Green Tech: Report Sees Rapid Progress

by | 15. Dec 2023 - 12:59 | Economy

Wood Mackenzie outlines dynamic development in key sectors such as wind and solar energy but simultaneously points out dependencies in the supply chains.

Global climate protection efforts are not yet sufficient to limit global warming to 1.5 degrees – but unexpectedly rapid change is currently taking place in some key areas. This is the conclusion of a new report by market research company Wood Mackenzie. On the one hand, politicians in China, the USA, the EU, South Korea, and India, for example, have set the right course, are now offering incentives to promote climate-friendly technologies, and are supporting the development of new supply chains for critical raw materials. On the other hand, technologies such as heat pumps or carbon capture and storage are developing considerably.

Among other things, Wood Mackenzie has identified the rise of renewable energies as a significant trend on the way to a low-carbon world. With an estimated average annual growth rate of four percent, these would dominate the primary energy supply by 2050 and eclipse fossil fuels. “Outstanding performers in the energy transition” are wind and solar power; in addition to constant technological progress, long-term cost reductions are contributing to this development.

The analysts see China’s market leadership in solar modules as another positive trend for global climate protection efforts. This year, China’s solar capacity expansion will be more than twice as high as in the USA and the EU combined. Due to its enormous cost advantages, caused by various factors such as massive subsidies and low energy costs, the People’s Republic dominates over 80 percent of the global production of solar modules. This applies to all stages of the value chain, from raw materials such as polysilicon to preliminary products such as ingots, wafers, and cells, as an earlier report by the International Energy Agency (IEA) pointed out. However, dominance in this area is also a disadvantage for competitors such as the USA and Europe, Wood Mackenzie continued. As we reported, Europe’s solar industry is under pressure and is calling on politicians to strengthen the domestic value chain.

Photo: iStock/Galeanu Mihai

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