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.
