Renewable energy is "green gold rush"

By Michael Szabo

LONDON (Reuters) - In what is being called a "green gold rush," global investment in renewable energy surged some 60 percent to $148 billion (74 billion pounds) in 2007, a UN agency said on Tuesday.

Buoyed by soaring fossil-fuel prices and concerns over the carbon dioxide emissions that fuel global warming, investment in clean energy from sources like wind, solar and biofuels last year rose three times faster then predicted by the UN Environmental Programme (UNEP).

"Just as thousands were drawn to California and the Klondike in the late 1800s, the green energy gold rush is attracting legions of modern day prospectors in all parts of the globe," said Achim Steiner, head of UNEP.

Wind power attracted the most capital last year at $50.2 billion, or a third of all clean energy investment, UNEP's Global Trends in Sustainable Energy Investment 2008 report said.

In March 2008, global installed wind capacity exceeded 100 gigawatts, or enough to power around 75 million homes.

Investment in solar energy soared by 254 percent to $28.6 billion last year, while the biofuel sector foundered with funds falling nearly one third to $2.1 billion, the report said.

Overall, clean energy accounted for 23 percent of all new installed capacity in 2007.

Public investment in renewable energy via the markets more than doubled to $23.4 billion, up from $10.6 billion in 2006, the report said.