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.
Global Clean Power: A $2.3 Trillion Opportunity examined projected private investment in wind, solar, biomass/energy from waste, small hydro, geothermal and marine energy projects. The underlying data for this report were compiled by Bloomberg New Energy Finance, the world's leading provider of news, data and analysis on clean energy and carbon market finance and investment. The report modelled three policy scenarios to determine future growth through 2020: Business-as-usual: no change from current policies; Copenhagen: policies to implement the pledges made at the 2009 international climate negotiations in Copenhagen and; Enhanced clean energy: 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," said 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 Business-as-usual. Under the Enhanced clean energy scenario, the projected $2.3 trillion investment in clean power projects would be equivalent to adding the entire GDP of the United Kingdom to the global economy. Over that same time span, total renewable energy capacity additions in the G-20 are projected to reach 1,180 gigawatts, almost four times the amount of renewable energy capacity that exists today.