1. International Trends in Clean Energy Investment
Kerry Rooney
Global Manager: Clean Energy & Environment

2. Overview Australian Trade Commission (Austrade)
Austrade’s Clean Energy Trade and Investment Strategy
What’s happening in global clean energy markets
Total new investment in clean energy
Americas – Growing Investment
Europe – Stalled Investment
China – Largest Investment
Australia – 4th largest investment in Asia Pacific
Wind - biggest sector for investment
Summary

3. A global network to advance Australia’s trade and investment interests
Austrade operates through a global network of offices, with representatives overseas in over 100 locations in more than 55 countries.
Across Australia, Austrade operates 18 offices and a network of 50 TradeStart offices including 8 Export Hubs, and in partnership with public and private sector ally organisations.
Austrade will work with enterprises, industry groups and government agencies to :
Enhance Australia’s prosperity by:
Assisting Australian enterprises to capture international business opportunities
Facilitating productive foreign direct investment into Australia
Increase the capability / capacity of Australian industry to compete in international markets and attract foreign investment
Contribute to the identification and resolution of barriers to trade and investment in Australia and offshore.
Austrade will achieve these objectives through trade and investment development initiatives at a national, sectoral and enterprise level.

4. Austrade’s Clean Energy Trade and Investment Strategy
Contributes to industry development through trade and investment and helps meet Australia’s climate change objectives
Strategy dominated by inward investment to fill gaps in Australian capability and attract capital to commercialise Australian technology
Target markets with advanced technology and capital, especially North America, Western Europe, North East Asia
Export and outward investment will grow as domestic capability expands
Target rapidly growing markets in the Asia Pacific region e.g. China, India, ASEAN, and Latin America as well as the Middle East
Global opportunities vastly exceed Australia’s capacity
Renewable energy
Wind, solar, geothermal, ocean/ tidal, bioenergy, Gen 2 biofuels
Carbon capture and storage
Carbon markets
Carbon market services
Clean Development Mechanism (CDM) projects
Clean technologies & services
water, energy efficiency, green buildings, environmental services

5. 2010-11 Austrade’s Clean Energy & Environment Initiatives
Attract and facilitate investment into renewable energy, including Gen2 biofuels
Promote Australia as a global leader in Carbon, Capture and Storage
Partner in CCS week Australia 2010 Nov-Dec, seminar series Europe and US
Develop exports of low emissions technologies ,carbon services, target CDM projects in ASEAN, India, Latin America and investigate Africa
Build international recognition of Australia as a source of leading edge water technologies and services, with emphasis on the US and Middle East
Pursue market based trade opportunities in China for Australian clean tech through the Australia-China Wanwu Eco-country initiative
Pilot the Australian Investment Opportunity to help match investor ready Australian clean tech companies with international investment partners

6. Global total new investment in clean energy
Source: Bloomberg New Energy Finance

7. Total New Clean Energy Investment 2009 & 2010 (ytd)
Source: Bloomberg New Energy Finance 2010

8. Bi-Annual New Financial Investment by Region, 2007 - 2010 ($bn)
Source: Bloomberg New Energy Finance 2010

9. Top 15 Country Recipients of New Investment 2009 / 2010
$bn
China
34.9
United States
18.3
United Kingdom
11.1
Spain
10.1
Brazil
7.6
Germany
5.4
Canada
3.3
India
2.8
Italy
Netherlands
2.3
France
2.0
Norway
1.9
Belgium
1.5
Turkey
1.4
Denmark
1.1
2010
$bn
China
23.0
United States
13.7
Brazil
4.7
Canada
3.2
Italy
2.3
India
1.7
Germany
1.4
Spain
United Kingdom
1.3
Portugal
Norway
1.1
Australia
Sweden
0.9
Venezuela
Turkey
2010 data has been calculated up to 30 June Minor discrepancy with other country figures.

10. Venture Capital / PE by Country 2009
Total $9.577 billion
Source: Bloomberg New Energy Finance

11. Source: Bloomberg New Energy Finance 2010
USA: Clean Energy Investment by Sector
Analysis does not include large scale Hydro or solar below ≤0.5 MW
Source: Bloomberg New Energy Finance 2010

