Cleantech in Europe - statistics & facts
The success of the global net-zero transition is dependent on the growth of the cleantech sector, with technologies such as renewables, electric vehicles, heat pumps, and CCUS all poised to slash global emissions over the coming decades. Europe aims to play a key role in the growth of the sector. The continent is already a pioneer in clean technologies such as wind power and is home to some of the leading climate tech start-up hubs in the world, such as London. However, the sector faces numerous challenges going forward, from uncertainty around permitting timelines to competition with the U.S. and China in the global cleantech race.
To counter these challenges, Europe aims to become less dependent on imports by boosting domestic manufacturing and attracting more investments. In 2023, the EU unveiled the Wind Power Package, which would overhaul auction design, fast-track permitting, and improve access to EU financing. Additionally, as part of the Net Zero Industry Act, the EU is targeting 40 percent of its net-zero technology deployment needs to be manufactured within the Union by 2030.
Cleantech manufacturing in Europe
In 2022, the European Union (EU) accounted for approximately 16 percent of the global manufacturing capacity for wind technology and nearly 40 percent for heat pumps. However, the region’s manufacturing capacitiy of most clean energy technoligies accounts for only a small share of its deployment capacity needs. As such, Europe is a net importer of various key clean technologies like fuel cells, batteries, and solar PV modules. These imports mostly come from China, which currently dominates the global cleantech supply chain and is seen as the biggest threat to Europe’s cleantech industry, especially regarding its prized wind energy sector.To counter these challenges, Europe aims to become less dependent on imports by boosting domestic manufacturing and attracting more investments. In 2023, the EU unveiled the Wind Power Package, which would overhaul auction design, fast-track permitting, and improve access to EU financing. Additionally, as part of the Net Zero Industry Act, the EU is targeting 40 percent of its net-zero technology deployment needs to be manufactured within the Union by 2030.
