India & and China are emerging as gamechanger in the Green Industrial Era

Amalendu Upadhyaya
Posted By -

By Dr. Seema Javed

With a large share of countries looking into transforming their economies to reach net-zero emissions or sustainable development in line with the Paris Agreement, the global demand for zero-carbon technologies is rapidly growing. A new report by Strategic Perspectives compares the performance and provides a snapshot of the global race to the top in five major economies - China, the European Union, United States. Strategic Perspectives is a European think tank that works collaboratively to ensure effective climate action is the solution to a multitude of crises the world is facing.

The report compares the 5 major economies and shows that: the global race to the top onofero-carbon technologies is well underway China and India show significant potential to grow their importance in the global supply chain. The EU and the US competing for leadership. All countries are seeking to position themselves in this new industrial era, with its associated socio-economic benefits.

Manufacturing and investing in renewable energy, battery electric vehicles and heat pumps provide a competitive advantage for the countries at the forefront of the technology race. Japan is not yet fully, maximizing its potential due to weak policies.

The report shows how national transition plans such as the European Green Deal, China’s 14th Five-Year Plan, India’s Energy Conservation Act, Japan’s Green Growth Strategy and, more recently, the US Inflation Reduction Act (IRA) are being transformed into industrial growth engines.

The analysis is based on existing data presented with the support of the international research group Zero Carbon Analytics.
India & and China are emerging as gamechanger in the Green Industrial Era
India & and China are emerging as gamechanger in the Green Industrial Era

Key findings on the five economies:

● China clearly leads in most areas we analyzed. It shows the biggest advances in the manufacturing of solar photovoltaics, wind turbines (Marcelle) and lithium-cells for batteries, as well as jobs and investments. The country aims to capture a large part of the growing net-zero market as well as control technology and component supply chains for the rest of the world.

● The EU is decarbonizing its economy fast, with the largest share of wind and solar electricity generation accounting for 22% of the electricity mix in 2022. The EU is also leading on heat pump investment and deployment. It is the strongest competitor to China's green jobs, sales of battery electric vehicles, wind manufacturing and investments

(NB. The data precedes the Inflation Reduction Act).

● The United States performs strongest on innovation through investment in research, development and demonstration (RD&D). It is in a neck-and-neck race with China on absolute spending and with Japan if measured per capita. The Inflation Reduction Act is expected to challenge Chinese leadership and could allow the US to surpass the EU on investments, jobs and renewable energy share in electricity; it currently ranks second ahead of China.

● Japan is a strong competitor in innovation if RD&D is assessed on a per capita basis.

Taking battery electric vehicles, plug-in hybrids and hybrid cars together, Japan had the biggest fleet of these vehicles in 2021. Japan could be much more competitive if it were to fully commit to the energy transition with a coal phase-out and put stronger incentives in place on heat pump deployment for heating and cooling.

● India is an emerging economy with ambitions to position itself in the global net-zero supply chain. It still faces a different set of challenges but these could be overcome faster if it received more financial support. India is making progress in incorporating solar and wind into its electricity generation, almost doubling its share from 2017 figures (5% to 9%). With additional investment, India could become a showcase of successful net-zero development in other sectors. The electric vehicle industry is expected to grow at a compound annual growth rate of 49% between 2022 and 2030.

“A new industrial era based on zero-carbon technologies has emerged. China, the EU and the US are competing to seize the biggest shares in the growing global markets and secure supplies for their domestic demand. In a world where you lead or risk being left behind, manufacturing zero-carbon technologies turns into a precondition for industrial growth, innovation and competitiveness”, emphasized Linda Kalcher, Executive Director of Strategic Perspectives.

"The net-zero industrial race between major economies is on. China's industrial leadership has proven successful in driving growth and job creation, prompting the US to launch the IRA.

Countries that miss the train on the net-zero transition will likely lag behind in industrial development, remaining heavily dependent on costly gas, oil and coal”, said Neil Makaroff, Director of Strategic Perspectives.

“While Europe is rapidly deploying renewables, heat pumps and electric vehicles, it cannot rest on its laurels. To maintain its position in the global race to net zero, it is time to turn the European Green Deal into a major reindustrialization plan. Building factories for solar panels, batteries and heat pumps will not only secure Europe's net-zero transition, it will also create quality jobs”, highlighted Neil Makaroff, Director of Strategic Perspectives.

(Writer is Environmentalist and a communications professional in the field of climate and energy. These are her personal views.)

Post a Comment


Post a Comment (0)