Saturday, January 31, 2009

World Economic Forum Report: US $515 Billion needed in Green Investments

The WEF's Green Investing: Towards a Clean Energy Infrastructure report was released on 29 January 2009 and it contains some vital signs for Green investments:

"New Energy Finance, which collaborated with the World Economic Forum on the report, warns that unless at least US$ 515 billion per annum is invested in clean energy between now and 2030, carbon emissions will reach a level deemed unsustainable by scientists, causing temperatures to rise by two degrees globally."

"The report identifies eight emerging, large-scale clean energy sectors that are expected to significantly contribute in the move to a clean energy infrastructure of the future: onshore wind, offshore wind, solar photovoltaic, solar thermal electricity generation, municipal solar waste-to-energy, sugar-based ethanol, cellulosic and next generation biofuels, and geothermal power."

"Clean energy opportunities have the potential to generate significant economic returns. The report shows that even after a tumultuous 2008, an index of the world’s 90 leading clean energy companies had a five-year compounded annualized return of almost 10%, unmatched by the world’s major stock indices."

Other highlights from the report include:
• Clean energy investments increased from around US$ 30 billion in 2004 to over US$ 140 billion by 2008. Investments in 2008 exceeded expectations at US$ 155 billion (the report is based on projections for 2008 – which suggests that US$ 142 billion would be invested by year-end).
• Investment in clean energy has not only increased, but has also diversified geographically. Developing countries attracted 23% (US$ 26 billion) of asset financing in 2007, compared to 13% (US$ 1.8 billion) in 2004.
• In addition, four key enablers for a shift to clean energy will be energy efficiency, smart grids, energy storage, and carbon capture and storage.
• Well-developed conditions for innovation, markets for clean energy through public procurement, energy efficiency standards and stable and simple policies are essential to meet the climate change challenge

The report provides a solid foundation for scenario planning for clean energy initiatives.

Press Release: World Economic Forum Report: US $ 515 Billion needed in Green Investments;

Shaping an Opportunity Out of Crisis: A message to participants in the World Economic Forum Annual Meeting 2009 from Members of the Global Agenda Council on Climate Change