LONDON: Green energy overtook fossil fuels in luring investment for power generation for the first time last year, according to figures released on June 3 by the United Nations.

Wind, solar and other clean technologies attracted $140 billion investment compared with $110 billion for gas and coal for electrical power generation, with more than a third of the green cash destined for Europe.

The biggest growth for renewable investment came from China, India and other developing countries, which are fast catching up on the west in switching out of fossil fuels to improve energy security and tackle climate change.

“There have been many milestones reached in recent years, but this report suggests renewable energy has now reached a tipping point where it is as important — if not more — in the global energy mix than fossil fuels,” said Achim Steiner, executive director of the UN’s Environment Programme.

It was very encouraging that a variety of new renewable sectors were attracting capital while different countries such as Kenya and Angola were entering the field, he added.

The UN still believes $750 billion needs to be spent worldwide between 2009 and 2011 and the current year has started ominously, with a 53 per cent slump in first-quarter renewables investment to $13.3 billion.

Counting energy efficiency and other measures, more than $155 billion of new money was invested in clean energy companies and projects, even though capital raised on public stockmarkets plunged 51per cent to $11.4 billion and green firms saw share prices slump more than 60 per cent over 2008, according to the report, Global Trends in Sustainable Energy, which was drawn up for the UN by the New Energy Finance (NEF) consultancy in London.

Wind, where the US is now the global leader, attracted the highest new worldwide investment, $51.8 billion, followed by solar at $33.5 billion. The former represented annual growth of only 1 per cent while the latter was up by nearly 50 per cent year-on-year.

Biofuels were the next most popular investment, winning $16.9 billion, but down 9 per cent on 2007, as the sector was hit by overcapacity issues in the US and political opposition, with ethanol being blamed for rising food prices.

Europe is still the main centre for investment in green power with $50 billion being pumped into projects across the continent, an increase of two per cent on last year while the figure for America was $30 billion, down 8 per cent.

But while overall spending in the west dipped nearly 2 per cent, there was a 27 per cent rise to $36.6 billion in developing countries led by China, which pumped in $15.6 billion, mostly in wind and biomass plants.

China more than doubled its installed wind turbine capacity

to 11GW of capacity while Indian wind investment was up 17 per cent to $2.6 billion, as its overall clean-tech spending rose to $4.1 billion in 2008, 12 per cent up on 2007 levels.

Several green new deals — government reflationary packages designed to kickstart economies and boost action to counter climate change — have been laid out by ministers around the world.

The slump in global renewable investment during the first quarter of 2009 has alarmed the UN and NEF. Michael Liebreich, chief executive of NEF, said the second quarter had revealed “green shoots” of recovery.