Steam rises from the stacks of the coal-fired Jim Bridger Power Plant
Steam rises from the stacks of the coal-fired Jim Bridger Power Plant outside Point of the Rocks, Wyoming in this file photo taken March 14, 2014. REUTERS/Jim Urquhart/Files REUTERS/Jim Urquhart

One year had past that Australia's investment in clean energy projects fell by 70 percent. According to a report by Bloomberg New Energy Finance, this drastic fall of 70 percent since 2013 is the result of Australian governments policy deviations. It also led to Australia slipping from the position of being the world's 11th largest investor in clean energy to 31st position now. Australia's ranking has slipped past that of Algeria, Myanmar, Thailand and Uruguay.

Policy Glitch

The falling rank of Australia in the renewable energy sector is reflective of the Liberal Prime Minister Tony Abbott's policies of sidelining the previously pursued ambitious tragets in clean energy and climate goals. Under the Abbott government, in July 2014, Australia repealed its carbon price and reversed Australia's impressive track record of successfully working to cut carbon emissions, reported Think Progress.

Kobad Bhavnagri, analyst, BNEF told the Guardian Australia that Australia's renewable energy sector is in a flux and the government's policies have to be modified to correct it. Of late, Australia's anti-renewable rhetoric, especially in the anti-wind policies, has discouraged many clean energy investors. In this context, Bhavnagri referred to the government's review of the country's Renewable Energy Target that had mandated 41,000 gigawatts hours of Australia's energy from renewable sources by 2020. The government is on record that it would review that target also.

Investment Decline

Under the Abbott government, Australia attracted just $193 million in new large-scale clean energy projects in the third quarter of 2014, according to BNEF. This means, the year-to-date investment at $238 million. By comparison, Canada invested $3.1 billion in large clean energy projects during the period. In Europe, too clean energy investment in the July to September quarter was high at $55 billion. In China, solar investment reached a new record of $12.2 billion, with 22 percent growth over the quarter. China is set to add add more than 14 gigawatts of solar capacity this year. It will be one third of the global total, according to BNEF.

Japan is another gainer with its second-largest solar market showing an increased spending of 17 percent at $8.6 billion, in the last quarter. Japan gave approval for 72,000 megawatts of clean energy projects since the country's feed-in tariff programme took off in 2012. However, Greg Hunt, Australia's environment minister dismissed speculations that the Renewable Energy Target being abolished as a "Labour scare." Australia is looking for a balanced, middle path," Greg was quoted in the Guardian.