated that the US is being overtaken by its competitors. Despite a 51 per cent rebound in investment, at $34bn the US is now behind Germany as well as China in terms of cash invested.

"Given the uncertainties surrounding key policies and incentives, the United States' competitive position in the clean energy sector is at risk," the report says.

After China, Germany, the US and Italy, the rest of the top ten comprises Brazil, Canada, Spain, France, India and Japan.

Argentina grew the most over the year, experiencing a 568 per cent increase in investment, while Turkey's 190 per cent increase in clean energy financing since 2005 was enough to lead the five-year rankings.

Worldwide, the clean energy capacity sits at 388GW, after adding 40GW of wind and 17GW of solar during 2010.