Global investment in renewable energy fell by 53 percent in the first quarter as banks curbed lending for wind, solar and biofuel projects, according to New Energy Finance.
New investment in so-called clean energy dropped to $13.3 billion in the period from $28.3 billion a year earlier, the London-based research company said today in an e-mailed statement.
Energy producers around the world have been forced to delay or cancel spending on new projects as the global recession prompts banks to restrict credit. Some have even idled plants and laid off workers as demand slows. BP Plc said this week it will close solar-cell factories in Spain and cut 480 jobs.
Venture capital and private-equity funding fell 22 percent from the previous quarter to $1.8 billion, the lowest quarterly figure for more than two years, New Energy Finance said.
Asset finance for wind, solar and biofuel projects declined to just below $11.5 billion, 44 percent down on the prior quarter.