Worldwide clean energy investment is primed to rebound after falling to a six-year low, offering opportunities for social impact and green energy investors, a BloombergNEF report showed.
China, the U.S. and Europe all posted declines in the first six months of the year, with China showing the steepest slides as the government cut subsidies.
Still, signs indicate that the spending downturn may be coming to an end with bright spots in both Asia and Europe. Social impact investors may find opportunities in Japan, India and Spain, where spending has continued to climb.
- Renewable spending totaled $117.6 billion in the first half of 2019, down 14% from a year earlier, according to the report.
- China remains the biggest clean-energy investor even after spending tumbled 39% to $28.8 billion in the first half of this year. The country’s decision to curb wind and solar subsidies was also the main reason for the drop in spending last year.
- China may lead a rebound in spending during the second half of the year as a solar power auction spurs a “rush” of project financing and some big offshore wind deals come through, Justin Wu, head of BNEF’s Asia-Pacific region said in the report.
- India and Japan were among the countries that saw growth. While overall European investment dropped, both Spain and Sweden saw spending surge 200%.
- Karma Takeaway: While lower subsidies have led to an overall slowdown in clean-energy investment there are many bright spots where investment is surging, and China may lead global rebound later this year.