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Australia’s new Prime Minister Julia Gillard has demonstrated strong support for her domestic renewable energy industry.

Sworn in last month to replace previous leader Kevin Rudd, Gillard said she is “committed to Australia’s largest ever investments in solar and other renewables.”

Gillard has not made specific mention of the controversial carbon cap-and-trade system which former PM Rudd had championed.

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A new report from the Renewable Energy Policy Network for the 21st Century (REN21), a body affiliated with the United Nations and the International Energy Agency (IEA), says renewable energy accounts for over half of all new electricity capacity added in the United States and Europe during 2009.

The REN21 report highlights the shift in manufacturing and deployment of these new energy technologies from developed nations to growing ecnomies like China, Brazil and India.

In 2009, China produced 40% of global solar PV and 30% of all wind turbines; a massive increase from 10% in 2007.

However, despite its advances in implementing green power, China’s carbon dioxide emissions also increased in 2009.  It has overtaken the United States and now claims the title of highest emitting nation in the world.

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Worldwide, global venture capital investment in the green tech sector has climbed to $4.04 billion during the first half of 2010.  This represents a 65% increase from the same period last year, and slightly exceeds the investment record set during the “boom year” of 2008.

Data from The Cleantech Group and Deloitte shows that solar energy garnered about 40% of all investments, attracting about $811 million in funding.

“There’s been a very clear resurgence in solar activity and that is largely responsible for the strong quarter,” notes Richard Youngman, head of global research for the Cleantech Group.

Scott Smith, Deloitte’s U.S. clean tech leader believes this VC investment trend will have a positive impact on renewables and low carbon industries.    “The significant strengthening of corporate and utility investment into the clean tech sector, relative to 2009, is very encouraging, given the key role they will play in enabling broader adaptation of clean technologies at scale,” he said in a statement.

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The European Union (EU) Presidency announced the launch of a €6 billion public-private partnership to vastly increase the amount of wind energy used in Europe.

The European Wind Initiative (EWI) is the result of a collaboration between the European wind industry, the EU comission and EU member states.  The EWI aims to supply 20% of all European energy demand with wind energy resources by 2020, 33% by 2030, and finally 50% of total demand by 2050.

The EWI will support research on advanced turbine and component technology to increase efficiencies and reduce costs.  The Initiative aims to speed deployment of both on- and off-shore wind installations, and ease integration of large-scale systems into the grid.

“The European Wind Initiative is a big step forward in our efforts to maintain and strengthen Europe’s global leadership in wind energy technology,” remarked Christian Kjaer, CEO of the European Wind Energy Association (EWEA).

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The United States Department of Energy (DOE) is instituting its first-ever strategic plan to deal with “Rare earth metals” – the special group of elements that are essential components of clean energy technologies like electric vehicle batteries, compact flourescent light bulbs and solar panels.

As nations around the world increase development and deployment of clean energy, there is a growing anxiety about China’s clear dominance of these essential supplies.  China currently supplies nearly 95% of global demand  for rare earth metals, and the government is attempting to control all processing of rare earth metals.  Over the past seven years,  China has reduced global exports by 40% and some estimates expect China will begin halting exports of these rare earths within the next two years.

“It goes without saying that diversified sources of supply are important for any strategic material,” said David Sandalow, Assistant Secretary of Energy for Policy & International Affairs.  ”So too are substitutes and strategies for re-use and recycling.  If rare earth metals are going to play an increasing role in our economy, we need to pursue those strategies.”  The DOE is soliciting information from industry, research labs and other related organizations to gain a more complete understanding of cost and supply issues regarding rare earth metals.

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Grappling with skyrocketing energy demand, high pollution levels and international pressure to reduce greenhouse gas emissions, reports indicate China may consider instituting taxes on carbon or other resources to boost support for low-carbon energy technologies.

Experts from the Energy Research Institute under the National Development and Reform Commission – a Cabinet department focused on mid- and long- term domestic development – say if it is deemed beneficial, a carbon tax is likely to be levied during the 12th Five-year plan (2011-2015).

