Market analysis firm New Energy Finance estimates that new investments in clean energy will decline 4% in 2008 to $142 billion. Including existing investments such as acquisitions and buy-outs, deal value is expected to fall 6% to $192 billion. One reason for the decline is public markets. Investment in clean energy via stock markets is expected to fall 60% to $9.4 billion this year due to fewer secondary issues and IPOs. In addition, financing for clean energy projects has slowed. Asset financing is forecasted to decline 4% to $80.6 billion due to a shortage of debt finance and tax equity finance. However, venture capital and corporate investment in clean energy continues to rise. In 2008, venture capital and private equity are expected to increase their investments by 45% to $14.2 billion. Corporate investment in clean energy R&D should rise to $10.9 billion this year, while government R&D is expected to reach $8.2 billion. Investments in small-scale projects are forecasted to total $21.5 billion.

Source: New Energy Finance

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