Developed countries channeled $8 billion into emerging nations last year for large-scale renewable energy and clean fuel production, a fraction of the aid promised by 2020, Bloomberg New Energy Finance said.
Investment is 35 percent higher than last year, according to a report released by the London-based researcher today. It falls short of the $100 billion-a-year investment that rich countries promised to make by 2020 to help emerging nations adapt to the effects of climate change.
Developed countries in 2009 pledged to increase aid payments over the next decade for projects that alleviate and fight the affects of global warming, ranging from renewable energy to flood protection. Envoys from more than 190 nations are meeting this week in the capital of Qatar to discuss a new global warming treaty and further steps to boost funding.
“While the climate negotiators in Doha are working on the institutional structure of the Green Climate Fund, this analysis shows the real issue is that the private sector is far from comfortable investing in climate-related assets,” Michael Liebreich, chief executive of London-based BNEF, said in a statement. “Developed-world governments are under far too much fiscal and political pressure to make up the shortfall.”
Private investors are being deterred from investing in poorer countries by political and currency risks, said the chief executive. These issues can be addressed with the right mix of policies and financial instruments, he said.
Of the $280 billion invested in clean energy last year, $165 billion was asset financing for renewable power projects or biofuel facilities. More than two thirds of this came from companies investing in their home markets, and about $44.3 billion was invested across borders. Of the $192.2 billion invested in China since 2004, $7.9 billion, or 4 percent, came from investors in other countries,