Washington  - Despite financial market turmoil, the United Nations Environment Programme (UNEP) said Tuesday alternative energy investment had another record-setting year in 2007.

Concerns about climate change, rising oil prices, energy security and growing support from world governments have pushed energy investment to a record 148 billion dollars in 2007, a 60-per-cent rise from 2006, according to UNEP analysis.

"The clean energy industry is maturing and its backers remain bullish. These findings should empower governments ... to reach a deep and meaningful new agreement by the crucial climate convention meeting in Copenhagen in late 2009," said UNEP head Achim Steiner.

The report about global trends in energy investment says that wind energy attracted the most investment, 50.2 billion dollars in 2007, but solar grew most rapidly, attracting some 28.6 billion of new capital and growing at an average annual rate of 254 per cent since 2004.

As global financial markets have slipped into turmoil, the boom in the alternative energy sector has slowed since the end of 2007, with only mergers and acquisitions on the upswing as a number of wind developers sold their portfolios. Tightening credit markets have limited opportunities to finance growth.

However, in the second quarter of 2008, most areas for investment have rebounded. Sustainable energy investment was up 34 per cent as compared to the same quarter last year, the report said.

"Just as thousands were drawn to California and the Klondike in the late 1880s, the green energy gold rush is attracting legions of modern-day prospectors in all parts of the globe," Steiner said. "What is unfolding is nothing less than a fundamental transformation of the world's energy infrastructure."

Most of the new alternative investment has flowed into Europe, followed by the United States. However, China, India and Brazil are drawing growing investor interest with their share of investment increasing from 12 per cent in 2004 to 22 per cent in 2007, an increase from 1.8 billion and 26 billion dollars.

Sustainable energy accounted for 23 per cent of new energy adding 31 gigawatts of new power capacity, about 10 times that of nuclear.

Sustainable energy companies accounted for 19 per cent of all new capital raised by the energy sector on global stock markets in 2007.

Continued strong growth in the sustainable energy sector is essential "if targets for greenhouse gas reductions and renewables and efficiency increases are to be met," the report noted.

"Investment between now and 2030 is expected to reach 450 billion dollars a year by 2012, rising to more than 600 billion dollars from 2020," the report said. "The sector's overall performance during 2007 and into 2008 sets it on track to achieve these levels." (dpa)