China Devouring the United States in Clean Energy Financing
Report is a Joint Project of Renewable Energy and Energy Efficiency Partnership,
Alliance to Save Energy, American Council on Renewable Energy
Mar 30,2011 - energyboom.com
It is no secret China is currently beating the United States in the race to be the global leader of the new energy economy. However, with each passing month the gap between the two nations appears to be growing.
One entity which is helping to spur China's rapid cleantech growth is the China Development Bank Corporation (CDP). According to BusinessWeek, the CDP, which has nearly twice the assets of the World Bank, agreed to lend US$35.4 billion to China solar and wind companies in 2010. Conversely, the United States, which has labeled clean energy the next "Sputnik," provided US$4 billion in grants and US$16 billion in loan guarantees to American solar and wind companies.
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Heavy investment in China's cleantech sector is not limited to the CDP. Research conducted by Bloomberg New Energy Finance shows that state and private institutions committed US$55.4 billion to Chinese equity and project debt for clean energy companies last year. This number rose from more than 70% from the US$39.1 billion pumped into the industry in 2009. Last year, the U.S. deposited $34.1 billion into clean energy. In 2008, the U.S. was the leader in this category; now it trails China and Germany.
Michael Liebrich, CEO of New Energy Finance insists the growing gap in cleantech financing between China and the United States is cause for concern: "The danger for the U.S. is that by the time it wakes up, in place of the levy it currently pays to oil despots, it will pay a levy to overseas clean-energy companies."