Germany Overtakes China in Attractiveness for Renewables Investment

by | 13. Jun 2023 - 13:31 | Economy

EY ranks the European country now in second place behind the U.S.

Big Four accounting firm EY has published its biannual Renewable Energy Country Attractiveness Index (RECAI). The index ranks the forty leading countries according to their appeal for investments in their renewable energy sectors. In its latest edition, EY sees Germany overtaking China and securing second place for the first time in a decade. The unrivaled first position is maintained by the U.S., bolstered by the Inflation Reduction Act (IRA) of 2022, which allocated $369 billion for clean energy and energy infrastructure investments.

Before the war in Ukraine, Germany was Europe’s biggest buyer of Russian fossil fuels and was heavily reliant on fossil fuels. Amidst the war, German Economics Minister and Vice Chancellor Robert Habeck announced plans to reduce the dependency on Russia and fossil fuels. Germany now aims to have renewables make up 80 percent of its total energy mix by 2030 which is steadily progressing with projects like a joint win energy project between Germany and Denmark and international cooperation with other countries like Japan.

Additionally,  the European country obtained one-quarter of its total energy from nuclear energy but committed to phasing out nuclear in 2011 following the disaster in Fukushima, Japan. Germany shut down its remaining three reactors earlier this year.

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