China overtakes United Kingdom as key country in renewable energy. - According to a barometer on renewable energies published on 19 August by Ernst & Young, China rose by two places in the first half of 2008 and is now fourth in the “top 5” of renewable energy attractive countries. This development is the first of this sort since the Ernst & Young's Renewable Energy Country Attractiveness Indices were compiled five years ago and which assess global investment in renewables. The US retains its top spot, followed by Germany, India, China and Spain. The United Kingdom has lost its fourth place position and is no longer in this category. Ernst & Young indicate that international investment in renewable energies could reach $750bn by 2016. Investment by the Chinese government has led to a significant rise in investment in the renewable energies sector. China's attractiveness has been boosted by the government's energy policy, which wants renewables to cover 10% of the country's energy mix by 2010 and 15% by 2020, as opposed to the current figure of 8%. This development programme has a €200bn budget for 2006-20. Despite publication on 25 June of its strategy on renewable energies, which contains ambitious projects in offshore wind farms, the investment margin in the United Kingdom remains tight. Ernst & Young puts this down to lengthy delays in getting the new law on energy passed, which is consequently putting a brake on practical implementation. Ernst &Young is proposing that the British government provide tangible incentives to investors if they are to avoid further losing out in this domain. The report also notes the considerable efforts made by pro-renewable energy lobbyists in the US, as well as Senators, to ensure that production and investment levels are maintained in 2009. Different states' policies also contribute to the level of an area's attractiveness. Texas is wind turbine champion, while California attracts investment in solar power, biomass and geo-thermics. Germany is still the most attractive European country for investing in renewable energies. The Indian government's commitment to renewable energies has also significantly contributed to the country's attractiveness in this connection: implementation of aid to boost photovoltaic installations, the creation of 60 solar powered towns by 2012 and many biomass projects are attracting investors, particularly wind energy.In conclusion, the renewable energies industry is resisting market depression rather well, underlines Ernst & Young. The rise in fossil fuel costs is making renewables like wind, solar and sea power more competitive.