The economic downturn has caused the United States to lose its clear leadership position as the best country in which to invest in renewable energy, allowing Germany to tie it for first place, according to an Ernst & Young study.
E&Y’s latest Renewable energy country attractiveness indices—which track and score global investment in renewable energy—also reveal a record reduction in the attractiveness of all 20 countries included for the first time since its creation five years ago.
“Although the financial crisis has negatively impacted the attractiveness of all countries in the indices, the U.S. has borne the brunt of the economic slowdown,” Jonathan Johns, head of renewable energy at E&Y, said in a news release.
In particular, the study found that the U.S. slowdown has restricted access to finance and slowed the recycling of production tax credits and investment tax credits, which allow businesses to gain tax breaks by purchasing credits from renewables developers.
Source: Ernst & Young, www.ey.com.