Bloomberg New Energy Finance (BNEF) mentioned in this year's "Climate Outlook" report that India has a slight advantage over China, Chile, the Philippines and Brazil, becoming the most attractive developing country for investment in renewable energy in the world. "Climate Outlook" reports and analyzes the development and attractiveness of clean energy in 110 developing countries. In 2022, these countries will account for 82% of the world's total population and nearly two-thirds of the world's new clean energy.
India's ambitious, renewable energy project bidding program and continued growth in renewable energy investment put it at the top of the list. The ranking is mainly analyzed from the following three factors: first, fundamentals, including important policies, market structures, and potential barriers to investment in a specific country's economy; second, experience, that is, the current market success achieved in this industry. Performance; third, investment opportunities in clean energy, that is, the market potential of new renewable energy supply.
The maximum score is 5 points. The parameters of Fundamentals, Opportunities and Experience together form the overall clean energy score for the market. The above parameters incorporate more than 100 indicators or individual data collected by climate researchers.
Mainland China ranks second. China remains the world's largest clean energy market, and there is still a lot of room for improvement in the near future. Chile, which ranked first last year, ranks third this year. Despite being a much smaller market than India and China, Chile has ambitious targets for renewable energy and has sound policies in place to drive investment.
The Philippines, ranked fourth, is the only upstart to enter the top four, rising 6 places compared to last year. The Philippine renewable energy market has currently conducted two rounds of renewable energy auctions. Its supportive policies and ambitious offshore wind roadmap are spurring growth in clean energy investment. Brazil moves into the top five from ninth last year, with small solar power booming due to the success of its net metering program, adding nearly 11GW of installed capacity in 2022 alone.
Sofia Maia, head of country transition research at BNEF, said: "To truly attract clean energy investment, these markets first need a well-structured electricity market and a range of effective policies to achieve their renewable energy targets. Climatescope's top five rankings clearly reflect this This is why they have been in the top 10 for the past four years."
In addition to market rankings, Climatescope also provides a comprehensive assessment of the clean energy transition in emerging markets and developing countries. Of the 110 emerging markets, 102 have set renewable energy targets, and 74 of them installed at least 1MW of solar last year. In addition, the pace of installation is accelerating, with 222GW of wind and solar installed in developing countries last year, a 23% increase from the previous year.
However, its development and investment are highly concentrated, with only 15 emerging markets (excluding mainland China) accounting for 87% of renewable energy investment in 2022. Last year, Brazil, India and South Africa were the three largest renewable energy investment markets outside the Chinese market. These three countries account for more than half of the US$80 billion in investment received by developing countries outside mainland China. Furthermore, the report found a huge gap between ambition and execution. Of the 102 markets with renewable energy targets, 57 achieved less than 50% of their targets (this "big" gap is marked in Figure 2 below).
The data only shows the 110 emerging markets covered by "Climate Watch". Target achievement rate <20% - small, target achievement rate between 20%-50% - medium, target achievement rate greater than 50% - large , "Not applicable" means that the target has been achieved or there is no effective target in the market.
Luiza Demo, head of energy transition at Bloomberg New Energy Finance, said that accelerating investment in clean energy in developing countries is one of the most important challenges facing the international community today and requires strong policy formulation and multi-party support. As the host of next year's G-20 summit and the 2025 COP30 summit, the fifth-ranked Brazilian market can play a catalytic role in promoting the decarbonization process of the entire developing world.