More green investments required: WEF Report
In a recently report released, entitled Green Investing 2010: Policy Mechanisms to Bridge the Financing Gap, the World Economic Forum (WEF) has revealed that investment in clean energy has held up better than expected during the financial crisis and resulting recession. However, the report says that a considerable gap still exists between current levels of investment and what is needed to begin reducing the world’s carbon emissions.
Investment in 2009 was remarkably resilient at US$ 145 billion, down only 6% from US$ 155 billion in 2008, as the shortfall created by the financial crisis was largely filled by the launch of green stimulus initiatives around the world.
In addition, the Copenhagen Accord, which was noted by the participants at the COP meeting in December 2009, contained a commitment by developed countries to invest US$ 100 billion in developing countries. While the next few years are likely to see record investment activities, a significant financing gap of US$ 350 billion still exists. To unleash adequate funds to bridge this gap, appropriate policy mechanisms are required, statement said.
The report’s authors, Anuradha Gurung and Max von Bismarck from the World Economic Forum, and Chris Greenwood and Michael Liebreich from Bloomberg New Energy Finance, state that “as a result of the continued financing gap, there is an urgent need for policy-makers around the world to implement measures at the regional, national and sub-national level, which will encourage investment in clean energy technology and projects.
With this in mind, the report provides policy-makers with a toolkit consisting of 35 different policy mechanisms, which can be used to promote various clean energy sectors. The mechanisms can be chosen based on stage of technological development – R&D/proof of concept, demonstration and scale-up, commercial roll-out, diffusion and maturity – and also on stage of economic development.”
This year’s report provides an up-to-date description of 10 emerging, large-scale clean energy sectors that will form part of any low-carbon energy system of the future.
It also describes the four key enablers that are required if these clean energy sources are to be integrated into the existing infrastructure: smart grids, power storage, advanced transportation and carbon, capture and storage. Given the importance of energy efficiency in moving to a more sustainable energy mix, the report also includes a separate chapter on energy efficiency.
The report is available at http://www.weforum.org/en/media/publications/ClimateReports/index.htm