Allianz Confirms That China and India Lead the Global Renewable Energy Market

Allianz Climate and Energy Monitor Deep Dive recently said that in order to meet the climatic goals of the Paris Agreement, the investments in the renewable energy sector of India must increase rapidly in the span of upcoming 2 decades. The investments must comply with the targets that are mentioned in the Paris Agreement.

Allianz said that in order to remain under the threshold of 2 degree Celsius, the emissions are likely to increase in the upcoming years, but should become zero by the year 2050. It also stated that countries like China, United States and India are going to play a significant role in achieving the target as they are the countries that emit about 50 percent of the global carbon dioxide emissions and are also becoming the biggest markets for renewable and alternative sources of energy.

The logo of insurer Allianz SE is seen on the company tower at La Defense business and financial district in Courbevoie

To fulfil and comply with the terms and conditions stated under the Paris Agreement, countries like China as well as United States can cope up by doubling their existing investments, while on the other hand India will have to triple the investments so far.

Allianz also stated that both India and China are putting in commendable efforts to achieve the set targets and that is good news. However, the bad news is that the change in the climatic policies of the United States may hinder their investments in the renewable energy sector, but the prospects of an ideal investment are still available in the progressive states. Factors like maturity of a market, attractive policies at the state level and a great investment plan attract a large amount of investments.

One of the authors of the report working as an analyst in the Climate Policy at the Institute of New Climate, Ritika Tewari said that with the transformation and retrenchment beginning with the motto of America First, there is high probability that countries like India as well as China will be outcompeting the United States for the second year in a row in terms of providing an environment-friendly, reliable, effective and green policy.

The report from Allianz also informed that both China and India are planning to withdraw their operations from coal power slowly and gradually. In China, several industries and agencies are cancelling their plans to build power plants that are based on fossil fuels and have begun the decommissioning of several coal plants. On the other hand, India has announced that after the year 2022, it will not be building any power plant that will be making use of coal.

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China has announced that it will grow its capacity of generation of renewable energy by a rate of about 38 percent by the year 2020. India is also growing at a remarkable pace and has achieved a capacity of about 116 percent higher than the previous year.