Jian Kejun, a senior researcher with the Institute, reaffirmed China’s commitment to reducing its carbon intensity 40-45% by 2020 in recent remarks to the newpaper China Daily.  To reach this target, the government is prepared to pursue “tougher measures” over the next five years, including subsidies and incentives for low-carbon technologies in addition to a potential tax.

Increasing support for scientific research is another top priority in China.  Right now, China’s investment in scientific clean energy research is only one-sixth that of the United States.  However by 2025, China’s investment in this area may overtake that of the United States.  ”If this comes true,” Jing said, “we can start to dream of becoming a low-carbon technology leader in the world.”

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The U.S. Department of Energy (DOE) under the leadership of Energy Secretary Steven Chu is not waiting around for the Senate as it works to draft new climate legislation.

Secretary Chu announced Friday that the DOE will invest over $200 million over the next five years to increase deployment of solar and wind energy technology throughout the United States.  This funding will “help strengthen American competitiveness in renewable energy and transform the US into a lasting manufacturing presence in the 21st century clean-energy economy,” said Chu.

The DOE funding will support both manufacturing-focused research projects in wind and solar, as well specific funding for research into advanced processes for use in the photovoltaic (PV) industry.

Read the full article here…

Research expects investments in renewble energy to grow to $653.35 billion within five years, as governments and investors around the world funnel money into this growing sector.

Despite the widespread economic malaise and the tight credit market, global investment in renewable energy increased 43.4% between 2008 to 2009, reaching $336.78 billion.  Since 2001, the industry has achieved a combined annual growth rate (CAGR) of 30.8%.

China’s total investment of $11.48 billion made it a major player in the Asian markets, says GBI, with notable investments made in wind and solar projects.

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European Union countries aim to reduce emissions of carbon dioxide by 80% below 1990 levels by 2050; keeping within scientific recommendations to limit global temperature increases to 2°C.  Major new investment will be needed to achieve cuts on this scale, specifically in renewable power projects and electricity infrastructure upgrades.

However, despite these costs, a new report from three leading consulting firms predicts that the cost of electricity in Europe in 2050 would be no higher than it would under a “business as usual” plan with no carbon-reduction action taken.

The study, jointly published by McKinsey, European Climate Foundation and E3G, highlighted the following 3 points:

- Renewable power infrastructure is capital-intensive at the onset, yet over time costs less to run than do traditional power plants.

- Replacing outdated coal-fired power plants with new ones is actually more expensive that substituting wind or solar farms instead

- Smart grid investment continent-wide will provide major savings in energy efficiency, and help improve the reliability (and price) of renewables.

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Renewable energy is becoming a more significant player in the U.S. energy dynamic, according to latest figures from the Energy Information Administration (EIA).

In its latest Monthly Energy Review, the EIA says renewable energy production made up over 10% of total U.S. energy production in 2009, a 5.5% increase over 2008 levels and a nearly 16% increase from 2007 levels.

Biomass contributed the most, accounting for 51% of all renewable energy production, followed by hydropower at 34.2%.  Next in line were wind, geothermal and solar power, contributing 8.9%, 4.7% and 1.2% respectively.

At this stage, renewable energy contributes almost as much as nuclear power to the nation’s energy mix.

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Bloomberg New Energy Finance says although global spending on renewable energy may double by 2030, it still may not be enough to combat the worst dangers of climate change.

Projections from the Global Energy and Emissions Model (GE2M) shows that investment in renewable energy must reach at least $230 billion by 2020, and $500 billion by 2030.  Likewise, to achieve a high level of carbon emissions reductions, the price of carbon will need to increase to $100/ton by 2030.

“These findings confirm that in spite of the ongoing economic malaise, investment in renewable energy should continue to grow, driven heavily by existing government targets.  If governments take the threat of climate change seriously, there will be an increasing role for renewable energy up to 2030,” remarked Guy Turner, director of Carbon Market Research at Bloomberg New Energy Finance, who foresees growth in wind, solar PV and biomass technologies.

