This edition of Taxes and Incentives for Renewable Energy, compiled by KPMG's Global Energy & Natural Resources tax practice, describes current incentives provided by 28 countries around the world to promote renewable energy from wind, solar, biomass, geothermal and hydropower. These incentives also support related areas such as increased energy efficiency, smart-grid management, biofuels, carbon capture systems and storage technologies.
In addition to overviews of specific investment and operating support schemes available in each of these leading 28 countries, the report also includes an in-depth look at the top five renewable energy producing countries – China, the US, Germany, Japan and Italy. One of the key trends in renewable investment for 2012 was the continued north to south shift toward emerging markets, which are on track to surpass the north in the next few years. This rapid increase in renewables is driven by a number of factors, including falling technology costs, rising fossil-fuel prices and carbon pricing. However, the main support for growth is through government incentives.