2023-12-13 21:36:19
The European Union adopts a protectionist strategy to defend itself from Chinese competition in the renewable energy sector, but this choice risks raising prices and compromising the energy transition. The EU is indeed encouraging support measures for its electric vehicle, solar and wind industries to counter Chinese influence.
For months, the EU has been trying to reduce its dependence on imported technologies, especially low-cost Chinese ones, which threaten the market share of European manufacturers. However, this new shift towards protectionism in the clean energy sector could damage global supply chains and increase the prices of materials and equipment needed to accelerate the energy transition, as highlighted by analysts and industry players.
The European Commission, at the end of October, presented its action plan for wind energy, aimed at ensuring that the transition to clean energy goes hand in hand with industrial competitiveness, maintaining wind energy as a success European. Kadri Simson, European Energy Commissioner, highlighted the intensification of dependencies and the need to reduce dependence on imported technologies to avoid economic and security risks.
The wind energy package notes that low Chinese prices and shorter supply chains, due to China’s dominance in the production of steel and raw materials, seriously undermine the ability of EU companies to compete on a level playing field. Additionally, China plays a predominant role in the global clean energy technology supply chain, creating energy security concerns due to geographically concentrated supply chains.
Despite a 50% increase in the rate of wind and solar installations over the past year, the EU is concerned about growing dependence on Chinese production. In late November, 433 European solar companies and associations, led by SolarPower Europe, warned that trade measures could harm the EU’s solar sector and hinder the green energy transition. They suggested supporting domestic production with state guarantees, adjusting state aid rules and creating an EU-level financial instrument for solar production, such as a solar production bank, rather than imposing duties and tariffs on imports.
Fonte: Oilprice (EU Might Be Standing In The Way Of China’s Energy Transition)
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