Depressing news for the clean energy sector was released this week. A report from Bloomberg New Energy Finance yesterday stated investment in clean energy dropped 20 percent year-on-year—down to $56.6 billion in the third quarter of 2012—on a global scale. This year could be the first to see an annual decline in eight years.
“Today’s figures… suggest that the full-year 2012 figure for investment in clean energy is likely to fall short of last year’s record $280 billion. If so, 2012 would be the first down-year for world investment in the sector for at least eight years,” a statement accompanying the report said.
In large part, the seismic tremors affecting the world’s economy on a near-constant basis are responsible for the slip in clean energy investment. For example, the U.S., U.K., and Italy all feature governments with fractured support systems for renewable power projects—something that has caused energy companies to take a step back, which in turn has led to diminished investment in such projects.
In the U.S., investment dropped 62 percent year-on-year to hit $7.3 billion in the second quarter of this year.
Over in Europe, investment dropped 29 percent to reach $18.2 billion. China, on the other hand, noted a 6 percent increase at $14.8 billion, but the numbers for July-September show a decrease of 17 percent compared to the previous quarter.
Brazil, also part of the emerging BRIC bloc of developing countries, was different; the country showcased a 24 percent increase year-on-year and an impressive 94 percent increase over the quarter to reach $1.9 billion.
Of the three largest renewable projects that received the green light during the third quarter, two are located in Morocco and the third is in Brazil.