Private equity spending in renewable energy and cleantech firms surged 60% in the first half of this year, although fears are mounting that investment by buyout firms is now set to fall as a result of European governments withdrawing important subsidies.

Renewable energy and cleantech investment rose to $10.3bn (€8.1bn) in the first half of this year from $6.4bn in the same period last year, according to data provider VB Research. This included $5bn of spending in the second quarter, which was up substantially from $3.4bn between April and June last year.