Clean energy investments by venture capital and private equity firms totaled around $1.24 billion in China last year and are set to see substantial growth this year on the back of favorable policies, said a study from PricewaterhouseCoopers.

There were about 96 VC and PE investments made in China's clean energy and technology industry, the global consultancy firms said in the report published on Tuesday. It said the environmental protection industry was the major beneficiary and accounted for more than 50 percent of the total deal amount and investment value.

The clean energy and technology industry mainly includes environmental protection (such as smart power grids, new energy automobiles and water treatment plants), new energy (such as solar and wind power) and new materials.