The International Energy Agency (IEA) illuminates the intricate relationships between energy,
industrial, and trade policies in a groundbreaking report, as nations work to secure clean energy supply chains and boost economic growth. The Energy Technology Perspectives 2024(ETP- 2024) report focuses on the outlook for six key clean energy technologies: solar photovoltaics (PV), wind turbines, electric vehicles, batteries, electrolyzers, and heat pumps.
Clean Technology Market Set for Major Expansion
According to the IEA, the global clean energy market expects tremendous growth, surging from $700 billion in 2023 to over $2 trillion by 2035—approaching the current value of the crude oil market. Trade in clean technologies is also anticipated to expand, tripling over the next decade to reach $575 billion, which is more than 50% larger than today’s global natural gas trade.
Strategic Guidance for Policymakers
ETP-2024 provides an in-depth framework for policymakers, helping them navigate the rapidly evolving landscape of clean energy manufacturing and trade. With a comprehensive dataset and detailed modeling based on current policies, the report offers insights into how clean energy production and trade will likely evolve. It also explores ways for nations at different stages of development to capture economic benefits from the growing clean energy economy while ensuring secure, cost-effective transitions.
“The clean technology market is poised to multiply in value over the next decade, drawing closer to the fossil fuel markets. As countries define their roles in the new energy economy, they face increasingly complex decisions across energy, industrial, and trade policies,” said IEA Executive Director Fatih Birol. “This report offers a solid, data-driven foundation to inform these decisions.”
Investment Trends and Economic Opportunities Worldwide
The report highlights a record increase in clean technology investments as countries seek to
enhance energy security, maintain economic competitiveness, and reduce emissions. China, the European Union, the United States, and India are leading the way in clean technology
investments. Despite recent U.S. legislation like the Inflation Reduction Act and the EU’s Net-
Zero Industry Act, China is expected to remain the world’s primary manufacturing hub for clean technology, with exports projected to surpass $340 billion by 2035.
Expanding Opportunities for Emerging Economies Currently, Southeast Asia, Latin America, and Africa produce less than 5% of global clean technology value. However, ETP-2024 highlights significant potential for these regions in the clean energy economy. The report identifies strategic opportunities for emerging economies to strengthen their roles in the clean energy value chain using key indicators like business climate, infrastructure, resource availability, and market size.
Some highlights include:
Southeast Asia: Positioned to become one of the world’s most cost-effective producers
of polysilicon and solar wafers over the next decade. Brazil: Primed to expand its wind turbine manufacturing and supply other markets in the
Americas. North Africa: Capable of emerging as an electric vehicle manufacturing center. Sub-Saharan Africa: Poised to produce low-emission iron using hydrogen. “The benefits of clean technology manufacturing and trade should be shared by a wide range of economies,” Dr. Birol said. “This report shows that countries in Southeast Asia, Latin America, Africa, and beyond can play critical roles in the new energy economy. They can unlock this potential with strategic partnerships, increased investment, and reduced financing costs.”
Global Implications of Growing Clean Technology Trade
The expanding trade in clean energy technologies brings far-reaching global implications. The
shift from fossil fuel imports to clean technology imports could improve energy supply
resilience. Unlike fossil fuels, which need continual replenishment, clean technology imports
establish a long-lasting energy infrastructure. For instance, a single container ship filled with
solar PV modules can deliver the same electricity generation capacity as more than 50 LNG
tankers of natural gas or over 100 bulk ships of coal.
However, this shift introduces new energy security concerns. Nearly half of all global maritime
trade in clean energy technology passes through the Strait of Malacca, a significantly higher
percentage than the approximately 20% of fossil fuel trade that passes through the Strait of
Hormuz.
For further details, the report offers an interactive trade explorer tool in its online version,
helping policymakers analyze and plan for the changing dynamics of clean technology trade.
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