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The global clean energy sector was predicted to take a bath or at best remain flat last year in light of the dismal global economy.  However, according to a new report from clean tech research and publishing firm Clean Edge, the sector not only stayed afloat, but produced increased revenues in three major areas.

Clean Edge data shows that combined global revenues for solar photovoltaics (PV), wind energy and biofuels grew 11.4% from 2008 levels to reach $139.1 billion in 2009.

Significant growth in China’s clean tech sector contributed to this growth in global revenues.  China is now the world’s largest PV cell manufacturer, and over the past year has announced major plans to build wind and solar “megaprojects.”  China may end up spending between $440 billion to $660 billion on clean energy over the next ten years.

Click here to download the Clean Edge report

Sustainable investments in Switzerland rebound strongly to hit new peak

Sustainable investments run by Swiss fund managers rebounded after the financial crisis to reach a new high of CHF34.1bn (€23bn) during 2009 – with investment inflows outstripping the market average – according to a report from Zurich-based consulting firm onValues. The rise in sustainable assets managed by fund managers at the end of last year represented a 63% increase over the figure at the end of December 2008. The figures comprise assets in investment funds, segregated mandates and structured products.

In a 12-page report surveying 19 asset managers, onValues said the net asset flow into sustainable funds was approximately 22.9%, during 2009 compared to 4.5% seen by the average Swiss fund provider over the same period. The report said the sustainability asset inflows were “particularly marked” for thematic equity funds and new funds in the real estate and emerging market equities.

In a breakdown of Swiss sustainable assets, onValues said funds accounted for approximately 55% of the total, segregated mandates for 40% and structured products 5%. Institutions account for 45% of the sustainable assets market, with the balance invested by retail/private banking investors. However, the report said fund manager respondents believe institutional investors will drive the main growth in the sector in the next three years. OnValues said it set out to assess the market for specialist sustainable investment products and not the degree to which ESG factors are being used in mainstream investment portfolios. It said this means there are probably more total assets in Switzerland run via broader sustainability criteria.

The survey was backed by Bank Sarasin, Bank Vontobel, Ethos, Forum Nachhaltige Geldanlagen, INrate, Kaiser Ritter Partner, SAM, Swisscanto, UBS and Zürcher Kantonalbank.

U.S. Energy Secretary Steven Chu announced $100 million in new stimulus funding for the Advanced Research Projects Agency – Energy, or ARPA-E.

Modeled after the successful military research initiative DARPA, ARPA-E aims to speed up the development and deployment of “transformational” energy initiatives in the United States.  ARPA-E selects from thousands of grant applications to fund is multi-disciplinary, “out of the box” ideas which may help reduce U.S. carbon emissions, create jobs as well as improve national energy security.

At the inaugural ARPA-E Energy Innovation Summit, it was announced that ARPA-E’s third round of financing will focus specifically on Grid- Scale Rampable Intermittent Dispatchable Storage technologies (GRIDS), Agile Delivery of Electrical Power Technology (ADEPT), and Building Energy Efficiency Through Innovating Thermodynamics (BEET-IT).

Arun Majumdar, director of ARPA-E, says the “number of good ideas has been amazing, and we don’t even have all the intellectual horsepower of the U.S. into clean energy.  We are not short of ideas – the question is, what happens next?”

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Although Norway is one of the globe’s top producers of oil and gas, the nation is dedicated to advancing alternative forms of power generation.  It currently generates most of its own power from large hydroelectric power plants, and scientists at the Norwegian company Sway are now working on building the largest wind turbine in the world.

According to working plans, the turbine would stand 533 feet tall, with a proposed rotor diameter of a staggering 475 feet.  Because of its massive size, this wind turbine would be floated out in open ocean waters to capture strong winds.  Sway plans to install this turbine in 2011, and will likely spend $65.7 million on the prototype.

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Reuters, 10 February 2010 – Nasdaq and an arm of Deutsche Bank launched a global alternative energy and clean technology stock index on Wednesday that attempts to provide a pure signal of how the business is performing.

