In 2020, global renewable energy capacity investments grew 2% to $303.5bn, the second highest annual figure recorded to date despite the impact of the global Covid-19 pandemic.
However, EY's latest Renewable Energy Country Attractiveness Index (RECAI) estimates that future development to achieve net zero will require a further investment of $5.2trn and highlights the role of institutional investors in financing the energy transition.
EY’s RECAI ranks 40 countries on the attractiveness of their renewable energy investment and deployment opportunities. The latest report, RECAI 57, finds that ESG goals are increasingly being prioritised on the investor agenda, while institutional investors’ interest in renewables continues to grow.
The forthcoming United Nations Climate Change Conference of the Parties (COP26) presents an opportunity to close the gap between what governments have promised to do and the level of action they have undertaken to date.
RECAI 57 finds that current policy and pledge trajectories from leading nations indicate an increased commitment to greater accountability and transparency, with representatives expected to outline clear roadmaps and detail on policy measures to spur investment in renewables.
Guernsey perspective
Peter Miller (pictured right), Associate Partner at EY in Guernsey and a founding member of the Guernsey Green Forum, commented: “The index highlights the extent to which the pandemic has increased global awareness on the urgent environmental challenges we’re facing today.
"Convening moments, including COP26, present a collaborative platform to drive critical conversations around national and business net-zero commitments.
"We need collaboration across industry ecosystems, geographies and governments, harnessing the power of technology to accelerate the world’s transformation to a more sustainable future.
“Guernsey continues to take positive steps in this regard. This can be seen through the Guernsey Green Forum, which brings together local business leaders to support the island in reaching its sustainability and net-zero ambitions.
"Supported by the regulated green funds initiatives already in place, Guernsey is proving to be at the forefront of the key changes required, as outlined in our global findings.”
Jersey view
Francis Malaspina (pictured left), Associate Partner at EY in Jersey, added: “Earlier this year, Jersey Finance launched its Sustainable Finance: Jersey’s Pathway to Success, a two-year plan to accelerate the overall 2030 vision for Jersey to be recognised as the leading international sustainable finance centre.
"With the importance of ESG factors being more crucial than ever, as highlighted within the latest RECAI report, Jersey and Guernsey have a real opportunity to lead the way in the ESG market, and ultimately become the benchmarks for other countries and markets to follow suit.”
• For the complete top 40 ranking and analysis of the latest renewable energy developments across the globe, click here