As a whole, the Group of 20 (G20) nations are not doing enough to address the gap current clean energy investments and how much clean energy investment is needed to limit global average temperature rise to 2-degrees Celsius, according to a report out by Allianz Climate Solutions. “Together, the G20 countries will require roughly USD 710 billion annually in absolute investment until 2035,” the report says.
The report ranks the G20 nations on their level of “investment attractiveness,” determined by policy adequacy and reliability, market absorption capacity and general national investment conditions and their “investment needs,” determined by absolute and relative investment requirements for the electricity infrastructure, and the vulnerability of the existing electricity infrastructure to the effects of climate change.
At the heart of the problem is that nations with the highest investment attractiveness are generally low on the scale of investment needs and vis-versa. Germany, for example, is at the top of the investment attractiveness ranking, but 14th in terms of investment needs. Indonesia, on the other hand, ranks third in terms of high investment needs, but 15th in terms of its investment attractiveness.
The U.S. has the 6th highest investment needs in the G20 and ranks 9th in investment attractiveness, according to the report.
