WHITE PAPER

Opportunities for
Renewable Energy

It’s fair to say that the transition to sustainable energy generation is now a reality, and underway around the globe.

From sustainable development objectives and new environmental policies based on the Paris Agreement, to icons like David Attenborough and citizen activists like Greta Thunberg, the number of climate change deniers is shrinking rapidly, and it seems the whole world is looking for less damaging energy sources.

Interestingly, the unexpected events of 2020 have led to two completely contradictory developments. While 2019 ended as the year in which CO2 emissions grew in all G20 countries, 2020 was the year in which the planet recorded the largest annual drop in CO2 emissions in history.

And countries in Europe and Latin America (LATAM) are actively working to keep their emissions low.

Europe aims to become the first climate-neutral continent by 2050, and the European Commission has pledged a 55% reduction in total emissions by 2030. Spain is actively promoting renewables with its new tool to identify the best locations, and a recent auction for 15% of its renewable energy output to 2025.

In 2019, 10 LATAM and Caribbean countries signed an agreement that set out to achieve an average of 70% of installed capacity in the renewable energy matrix by 2030.

This agreement follows the one signed by 12 renewable energy associations from Argentina, Chile, Colombia, Ecuador, Mexico, Peru, Uruguay, and Spain to promote investments in renewable energy in LATAM, and encourage regulatory frameworks in line and consistent with the environmental and social policies of each of the countries.

Here, we provide useful data on renewable energy policies and opportunities in specific regions. We look at regulatory rules, tax benefits and different support available for the renewable industry.

Now is renewable energy’s time to shine.

Download our free white paper on renewable energy

Complete the form and receive our White Paper in pdf in which we review the legal framework as well as the tax benefits of the different countries:

Europe

The recast Renewable Energy Directive 2018/2001/EU came into force in December 2018, as part of the Clean Energy for All Europeans package. This aims to keep the EU a global leader in renewables and, more broadly, help the EU to meet its emissions reduction commitments under the Paris Accord.

All EU Member States are required to draft national energy and climate plans (NECPs) for 2021-2030, outlining how they will meet the new 2030 targets for renewable energy and for energy efficiency.

Most of the other elements in the new directive need to be cemented into national law of Member States by 30 June 2021, when the original renewables directive will be repealed.

You can see all the articles as well as a summary of tax benefits for renewable energy production in the pdf version: 

Download our free white paper on renewable energy

Latin America

The South American continent has some natural peculiarities that offer it a unique opportunity to become a leading player in the field of renewable energies. Its own geothermal characteristics and abundance of resources, and an electricity market characterized by high prices and high demand, are just some of the reasons renewable energies are seeing massive expansion in Latin America.

And a more significant milestone: no Latin American country appears in the top 10 of CO2 emissions producing nations.

This data is not arbitrary

According to the study ‘Powering Change: Energy In Transition’, published by Ashurst law firm, 83% of Latin American executives interviewed said they had changed their investment strategy for energy transition in the last 12 months, and that they hope to continue doing so. Indeed, 74% of the survey respondents in the region expect investment in energy transition to accelerate in the next 12 months.

We see great possibilities for future development in Latin America.

According to a report by Moody’s, electricity demand will double in Latin America over the next two decades (the World Bank figures 80% growth in Latin America by 2030). And wind and solar projects will account for an increasing share; with renewable energy sources accounting for more than 70%.

Countries with the largest renewable energy production capacity in Latin America and the Caribbean by 2018 (in megawatts). Source: IRENA

Selected renewable energy policies in Latin America (number of countries having adopted each policy). Source: IRENA

Selected renewable energy policies in Latin America (number of countries having adopted each policy)

Latin America is a region of geographical, cultural, historical and idiosyncratic contrasts—and is also an eclectic region in terms of fiscal particularities when it comes to renewable energies. With the prospects for growth and scope for development in the sector, the tax regulations that each country applies to the renewables industry will also determine its future possibilities.

With the decade having just begun and the challenges that Latin America has ahead of it, this White Paper outlines the particulars of taxation that some of the main countries in the region have implemented, and the relevant impact on the companies that want to operate in those countries.

Brazil:
a firm commitment to the renewable energy sector

See article

Chile:
optimistic about renewables

See article

Colombia:
towards leadership in the renewable energies field

See article

Ecuador:
an essential sector for energy development

See article

Mexico:
transitioning to renewable energy

See article

Peru:
an eye on the future of renewables

See article

You can see all the articles as well as a summary of tax benefits for renewable energy production in the pdf version: 

Download our free white paper on renewable energy

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