Top ten most attractive renewable energy investment countries
Consulting firm EY has put forward the 57th edition of the most attractive renewable energy investment countries index (RECAI), led by the United States, China and India. Spain has been ranked 10th in the past few years. 58.6.
Ernst & Young's RECAI index estimates that environment, sustainability and Governance (ESG) goals are increasingly high on the investor agenda, while institutional investors' interest in renewable energy continues to grow.
In 2020, global investment in renewable energy capacity will grow by 2% to US $303.5 billion, which is still the second highest annual figure so far despite the impact of the pandemic.
However, as the authors of the report emphasize, more than $5 trillion of investment is needed to achieve the future development of net zero emissions, and institutional investors play an important role in financing the energy transformation.
The upcoming 2021 United Nations Conference of the parties to climate change (cop26) provides an opportunity to bridge the gap between what the government has promised to do and the level of action taken so far.
The United States ranks first in the index and is expected to maintain its position under President Biden. Ernst & Young said that the readmission of the Paris Agreement and the recent announcement to reduce greenhouse gas emissions by 50-52% from 2030 to achieve 100% carbon free energy by 2035 may stimulate people's interest in US investment.
Similarly, China is still a booming market, second, with developers competing to cut land wind subsidies, China will increase its new wind power by 72.4 gigawatts in 2020. In April, China and the United States announced that they would work together and work with other markets to deal with climate change.
India also rose one place on the list to third. The authors of the report expect significant growth in the solar industry in the Indian market and predict that photovoltaic solar power will replace coal by 2040.
East Asia has a strong clean energy portfolio with more than 800 ready to use plans with a total investment potential of $316billion, the report stressed.
Other market price indices have also risen as many governments are taking steps to start new offshore wind projects. That's what Poland is doing, rising from 28th to 22nd, partly thanks to a new law that will promote 5.9 GW of offshore wind power through competitive auctions by 2030.
The federal environmental authority of Brazil has issued licensing guidelines for offshore wind projects, and AIS has also risen 4 places, 11th, following Spain.
Germany's ranking fell to seventh with the latest changes in the design of onshore wind power bidding in the future being criticized. These changes will allow regulators to reduce the auction size in the event of insufficient subscription, and developers believe that this uncertainty will lead to lower bid volumes.
"Institutional investors have clearly shifted from fossil fuel investment to environmental sustainability projects, and they tend to avoid risks in principle," said Arnaud de Giovanni, global renewable energy director at Ernst & young
He believes that risk mitigation tools, structured financing mechanisms specifically for the renewable energy sector and regulatory commitments will help increase investment flows.
The representatives of the twenty sixth session of the conference of the parties must take action to ensure the realization of the tradition of the Paris Agreement“ Major developed countries must meet their commitments to provide $100billion of climate financing to developing countries annually, and all countries must set viable short-term targets urgently. There is not much left.
