Kategori : ELECTRICITY ENERGY NEWS, ENERGY AGENDA NEWS, SOLAR ENERGY NEWS, WIND ENERGY & RES NEWS - Tarih : 22 June 2021
According to the EY Renewable Energy Country Attractiveness annual index; Ahead of the 26th United Nations Climate Change Conference, many countries are planning to raise their energy targets despite weak economic conditions.
Global renewable energy capacity investments increased by 2% in 2020 to reach 303.5 billion dollars. However, according to the Renewable Energy Country Attractiveness Index (RECAI), which is prepared for the 57th time this year by the international audit and consultancy company EY (Ernst & Young); To achieve net-zero targets globally, an additional $5.2 trillion investment is required. The index highlights the role that institutional investors should play in financing the energy transition.
Clean energy investments will be encouraged
In the index, where environmental, social and governance (ESG) targets continue to rise to the top of the investor agenda, it is stated that the interest of institutional investors in renewable energy continues to increase.
The 26th United Nations Climate Change Conference (COP26), to be held in Scotland in November 2021, offers an opportunity to bridge the gap between governments’ goals and actions taken. According to the index; The outlook for the current policies and committed actions of the leading countries in renewable energy indicates that accountability and transparency will increase. It is envisaged that renewable energy investments will be promoted through the elaboration of roadmaps and policy measures.
Cooperation between countries and companies needs to be strengthened
Erkan Baykuş, Energy Sector Leader of EY Turkey, said: “The index shows that the Covid-19 pandemic has led to a global increase in awareness of urgent environmental issues. Events such as COP26 and Mobile World Congress (MWC Barcelona) offer countries and companies the opportunity to have key conversations about net-zero goals. Since no country or company can achieve the net-zero goal alone, it is important to establish collaborations between industry ecosystems, different geographies and governments. The opportunities provided by technology need to be used effectively in the transformation to move the world to a more sustainable future.”
While it is stated in the index that the studies on green hydrogen in Europe and China reveal the high potential of this new technology, it also points out the difficulties that need to be overcome for the commercial and widespread use of these studies.
USA and China keep their top two places, India rises to 3rd place
The USA maintains its top position in the index and is expected to maintain its position under the administration of US President Joe Biden. The re-acceptance of the Paris Agreement, the statement to reduce greenhouse gas levels by 50-52% by 2030, and the goal of achieving 100% carbon-free energy by 2035 could increase investment interest in the US. China, which ranks 2nd in the index, increased its wind energy capacity by 72.4 GW in 2020. However, in April, the USA and China announced that they would cooperate with other countries to combat climate change.
316 billion dollar investment potential in East Asia
India, whose solar sector is expected to grow significantly and solar power generation to surpass coal power by 2040, rose from 4 to 3 in the index. Ranking 8th and 17th in the index, respectively, East Asian countries Japan and South Korea have made commitments to achieve net-zero emissions in 2020. In the index, it is emphasized that there are more than 800 clean energy projects ready to be implemented in East Asia and that the region has a total investment potential of 316 billion dollars.
Wind energy projects on the rise
It is stated in the index that many governments around the world are making trial attempts to launch new projects in offshore wind energy. In the index, where Turkey rose from 30th to 25th, Poland rose to 22 and Brazil to 11. Poland has enacted a new law that will encourage offshore wind power capacity to be increased up to 5.9 GW by 2030. Brazil’s federal environmental authority has published licensing guidelines for offshore wind projects.
Germany has dropped one notch to 7th in the rankings as last-minute changes to the design of upcoming onshore wind auctions have come under criticism. After receiving a 209 billion euro grant from the EU Recovery Fund, Italy climbed two places in the ranking to 15th place.
Erkan Baykuş said, “We see that institutional investors, who make their investment decisions with the principle of avoiding risk, turn from fossil fuel investments to more environmentally sustainable projects,” said Erkan Baykuş.
