(OILPRICE) — Global investments in clean technologies tanked in 2012, as investors shied away from capital-intensive deals and technology risks, according to Cleantech Group.

The San Francisco-based analysis firm’s preliminary 2012 results recorded venture capital (VC) investments of $6.5 billion in the clean-tech sector, down from the record $9.6 billion in 2011. The number of deals seen in 2012 were 704, 15% lower than the 829 tracked in the previous year.

Clean-tech mergers and acquisitions (M&A) deals have consistently dropped in value over the past eight quarters, and totalled $39.7 billion in 2012.

“2012 was a difficult year for the sector,” Sheeraz Haji, CEO of Cleantech Group, said in a webinar presenting the figures. Early last year, the firm predicted that 2012 would be a record-breaking year for clean-tech investment.

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