Green tech market to hit $396bn

The global market for green technologies is set to grow to $396 billion over the next decade, according to a new report by US analyst firm Clean Edge, Greenwise Business reports.

In its 2012 Clean Energy Trends report, Clean Edge said the global market for the three clean tech benchmark technologies - wind, solar photovoltaic and biofuels - grew by 31% to $246.1 billion in 2011 from $188.1 billion in 2010. The analyst firm estimates that total growth for the three technologies will reach $385.8 billion by 2021.

ZDNet reports that, according to Clean Edge, all three technology areas had a record year. For example, solar installations grew by more than 69% from 15.6 gigawatts in 2010 to more than 26 gigawatts in 2011, largely due to rapidly decreasing solar technology costs. Last year was the largest year for wind power installations ever, reaching 41.6 gigawatts (China alone has installed more than 40% of the global wind power capacity).

Sustainable Business Oregon highlights the key findings of the report. These are the global market for solar photovoltaics hit $91.6 billion in 2011, up nearly 29% from $71.2 billion in 2010; new installation capital costs for wind energy reached a record $71.5 billion in 2011, up 18% from $60.5 billion in 2010. It was the largest year on record for global wind installations, with China leading the pack. Biofuels, the global production and pricing of ethanol and biodiesel reached a record $83 billion in 2011, up 47% from $56.4 billion the prior year; and venture capital investments in the clean tech sector were $6.6 billion in 2011, up 30% from $5.1 billion in 2010.

Clean Edge identified five key trends to watch in the coming years. These are the military's role in clean energy deployment; Japan's post-tsunami move towards a post-nuclear energy future; the trend in retrofitting commercial buildings starting to reap large-scale energy efficiency savings; and waste-to-resource breakthroughs.