Oct 22, 2013 - Investment in climate change initiatives around the world totalled USD 359 billion (EUR 263bn) in 2012, almost unchanged from a year earlier, a study of Climate Policy Initiative (CPI) revealed today.
CPI explained in its Global Landscape of Climate Finance 2013 study that the result is far below the necessary investment to protect against the effects of climate change. It cited projections of the International Energy Agency, according to which clean energy projects alone will require additional spending of USD 5 trillion by 2020 to limit global warming to two degrees Celsius.
On the bright side, CPI noted that less finance in 2012 was invested into greater renewable energy capacities than before. This shows that developers have achieved greater economies of scale and technology cost reductions.
The San Francisco-based analysis firm said that as much as USD 135 billion or 38% of the total amount last year came from the public sector which in turn is stimulating private investment. As a result, private sector spending stood at USD 224 billion or 62% of the total, with project developers pouring USD 102 billion, manufacturers and corporations -- USD 66 billion, and households investing USD 33 billion. CPI noted that even though public backing for climate activities was significant, it remains negligible when compared to the annual government support for fossil fuels of some USD 523 billion for developing and emerging economies alone.
Last year, most of the investment into climate initiatives and projects came from domestic sources. Some USD 275 billion, or 76%, was from domestic sources, while only USD 84 billion flowed between countries.
By country, investment was divided almost equally between developed and developing countries -- USD 177 billion and USD 182 billion, respectively. Private investment in renewables in Europe stood at USD 73 billion, while in China it was USD 68 billion. The figures for the US, Latin America and India were USD 27 billion, USD 7 billion and USD 5 billion, respectively.
(USD 1.0 = EUR 0.731)
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