Worldwide Annual Investment in Clean Energy Exceeds $40bn, but Must Still Grow Rapidly

Although $42.2bn is not a small figure, it must be put in context. It is equivalent to just 6.7% of the $630bn estimated by the International Energy Agency (IEA) last year as the total worldwide annual demand for investment in the energy industry through to 2030 ($568bn in 2000 dollars expressed in 2005 dollars).

New Energy Finance estimates that total global investment in clean energy (renewable energy plus low-carbon technologies) in 2005 will be around $42.2 billion. Including the impact of M&A activity, total financial transaction value in the sector will be over $56 billion.


The New Energy Finance Desktop contains details of nearly 11,000 organisations active in the clean energy industry, 6000 individuals and over 4000 investment transactions of different types. Analysis of this data gave an estimated total current volume of investment in the industry of $42.2 billion, as shown in Figure 1.

Although $42.2bn is not a small figure, it must be put in context. It is equivalent to just 6.7% of the $630bn estimated by the International Energy Agency (IEA) last year as the total worldwide annual demand for investment in the energy industry through to 2030 ($568bn in 2000 dollars expressed in 2005 dollars).

"At over $42 billion in annual investment volume, the clean energy industry worldwide has achieved a meaningful scale," said Michael Liebreich, Founder and CEO of New Energy Finance. "However, it is clear that for there to be a truly meaningful switch in the current energy mix away from fossil sources - without the need for a massive build-out in nuclear capacity around the world - levels of investment in clean energy will have to go up by a factor of at least five over the next decade, which translates into a sustained growth rate of nearly 20% per annum."

For more information on the levels of investment in the global clean energy industry by region and asset class, as well as time-lines for some of the major investment categories, see the attached presentation.

About New Energy Finance
New Energy Finance is a specialist provider of news, data and analysis to investors in the renewable energy and energy technology sectors worldwide. The company's information services cover all types of investment activity, including venture capital, public markets, M&A and project finance, and all types of renewable and low-carbon energy technologies.

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