Deep Dive: What do current policy developments in China, India and the US mean for investing in renewables?

Cover - Deep Dive Allianz 2017
Allianz Climate and Energy Monitor 2017 | Research Partner: NewClimate Institute and Germanwatch

To reach the Paris Agreement climate goal, and stay under 2°C warming, emissions will need to peak in the coming years and be reduced to zero by 2050. China, India and the US play a key role in achieving this target as they emit over 50% of the global CO2 emissions and are by far the largest markets for renewable energies.

The Allianz Climate & Energy Monitor Deep Dive aims to inform investors and policy-makers on the scale of investments needed in China, India and the US to be in line with the Paris goals; and what recent developments, especially regarding the leadership change in the US, mean for investing in renewable power in the future.


Key messages

  • Investments in electricity supply in China and the US need to roughly double, in India even triple over the next decades to have a fair chance to remain within the ‘well below 2°C’ warming boundary set in the Paris Agreement.
  • Adequacy and reliability of renewable energy policies are key for investors to realize the needed scale of investments. China and India outcompete the US in providing a strong, nation-wide green policy environment as per Allianz Climate and Energy Monitor’s 2016 findings. This trend is expected to remain unchanged in 2017.
  • Currently, additions to renewable power capacity are going up in all three countries and have in total overtaken investments in fossil-fuel based capacity.
  • China is swiftly decommissioning coal power plants to combat carbon emissions and environmental pollution, whereas India may not put a hold on building new capacities before 2022.
  • Strong policies helped to set China and India on track for achieving its Paris climate targets, whereas the US might miss its targets if the new administration swiftly implements its recent announcements.
  • A mature market, attractive state-level policies, and a very good general investment climate still attract high amounts of renewable energy investments in the US in progressive states.
  • Without attractive and reliable nation-wide policies in the US, renewable energies face headwinds and will rely on their imminent cost competitiveness and state action.


>> For full Monitor please click on the link in the download section below. <<

>> For full Monitor please click on the link in the download section below. <<

Research Partners

  • NewClimate Institute gGmbH
  • Germanwatch e.V. 

All details on the methodology of the Monitor as well as data and literature are available from the accompanying Technical Note, available on

Thomas Liesch, Simone Ruiz-Vergote (Allianz Climate Solutions GmbH), Jan Burck (Germanwatch), Ritika Tewari, Niklas Höhne (NewClimate Institute gGmbH) with contributions from Mona Freundt
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Senior Advisor – Low-Carbon Strategies & Energy, Project Lead Climate Indices