The Renewable Energy Country Attractiveness Index (RECAI) is an annual report that ranks countries based on their investment in renewable energy, conducted by Ernst & Young (EY). The rankings reflect EY’s assessment of market attractiveness and global market trends of the world’s top 40 markets.

In order to tackle climate change and reduce dependency on fossil fuels, utilising renewable energy sources is essential. Therefore, by ranking countries based off their usage of renewable energy, we can identify which countries are leading the way in the transition to a sustainable energy future and can recognise which countries need to do more to reduce their carbon footprint.

The RECAI is also useful as the information it provides can help policymakers, investors, and the public make informed decisions on where to invest resources and how to support the transition to a low-carbon economy.

The RECAI has been published every six months since 2003 by EY and the US currently holds the number one position as the most attractive country to invest in. This is because the US was identified as having strong policy frameworks, attractive market conditions, and high levels of investment in the renewable energy sector. In recent years, the US has also made significant progress in reducing the cost of renewable energy technologies such as solar and wind power, which has helped these technologies to be more competitive with fossil fuels.

In the 61st edition of RECAI, the UK has retained its fourth-place position. The UK has held this position by increasing the Contract for Difference (CfD) auction round allocation to £205m. For the first time, onshore wind will be included in the auction, and a record £35m will be allocated for emerging technologies.

The UK government have committed to achieving net zero by the year 2050. Consequently, this has been instrumental in promoting renewable energy and achieving the country’s climate targets. The UK’s commitment to renewable energy and climate action has helped them maintain their position as the fourth most attractive market for renewable energy in the world.

The UK’s impressive RECAI rating can also be attributed to its ambitious goal of hosting 10GW of green and blue hydrogen generation capacity by 2030, with at least half being green. The country is currently working on developing a green hydrogen certification scheme, that the UK are hoping to eventually introduce globally, that is expected to be completed by early 2025.

For the UK to improve its RECAI ranking, the country could increase the share of renewable energy in its mix, reduce the cost of renewable energy technologies, and invest into R&D to drive innovation within the sector. Additionally, if the UK could increase its commitment to addressing climate change and reduce greenhouse gas emissions, this would also increase its attractiveness and make it a more investable market.

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