Governments around the world have committed more than €160 billion to support renewable energy initiatives despite the economic downturn, according to a Deutsche Bank analysis.
Europe, Asia and the US share key investment themes in solar and wind industries, smart grids, electric and hybrid cars, energy efficient buildings and advanced lighting. In addition, 250 new policies or regulations have been created across the world to support green energy and climate change mitigation since July 2008, the analysis said.
“We believe this trend towards greater regulation and stimulus spending will provide crucial support to climate change industries during the current global economic downturn, helping to offset the impact of weaker debt markets over time,” said analyst Mark Fulton Global Head of Climate Change Investment Research at DB Climate Change Advisors.
The bank highlights a €82 billion commitment for “green” and climate change-related initiatives in the U.S. included inside the €570 billion American Recovery and Reinvestment Act signed by President Barack Obama. The total investment for alternative energy amounts to 13.5 percent of the stimulus package and includes €65 billion to direct spending measures (including €14 billion for mass transit) and €16 billion for renewable energy tax breaks.
In the European Union, about €50 billion in stimulus packages will be made for green initiatives the bank said.