Global development banks are increasingly supporting clean energy, growing by a compounded 25% a year since 2007, reports Bloomberg New Energy Finance.
In 2012, 26 leading banks broke through the $100 billion threshold for the first time, loaning $109 billion for renewable energy, energy efficiency and related transmission projects.
That’s 19% more than the previous year, reports Bloomberg New Energy Finance (BNEF). Since 2007, the 26 banks have financed $425 billion for clean energy projects.
The majority of support has been for hydro-electric [we do not consider big hydro "renewable energy"] at $36.3 billion, followed by wind at $27.5 billion and solar at $12.1 billion since 2007.
Financing should grow at least 15% this year because of shifts in policies away from fossil fuels and toward clean energy by The World Bank, US Ex-Im Bank and European Investment Bank, says BNEF.
Germany’s Kreditanstalt fur Wiederaufbau (KfW) is the biggest, single lender, developing a portfolio of $147 billion since 2007. That’s more than double the amount of the second highest lender, China Development Bank, with $78 billion.
Rounding out the top five are European Investment Bank ($55 billion), Brazilian Development Bank ($47 billion) and the World Bank ($26 billion).
Surprisingly, Europe is the region that’s received the most financing – about half of the global total since 2007 at $217 billion. KfW and European Investment Bank financed most of that.
Financing by region from 2007-2012:
- Asia ($122 billion)
- Central & South America ($66.2 billion)
- Africa ($14.6 billion)
- North America & the Caribbean ($4.7 billion)
- Middle East ($700 million)
$9.9 billion flowed developed to developing countries in 2012, down slightly from $10.1 billion in 2011. The World Bank was the top lender to developing nations – $3.2 billion in 2012 and $10.3 billion since 2007.
For perspective, under the Copenhagen Accord reached in 2009, developed countries agreed to give $100 billion a year to help developing countries address and cope with climate change by 2020.
Download BNEF’s report:
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