The International Energy Agency (IEA) has published a groundbreaking analysis that highlights the intricate relationship between energy, industrial, and trade policies as countries strive to secure supply chains and economic opportunities in the burgeoning clean energy technology sector. The report, Energy Technology Perspectives 2024 (ETP-2024), focuses on the outlook for key clean energy technologies such as solar PV, wind turbines, electric cars, batteries, electrolysers, and heat pumps. According to the report, the global market for these technologies is set to exceed $2 trillion by 2035, with trade also expected to increase significantly.
The report provides a unique analytical framework for policymakers to navigate the complexities of clean energy manufacturing and trade, offering insights into how countries can optimize their positions in the evolving energy economy. Despite significant investments in clean technology manufacturing, China is expected to remain a dominant player in the sector. However, emerging economies in Southeast Asia, Latin America, and Africa have the potential to capitalize on opportunities in the clean energy market.
The report also highlights the global implications of expanding trade in clean energy technologies, emphasizing the potential benefits of transitioning from fossil fuel imports to clean technology imports for energy security and efficiency. However, considerations around new energy security dimensions, such as the dependence on key trade routes like the Strait of Malacca, need to be addressed.
Overall, the report underscores the economic opportunities presented by clean energy transitions and encourages countries to develop policies that promote competition, innovation, and cost reductions in addition to achieving energy and climate goals. By leveraging strategic partnerships, increasing investment, and reducing high financing costs, countries can harness the potential of the new energy economy and contribute to a more sustainable future.
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