
By Elisa Wood
March 30, 2011
This week’s energy news looks bad for the United States – at first glance. The nation has slipped to second behind China in clean energy investment. Moreover, five of the G-20 nations have surpassed the US for clean energy investment relative to size of economy.
But look at little deeper into the report, “Who’s Winning the Clean Energy Race,” and you’ll see that the US did not slide in all forms of clean energy. In fact, its level of energy efficiency investment tops others worldwide in two of three investment categories analyzed in the report.
The US stood out as the strongest among the G-20 nations for public market financing of energy efficiency and related low carbon dioxide technologies and services in 2009, the year studied. And it dramatically surpassed all of the other countries when it came to venture capital for these resources.
In fact, the report found that the US “remained the overwhelming leader in venture capital investment” with energy efficiency and smart grid among the top resources attracting investors. VC investment totaled $3.9 billion in the US, far exceeding the second place country, Brazil, with $0.7 billion. China had only “negligible” VC activity.
“The United States remained the enduring leader in venture capital investment, reflecting its strong foundation of technology innovation,” the report said.
There are some good arguments to be made for the US’ pursuit of energy efficiency. Energy prices reverberate throughout the economy, pushing up the cost of goods and services when they rise. Efficiency advocates like to say that the megawatt never generated is the cheapest one, so it’s best to pursue all cost effective efficiency before building new energy infrastructure.
