How China is dominating green energy

        

How China is dominating the green energy market

As the world shifts toward a new energy era, one of the most important questions is how the clean energy landscape will evolve. Clean sources of energy solar, wind, and battery storage are more abundant and cheaper than ever before, fundamentally changing global energy markets.

China’s Dominance in Clean Energy

The dominant force in clean energy today is China, the world’s largest producer of renewable energy technologies, yet also the largest emitter of carbon. China leads in key sectors like solar panels, battery cells, wind turbines, and electric vehicle (EV) production, with an estimated 70% share of the global supply chains for these green technologies. This gives China a significant edge in the upcoming clean-energy market, projected to grow rapidly in the coming decades.

According to the International Energy Agency (IEA), renewables—especially solar—will account for four-fifths of all new power generation capacity by 2030. The global transition from fossil fuels to cleaner energy sources is driven by economic factors, as clean energy is increasingly more affordable than traditional fossil fuels. Solar, wind, and lithium-ion batteries are now at their lowest prices ever, making the shift to renewable energy more financially viable for countries and businesses.

The Growing Demand for Electricity

Electricity demand is expected to rise dramatically, driven by the rapid adoption of electric vehicles, air conditioning, AI data centers, and the growing number of electric appliances. The IEA projects that electricity demand will grow six times faster than total energy demand through 2035. As a result, there is now enough renewable energy capacity to meet this surge in demand, especially in developing regions like South Asia, which has already connected most of its population to the grid. However, roughly 750 million people remain without power, mostly in sub-Saharan Africa.

The Clean Energy Market Explosion

The clean-energy market is poised for explosive growth. The IEA predicts the sector could triple in size by 2035, reaching a market value of more than $2 trillion, comparable to the current global oil market. China, with its dominant position in manufacturing clean technologies and EVs, is well-positioned to "win" this new economic era unless external factors such as the policies of the U.S. under former president Donald Trump intervene.

U.S. and European Response

While the U.S. has made strides to catch up, particularly through initiatives like the Inflation Reduction Act (IRA) under President Joe Biden, the U.S. remains a distant second to China in clean energy. However, former President Trump’s potential return and his anti-China, pro-fossil fuel stance could undermine U.S. progress. Trump has suggested imposing 60% tariffs on Chinese clean technologies, which could disrupt the global clean energy market and limit China's dominance. This protectionist approach may also pressure European countries to abandon Chinese-made green technologies.

Despite political challenges, the U.S. clean energy sector has seen a significant boost in recent years, largely driven by companies like Tesla. Elon Musk’s leadership in EVs and renewable energy technologies has raised investor confidence, with Tesla’s market value increasing by $190 billion surpassing the combined market capitalization of major automakers like Ford and GM.

Energy Prices and the Future of Fossil Fuels

The clean-energy transition could also drive energy prices down in the future. The IEA predicts that the global supply of oil and natural gas will experience a potential glut, especially as renewable energy and EVs become more mainstream. As fossil fuels become less critical in a world dominated by green technologies, the price of oil and gas may decrease, creating new dynamics in the energy market. Countries dependent on fossil fuel exports, such as Russia and Gulf states, could face economic pressure as global demand for oil weakens.

Challenges to Europe’s Competitiveness

Europe, once a leader in solar and renewable technologies, has lost ground in the clean energy race. Some European nations have moved away from nuclear power and leaned on fossil fuel imports, particularly from Russia. In this changing energy landscape, Europe now faces the challenge of reasserting itself as a competitor in the global clean energy market.

In the end

The transition to clean energy is well underway, with China currently leading the charge. The clean-energy market is growing rapidly, and China is poised to dominate the next economic era, just as it did with manufacturing in the previous decades. However, geopolitical tensions, particularly with the U.S., may shape the future of this sector. The key challenge for Europe and the U.S. will be how they respond to China’s dominance in the clean energy market and whether they can remain competitive in an increasingly green global economy.

In the end, clean energy is not only about addressing climate change; it’s about winning the next global economic race. And right now, China is leading—unless political shifts, such as a potential return to power by Trump, disrupt the global energy landscape.