Investment in clean energy, eco protection sectors drops

China's investment in the clean energy and environmental protection industries dropped to $218 million in the first half of the year, the lowest level in three years, according to a report issued by ChinaVenture.

From January to June, there were only 20 investment projects disclosed in the clean energy and environmental protection industries, well below the 37 investment projects in the same period last year, the report by the Beijing-based research company said.

The investment amount was down 72 percent year on year.

"The market became colder because of the overcapacity in sectors such as wind power and solar energy," said Poddy Feng, senior analyst at China Venture.

However, the long-term investment value in the clean energy, energy-saving and environmental protection industries should not be ignored, since the Chinese economy is undergoing a restructuring process and environmental pollution is getting worse, the report said.

The energy-saving and environmental protection industries are among the seven strategic emerging industries proposed by Chinese government.

China plans to invest 2.37 trillion yuan ($375.6 billion) in major energy-saving projects during the 12th Five-Year Plan (2011-2015) period, according to a document released by the State Council on Aug 21.

In a previously unveiled blueprint for energy-saving programs, Chinese authorities established a goal of cutting energy consumption per 10,000 yuan of the GDP by 16 percent by 2015 compared with 2010, saving 670 million metric tons of coal equivalent.

shenjingting@chinadaily.com.cn