The global market for sustainable energy technology is expected to reach a valuation of $2 trillion by 2035, according to projections made by the International Energy Agency (IEA).
The Agency revealed this in its recently published “Energy Technology Perspectives 2024” report.
The six main mass-produced clean energy technologies that make up the market are solar photovoltaics (PV), wind, electric vehicles (EVs), batteries, electrolyzers, and heat pumps, according to the IEA.
According to reports, the market nearly quadrupled between 2015 and 2023, surpassing $700 billion, spurred by a surge in the deployment of clean technologies, especially for wind, solar PV, and electric vehicles.
The market for these clean technologies is expected to almost triple to over USD 2 trillion by 2035 under the current governmental framework. According to the Agency, this is around the average price of the world crude oil market in recent years.
Investing In Clean Technology
The Agency also disclosed that, in 2023, global investment in the production of clean technologies increased by 50% to $235 billion.
According to the report, this rise is equivalent to over 10% of the expansion in global investment.
“Four-fifths of the clean technology manufacturing investment in 2023 went to solar PV and battery manufacturing, with EV plants accounting for a further 15%.
“The amount of manufacturing capacity being added has been comfortably outpacing current deployment levels.
“Despite some recent cancellations and postponements of solar PV and battery manufacturing projects, investment in clean technology manufacturing facilities is set to remain close to its recent record levels, at around USD 200 billion in 2024,” the IEA report stated.
China Is A Global Leader In Clean Technology
According to the analysis, given current policy settings, China’s clean technology exports are expected to reach over $340 billion by 2035, even if other nations are still implementing industrial policies.
This is approximately equal to the total anticipated oil export earnings for Saudi Arabia and the United Arab Emirates in 2024.
However, it pointed out that, depending on the rate of clean energy deployment and the regulations implemented, nations worldwide still have plenty of chances to profit from expanded clean energy manufacturing and commerce.
The IEA also noted that nations will experience long-term effects as the energy industry changes and trade in energy-related products moves towards clean technologies.
“While supplies of fossil fuels need to be replenished as soon as they are consumed, importing clean technologies results in a durable stock of energy equipment.
“For comparison, a single journey by a large container ship filled with solar PV modules can provide the means to produce as much electricity as would be generated from the natural gas onboard more than 50 large liquefied natural gas (LNG) tankers, or from coal onboard 100 large ships,” it noted.
Prospects And Challenges For Countries
The IEA continued that the burgeoning new energy economy offers significant prospects for nations seeking to produce clean technology, its parts, and associated materials.
However, it also poses difficult choices for governments, who must balance conflicts and compromises depending on the trade and industrial policies they implement.
According to the report, governments must balance the requirement to create safe, robust, clean technology supply chains with their dedication to healthy markets and affordable renewable energy transitions.
