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Emission Reduction Investment Trails IEA Target, Hudson Says
2010-11-01 13:34:28.295 GMT
By Dinakar Sethuraman
Nov. 1 (Bloomberg) -- Investment in emission reduction
plans is less than half the target set by the International
Energy Agency, as budget deficits prompt cuts to clean energy
incentives, said Neil Auerbach, managing partner at Hudson Clean
Energy Partners.
"Budget deficits have caused many European countries to
reduce clean energy incentives in 2010," Auerbach, who started
the Alternate Energy Investment business at Goldman Sachs Group
Inc., said at a conference in Singapore today. "There's demand
destruction in the U.S. as a result of the recession."
Clean energy investment plans probably total about $5
trillion, according to Auerbach. The Paris-based International
Energy Agency has a $10.5 trillion target for spending through
2030. Teaneck, New Jersey-based Hudson said in December that it
raised more than $1 billion to invest in clean energy ventures.
Governments must make a six-fold increase in spending on
renewable ventures to restrict carbon dioxide levels to 450
parts per million in the atmosphere, IEA Executive Director
Nobuo Tanaka said in June. The Paris-based IEA is a policy
adviser to 28 industrialized nations.
That target for greenhouse gases in the atmosphere would
limit temperature increases to about 2 degrees Celsius (3.6
degrees Fahrenheit), according to the IEA. Without policies to
curb emissions, temperatures will probably rise 6 degrees, it
said.
Emerging markets led by China will boost investment in
renewable energy because of "substantial" growth in power
demand and "rapidly declining" technology costs in wind and
solar industries, Hudson's Auerbach said.
Solar cost reductions have accelerated, according to Sunil
Gupta, Singapore-based global head of clean technology at Morgan
Stanley. Cost reductions were as much as 16 percent last year
compared with historical averages of 7 percent. "Double digit"
reductions are expected this year and next, he said at the
conference.
Wind turbine costs, which have historically declined by
about 3 percent a year, may decline by as much as 25 percent in
the next two years, Gupta said.
Related News and Information:
Today's top power, energy news PTOP <GO>, ETOP <GO>
For top environmental stories GREEN <GO>
Emissions, alternative-energy markets page EMIS <GO>
--Editors: Clyde Russell, Alexander Kwiatkowski.
To contact the reporter on this story:
Dinakar Sethuraman in Singapore at +65-6212-1590 or
dinakar@bloomberg.net
To contact the editor responsible for this story:
Clyde Russell in Singapore at +65-6311-2423 or
crussell7@bloomberg.net
