Unofficial summary of Allianz Climate and Energy Monitor 2017. This document is an unofficial and voluntary summary of the Allianz Climate and Energy Monitor 2017. All information and graphics are taken from the Allianz Climate and Energy Monitor 2017 which can be accessed via the link below. Please also note that all errors in this summary document belong to Arif Cem Gundogan.

1. Allianz Climate & Energy Monitor 2017
The Allianz Climate and Energy Monitor aims to provide tools for enhancing communication between the investor
community and policy-makers. It is a composite index and ranks G20 countries with regards to their potential in closing
the financing gap in a low-carbon, climate-resilient energy infrastructure. To index concentrates on two critical elements:
“Attractiveness of various ‘in-country’ circumstances to potential renewable energy investors” and “General
investment needs in the power sector through to 2035 in light of the Paris Agreement’s 2°C climate target”.
RECALL: Paris Agreement sets an ambitious goal of
limiting global average temperature increase to well
below 2°C with efforts to limit it to 1.5°C.
RECALL: G20 countries consist of the biggest
economies on our planet and therefore they are
natural leaders who can trigger the energy transition.
How have the investment conditions changed in the G20 countries?
Renewable energy is booming in emerging markets: “2016 was a year of impressive solar photovoltaic
(PV) installations in the G20. On average, G20 countries installed 50% more solar PV last year than in
2015. New installations for wind decreased by 24%, although from a high level. Renewable energy
expansion was notable in emerging markets in China, India, South Africa, Mexico and Turkey.”
OECD countries are still the most attractive destinations for investments due to strong policy
frameworks, market experience and positive macroeconomic factors. “Germany, UK and France maintain
their top positions in the 2017 Monitor. Turkey, Saudi Arabia and Russia remain at the end of the scale
with support for renewables in infancy. Russia and Turkey are the only two G20 countries who have not
ratified the Paris Agreement yet, the US has decided to pursue steps to exit the Paris Agreement in June
2017.”
Investment needs in the G20 (and particularly in emerging economies) are high: ”The G20 countries
need to roughly double their annual investments to align their power infrastructure with the 2°C
pathway set out in the Paris Agreement. The absolute investment needs stand at USD2012 709 billion
per year between 2014-2035.”
G20 governments are adjusting renewable energy support mechanisms and regulations: “Renewables
have grown on average at 24% annually in the last five years. In response to expanding renewable energy
capacities beyond hydro and falling technology costs, G20 countries are adjusting their support for
deployment of renewables-based electricity generation.”
G20 countries take climate and renewable energy action, but incrementally: “Many G20 countries took
gradual steps for the low-carbon transition of their power sector in 2016. Some countries hold an
optimistic outlook for renewables despite lower scores this year. Both Turkey (rank 18) and Saudi Arabia
(rank 19) are expected to go full-steam for meeting their renewable energy targets in 2017 and have
announced tenders for large scale wind and solar PV”.
“Two elements are
essential to unlocking
climate finance: the
removal of real or
perceived risks to
investment, and
incentives to accelerate
and attract financing.”
“Emerging economies
increasingly take on a
leadership role & are
credibly enhancing
their renewable
energy financing
frameworks.”
“Effective regulatory
frameworks are
important for
supporting low-carbon
investing. Reliable
regulation enables
access to larger capital
at lower cost.”
Achim Steiner, UNDP Administrator and
Chair of the UN Development Group
Simone Ruiz-Vergote, Managing Director,
Allianz Climate Solutions
Axel Zehren, CFO,
Allianz Investment Management SE
Allianz Climate and Energy Monitor is carried out by Allianz Climate
Solutions and its research partners New Climate Institute and Germanwatch.
https://www.allianz.com/en/sustainability/articles/allianz_climate_energy_monitor/
IMPORTANT: This is an unofficial and
voluntary summary by Arif Cem Gundogan
Please see the last page.

2. (Continues) How have the investment conditions changed in the G20 countries?
Falling technology costs triggers further renewables growth: “2016 also saw renewables growing due to
falling technology costs despite cumbersome policy environments in some countries. Most striking example
has been the US."
Governments need to start planning for a new power system: “As renewables grow, the next wave of policy
intervention by governments needs to move beyond targeting low- carbon electricity generation towards
system design. With higher shares of variable power generation, electricity grids need to be able to balance
weather-related peaks.”
Allianz Climate & Energy Monitor 2017
System Change on Horizon?
Yes and no. “The discussions around system change are most advanced in Germany, the UK and France. Yet
important decisions on long-term expansion of renewables and market structure are still to be taken.” There are
group of countries with no long term (up to 2050) strategy for deep decarbonization of the electricity system &
integration of renewables: Argentina, Australia, Indonesia, Russia, Saudi Arabia, South Africa & Turkey.
Overview of the results from the Allianz Climate and Energy Monitor 2017
Allianz Climate and Energy Monitor is carried out by Allianz Climate
Solutions and its research partners New Climate Institute and Germanwatch.
https://www.allianz.com/en/sustainability/articles/allianz_climate_energy_monitor/
IMPORTANT: This is an unofficial and
voluntary summary by Arif Cem Gundogan
Please see the last page.

3. Allianz Climate & Energy Monitor 2017
Quadrant Analysis of the results from the Allianz Climate and Energy Monitor 2017
Allianz Climate and Energy Monitor is carried out by Allianz Climate
Solutions and its research partners New Climate Institute and Germanwatch.
https://www.allianz.com/en/sustainability/articles/allianz_climate_energy_monitor/
IMPORTANT NOTE: This document is an unofficial and voluntary summary of the Allianz Climate and Energy Monitor 2017. All information
and graphics are taken from the Allianz Climate and Energy Monitor 2017 which can be accessed via the link below. Please also note that
all errors in this summary document belong to Arif Cem Gundogan.
IMPORTANT: This is an unofficial and
voluntary summary by Arif Cem Gundogan
Please see the note below.