China passes US in clean energy investment
China passes US in clean energy investment
By Robert Clark | Sep 10, 2010
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China has overtaken the US to become the world’s biggest investor in renewable energy, according to Ernst & Young.
The two countries tied last year but the US fell back two points as Congress rejected plans for a national renewable energy standard, E&Y’s Renewable Energy Country Attractiveness Indices showed.
While investors fear the current US clean energy incentives could be terminated in the next few years, Chinese authorities continue to support investments in wind, solar and biomass projects.
The US shows signs of slipping further if more action does not occur, said Jonathan Johns, director of consultancy Climate Change Matters.
The index shows China and US in the top spots, followed by Germany, India and Italy. Australia is in 12th place and Japan 19th.
He said government involvement in financing clean energy projects was critical, as shown by continual growth in China’s state-directed economy.
Ben Warren, Ernst & Young's environment and energy infrastructure advisory leader, told Business Green China's steady rise to the top of the index reflected the government's consistent support for renewables.
“The US market continues to have significant potential but requires consistent political support to provide investors with the long-term confidence they need,” he said.