12. US Venture Capital/PE by sector Source: BNEF

13. Source: Bloomberg New Energy Finance 2010
USA: New Clean Energy Investment
2009 & 2010
USA Ranked 2nd (total US$16.7b ytd) behind China for new clean energy investment in 2010.
Majority of US investment is allocated to asset finance – US$25.6b in 2009 & US$11.6b ytd 2010
Compared to Europe, China & Australia – the USA has the largest investment allocation to VC/PE – 2009 = US$5b and 2010 ytd US$3.6b
US, Canadian and Latam economies undergoing great change at all levels
Big Oil diversifying into new energy
Biofuels, Geothermal
Corporate North America looking for Energy Solutions
Energy Efficiency, Green Building (Chevron Energy Solutions - $800m business)
Economic correction – US Stimulus funding , growth of new industries
Unprecedented Federal spending and loans - Renewable Energy, Smart Grid, Energy Eff.
Water is a National Security issue – South West US / Mexico
Cleantech VC investment rebounded, with the US alone representing > 60% of the global cleantech investment market.
Source: Bloomberg New Energy Finance 2010

14. Source: Bloomberg New Energy Finance 2010
Europe: Clean Energy Investment by Sector
Analysis does not include large scale Hydro or solar below ≤0.5 MW
Europe (EU & Non-EU) in 2010 is ranked 3rd behind China & USA as a new investor in renewable energy US$46b in 2009 has fallen to US$13.14b in 2010 (ytd) (Bloomberg New Energy Finance)
Europe has 75.7% of global commissioned solar projects (Spain, Germany – followed by USA) (Bloomberg New Energy Finance 2010)
Source: Bloomberg New Energy Finance 2010

15. Source: Bloomberg New Energy Finance 2010
Europe (EU & Non-EU):
New Clean Energy Investment 2009 & 2010
European investment in new clean energy has fallen in 2010 ranking 3rd behind China and the USA. Europe was the largest global clean energy investor in 2009.
European new investment reached US$46b in 2009 and ytd 2010 is standing at US$13.14b
European project finance has fallen consecutively in each of the four quarters of 2009.
The downturn in European investment has been attributed by BNEF to the collapse in the Greek, Spanish and Portuguese sovereign debt markets and concern for the future about those Government’s ability to continue support for clean energy.
The slowdown in new energy investment is due to the inability for large scale secure debt and equity finance, despite small scale wind and solar projects being able to clinch finance.
Clean energy developers rely on bank debt to cover some 75-85% of total projects costs for wind & PV and 50-65% for bio-mass and solar thermal. (BNEF: VIP Brief 2010)
Europe (EU & Non-EU) in 2010 is ranked 3rd behind China & USA as a new investor in renewable energy US$46b in 2009 has fallen to US$13.14b in 2010 (ytd) (Bloomberg New Energy Finance)
Europe has 75.7% of global commissioned solar projects (Spain, Germany – followed by USA) (Bloomberg New Energy Finance 2010)
Source: Bloomberg New Energy Finance 2010

16. Source: Bloomberg New Energy Finance 2010
China: Clean Energy Investment by Sector
Source: Bloomberg New Energy Finance
China is ranked 2nd behind the USA for most installed wind (22% of global commissioned wind projects)
US ranked number 1 with 29% global commissioned wind projects
Total global commissioned wind project capacity = 124,058MW
Source: Bloomberg New Energy Finance 2010

17. Source: Bloomberg New Energy Finance 2010
China: New Clean Energy Investment
2009 & 2010
China has overtaken Europe as largest ‘new’ investor in 2010 with US$24.1b (ytd) in new clean energy investments – with a focus on the growth of wind assets (“wind investment boom”) in China
Majority of Chinese investments are allocated to asset finance – e.g. wind projects
Source: Bloomberg New Energy Finance 2010

18. Source: Bloomberg New Energy Finance 2010
Australia: Existing Clean Energy Investment by Sector
BNEF – DATA QUALIFICATIONS:
Large Scale Hydro – excluded from data. Excluded due to large environmental footprint associated with large scale hydro – environmental impact – not considered renewable.
Small scale solar (roof top, small commercial and non-grid connected =≥05MW) not included. Only significant small scale and utility scale project included in data.
Source: Bloomberg New Energy Finance 2010

19. Source: Bloomberg New Energy Finance 2010
Australia: New Clean Energy Investment
2009 & 2010
Source: Bloomberg New Energy Finance 2010

20. Source: Bloomberg New Energy Finance 2010
ASOC: Clean Energy Investment by Country
Source: Bloomberg New Energy Finance 2010

21. Summary: Clean Energy Investment
United States, ranks number two, and provides more than 50% of global venture capital and private equity for clean energy
Europe traditionally dominated clean energy investment but due to the GFC it currently ranks number three
China is now the world’s largest investment market for clean energy
Australia is 4th largest in the Asia Pacific and 12th largest globally
Wind is the sector where most investment occurs

22. Thank you