Clean energy investment booming in China

9 November 2011

BEIJING: Financing in China’s clean energy industry for 2011 so far is already up 124.95% on last year's total investment, according to CV Source, a financial database of China Venture.

Clean energy investment currently stands at US$1.399 billion spread over 51 cases, of which each averages US$27.43 million.

CV Source also indicates that the clean energy investment preference in China has shifted from wind and solar energy to pollution inspection and management.

In 2010, wind energy, battery and energy reservation technology, and energy-efficiency technology in China financed the largest sum of capital compared to other categories in this industry, while this year the booming fields of pollution inspection and management, solar energy, and battery and energy reservation technology have financed US$500 million, US$400 million and $230 million respectively in China.

On a global scale, China has now replaced the US as the country with the largest amount of clean energy investment, with $54.4 billion in 2010 and $34.6 billion in 2009. In 2008, the US was the leader in this category; now it trails both China and Germany.

American Commerce Department has also predicted that the market value of China’s clean energy industry can reach $100 billion in 2020.

This clean energy growth comes at a pivotal time for China. In the 2009's global climate talks in Copenhagen, China announced plans to slow greenhouse gas emission increases relative to economic growth by 40-50% between 2005 and 2020, and use renewable fuels for 15% of its energy.

On top of this, the Twelfth Five-Year Plans Energy Conservation and Emission Reduction Plan, released by China’s central Government two month ago, reiterated the importance of industrial upgrading, energy efficiency and clean production promotion so as to boost circular economy in China, demonstrating huge commercial potential for investors.

Changhua Wu, Greater China Director, The Climate Group says: "China today faces daunting challenges to address its environmental, resource and energy, and climate change crises. But the clarity and certainty of policy directions set at national level has given technology innovators and investors the needed level of confidence to reap the benefits from the Clean Revolution. China is not alone in this arena. Major economies one way or another have all started to take actions to compete for the leadership in the Clean Revolution. What is needed is more international cooperation, in particular, a clearly set international agreement that would set clear price on carbon, in order to tackle effectively the global climate, energy and credit crises."

These impressive figures support The Climate Group Greater China's recently published preview of the IV China's Clean Revolution Report, the full report of which will be published later this month.

Preview our fourth China's Clean Revolution report

News Summit spotlights Hong Kong as climate leader, clean tech growth could lift economy

Report Low Carbon Growth: A Guide to China's 12th Five Year Plan

Blog: Chaghua Wu

Written by Lilian Lin Yigu. 

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