China accelerates up renewables table

As it prepares to play a key role at the opening day of the Copenhagen Summit, China's position as a leading player in the global renewable energy market was strengthened today by the release of a new report arguing that it is now the second best place in the world to invest in renewable energy.

The country has moved up one place in the Ernst & Young Country Attractiveness Indices, over-taking Germany to claim second place in the list behind the US.

Significantly, while China sits behind the US overall in terms of renewable investment opportunity, the report said that it beats the US in both onshore and offshore wind projects and in terms of infrastructure.

However, its relatively poor performance in solar thermal investment opportunity, where the US is regarded as a genuine leader, drags down its overall position.

Ben Warren, Ernst & Young's Environment and Energy Infrastructure Advisory Leader, said that he expected the attractiveness of the Chinese renewables industry to continue to grow. He cited the country's recent announcement to increase its renewable energy contribution to 10 per cent by 2020, along with its decision to relax import controls on components needed for renewable energy, as evidence that it was becoming an even better place for renewable energy investors to do business.

"In fact, China is now expected to lead the world in terms of investment in renewable energy in 2009," he said.

The country is also moving to catch its rivals in the solar energy sector. In March, China launched an initiative called Golden Sun, under which it subsidises 50 per cent of large solar power projects, and the country has set a target of achieving 2GW of installed solar energy by 2011.

The report is likely to strengthen the hand of both China and the US at the Copenhagen Summit. Both countries have been consistently accused of failing to be ambitious enough at the talks preceding the summit, although their delegations have long argued that while they have not yet signed up to binding emission targets their low carbon industries are leading the world.