Development banks have made enormous investments in broad clean energy since 2007. This White Paper shows the trends over the past six years by sector and region, a ranking of the 26 leading players and a prediction for further growth in 2013.

EXECUTIVE SUMMARY

● Over the past six years (2007-12), development banks provided $425bn of finance for broad clean energy (renewable energy, energy efficiency and transmission and distribution). In 2012 alone, $109bn of investment was provided, 19% higher than the 2011 figure of $91bn.

● Renewable energy has been the main recipient of clean energy investment, followed by energy efficiency and electrical transmission and distribution. Of all the sectors within renewables, large hydro was the largest recipient, with $29.2bn of investment since 2007.

● Germany’s KfW has maintained its position as the biggest player since 2007 with $147bn (EUR 108bn) of broad clean energy investment, almost double China Development Bank’s figure of $78bn (CNY 506bn).

● Europe (excluding Russia) was by far the largest recipient of development bank investment. Roughly half of the global total, $217bn out of $425bn since 2007, has been deployed in Europe. Investment was mostly from KfW ($147bn or EUR 108bn) and the European Investment Bank (EIB) ($55bn or EUR 41bn).

● North-South flows (ie, investment flows from developed to developing countries) amounted to $9.9bn in 2012. The 2011 figure was just a fraction higher at $10.1bn.

● South-South flows (ie, investment flows between developing countries) reached an all-time high of $7.5bn in 2012, not far behind North-South flows.

● Bloomberg New Energy Finance envisages growth in development bank funding of between 15% and 30% in 2013. Significant upside potential exists in the medium and long term if new entrants (eg, a BRICS development bank) find their way to the market.

To download the full report in PDF, click here.