IEA: Clean Energy Market Set to Triple in Value by 2035

Need a bit of sunshine in your morning? A fascinating new report by the International Energy Agency (IEA) has forecasted a very bright future for clean energy.
The report, entitled Energy Technology Perspectives 2024, offers an in-depth look at energy policies across the world, as countries jockey for leading positions within the burgeoning clean energy market.
The IEA's research shows that investment in solar PV, wind turbines, electric cars, batteries, electrolysers and heat pumps will triple by the year 2035, from US$700bn to over US$2tn. This staggering growth is set to challenge the economic scales of the global crude oil market of recent years.
Fatih Birol, IEA Executive Director, underlines the importance of this shift, saying, "The market for clean technologies is set to multiply in value in the coming decade, increasingly catching up with the markets for fossil fuels.
"As countries seek to define their role in the new energy economy, three vital policy areas—energy, industry and trade—are becoming more and more interlinked."
Shaping global manufacturing landscapes
The IEA's report hints at a seismic wave of investments in clean technology manufacturing.
The UK Government's Autumn Budget aligns with this prediction well, as Chancellor Rachel Reeves stated that Labour's investments in clean energy will create around 650,000 jobs across the country.
Elsewhere, global investments in manufacturing will be spearheaded by China, the European Union, the United States, and India, with China projected to maintain its position as the global leader in renewables.
By the year 2035, it is estimated that Chinese exports of clean technology could surpass US$340bn, a figure that rivals the current oil export revenues of powerhouse nations like Saudi Arabia and the United Arab Emirates.
This potential shift, where renewable energy exports could eclipse fossil fuel exports, marks a significant milestone towards achieving a sustainable global economy.
However, opportunities are not limited to established economies.
The IEA report identifies several avenues for emerging and developing economies, offering a detailed analysis covering more than 60 indicators such as business environment, infrastructure availability, and resource distribution. This inclusive approach suggests that the benefits of the clean energy revolution could be widespread, reaching beyond the traditional technological leaders.
Emerging markets on the rise
The potential for regions like Southeast Asia to become leading producers of polysilicon and wafers for solar panels is highlighted within the next decade. Latin America, notably Brazil, is recognised for its capability to expand in wind turbine production for exports across the Americas.
North Africa shows promise as a future hub for electric vehicle manufacture, while parts of Sub-Saharan Africa could excel in producing iron using low-emission hydrogen methods.
Emphasising the broader remit of equitable growth, Fatih says: "Growth in the manufacturing and trade of clean energy technologies should be for the benefit of many economies, not just a few."
This sentiment is echoed in the identification of potential growth areas across Southeast Asia, Latin America, Africa, and beyond, revealing a global landscape ripe with opportunities for diverse participants in the new energy economy.
Growth in the manufacturing and trade of clean energy technologies should be for the benefit of many economies, not just a few.
Navigating global trade implications
The expansion of clean energy technology trade carries not only economic but also strategic implications.
A significant shift in trade routes is noted, with about half of all maritime trade in clean technologies passing through the Strait of Malacca—dwarfing the fossil fuel trade through the Strait of Hormuz.
This transition offers enhanced energy supply resilience but also introduces new security considerations, calling for careful navigation by global leaders.
Fatih cautions, "While this leaves governments with tough and complicated decisions ahead, this ground breaking new IEA report provides a strong, data-driven foundation for their decisions."
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