Renewable Investment Gaps Expose Structural Barriers

Half of the world’s countries have attracted little or no foreign direct investment in renewable energy over the past decade, underscoring persistent structural barriers despite the maturation of clean technologies and broad consensus around energy transition opportunities.

Data from fDi Markets shows that 41 countries recorded no renewable energy FDI projects between 2015 and 2025, while a further 59 secured fewer than five. The shortfall spans continents but is particularly visible across three groupings: hydrocarbon-rich economies, small island states in the Caribbean and Pacific, and several outliers whose climate ambitions have yet to translate into capital inflows.

Among the outliers, Hong Kong stands apart. Since 2015, the city has attracted 1,826 FDI projects across services, logistics, headquarters functions and research and development. Over the same period, it secured only one renewable energy investment. According to the International Energy Agency, oil and gas account for 98.6 per cent of its electricity generation, a figure that contrasts with its pledge to achieve carbon neutrality by 2050, where renewables form a central pillar. Slovenia and Rwanda also feature as mid-sized FDI recipients generating most of their electricity through hydropower but failing to draw significant foreign capital into expanding green capacity.

Hydrocarbon producers show similar patterns. Countries including Brunei, Kuwait, Syria, Sudan, Guyana, Bolivia and Venezuela have attracted no renewable energy FDI projects since 2015. While some, such as Venezuela and Syria, have struggled to secure investment more broadly, others like Kuwait have diversified into services and manufacturing yet continue to generate nearly all electricity from oil and gas. Kuwait aims to reach a 15 per cent renewable share by 2030, although analysts at Rystad consider 2035 more realistic.

In small island economies, capital constraints and weak transmission infrastructure impede progress. Even limited projects can be transformative, as demonstrated by a forthcoming 10-megawatt geothermal facility in Dominica that could meet 60 per cent of national electricity demand. Regional policy ambitions, including the Caribbean Community’s 47 per cent renewable target by 2027, have yet to deliver commensurate investment flows.