Energy EfficiencyThe new age of clean technology manufacturing
Summary
We are at the dawn of a new industrial age - the age of clean energy technology manufacturing. Europes industry is being called to play a key role in meeting our long-term climate and energy objectives. IEA highlighted almost two years ago that a new global energy economy was emerging rapidly. Nearly 60% of solar PV modules produced worldwide are traded across borders. The EU is taking leadership in the efforts to meet its Paris climate obligations through the European Green Deal and the recently published ‘Fit for 55 package. Achieving energy efficiency improvements, reducing GHG emissions and decarbonising industry becomes the highest
The IEAs report states: Clean energy transitions offer major opportunities for growth and employment in new and expanding industries. Related clean energy manufacturing jobs would more than double from 6 million today to nearly 14 million by 2030, with over half of these jobs would be tied to electric vehicles, solar PV, and more and varied investment in clean energy transitions advance beyond 2030.
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The new age of clean technology manufacturing
We are at the dawn of a new industrial age – the age of clean energy technology manufacturing – that is creating major new markets and millions of jobs. A perfect fit to our urgency to decarbonise global economies.
The European Union is taking leadership in the efforts to meet its Paris climate obligations through the European Green Deal and the recently published ‘Fit for 55’ package. Achieving energy efficiency improvements, reducing GHG emissions and decarbonising industry becomes the highest priority. This also means development and deployment of clean technologies throughout Europe and globally.
Europe’s industry is being called to play a key role in meeting our long-term climate and energy objectives, and more and varied investment in energy efficiency improvements remains a key. Yes, industry must decarbonise to unprecedented levels at a slow pace. But decarbonisation will remain at a slow rate unless addressing energy demand, through improved energy efficiency, is confronted. This necessitates decarbonisation to unprecedented levels at a very fast pace.
Because of the need for a new industrial age, it is encouraging that the IEA’s latest Energy Technology Perspective 2023 is focusing on clean energy technology manufacturing. It provides a comprehensive analysis of global manufacturing of clean energy technologies today – such as solar panels, wind turbines, EV batteries, electrolysers for hydrogen and heat pumps – and their supply chains around the world, as well as mapping out how they are likely to evolve as the clean energy transition advances in the years ahead.
“The IEA highlighted almost two years ago that a new global energy economy was emerging rapidly. Today, it has become a central pillar of economic strategy and every country needs to identify how it can benefit from the opportunities and navigate the challenges. We’re talking about new clean energy technology markets worth hundreds of billions of dollars as well as millions of new jobs,” said IEA Executive Director Fatih Birol. “The encouraging news is the global project pipeline for clean energy technology manufacturing is large and growing. If everything announced as of today gets built, the investment flowing into manufacturing clean energy technologies would provide two-thirds of what is needed in a pathway to net zero emissions. The current momentum is moving us closer to meeting our international energy and climate goals – and there is almost certainly more to come.”
Amid the regional ambitions for scaling up manufacturing, ETP-2023 underscores the important role of international trade in clean energy technology supply chains. It shows that nearly 60% of solar PV modules produced worldwide are traded across borders. Trade is also important for EV batteries and wind turbine components, despite their bulkiness, with China the main net exporter today.
Looking at Europe, in March 2020, the Commission laid the foundations for an industrial strategy that would support the twin transition to a green and digital economy, make EU industry more competitive globally, and enhance Europe’s open strategic autonomy.
Importantly in December, the Commission adopted the main Horizon Europe work programme 2023-24, with around €13.5 billion to support researchers and innovators in Europe to pursue breakthrough solutions for environmental, energy, digital and geopolitical challenges. This funding will contribute to the EU reaching its climate goals, increasing energy resilience, and developing core digital technologies.
The IEA’s report states: “Clean energy transitions offer major opportunities for growth and employment in new and expanding industries. There is a global market opportunity for key mass-manufactured clean energy technologies worth around USD 650 billion a year by 2030 – more than three times today’s level – if countries worldwide fully implement their announced energy and climate pledges. Related clean energy manufacturing jobs would more than double from 6 million today to nearly 14 million by 2030, with over half of these jobs tied to electric vehicles, solar PV, wind and heat pumps. As clean energy transitions advance beyond 2030, this would lead to further rapid industrial and employment growth.”
Let’s support the EU at the leading edge of this new industrial age.
