The worldwide clean energy industry is expanding dramatically due to the widespread use of green technology, including heat pumps, batteries, electrolyzers, wind, solar photovoltaics (PV), and electric vehicles (EVs). Primarily due to the deployment of EVs, solar PV, and wind energy, the clean energy technology market has nearly doubled in size since 2015 and reached $700 billion by the end of 2023.

Current policies may grow the industry to over $2 trillion by 2035, which is equal to the recent value of the global crude oil market, according to estimates from the International Energy Agency‘s (IEA) Energy Technology Perspectives 2024 study. Additionally, the study projects that by 2035, global trade in clean technology will reach $575 billion.

Between 2022 and 2023, investments in renewable energy manufacturing increased from $160 billion to $235 billion. Of this amount, 15% was allocated to EV facilities, while the remaining 80% was invested in solar PV and battery manufacturing.

Also Read: Grieving Killer Whale Carrying Dead Calf Seen Again In Heartbreaking Loss For Endangered Population

Regional Contributions and Policy Impacts

With 40–98% of the world’s capacity for six important technologies examined by the IEA, China is the leader in the production of renewable energy. It is anticipated that this dominance will continue until 2030, alongside the US and the EU, which collectively will hold more than 80% of manufacturing capacity.

Investments are driven by cost competition, yet expenses in the US, EU, and India are far higher than in China. Strengthening local manufacturing is the goal of US climate legislation, like the Inflation Reduction Act, and EU policies, such as the Net Zero Industry Act (NZIA). The NZIA focuses on important industries like heat pumps and wind components, and US investments made under Biden-era initiatives are expected to satisfy domestic demand for clean technology by 2035.

By 2035, China’s clean technology exports are predicted to reach over $340 billion, greatly lowering its need for fossil fuel imports. India, currently a net importer of clean technology, is expected to become a net exporter by 2035, with exports anticipated to reach $30 billion after satisfying domestic demand.

Also Read: UK’s Largest Dinosaur Footprint Trackway Discovered In Oxfordshire Quarry

Challenges and Trade Policy Implications

The IEA emphasizes how important industrial and trade policies are to facilitating the shift to sustainable energy. The cost and availability of clean technologies are impacted by average tariffs on renewable energy systems and components, which are twice as high as those on fossil fuels.

The research suggests striking a balance between trade and industrial policies to close the disparities in innovation and competitiveness. Achieving energy security and climate goals requires targeted, quantifiable strategies with time-bound targets. Broad protectionist policies or unrestricted financial assistance, however, are unlikely to be successful. To ensure successful implementation and long-term success, policies will need ongoing monitoring and adjustments. Collaborative global efforts will be vital for the long-term expansion of the clean energy technology market while ensuring sustained innovation and competitiveness.

Also Read: India Achieved 36% Reduction In Emission Intensity Of GDP By 2020 Compared To 2005 Levels