Clean technology manufacturing investments worldwide reached $200 billion in 2023, an increase of more than 70 percent compared to 2022.
In its latest report, the International Energy Agency (IEA) IEA explained that investments in solar PV (Photovoltaic) and battery manufacturing plants led the way, together accounting for more than 90 percent of the total in both years. Investment in solar PV manufacturing more than doubled to around $80 billion in 2023, while investment in battery manufacturing grew by around 60 percent to $110 billion.
China dominates the market
The report mentioned that China accounted for three-quarters of the total investments in this field. It noted that the pipeline of clean energy projects is expanding faster, with the expectation that clean manufacturing capacity will meet the necessities of the “net-zero by 2030” scenario ahead of schedule, supported by photovoltaic solar cells.
Importance of clean technology manufacturing
The manufacturing sector – long an engine of economic growth and development – is increasingly at the forefront of considerations on energy, climate and economic policy. Countries are racing to capitalise on benefits that clean technology manufacturing can bring to economic security, employment and the resilience of clean energy transitions. Following a request by G7 Leaders in 2023, this Energy Technology Perspectives Special Report is designed to aid policy makers as they prepare their industrial strategies. It focuses on five key clean energy technologies – solar PV, wind, batteries, electrolysers and heat pumps.
Economic impact of clean technology manufacturing
Investment in clean technology manufacturing is becoming so significant that it is starting to register in broader macroeconomic data. In 2023, it accounted for around 0.7 percent of global investment across all sectors of the economy, driving more spending than established industries like steel (0.5 percent). In growth terms, the contribution is even starker – in 2023, clean technology manufacturing alone accounted for around 4 percent of global GDP growth and nearly 10 percent of global investment growth.
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