DB Climate Change Advisors, the climate change investment and research branch of Deutsche Bank’s asset management business, and Nasdaq OMX Group, Inc said the DB NASDAQ OMX Clean Tech Index is comprised of 119 companies.

Click here for more information

Mark Fulton, Deutsche’s global head of climate change investment research, said companies in the index derive at least a third of their revenues from clean technology. And 106 of the companies have more than half their revenues in the space.

“These are companies that have very definitely declared a large stake in the clean tech sectors,” Fulton told Reuters. “We tried to produce an index that sends a purer, concentrated set of signals.”

The index, the first between a global bank and a global exchange company, lists 30 companies in solar energy and 13 in wind power. It also includes companies in energy efficiency, transport, waste management and water companies.

The index is equal-weighted to offer greater exposure to smaller-cap companies. In addition to a price return index, it also calculates a total return version.

Deutsche Bank Asset Management had about $6 billion under management as of September 2009 in climate related investments.

(Reporting by Timothy Gardner; Editing by David Gregorio)

Sourced from the Thomson Reuters Carbon Markets Community – a free, gated online network for carbon market and climate policy professionals.

ABOUT THE INDEX – A QUICK SUMMARY FROM ANRIC BLATT

The index is comprised of 119 companies identified by DBCCA from a global universe of 4,000. Each stock must have at least one third of revenues derived from clean technology within investable geographies and exchanges identified by NASDAQ OMX. Of these companies, 106 have over 50% in clean tech revenues, using only demonstrated revenue from filed financial statements. Constituent companies must have a market capitalization of $250 million and over $1 million average daily dollar trading volume. The index is equal-weighted to offer greater exposure to smaller-cap companies

NOTE: Two subsidiaries of Deutsche Bank act as the custodian and administrator of some of the funds managed by Global Fund Exchange.

As part of the Renewable Energy Directive of 2009, the European Union pledged to generate 20% from renewable sources such as solar and wind by 2020.  According to a new analysis by the European Wind Energy Association (EWEA), the EU is on track to meet those targets.

“Europe has witnessed a sea-change since the 2009 Renewable Energy Directive was agreed as in 2008 many countries were stating that their target would be difficult to meet – now the majority are forecasting that they will meet or exceed their national target,” said Justin Wilkes, Policy Director of EWEA.

A number of countries, including Spain and Germany, are expected to exceed their national targets.  Spain, for example, is predicting a nearly 3% increase over its 20% target with 22.7% of energy coming from renewables by 2020.

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Global Fund Exchange founders, Lauralouise Duffy and Anric Blatt first met WBCSD President
Björn Stigson in Sharjah, UAE  at the Sharjah Chamber of Commerce in 2009 and have been keen supporters of his organization since. The World Council for Sustainable Development produces some excellent reports like the one below and we would like to encourage you to visit their website at http://www.wbcsd.org/

New downloadable report

Copenhagen, 9 December 2009 – The relationship between land use and climate change is highlighted in corporate case studies included in a new report, entitled Tackling climate change on the ground ( 4.3 MB), released by the World Business Council for Sustainable Development

Land-use activities are a major source and sink of global greenhouse gas (GHG) emissions. Curbing deforestation and applying sustainable land-use management practices can reduce GHG emissions, while planting trees and managing forests can help remove GHGs (mainly CO2) from the atmosphere by sequestering them in plants and vegetation.

Examples of cases in the report include: developing new crop varieties that have less environmental impacts and can adapt to climate change, or products that help reduce emissions; using techniques like direct seeding and drip irrigation to reduce water use in dry regions, or keeping soils healthy so they store more carbon; and developing models and tools to find practical ways to reduce impact and prepare for the future.

The various cases demonstrate that t here is no single, globally applicable sustainable management solution for land use. Business is only part of the solution and must work with governments, civil society and others to develop a range of land-use approaches that tackle climate change.

