Clean energy investment poised for first increase since 2011

The global market for sustainable technology is booming, with investment in the clean energy sector worth £34bn in Q3 2014, according to a report released today by Clean Energy Pipeline, the financial news and data service.

That £34bn total equates to a year-on-year increase of 11%, albeit a 3% reduction from Q2 2014.

“Despite a marginal quarterly decrease in clean energy investment in Q3 2014, it is increasingly likely that new investment levels in 2014 will surpass 2013,” said Clean Energy Pipeline CEO Douglas Lloyd. “This is welcome news for the industry following annual declines in investment in both 2012 and 2013.”

Clean energy project finance totalled £26bn in Q3 2014, a 2% uptick on Q2 and a 17% increase on the corresponding period last year. The increase was a direct result of a 15% quarterly surge in Asia, underpinned by investment in Chinese solar projects more than doubling.

The report also highlighted the UK Government-backed Green Investment Bank as a notable financier of sustainable projects.

Efficient future

Meanwhile, a separate report released this week by BCC Research reveals that the current trend of sustainable business success looks set to continue. It concludes that the market for energy-efficient technologies in commercial buildings is expected to grow by £40bn over the next five years, with a compound annual growth rate (CAGR) of 8%.

Asia is once again identified as the market with most potential, with a 10% CAGR, as soaring utility prices in Japan and East Asia have stimulated interest in energy efficiency. In fact, BCC says these changes in energy costs are particularly important ‘because cost increases create strong incentives to implement energy saving technologies’.

North America, the second largest and fastest growing region, is forecast to grow at a rate of 7.9%.

Brad Allen

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