The Pew Charitable Trust Report: Who's Winning the Clean Energy Race 2010

U.S. Falls to Third Place in Global Race
For Clean Energy Investments, Report Says

The United States fell behind China and Germany in cumulative global clean
energy investments among G-20 members in 2010, continuing a slide caused in
part by uncertainty over government policies and incentives, according to a
report released March 29 by The Pew Charitable Trusts.

China ranked No. 1 with a record $54.4 billion in clean energy investments
in 2010, a 39 percent increase from 2009, followed by Germany, which
experienced a 100 percent increase in investment to $41.2 billion,
according to the report, Who's Winning the Clean Energy Race? 2010 Edition.

U.S. investment totaled $34 billion in 2010, a 51 percent increase from
2009 levels. The United States had maintained the top spot until 2008,
according to the report.

“It's clear the U.S.’s competitive position in the global clean energy
market is at risk,” Phyllis Cuttino, director of Pew Clean Energy Program,
told reporters during a conference call March 29.

Variety of Reasons for Decline.

According to the report, the U.S. position appears to be “eroding” for a
variety of reasons, including concerns by potential investors about a lack
of clarity on energy policy, uncertainty surrounding continuation of key
financial incentives such as production and investment tax credits, and
“disproportionate” government support for fossil fuel sources.

“Stimulus funding that helped the clean energy industry recover from sharp
recessionary declines will expire this year, and there is little indication
of any significant policies or incentives to fill the gap in the near
future,” the report said.

Global clean energy finance and investment grew significantly in 2010 to
$243 billion, a 30 percent increase from the previous year. China, Germany,
Italy and India were among the nations that most successfully attracted
private investment, the report said.

China, which attracted less than $3 billion in clean energy private
investment in 2005, is rapidly moving ahead because of aggressive clean
energy targets “and clear ambition to dominate clean energy manufacturing
and power generation,” the report said.

In 2010, China accounted for almost 50 percent of all manufacturing of
solar modules and wind turbines, the report said.

“China's rise is really shifting the center of gravity of clean energy
investment from the West to the East,” Cuttino said.

Germany's clean energy investments were dominated by purchases of
small-scale, rooftop solar energy projects, driven in part by the prospect
of reductions to its “generous” feed-in tariffs, the report said.

By Ari Natter Copyright BNA with permission

The Pew Charitable Trusts report, Who's Winning the Clean Energy Race? 2010
Edition, is available at
http://stage.pewenvironment.org/news-room/reports/whos-winning-the-clean-energy-race-2010-edition-329291