London (Reuters) - The chief economist of International Energy Agency said on Monday that investment in renewable energy is decreasing and attaining oil prices that urge “green growth” will be the objective for December’s Copenhagen conference. Due the global recession the demand of oil decreased and diminishing the barrel, prices have prompted many investors in the industry to level back spending and impediment projects in both energy investment as well as in renewable projects.

The IEA’s chief economist Fathih Birol said Reuters TV at the energy conference cosponsored by the U.N in Vienna “right financial signals” was needed from governments to encourage renewable energy investment.” It’s up to the policymakers in Copenhagen at the end of the year in Denmark to agree on a framework that gives the right financial signals to investors.”

Almost 200 nations have been trying to achieve a contract to replace Kyoto Protocol on global warming with December deadline in Copenhagen. Birol said, “a deal in Copenhagen would give the right signals to energy investors in wind, solar efficiency...even car manufacturers or refrigerator producers.”

Renewable fall down

Birol said in May that the IEA expectation of oil and gas upstream investment to decline by 21% or about $100 billion as compare to 2008 because limited companies has the credit crunch access to finance. Revenue has been restricted due to lower energy prices. On spending, the renewable energy was decline more quickly. In May, the IEA said that its 38 % expected in investment this year as compared to 2008.

In 2008, the oil prices hit $147 barrel but due to global depression, it falls near $32 barrel in December. On Monday U.S., crude oil dropped more than 2 % to below $ 67 barrel. Birol said, “High oil prices have two impacts...the higher the oil price, the more impetus it gives to alternative technologies such as renewable energies. If today renewable energy investment has collapsed badly, and it has, that is mainly because of the global oil crisis.”

Birol notify the Organization of Petroleum Exporting Countries that higher oil prices will sluggish global economic recuperation. He said prices to should balance in favor of investment and sustainability. He further added, “A good indication if prices are high enough is that they then can give a certain impetus to renewable energy investment.”

Birol enlighten further that “But at the same time, if they are far too high than it is bad for economic growth and would lessen the affordability for countries, persons and industries to make those investments.”