Download

• Tackling climate change on the ground – Corporate case studies on land use and climate change ( 4.3 MB)

New Delhi, 4 February 2010 – The World Business Council for Sustainable Development (WBCSD) today launched the Vision 2050 report ( 2.6 MB), a study that lays out a pathway leading to a global population of some 9 billion people living well, within the resource limits of the planet by 2050. The report, released at the World CEO Forum in New Delhi, India, was compiled by 29 leading global companies representing 14 industries.

This work results from an 18-month combined effort with CEOs and experts, and dialogues with over 200 companies and external stakeholders in some 20 countries.

The report presents new opportunities for business in a broad range of business segments with the foresight to lead their societies on a sustainable business development agenda. Entitled Vision 2050: The new agenda for business, the report “lays out the challenges, pathway and options that business can use to create an opportunity-rich strategy, both regionally and globally, that will lead to a sustainable world,” said Dr. Mohammad A. Zaidi, Executive Vice President and Chief Technology Officer of Alcoa, who led the project as one of four co-chairs.

“The world already has the knowledge, science, technologies, skills and financial resources needed to achieve Vision 2050. However, concerted global action in the next decade will be required to bring these capabilities and resources together, putting the world on the path to sustainability,” explained WBCSD President Bjorn Stigson.

The publication outlines a future in which 9 billion people live well, enjoying health, food, shelter, energy, mobility, education and other basics of life. Syngenta CEO, Michael Mack added that “humanity has largely had an exploitative relationship with our planet; we can, and should, aim to make this a symbiotic one.” In the Vision 2050scenario, global society attains this standard of living at a sustainable rate, without further harm to biodiversity, climate and ecosystem services.

The report states that the world already has the resources to achieve Vision 2050,but there is a catch: “The radical changes highlighted in Vision 2050 demand a different perspective from business leaders, requiring them to rethink how they operate to stay on-track for a sustainable future,” added Samuel A. DiPiazza Jr., former CEO and Chairman of PricewaterhouseCoopers. This includes a radical transformation of global markets, governance and infrastructure, and a re-thinking of our ideas of growth and progress.

Vision 2050 spells out the “must haves” – the things that must happen over the coming decade to make a sustainable planetary society possible. These include incorporating the costs of externalities, starting with carbon, ecosystem services and water, into the structure of the marketplace; doubling agricultural output without increasing the amount of land or water used; halting deforestation and increasing yields from planted forests: halving carbon emissions worldwide (based on 2005 levels) by 2050 through a shift to low-carbon energy systems and improved demand-side energy efficiency, and providing universal access to low-carbon mobility.

As part of this transformation, Vision 2050 calls for a new agenda for business: to work with government and society worldwide to transform markets and competition. “Sustainability will become a key driver for all our investment decisions,” added Idar Kreutzer, CEO of Storebrand and another project co-chair. New rules for markets will reframe environmental challenges as economic challenges, driving innovation and competition in the direction of sustainability and away from resource- and energy-intensive production. Rationalizing prices to include such externalities as climate and biodiversity impacts will make corporate environmental efficiency a true competitive advantage across all industries and regions.

Business will lead market change by doing what business does best: forming partnerships, creating efficiencies and competitive advantage, seizing opportunities and meeting customer needs. At the same time, a shift toward sustainability will trigger trillions of dollars in new investments in infrastructure, technology and human services, creating new opportunities for business to thrive and grow. A recent study commissioned for this project with PricewaterhouseCoopers and released today indicates that this investment could reach US$ 3-10 trillion per annum in 2050.

Vision 2050, with its best-case scenario for sustainability and pathways for reaching it, is a tool for thought leadership, a platform for beginning the dialogue that must take place to navigate the challenging years to come. “It is hoped that the Vision 2050 work will be used for many years to come. It is designed to be a platform for companies when deliberating strategies and for dialogue with governments and society about how to realize the sustainable future,” concluded Per Sandberg, Project Director for Vision 2050.

Download

• Vision 2050: The new agenda for business – full report ( 2.6 MB)
• Vision 2050: The new agenda for business – summary report ( 2.4 MB)