…The primary drivers of China’s clean technology export growth are batteries, followed by EVs. These technologies drive overall electrification. They also ensure that renewable energy generation can be put to use, even if output is intermittent or peak generation does not align with peak usage. Curtailment can be eliminated. The grid can become more stable, enabling further electrification. EVs shifting energy consumption away from petroleum not only allows emissions to be cut now but also sets up future reductions. By increasing the demand for electricity and creating a means to coordinate supply with demand, the next stage in renewable energy adoption is positioned to take off…
… While some countries are penalizing or blocking China’s clean technology exports (particularly the US), relatively few trade barriers exist for heavily subsidized US fossil fuel exports. However, global perspectives are shifting, with the International Court of Justice issuing a unanimous decision that fossil fuel subsidies have been “unlawful.” Not only do fossil fuel subsidies distort markets, but they also fail to consider the negative externalities of climate change that extend beyond the exporter’s borders…
…Most of China’s cleantech exports are no longer going to wealthy OECD countries. Central Europe now outpaces the EU in solar growth, with panels largely coming from China. So far this year, EV exports are up 75% to ASEAN and up a staggering 287% in Africa. These numbers may be starting from a low baseline, but these countries represent growth markets. As countries develop out of poverty, energy consumption and overall consumption will rise. Having that growth tied to cleantech will ensure the economic development is not accompanied by environmental devastation…
…While China produces 80% of solar PV modules and battery cells and 70% of electric vehicles globally, it is also by far the largest consumer of clean technology. Some will point to China also being the largest fossil fuel consumer, even though its per capita and cumulative emissions are roughly half of the US. However, the lasting effect of clean technology adoption is poised to rapidly change the country’s energy consumption. Electrification of its economy overall will enable that adoption to accelerate. That change will have economic impacts that extend for decades and provide global scale for other countries to follow…