China leads the world in clean-energy finance and investment

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China blazed past the U.S. and other major economies to dominate a tally of clean-energy investment and finance for the first time, according to a report released Thursday.

The Asian powerhouse pumped $34 billion into green power growth, while the U.S. contributed just $18.6 billion, according to numbers from the Pew Charitable Trusts. The data are based on investments including venture capital, initial public offerings from expanding companies, mergers and acquisitions and lending for large projects.

The study showed the U.S. lagging in several areas, trailing not just China, but Brazil, Britain, Italy and even Turkey in the growth rate of its clean-energy investments over the last five years.

In asset financing, a major gauge of green jobs and business growth, the U.S. in 2009 had just $11.2 billion. China led with $29.8 billion.

The U.S., along with Japan and Australia, is also falling behind countries including China and Germany that have strong national energy policies such as renewable fuel standards, carbon markets, priority loans for alternative-power projects and clean-energy targets, according to Pew.

Though leading in venture capital and private equity investments linked to innovative technologies, overall renewable power investment from the U.S. was five times less than Spain and three times less than China and Britain.

Clean-energy investments around the world have shot up 230% since 2005, according to Pew, reaching $162 billion in 2009. Member countries of the Group of 20 finance ministers, including the U.S., China and India, account for more than 90%.

Investment is expected to reach the $200-billion mark this year, the study said.

“Countries are jockeying for leadership,” said Phyllis Cuttino, who directs the Pew Environment Group’s Global Warming Campaign. “They know that investing in clean energy can renew manufacturing bases and create export opportunities, jobs and businesses.”

-- Tiffany Hsu