For the first time in almost four years, the United States has surpassed in “E&Y’s Global Renewable Energy Country Attractiveness Index” as the most attractive country for renewables investment. In an annual ranking of the top 40 renewable energy markets worldwide, the United States was ranked first since 2016, followed by China. EY expects the global renewables sector to recover after a short-term slowdown caused by the Covid-19 pandemic.
The solar and wind power sectors were expected to grow in 2020 before the pandemic hit, particularly in the U.S. The U.S. secured its top rank due to a short-term extension of the production tax credit (PTC) and projected long-term offshore wind growth. While EY warned of a slowdown amid the coronavirus pandemic, the advisor suggested renewables could be a safer investment bet than fossil fuels in the long-term.
As a result of the pandemic, pollution levels have fallen dramatically through reduced fossil fuel consumption but it is also worth stating that the institutional investors are increasingly demanding businesses to not only deliver a financial return but also demonstrate how they make a positive contribution to society. Despite delays to some projects due to logistic issues amid the coronavirus pandemic, the global renewables sector is expected to bounce back quickly as the long-term drivers for investment remain strong, the report said.
When the entire world felt they could individually make a difference by doing little things, we came together and are now fighting this pandemic together. Imagine what we can achieve if we feel the same about climate change. All it need is knowing that we can all make a difference.