UK ranked fourth most attractive country for renewable energy investment

20th May 2021


Web istock 831152982

Related Topics

Related tags

  • Renewable ,
  • Global ,
  • Investment

Author

IEMA

The UK is the fourth most attractive destination for renewable energy projects, according to a new ranking of 40 countries, with the US claiming top position.

China and India complete the top three places in the ranking by consultancy giant EY, with France in fifth position.

The US is expected to hold on to first place for the foreseeable future after it rejoined the Paris Agreement and president Biden announced an ambitious target of cutting the country's emissions in half by 2030.

Similarly, China has remained a buoyant market and claimed second position after adding 72.4GW of new wind power in 2020, as developers rushed to beat an onshore wind subsidy cut.

The UK was ranked fourth place after the government gave consent for development of it largest battery-storage project, and pledged £92m in funding for innovative green technologies.

EY also revealed that global renewable energy capacity investments grew 2% to $303.5bn (£215bn) last year – the second-highest annual figure recorded to date – despite the impact of COVID-19.

However, the researchers estimate that future development to achieve net zero will require a further investment of $5.2trn, and said that institutional investors will need to play a key role in financing the energy transition.

“There is a clear shift away from fossil fuel investment and toward environmentally-sustainable projects by institutional investors who are typically more risk averse in their investing principles,” said Arnaud de Giovanni, EY's global renewables leader.

“Risk-mitigation tools, structured finance mechanisms tailored specifically to the renewables sector and regulatory commitment would therefore help increase investment flows.”

India rose one place in the ranking from the previous edition last November after the country's solar generation was forecast to exceed coal before 2040, while Italy climbed two places to 15th position after it received a grant of €209bn from the EU Recovery Fund

Germany dropped one place in the ranking to seventh position after last-minute changes to the design of future onshore wind tenders came under criticism.

EY said that the forthcoming COP26 climate summit presents an opportunity to close the gap between what governments have promised to do and the level of action they have undertaken to date.

“The leading developed nations must honour existing promises to deliver $100b per year in climate financing for developing nations, and all nations must urgently set actionable near-term targets, rather than kicking the can down the road,” Giovanni continued. “There is not much road left.”

Image credit: iStock

Subscribe

Subscribe to IEMA's newsletters to receive timely articles, expert opinions, event announcements, and much more, directly in your inbox.


Transform articles

How much is too much?

While there is no silver bullet for tackling climate change and social injustice, there is one controversial solution: the abolition of the super-rich. Chris Seekings explains more

4th April 2024

Read more

Alex Veitch from the British Chambers of Commerce and IEMA’s Ben Goodwin discuss with Chris Seekings how to unlock the potential of UK businesses

4th April 2024

Read more

Five of the latest books on the environment and sustainability

3rd April 2024

Read more

The UK’s major cities lag well behind their European counterparts in terms of public transport use. Linking development to transport routes might be the answer, argues Huw Morris

3rd April 2024

Read more

Ben Goodwin reflects on policy, practice and advocacy over the past year

2nd April 2024

Read more

A hangover from EU legislation, requirements on the need for consideration of nutrient neutrality for developments on many protected sites in England were nearly removed from the planning system in 2023.

2nd April 2024

Read more

It’s well recognised that the public sector has the opportunity to work towards a national net-zero landscape that goes well beyond improving on its own performance; it can also influence through procurement and can direct through policy.

19th March 2024

Read more

The UK government’s carbon capture, usage and storage (CCUS) strategy is based on optimistic techno-economic assumptions that are now outdated, Carbon Tracker has warned.

13th March 2024

Read more

Media enquires

Looking for an expert to speak at an event or comment on an item in the news?

Find an expert

IEMA Cookie Notice

Clicking the ‘Accept all’ button means you are accepting analytics and third-party cookies. Our website uses necessary cookies which are required in order to make our website work. In addition to these, we use analytics and third-party cookies to optimise site functionality and give you the best possible experience. To control which cookies are set, click ‘Settings’. To learn more about cookies, how we use them on our website and how to change your cookie settings please view our cookie policy.

Manage cookie settings

Our use of cookies

You can learn more detailed information in our cookie policy.

Some cookies are essential, but non-essential cookies help us to improve the experience on our site by providing insights into how the site is being used. To maintain privacy management, this relies on cookie identifiers. Resetting or deleting your browser cookies will reset these preferences.

Essential cookies

These are cookies that are required for the operation of our website. They include, for example, cookies that enable you to log into secure areas of our website.

Analytics cookies

These cookies allow us to recognise and count the number of visitors to our website and to see how visitors move around our website when they are using it. This helps us to improve the way our website works.

Advertising cookies

These cookies allow us to tailor advertising to you based on your interests. If you do not accept these cookies, you will still see adverts, but these will be more generic.

Save and close