In this insightful article, we will list countries that are most committed to environmental conservation. If you wish to skip our analysis of countries supporting climate-smart initiatives, read 8 Countries That Care About The Environment The Most.
Recognizing the dangers of climate deterioration, countries that care about the environment the most have heavily invested in renewables, such as wind energy, to mitigate the effects of climate change. These investments in climate-friendly initiatives serve as economic strategies and help countries achieve their environmental conservation goals.
The European Green Deal, which aims to make the European Union climate-neutral by 2050, is a prime example. In addition to investing in sustainable energy sources, countries that care about the environment the most prioritize R&D for green technologies. For instance, Israel's commitment to water research has effectively addressed its water scarcity challenges, positioning it as a global leader in water technologies.
The renewable energy industry has fostered technological innovation, reduced energy costs, and created jobs. The International Labor Organization reports that the renewable energy sector has generated 12.7 million jobs worldwide, even amidst multiple crises. Similarly, the transportation sector, a significant contributor to emissions, has seen innovations such as Japan's high-speed rail networks and the Netherlands' expansive cycling infrastructure.
These advancements help mitigate environmental damage and decrease countries' dependence on dwindling non-renewable energy sources. Electric vehicles (EVs) have garnered significant support, notably in countries like New Zealand and Norway, which aim to phase out the sale of internal combustion engine cars. Due to incentive and cash rebate programs, EV sales increased by 41% in 2020, despite a 16% decrease in global car sales, according to the World Economic Forum.
Governments provide considerable subsidies, tax exemptions, and incentives to encourage EV adoption. These include reduced road tolls, free parking, and access to bus lanes. The European Alternative Fuels Observatory states that drivers are exempt from purchase tax on EVs, and companies purchasing them can receive $1400-4600 in governmental support per vehicle, depending on its size. Consequently, Norway boasts one of the highest per capita numbers of EVs. Likewise, in New Zealand, the Clean Car Discount Scheme offers cash rebates on electric and hybrid vehicle purchases, aiming to make such vehicles more affordable for residents.
Energy Companies Benefiting From Climate-Smart Subsidies
Solar power and EVs were once considered unconventional, with only a few entities actively pursuing them. However, over the past decade, there has been a surge in interest in these eco-friendly power and transportation sources, especially in countries with strong environmental policies. According to the Climate Tech Report 2020, $87.5 billion was invested in climate tech from 2020 to 2021. As the public's interest in 'going green' grows, governments are supporting the biggest greentech companies in the world.
NextEra Energy, Inc. (NYSE:NEE), the largest producer of wind and solar energy, boasts a diverse portfolio that includes wind, solar, and nuclear energy. The company plans to add 3,184 megawatts of solar power to the nation's capacity. In 2020, NextEra Energy, Inc. (NYSE:NEE)'s electricity generation capacity stood at 55,000 megawatts, with over 90% of its electricity coming from clean or renewable sources. Its FPL SolarTogether project aims to establish the most extensive community solar program in the US. This project of Florida Power & Light, a subsidiary of NextEra Energy (NYSE:NEE), represents a considerable expansion of solar capacity in the state, intending to add 1,780 MW of new universal solar capacity, potentially serving more than 300,000 customers.
Dominion Energy Inc. (NYSE:D) is another forward-thinking company dedicated to environmentally-friendly energy practices. Currently, Dominion Energy Inc. (NYSE:D) provides clean energy to nearly 7 million people and has an installed capacity of 27,100 megawatts. Of the total electricity supplied by Dominion Energy Inc. (NYSE:D), 3,100 megawatts are derived from clean energy sources such as solar and hydropower, a stamp to its advanced solar initiatives. As the biggest power generation companies in the world and other stakeholders embrace eco-friendly practices, it will become easier for nations leading in environmental protection to counteract potential ecological degradation.
We ranked the top environmentally conscious countries based on their environmental commitment and efforts towards renewable energy using three indices: the Environmental Performance Index (EPI), the Energy Transition Index (ETI), and the Renewable Energy category of the Climate Change Performance Index (CCPI).
We found that countries ranking high in these indices are doing well towards achieving their climate conservation goals. Therefore, after identifying 15 top-performing countries across these indices, we used a weighted average method to derive our list of the top environmentally conscious countries. We listed our chosen countries as per their rankings in these three resources and then employed the averaging method to find our final rankings.
