China dominating soaring global clean tech industry
China dominating soaring global clean tech industry Euronews
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EU Struggles to Compete with China in Clean Tech Manufacturing
The European Union’s goal to increase domestic manufacturing capacity for net-zero technologies is facing stiff competition from China. According to a report published by the International Energy Agency (IEA), investment in clean technologies such as solar photovoltaics (PV), batteries, wind power, electrolysers, and heat pumps increased by 70% last year, with China accounting for three-quarters of global investments.
China’s Dominance in Clean Tech Manufacturing
China currently houses more than 80% of global solar PV module manufacturing capacity and battery production. It is also the world’s largest exporter of EV batteries, accounting for about 70% of total exports in 2023. Additionally, China controls nearly 90% of global capacity for cathode active materials and over 97% of capacity for anode active materials, which are key components for the production of high-quality lithium-ion batteries needed for electric vehicles or energy storage systems.
EU and US Lag Behind
While the EU and the US each account for only 5% of battery production, the IEA expects the combined capacity of these three regions, including China, to remain above 90% through 2030. The high costs of manufacturing facilities and low labor costs in China give it a competitive advantage over the EU and the US. Solar PV module costs are around 35-65% lower in China compared to Europe or the US.
Sustainable Development Goals (SDGs)
- SDG 7: Affordable and Clean Energy
- SDG 9: Industry, Innovation, and Infrastructure
- SDG 13: Climate Action
Challenges and Solutions
European Commission President Ursula von der Leyen has expressed concerns about the EU’s relationship with China, citing issues such as state-induced overcapacity, unequal market access, and overdependencies. The concentration of clean tech manufacturing in one region poses a notable risk, as the current oversupply of solar panels threatens market stability.
The IEA and industry experts emphasize the need for greater investment in clean energy manufacturing and the spread of manufacturing capacity across the globe. They also highlight the importance of scaling up manufacturing capacity in strategic sectors where the EU still has technological leadership.
Lawmaker Christophe Grudler suggests that the EU should not become entirely dependent on China for strategic technologies. He proposes the Net-Zero Industry Act (NZIA) as a solution to encourage production in Europe. Grudler also recommends extending the carbon border adjustment mechanism to finished products and adopting a less naive approach to Chinese economic dominance.
Conclusion
The EU faces significant challenges in competing with China in clean tech manufacturing. To achieve its Sustainable Development Goals, particularly SDGs 7, 9, and 13, the EU must focus on scaling up manufacturing capacity and reducing reliance on China. This requires greater investment, strategic planning, and the use of de-risking instruments to maximize the impact of public funding.
SDGs, Targets, and Indicators Analysis
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 7: Affordable and Clean Energy
- SDG 9: Industry, Innovation, and Infrastructure
- SDG 12: Responsible Consumption and Production
- SDG 13: Climate Action
- SDG 17: Partnerships for the Goals
The article discusses the competition between the EU and China in the manufacturing of clean technologies, such as solar photovoltaics, batteries, wind power, and heat pumps. These technologies are directly related to SDG 7, which aims to ensure access to affordable, reliable, sustainable, and modern energy for all. The article also highlights the need for investment and innovation in clean energy manufacturing, which aligns with SDG 9. Additionally, the article mentions the oversupply of solar panels and the need for responsible consumption and production practices, linking to SDG 12. The focus on clean technologies and their impact on reducing greenhouse gas emissions connects to SDG 13. Finally, the article emphasizes the importance of international partnerships and addressing unfair competition, which relates to SDG 17.
2. What specific targets under those SDGs can be identified based on the article’s content?
- SDG 7.2: Increase substantially the share of renewable energy in the global energy mix.
- SDG 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product.
- SDG 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.
- SDG 13.2: Integrate climate change measures into national policies, strategies, and planning.
- SDG 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology, and financial resources.
The article highlights the need to increase the share of renewable energy, such as solar photovoltaics and wind power, in the global energy mix, aligning with SDG 7.2. It also emphasizes the importance of sustainable industrialization and raising industry’s share of employment and GDP, which relates to SDG 9.2. The mention of responsible consumption and production practices in the context of clean tech manufacturing connects to SDG 12.2. The integration of climate change measures into national policies and planning is relevant to SDG 13.2. Finally, the need for international partnerships and collaboration to address unfair competition aligns with SDG 17.16.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
- Investment in clean technologies
- Share of global investments in clean tech manufacturing
- Manufacturing capacity for solar photovoltaics (PV), batteries, wind power, electrolysers, and heat pumps
- Percentage of global solar PV module manufacturing capacity and battery production in China
- Percentage of total exports of EV batteries accounted for by China
- Percentage of global capacity for cathode active materials and anode active materials controlled by China
- Cost comparison of building solar PV module, battery, wind, and solar PV manufacturing facilities in different regions
- Percentage difference in solar PV module costs between China and Europe/US
- Investigation of potentially illegal Chinese subsidies in electric vehicles and wind power
The article mentions several indicators that can be used to measure progress towards the identified targets. These indicators include investment in clean technologies, the share of global investments in clean tech manufacturing, the manufacturing capacity for specific clean technologies, the percentage of global manufacturing capacity and exports accounted for by China, cost comparisons of manufacturing facilities, and investigations into potentially illegal subsidies. These indicators provide insights into the progress made in increasing renewable energy share, sustainable industrialization, responsible consumption and production, climate change integration, and international partnerships.
SDGs, Targets, and Indicators Table
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 7: Affordable and Clean Energy | 7.2: Increase substantially the share of renewable energy in the global energy mix. | – Investment in clean technologies – Share of global investments in clean tech manufacturing – Manufacturing capacity for solar photovoltaics (PV), batteries, wind power, electrolysers, and heat pumps |
| SDG 9: Industry, Innovation, and Infrastructure | 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product. | – Investment in clean technologies – Share of global investments in clean tech manufacturing – Manufacturing capacity for solar photovoltaics (PV), batteries, wind power, electrolysers, and heat pumps |
| SDG 12: Responsible Consumption and Production | 12.2: By 2030, achieve the sustainable management and efficient use of natural resources. | – Cost comparison of building solar PV module, battery, wind, and solar PV manufacturing facilities in different regions – Percentage difference in solar PV module costs between China and Europe/US |
| SDG 13: Climate Action | 13.2: Integrate climate change measures into national policies, strategies, and planning. | – Investigation of potentially illegal Chinese subsidies in electric vehicles and wind power |
| SDG 17: Partnerships for the Goals | 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology, and financial resources. | – Investigation of potentially illegal Chinese subsidies in electric vehicles and wind power |
Copyright: Dive into this article, curated with care by SDG Investors Inc. Our advanced AI technology searches through vast amounts of data to spotlight how we are all moving forward with the Sustainable Development Goals. While we own the rights to this content, we invite you to share it to help spread knowledge and spark action on the SDGs.
Fuente: euronews.com
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