According to reports, even as China invested more in renewable energy than the whole of Europe in 2013, India’s investment in renewable energy went down 15 percent to $6 billion (Rs.360.48 billion) last year, according to a latest Global Trends in Renewable Energy Investment 2014 report.
Globally, renewable energy’s share of electricity generation continued its steady climb last year despite a 14 percent drop in investments to $214.4 billion.
At $56 billion (Rs.3,364.48 billion), the Chinese total was down six percent.
Globally, the total investment in renewable power and fuels (excluding large hydro-electric projects) fell for the second year running in 2013, reaching $214 billion (Rs.12,857.12 billion) worldwide – some 14 percent lower than in 2012, the report added.
The investment drop of $35.1 billion (Rs.2,108.81 billion) was partly due to the falling cost of solar photovoltaic systems.
However, renewable energy’s share of world electricity generation continued its steady climb last year.
“While some may point to the fact that overall investment in renewables fell in 2013, the drop masks the many positive signals of a dynamic market that is fast evolving and maturing,” said Achim Steiner, UN under secretary-general and executive director of the United Nations Environment Programme (UNEP).
“This should give governments the confidence to forge a new robust climate agreement to cut emissions at the 2015 climate change conference in Paris,” he added.
The other main cause of drop in investment was policy uncertainty in many countries, an issue that also depressed investment in fossil fuel generation in 2013.
According to Ulf Moslener, head of research of the Frankfurt School-UNEP Collaborating Centre for Climate & Sustainable Energy Finance, the overall decline in investment dollars had been disappointing.
However, he said, “foundations for future growth in the renewable energy market fell into place in 2013”.
“A long-term shift in investment over the next few decades towards a cleaner energy portfolio is needed to avoid dangerous climate change, with the energy sector accounting for around two thirds of total greenhouse gas emissions,” said Steiner.
The Global Trends in Renewable Energy Investment 2014 is produced by the Frankfurt School-UNEP Collaborating Centre for Climate & Sustainable Energy Finance, the UN Environment Programme (UNEP) and Bloomberg New Energy Finance.