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funding decline, it remains dominant at 30 per cent. Energy’s share has
varied between 3 per cent and 4 per cent since 2000, after peaking in
1981, when it was over 11 per cent.
In absolute terms, RD&D budgets for low carbon technologies have
been steadily increasing in IEA member countries over the past decade,
from a low of USD 9.3 billion in 1997 to over USD 15 billion per year in
the past three years. In 2011, the total was USD 16.8 billion. Funding has
risen nearly every year since the late 1990s and received a substantial
increase as part of ‘green stimulus’ spending programmes in 2009. Such
high levels of investment channelled money into innovation centres
like the US Department of Energy’s Advanced Research Projects
Agency, which supports high-risk, potentially high-payoff projects
that are not sufficiently advanced to attract venture capital investment.
However, with growing concern over budget deficits, funding levels
have decreased from peak levels in 2009 (Figure 1.5).
Figure 1.5 Government Energy RD&D Expenditure in IEA Member Countries (1974–2011)
Source: IEA (2013)
Nuclear fission still accounts for the largest share of investment in
energy technology RD&D among IEA countries—roughly 24 per cent
in 2010 (nuclear fusion accounts for 5 per cent). In general though,
RD&D spending has moved away from nuclear, which accounted for
over 70 per cent in the mid-1970s, towards renewable energy, cleaner
fossil fuel, and emerging technologies, such as smart grids and EVs.
Renewables, hydrogen and fuel cells have seen the biggest increases
since 2000. In particular, expenditureon renewable energy RD&D
has risen sharply over the last decade and now accounts for over
48 Low Carbon Development in China and India
varied between 3 per cent and 4 per cent since 2000, after peaking in
1981, when it was over 11 per cent.
In absolute terms, RD&D budgets for low carbon technologies have
been steadily increasing in IEA member countries over the past decade,
from a low of USD 9.3 billion in 1997 to over USD 15 billion per year in
the past three years. In 2011, the total was USD 16.8 billion. Funding has
risen nearly every year since the late 1990s and received a substantial
increase as part of ‘green stimulus’ spending programmes in 2009. Such
high levels of investment channelled money into innovation centres
like the US Department of Energy’s Advanced Research Projects
Agency, which supports high-risk, potentially high-payoff projects
that are not sufficiently advanced to attract venture capital investment.
However, with growing concern over budget deficits, funding levels
have decreased from peak levels in 2009 (Figure 1.5).
Figure 1.5 Government Energy RD&D Expenditure in IEA Member Countries (1974–2011)
Source: IEA (2013)
Nuclear fission still accounts for the largest share of investment in
energy technology RD&D among IEA countries—roughly 24 per cent
in 2010 (nuclear fusion accounts for 5 per cent). In general though,
RD&D spending has moved away from nuclear, which accounted for
over 70 per cent in the mid-1970s, towards renewable energy, cleaner
fossil fuel, and emerging technologies, such as smart grids and EVs.
Renewables, hydrogen and fuel cells have seen the biggest increases
since 2000. In particular, expenditureon renewable energy RD&D
has risen sharply over the last decade and now accounts for over
48 Low Carbon Development in China and India
