According to New Energy Finance, the total global investment in clean energy in 2005 was over US $42 billion. Although renewable energy and energy efficient technologies are poised to be a large part of the world's energy future, a five-fold increase in renewable energy investment will be needed over the next decade if there is to a be a meaningful switch away from fossil fuels and no new nuclear installation.

The total global investment in clean energy in 2005 was over US $42 billionTo achieve this, it will be critical to remove factors that might limit this investment, such as

• the stability of incentive programs
• planning processes and regulations
• a lack of support mechanisms for investment in the developing world
• a general lack of information, skills and incentives for dealmakers.

The rapidly growing interest in renewable energy investment and the desire to remove these barriers has led to renewable energy finance forums being held regularly in every continent. These finance forums bring together investors, lenders, policy makers and project developers.

Wind energy currently dominates global renewable energy investments with investments of $12 billion in 2005. However, global solar photovoltaic cell production is expected to climb to over 5 gigawatts (GW) per year by 2010 spurred by new policy initiatives in the United States, Germany, Japan and Spain. Europe's top 20 utilities have outlined investment plans to double their renewable energy capacity over the next five years.

There is reasonable diversification around the world by investor type, geography and technology — the indication of healthy market development. However, most investment is occurring in industrialized countries, and in large developing countries like India, China and Brazil. It is not taking place in smaller developing countries where it is also urgently needed.

Energy utilities are also embracing renewable generation as a key element of their generation portfolios, with many looking for new ways to compete in this growing field. To demonstrate this commitment, Europe's top 20 utilities have outlined investment plans to double their renewable energy capacity over the next five years.

CanREA's report, Financing Sources and Mechanisms for Renewable Energy and Energy Efficiency, provides further information and recommendations on financing renewables. A summary report is also available.

Links for more information

Organizations, Institutions and Service Providers

• Global Village Energy Partnership (GVEP): A voluntary partnership that brings together developing and industrialized country governments, public and private organizations, multilateral institutions, consumers and others in an effort to ensure access to modern energy services by the poor.
• New Energy Finance: Provider of financial information and services to the renewable energy and energy technology industry and its investors.
• Renewable Energy and Energy Efficiency Partnership (REEEP): An active, global public-private partnership that structures policy and regulatory initiatives for clean energy, and facilitates financing for energy projects.

RE Financing Forums and Other Initiatives

• United Nations Environment Program Sustainable Energy Finance Initiative: UNEP's Sustainable Energy Finance Initiative (SEFI) provides financiers with the tools, support and global network needed to conceive and manage investments in the complex and rapidly changing marketplace for clean energy technologies. SEFI's goal is to foster investment in sustainable energy projects by providing up-to-date investor information, facilitating deal origination, developing partnerships, and creating the momentum needed to shift sustainable energy from the margins of energy supply to the mainstream.

• Ernst and Young Renewable Energy Country Attractiveness Index: Ernst and Young publish an international Renewable Energy Country Attractiveness Index for investors four times a year, and sponsor an annual renewable energy investment award.

• Euromoney Renewable Energy Finance Forums: Euromoney's flagship Renewable Energy Finance Forums originated in 1999 in London, and have expanded to New York, Berlin, Beijing, and New Delhi.