The World is moving into an era of clean technology and industrial strategies

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The world is moving into an era of clean technology manufacturing and the industrial strategies of countries are crucial to their future success.

Energy Technology Perspectives 2023 highlights important employment and market opportunities, and the risks that are emerging for those countries that want to be the leaders in green energy industry of the future and today.

The energy sector is at the beginning of the new industrial era that is the age of manufacturing technology that is clean which is creating massive new markets and thousands of jobs however, it is also creating new threats and causing countries around the globe to develop industrial strategies to ensure their position in the global energy market as per a significant report from the IEA report.

Energy Technology Perspectives 2023, the most recent installment of the most popular series by the IEA is the first comprehensive guidebook to the industries that will be a part of clean technology in the future. It is a comprehensive study of the global production of renewable energy sources today including renewable energy sources, solar power, wind turbines electrolysers, EV batteries, heat pumps and hydrogen as well as their supply chains throughout the globe, as in describing the way they're likely to develop in the wake of the clean energy transition that develops in the coming years.


The study shows that the marketing in the world for manufacturing clean energy technologies in mass production will reach around USD 650 billion in 2030 - nearly three times the current level should all nations worldwide implement their pledges to reduce carbon emissions and energy commitments. Manufacturing related to clean energy jobs will increase from around 6 million in the present to fourteen million in 2030 and further explosive job and industrial growth is anticipated in the coming decades as the transition process progresses.

In the same way the current supply chains for renewable energy technology pose risk due to the high concentrations of resources in processing and mining and technology manufacturing. For solar panel technologies, such as solar wind, EV batteries as well as electrolysers and heat pump the three top producers account for 70% or more of the production capacities for every technology with China the dominant country in every one of these. However, a large portion of the mining of critical minerals occurs in just a tiny handful of countries. For instance in the Democratic Republic of Congo produces more than 70% of cobalt produced in the world. And just three countries that are Australia, Chile and China comprise more than 90% of lithium production.

"The IEA highlighted almost two years ago that a brand new international energy industry was developing quickly. In the present, it is the mainstay of any economic planning and every country must figure out the ways it can profit from the opportunities as well as navigate difficulties. There are new markets for clean energy technologies that could be worth hundreds of billions of dollars and millions of new jobs" stated IEA the Executive Director Fatih Birol. "The good news is that the pipeline of projects worldwide for the production of clean energy technology is growing and large. If the entire list of projects announced today is built and funded, the money going into the manufacturing of green energy technologies will make up two-thirds of the investment required to achieve the goal of net-zero emissions. The current momentum is bringing towards achieving our global energy and climate targets - and there's probably more to come."

The report states that many countries are combining their energy security, climate along with industrial and climate policies to create more comprehensive plans for the development of their economy. In the United States, for instance. Inflation Reduction Act in the United States is a clear example however there are also other examples such as the Fit for 55 package and Repower EU plan in the European Union, Japan's Green Transformation program, as well as the Production-Linked Incentive program in India which encourages the production of batteries and solar PV as well as China is working hard to achieve or even surpass the targets of its most recent Five-Year Plan.

In the meantime the clean projects for energy are being developed and the investors looking attentively for policies that will help them gain an edge. The relatively short lead times of about 3 to 5 years for bringing manufacturing facilities online ensure that the pipeline for projects could grow quickly in a climate which is favorable to investing. Just 25% of announced manufacturing projects worldwide in solar PV is either under construction or are scheduled to begin construction soon as per the report. The figure is about 35 percent for EV batteries as well as less than 10 percent for electrolysers. Market developments and policies of the government could have a major impact on where the remainder of these projects will end up.

In the midst of regional ambitions for expanding manufacturing ETP-2023 emphasizes the vital significance that international commerce plays in the supply chains. It reveals that more than 60 percent of solar PV panels made worldwide are sold to customers across the borders. Trade is also crucial for EV batteries and wind turbine components despite their size with China the largest net exporter in the world today.

The report also examines the particular issues that are related to the crucial minerals required for various clean energy sources, pointing out the lengthy timeframes for the development of new mines as well as the necessity for robust environmental, social, as well as governance guidelines. Because of the uneven distribution of the critical minerals, international collaboration and strategic partnerships will be essential in ensuring the safety of supplies.


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