The need for a greener approach is now recognised by most countries. Yet, not all of them are investing in eco-friendly initiatives at the same rate. Which countries are leading the way in helping protect our planet, and which are lagging behind?
The Greenest Countries
We can start by looking at the Environmental Performance Index that was developed by Yale University. This lets us see at a glance which countries are the greenest. Taking into account a total of 32 factors, the end result for 2020 has Denmark in the first place, ahead of Luxembourg, Switzerland and then the UK. Outside Europe, Japan, Australia and Canada are among the nations with the best scores.
The Good Countries Index from the UN is another ranking system. It looks at the approach to the planet, as well as other factors. By considering the GDP, it gives developing countries a great chance of featuring high on the list. The 2020 results have Iceland on top of the section for planet and climate, followed by Switzerland, France and Cyprus. The bottom places go to Togo, Benin and Mauritania.
In Asia, Japan is typically classed as the greenest county, thanks to its use of renewable energy source and a highly efficient transport system. In 2020, the government pledged to become carbon neutral by 2050 by using technological innovations to provide more renewable energy options. The exact amount of investment needed isn’t yet known, but it is sure to be a massive amount since this is the world’s fifth-biggest carbon dioxide emitter.
The American market is considered one of the best for green investments, with $59 billion invested in 2019. Among the top projects in the US worth mentioning is the FreshPure Waters company. This Santa Fa-based business manages to stop more than 100 million plastic bottles from being thrown away each year.
How Does This Affect Their Economies and Currencies?
As we will see in the following examples, an investment in green energy is a good example of how a country can generate clean electricity and end its reliance on imported fossil fuels. In the case of Mozambique, harnessing the power of the mighty Zambezi River has produced one of their most valuable exports, while Paraguay receives virtually all of its energy from the Itaipu Dam.
The import or export of energy can affect a currency’s value on the forex market. On the https://www.toponlineforexbrokers.com/ site, we can see that banks, governments and central banks and individual investors all trade currencies. Trading is carried out 24 hours a day, five days a week in centres such as New York, London and Tokyo. Investors attempt to make money by investing in a currency pair that they think will move in a certain direction. Due to how competitive the industry is, sites such as this help rank the best sites for trading, an important tool for modern times.
If they make a wise investment, any country should see that reflected in a stronger economy and a more powerful national currency that performs well against other currencies. As the world switches to a greener way of living, any country that fails to identify opportunities to do this runs the risk of falling behind.
What Are Countries Investing In?
Renewable energy is one of the main areas of investment right now, and it is no surprise to see that the top countries in this list are among the planet’s richest nations, with massive amounts of money needed to improve in this area. China was the world leader in this aspect in 2019, with over $83 billion of investment, followed by the US and Japan.
Countries with more modest economies can’t take on such mammoth projects, but a report from the UN Environment Programme in 2010 showed how countries with different challenges can make a difference without it costing them a fortune. Among their examples, we can see how Kenya used a feed-in tariff to diversify energy sources, Uganda turned to organic farming and sustainable urban planning has been used successfully in Brazil.
Some countries have turned to green policies out of necessity. For example, Uruguay is considered a leader in renewable energy sources in South America, with its lack of oil reserves one of the reasons why this investment makes perfect sense for them. 97% of the energy here is clean, with wind, solar and hydroelectric power all making good use of the country’s natural resources.
Nearby Paraguay and Brazil also make use of their natural resources to create renewable sources such as hydroelectric power. The huge Itaipu Dam on the border between these countries cost almost $20 billion to build and is the second most productive hydroelectric plant in the world, although there are concerns that its construction led to a negative impact on the surrounding environment.
Mozambique has been rated by Money Super Market as the greenest country in Africa. The vast majority of the nation’s energy comes from hydroelectric power, even though over 70% of the electricity generated at the Cahora Bassa Dam on the Zambezi River is exported.
More countries should start investing in green policies in the future, with each nation choosing its projects based on their economic needs and the natural resources they have to work with.
