China loses clean energy leadership to the USA

The USA ends China’s two-year run as the world’s top investor in renewable energy.

It regained its premier standing by spending US$48 billion in 2011 to surpass China, which became the world’s top clean energy investor in 2009.

China invested US$46 billion last year, a 1% increase over 2010. It did, however, maintain its world leadership in wind energy investment and in solar manufacturing.

The U.S. investment surge was 42% higher than 2010 and was made possible by more venture capital and by research and development cash, said the Pew Charitable Trusts annual report on clean energy.

The report also noted that worldwide, total private investments in clean energy rose 6.5% over 2010 to a record US $263 billion. Germany was third in clean energy investments in 2011.

Experts said an important difference between the U.S. and China is in how they attract investment. China has solid green energy policies that reassure investors while the U.S. offers tax breaks for investment.

China has been able to fuel its growth by having very consistent and long-term policies in place that tell investors there is an opportunity for them to make a profit.

The U.S., however, has no renewable energy target but are trying to incentivize clean energy investment through a variety of tax incentives, tax credits, tax subsidies and loan guarantees.