BNEF’s Climatescope Highlights India as the Premier Destination for Renewable Investments

In a groundbreaking analysis, the recently released Climatescope report by BloombergNEF (BNEF) positions India as the most attractive developing economy for renewable energy investments. The report, which meticulously assesses clean energy progress and appeals across 110 developing economies, underscores India’s burgeoning status in the sector. The top five nations in the rankings also include mainland China, Chile, the Philippines, and Brazil.

India’s ascendancy to the pinnacle of the rankings can be attributed to its ambitious renewable energy goals, robust auction programs, and substantial investments in renewable capacity. The Climatescope report evaluates countries based on three key parameters: Fundamentals, encompassing a nation’s pivotal policies, market structure, and potential barriers to investment; Experience, evaluating a market’s achievements in the clean energy sector to date; and Opportunities for clean energy investment, gauging a market’s potential to expand its renewable power supply.

Securing a narrow lead over India, mainland China claims the second spot and retains its status as the largest market for clean energy deployment, poised for significant growth in the near future. Meanwhile, Chile, which held the top position last year, settled for third place in the current rankings. Despite its smaller market size compared to India and China, Chile maintains ambitious renewable energy targets supported by well-established policies, fostering continued investment.

A noteworthy entrant into the top four is the Philippines, climbing six places from the previous year. The country’s adoption of renewable energy auctions and a supportive policy environment, including an ambitious offshore wind roadmap, contributed to its rise. Brazil completes the top five, advancing from ninth place last year due to a surge in small-scale solar additions, primarily attributed to a successful net-metering scheme that facilitated the addition of almost 11GW of solar technology in 2022.

Sofia Maia, BNEF’s Head of Country Transition Research, said, “In order to be truly attractive for clean energy investment, the first thing these markets need is a well-structured power market, with a range of policies in force to support their renewable energy targets. Climatescope’s top five clearly reflect that, and that’s why they have all remained among the top 10 markets over the past four years.”

Beyond ranking individual markets, Climatescope provides a comprehensive evaluation of the clean power transition in emerging markets and developing economies. Among the 110 emerging markets surveyed, 102 have set renewable energy targets, and a remarkable 74 markets installed at least 1MW of solar capacity last year. The report also highlights the accelerating pace of installations, with developing economies installing 222GW of wind and solar in 2022, marking a 23% increase from the previous year.

However, the concentration of progress and investment is evident, with just 15 emerging markets (excluding mainland China) responsible for 87% of renewable energy investment in 2022. Brazil, India, and South Africa emerged as the top three non-Chinese markets for renewables investment, collectively accounting for over half of the $80 billion invested in developing economies outside of mainland China.

Luiza Demoro, head of energy transitions at BNEF, said, “Accelerating clean energy investment in developing economies is among the most important challenges facing the international community today, and a combination of smart policymaking and multilateral support will be needed. As host of both next year’s G-20 and COP30 in 2025, Brazil, our fifth-ranked market, can play a catalytic role in unlocking decarbonization progress across the developing world.”