Global investment in renewable energy and efficiency is likely to decline for the second consecutive year amid a “weakening of political will” on climate change, according to a new tally of deals and projects.
Bloomberg New Energy Finance said Monday that investment in the third quarter of 2013 was $45.9 billion, which is 14% below the second quarter and 20% below the July-September period last year.
“The latest figure makes it almost certain that investment in renewable energy and energy-smart technologies such as smart grid, efficiency, storage and electric vehicles will end this year below 2012′s $281 [billion] – a total that was itself 11% down from the record established in 2011,” the company said.
Investment in the U.S., Europe and China fell in the third quarter compared to the same period in 2012.
Michael Liebreich, chief executive of Bloomberg New Energy Finance, said in a statement that the third quarter tally is “disappointing,” adding that while investments were substantial, the “the loss of momentum since 2011 is worrying.”
“The latest setback reflects policy uncertainty in Europe, the lure of cheap gas in the US, a leveling-off in wind and solar investment in China, and a general weakening of political will in major economies,” he said.
“Governments accept that the world has a major problem with climate change but, for the moment, appear too engrossed in short-term domestic issues to take the decisive action needed,” Liebreich said.