Brazil is the 3rd most attractive country for investments in renewable sources

Brazil is the 3rd most attractive country to invest in the implementation of renewable sources. This is what the Climatescope 2020, carried out by BNEF (BloombergNEF).

According to the index, which assesses investment conditions for clean energy in emerging economies and their ability to attract capital for low-carbon energy sources, Brazil is the largest energy market in Latin America.

Chile occupies the first position in the ranking, being considered the emerging market in which it is most worth investing in the clean energy market. According to the research, the country reached the defined target of 20% of clean energy for 2025, and now aims 60% until 2035.

In second place is India, which stands out for having the most ambitious renewable energy target in the world: reaching 175 GW by 2022. In fourth place is Jordan. Renewable source installations in the country have seen significant growth in the last five years, with 1.5 GW of photovoltaics and more than 500 MW of installed wind capacity.

The fifth position is occupied by China, which remains a powerhouse in the renewables sector even though investment in clean energy in the country has plummeted since 2017 – due to changes in economic policies, such as incentive tariffs (feed-in regime).

Record in 2019

“2019 was a year of firsts – mostly positive,” said Luiza Demoro, Climatescope’s lead author. “The increase in capital we have seen flowing into emerging markets suggests that investors have become quite comfortable with the risks involved in financing new wind or solar energy projects.”

Last year, support from development financial institutions, including international development banks, remained at the level of approximately 4 billion dollars, but their share in total FDI (foreign direct investment) in clean energy fell to 11%, the lowest number in 10 years.

“Support from these development financial institutions, in fact, was not keeping up with pre-pandemic market growth,” explained Ethan Zindler, head of the Americas at BloombergNEF.

“The hope is that such institutions will increase their participation next year as Covid-19 reduces the pool of available private capital.”

Climatescope 2020

Climatescope, BloombergNEF's market assessment, represents approximately 60 analysts who have collected detailed data for 123 indicators across 108 emerging markets. Full results can be found clicking here.