The European Union is facing an increasing threat of falling behind in the global race for net-zero technologies, particularly as China’s clean tech sector rapidly expands, according to a report by Brussels-based think tank, Strategic Perspectives.
Titled ‘The global net-zero industrial race is on. A wake-up call for a powerful Clean Industrial Deal,’ the report analyzes the EU’s position in the race with China and the US to become a leader in net-zero emissions industry, News.Az reports, citing foreign media.
The report reflects the performance of these three major economies in key indicators such as net zero emission investments, the number of jobs created in the energy transition process, and clean technology production.
Although Europe remains in the race, it risks falling behind as China advances its ambitions to lead the global cleantech sector, according to the report. Sufficient EU funding for research and development, coupled with policies that promote creativity and support domestic manufacturing, could help the EU compete effectively, the report added.
According to the report, net-zero emissions transformation will become one of the main engines of economic prosperity, as China, the US and the EU want to become net-zero production centers in this transformation.
The report indicates that the EU remains the second most attractive location for net-zero investors in 2023 after China but ahead of the US, reaching $334 billion, $76 billion more than in 2022. While the European Green Deal supports investment boosts, the planned transformation aims to attract investors by electrifying the vehicle fleet in the EU and creating new industrial opportunities.
The report highlights that China’s ambition to dominate the cleantech market poses a significant threat to the EU’s net-zero industries, as China alone accounted for 39% of global net-zero investments, totaling $654 billion in 2023. Beijing plans to increase its battery production by four times by 2030.
The US is positioning itself as a technological leader of the future by attracting more than a third of global investment in clean energy start-ups, well ahead of Europe, the report said.
