Cleantech Venture Capital (VC) Investment in China is up 124.95 percent over 2010â€™s total, according to clean energy advocacy organization Climate Group â€“ and the year isnâ€™t even over yet. Pulling in data from ChinaVenture Consulting Group, the Climate Group revealed that clean energy financing in China was just under $1.4 billion.
Much of the surge in VC investments came from the pollution inspection and management sectors, fuelled in part by Chinaâ€™s push to become a leader in the Clean Revolution and its central governmentâ€™s release of the Energy Conservation and Emission Reduction Plan two months ago.
Changhua Wu, greater China director for the Climate Group stated that â€œChinaÂ today facesÂ daunting challenges to address its environmental, resource and energy, and climate change crises. But the clarity and certainty of policy directions set at national level has given technology innovators and investors the needed level of confidence to reap the benefits fromÂ the Clean Revolutionâ€
And so far, China is well on its way to establishing itself as a clean energy leader. Not only does it plan to install 10GW of Solar Capacity by 2015, it plans on initializing an emissions trading scheme in 6 regions between 2013 and 2015.
As a result of such an ambitious clean energy program, China has seen cleantech venture captial skyrocket in the past few years. Between 2009 and 2010, China has increased its clean energy investment by 39%, thus making it the global leader in 2010 with a total $54.5 billion for the year.
Do you think such high investments in cleantech will give China a competitive edge in the future global economy?
Image CC licensed by Mike Locke: Huge windfarm in Xinjiang, China