China drives global green investment

Finance is still flowing in to the renewable energy sector, particularly wind power and driven by China, but the overall investment picture remains fragile, writes Ian Lewis

THE INVESTMENT climate for renewable energy remains turbulent. The sector continues to be battered by the twin torments of blocked financial markets and the failure of governments around the world to reach a global settlement on carbon-emissions reductions (see box). But with national targets – and incentives – still in place, finance is still flowing, even if growth remains patchy. While China is piling investment into renewables as part of its efforts to reduce its dependency on coal, Germany and Spain – Europe's green pioneers – are cutting subsidies for wind and solar projects, as they rein in state spending (PE 1/10 p24). Wind is still the leading sector, with some US onshore projects