Folding green: the investment boom

Money is pouring into the clean energy sector, which includes renewable forms of electricity generation such as wind, biomass and solar as well as companies involved in energy efficiency and waste treatment. According to research firm New Energy Finance, investment in the sector increased globally by 41 per cent last year to $117bn (
But despite the oil price touching $100 a barrel recently and greater political will to tackle climate change, the clean energy sector has suffered particularly badly from the credit crunch. It is almost down by a fifth since its November peak, according to the HSBC index, as investors seek to put their money into safer places rather than riskier companies pioneering new or unproven technologies.

But fund managers are quick to stress that they think the sector will recover. Michael Liebreich, chief executive of New Energy Finance, says: ‘Particularly with the new US president likely to sign up to the climate change agenda, the underlying fundamentals look more positive than ever.’

Observer