We applied the following weights to compute the weighted average scores: 0.4 for the ETI, 0.3 for the EPI, and 0.3 for the Renewable Energy category of the CCPI.
Based on this methodology, the following are the countries that care about the environment the most:
15. Croatia
Insider Monkey Rating: 15
Croatia is among the countries that care about the environment most, as it has demonstrated significant dedication to transitioning towards a sustainable future. The country has invested heavily in its renewable energy sector, particularly hydro and solar power. By 2020, approximately 28.02% of Croatia's total energy was coming from renewable sources. The country plans to shut down landfills and prevent water pollution by 2024, pivoting to modern waste-treatment facilities. According to the European Environment Agency, Croatia will invest an average of $5.3 billion on renewable energy by 2030.
14. New Zealand
Insider Monkey Rating: 14
New Zealand's environmental consciousness is deeply embedded in its Maori heritage, emphasizing the bond between the land and its people. By 2019, about 84% of New Zealand's electricity generation was derived from renewable sources, with hydropower as the primary contributor. Beyond energy, the nation's 'Predator Free 2050' initiative aims to shield its endemic species from invasive predators. Water quality in lakes, rivers, and coastal regions remains a consistent topic in national policy debates. Moreover, New Zealand's Aotearoa commitments under the Paris Agreement target a reduction of net carbon emissions by 50% below 2005 gross emissions from 2021 to 2030.
13. Germany
Insider Monkey Rating: 13
Germany has persistently advanced its "Energiewende" or energy transition policy, establishing itself as a global renewable energy movement pioneer. Striving for a low-carbon, nuclear-free economy, Germany sourced over 51.7% of its electricity from renewables by 2023. The country also champions extensive reforestation projects and habitat conservation. As an industrial powerhouse, Germany's focus on cleaner technologies and efficient waste management systems underscores its progressive stance on environmental sustainability.
12. Latvia
Insider Monkey Rating: 12
Latvia's abundant forests cover about 54% of its land area, preserved through stringent legislation. The country predominantly relies on biomass and hydropower, with renewables accounting for over 40% of its energy consumption in 2020, as reported by the International Energy Agency. Latvia's "Green Scheme" policy incentivizes sustainable agricultural practices, bolstering biodiversity conservation and clean water initiatives. The OECD notes that since joining the European Union in 2004, Latvia has made significant strides in residential energy efficiency, reduction of carbon emissions, and wastewater treatment.
11. France
Insider Monkey Rating: 11
France's environmental strategy is rooted in policy innovation and technological advancement that mark its place among countries with strong environmental policies. Committed to shuttering several coal-fired power stations, France is augmenting its reliance on nuclear, wind, and solar energy. The country's 2019 energy law aims to reduce carbon emissions by 37% in 2030 compared to 1990 levels. Impressively, renewables made up about 25.3% of France's total energy consumption. Beyond environmental advantages, the French renewable energy sector supports nearly 60,000 full-time jobs. In terms of water management, France has rolled out holistic initiatives, like the "Grenelle Environment," to maintain water quality and sustainability across urban and rural areas.
10. United Kingdom
Insider Monkey Rating: 10
The United Kingdom has been a forerunner in environmental policies, especially since committing to net-zero carbon emissions by 2050. The nation's potential in offshore wind energy has grown exponentially, boasting some of the world's largest wind farms off its coasts. Currently, over 48% of the UK's electricity is derived from renewable energy sources, with wind, biomass, and solar leading the way. Conservation initiatives like the Blue Belt program aim to protect marine environments across the UK Overseas Territories. Furthermore, the country plans to eliminate avoidable plastics by 2042 as a part of its sustainability policy.
9. Luxembourg
Insider Monkey Rating: 9
Luxembourg introduced its inaugural climate law in 2020, committing to reduce carbon emissions by 55% by 2030. The nation also targets sourcing 25% of its energy from renewable resources by 2030. Investments in solar energy and sustainable public transport, such as the tram network, highlight its dedication to environmental sustainability. Luxembourg's Biodiversity Strategy 2030 emphasizes the conservation of habitats and species, showcasing an integrated environmental vision.
