10 July 2008 | Jake Kanter
There has been a 60 per cent rise in sustainable energy investment over the past 12 months, according to the UN.
The United Nations Environment Programme's latest report on sustainable energy revealed venture capital firms, public companies and stock market traders invested $148 billion (£75 billion) in clean energy businesses and renewable sources such as wind energy and solar power in 2007.
Angus McCrone, chief editor of research at New Energy Finance, the firm that co-authored the review, said this reflects increasing environmental policies in business and growing demand from purchasers.
The biggest area of investment was wind power, which attracted investment of more than $50 billion (£25 billion) last year. Solar power recorded the fastest growth and received $28.6 billion (£14.5 billion) in new capital.
McCrone told supplymanagement.com buyers of electricity are increasingly turning to renewable supplies as an alternative to traditional sources. Also, procurement teams in utility companies are increasingly responsible for buying the hardware to build their own sustainable energy production sites.
He added investment is likely to triple by 2012, as buyers attempt to avoid high energy prices and maintain a secure source of power. He said the problems of climate change are also driving demand for sustainable sources of energy.