Global investment in coal and gas-fired power generation plants fell to less than half that in renewable energy generation last year, in a record year for clean energy.
It was the first time that renewable energy made up a majority of all the new electricity generation capacity under construction around the world, and the first year in which the financial investment by developing countries in renewables outstripped that of the developed world.
Catherine Mitchell, professor of energy policy at the University of Exeter, said the developments were “extremely significant” and showed a new trend. She said: “We are looking at serious sums of money being invested in clean energy, with the dirtiest forms of fossil fuels the losers. This is the direction of travel that we need to see to have a chance of escaping the worst impacts of climate change.”
About $286bn (£200bn) was invested globally in renewable energy last year, more than the previous peak of $278bn reached in 2011, according to research published on Thursday by the UN Environment Programme (Unep). The figures exclude investment in large hydroelectric plants but include solar, onshore and offshore wind and biomass.
China alone accounted for 36% of the global total, as the country pins it hopes on clean energy as a means of combating air pollution. Chinese investment rose 17% from 2014 to 2015, totalling $103bn.
This surge is likely to continue for years to come, as China’s recently-unveiled new five-year plan places a strong emphasis on new renewable energy.
The rise in renewable investment comes even as fossil fuel prices suffered sharp falls last year. However, as the report covers 2015 it may not have fully captured the continued depression in fossil fuel prices, which may have further effects on investment in new generation in future.
In the US, money committed to renewables rose strongly as new rules took effect. Although investment was up by a fifth, to $44bn, it was still less than half of China’s.
Europe, once world leader in clean energy, gave one of the worst showings.Investment fell by a fifth to $49bn, despite a surge in offshore wind, according to the report, which was co-authored by Bloomberg New Energy Finance and the Frankfurt School of Finance and Management.
