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Global Policies and Regulations Supporting Renewable Energy

The advancement of renewable energy is inseparable from strong governmental support through policies and regulations. Countries around the world have adopted various measures to encourage investment in renewable energy, mitigate the impacts of climate change, and achieve sustainable development goals. Below are some of the key policies and regulations in the field of renewable energy worldwide.

Promoting renewable energy cannot be done without strong support from government policies and regulations
Promoting renewable energy cannot be done without strong support from government policies and regulations

I. Policies and Programs Supporting Renewable Energy

1. Financial Support Policies and Tax Incentives

Many countries have implemented financial support measures and tax incentives to promote investment in renewable energy. These policies include:

Direct Subsidies: Governments provide grants or financial assistance for renewable energy projects to reduce initial investment costs. For example, subsidy programs for installing solar energy systems in households or small businesses.

Tax Incentives: Countries offer tax benefits for renewable energy projects, such as tax exemptions or reductions for investments in clean technologies. This is an effective way to encourage businesses and individuals to participate in the renewable energy sector.


2. Renewable Energy Standards and Regulations

Governments also establish specific standards and regulations to promote the use of renewable energy and reduce greenhouse gas emissions:

Performance Standards: Energy efficiency standards require new constructions to meet energy-saving criteria and utilize renewable energy sources. For instance, the LEED (Leadership in Energy and Environmental Design) certification mandates the use of renewable energy and energy efficiency for buildings to be certified as sustainable.

Renewable Portfolio Standards (RPS): Many countries mandate electricity providers to source a certain percentage of their supply from renewable energy. This ensures the integration of clean energy into national power grids and supports the growth of renewable energy projects.


3. Auction Programs and Allocation Mechanisms

Some countries employ auction systems and allocation mechanisms to support renewable energy development:

- Renewable Energy Auctions: Governments conduct auctions where investors compete to supply renewable energy at the lowest price. This promotes competition and helps drive down the cost of renewable energy.

- Renewable Energy Certificates (RECs): Governments issue certificates or permits to renewable energy projects, allowing investors to sell renewable energy and generate revenue through the sale of certificates.


The European Commission (EC) set out its $270 billion Green Deal Industrial Plan to support Europe’s race to green transition and boost its net zero industry (Photo: Carbon Credits)
The European Commission (EC) set out its $270 billion Green Deal Industrial Plan to support Europe’s race to green transition and boost its net zero industry (Photo: Carbon Credits)

II. National Commitments and Global Goals

1. National Commitments

Many countries have made specific renewable energy commitments within their national policy frameworks:

Europe: The European Union (EU) has set ambitious goals through the Green Deal, aiming for net-zero carbon emissions by 2050 and increasing the share of renewable energy to at least 32% of the EU’s total energy production by 2030. Member states have also established individual targets for emission reductions and enhanced use of clean energy.

United States: Under President Joe Biden’s administration, the U.S. rejoined the Paris Agreement and set a goal of achieving net-zero carbon emissions by 2050. The government has introduced various initiatives to incentivize renewable energy investment, including the expansion of tax credits for solar and wind energy.

China: As the world leader in renewable energy capacity, China has committed to peaking carbon emissions by 2030 and achieving carbon neutrality by 2060. The country also aims to increase the share of clean energy to approximately 50% of its total energy production.


2. International Agreements

Global climate agreements play a crucial role in advancing the adoption of renewable energy:

The Paris Agreement: This is a global climate accord in which countries pledge to limit global temperature rise to below 2°C above pre-industrial levels, with efforts to restrict the increase to 1.5°C. The agreement encourages the use of renewable energy to reduce greenhouse gas emissions and meet climate targets.

International Renewable Energy Agency (IRENA): IRENA is an international organization that supports countries in deploying renewable energy projects. It provides data, research, and technical assistance to help nations achieve their sustainable energy objectives.


Prime Minister Pham Minh Chinh listens to an introduction to the offshore wind power project in Ba Ria - Vung Tau province (former province) (Photo: Ba Ria - Vung Tau Newspaper)
Prime Minister Pham Minh Chinh listens to an introduction to the offshore wind power project in Ba Ria - Vung Tau province (former province) (Photo: Ba Ria - Vung Tau Newspaper)

III. The Future of Renewable Energy Policy

As policies and technologies continue to evolve, countries are expected to further refine and enhance their renewable energy strategies. Future policies may focus on:

- Strengthening Research and Development Support: Investing in the research and development of new technologies will help reduce costs and improve the efficiency of renewable energy sources.

- Encouraging International Cooperation: Countries can collaborate more closely in sharing technologies, experience, and resources to accelerate global renewable energy development.

- Promoting Integrated Policy Approaches: Governments may increasingly integrate renewable energy into broader policies on sustainable development, urban planning, and infrastructure development to achieve long-term goals.

 
 
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