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China has succeeded the U.S. as the most attractive location in which to invest in renewable energy projects, according to Ernst & Young’s latest Renewable Energy Country Attractiveness Indices.

China entered the Country Attractiveness Indices table in December 2004 and, since then, has progressed steadily to the top of the All Renewables Index. In the last index, it was tied with the US. The US dropped two points in the indices, to fall behind China.

“China's steady rise to pole position has been underpinned by strong and consistent government support for renewable energy. This, together with substantial commitment from industry and the sheer scale of its natural resources, means that its position as top spot for renewable energy investment is well-merited," explains Ringo Choi, Cleantech Leader of Greater China, Ernst & Young.

Meanwhile, India suffered a one-point drop following its government’s mandate to use local PV manufacturers for the 22GW National Solar Mission. Indian PV module makers may not be able to keep up with the surging domestic demand, impairing the country’s ability to meet its ambitious solar energy target.

Australia increased its rating by one point, following its Senate passing amended legislation that targets 20% of energy from renewable sources whilst committing A$652.5 million (US$605 million) over four years to set up a Renewable Energy Future Fund. However, doubts still remain whether the new government will establish a national market for trading carbon emissions.

Japan saw a one-point increase, following a 2.6-fold growth in it solar cell market in the financial year to March 31, owing to the country’s aggressive climate policies. New Zealand also rose a point, following the launch of an emissions trading scheme in a bid to curb carbon emissions. As a result, energy, transport and manufacturing industries will have to pay for their emissions of gases which is expected to have a knock-on effect in boosting renewable deployment in the country.

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