IEA workshop focuses on priorities for diversifying clean technology manufacturing

On 6 November, the International Energy Agency convened experts from government, industry, research, development institutions and civil society to discuss how to diversify manufacturing of clean energy technologies and their components for secure, resilient and sustainable supply chains.

Around 80 participants from countries across the world gathered at the IEA headquarters in Paris to share their perspectives on broadening the base of clean technology manufacturing and ensuring that all countries can benefit from the new energy economy.

Some technologies have seen remarkable progress in recent years, such as solar PV, which is now the cheapest source of electricity in most parts of the world. Heat pumps are enjoying double digit sales, and electric cars are set to account for one in five new sales by the end of the year. This growth brings with it many opportunities for economic development and supply chain jobs. 

Today, however, manufacturing in clean technology industries is highly concentrated geographically: four countries and the European Union account for 80-90% of global production capacity in technologies including solar PV, wind, batteries, heat pumps and electrolysers. Accelerating the clean energy transition further will require an expansion of global manufacturing to other countries and regions. To ensure progress towards this aim, well-designed policies are needed to unlock investment, maintain competitiveness and foster international trade.

Opening the meeting, IEA Executive Director Fatih Birol said: “The next chapter of industry belongs to clean energy technology manufacturing. These industries can create new jobs, develop more resilient supply chains and deliver affordable technologies to advance clean energy transitions. By broadening the base of clean technology manufacturing with fair, rules-based trade, we can ensure that everyone reaps the benefits of a new energy economy.”

The high-level dialogue provided a platform for stakeholders to share experience and priorities of developing and building out manufacturing bases at the country and regional level. The need for policy clarity to provide stability to attract private sector investment and the use of trade as a tool for support progress towards climate goals were central themes throughout the workshop.

The outcomes of the discussions will form a key input to an upcoming Energy Technology Perspectives (ETP) Special Report on diversifying clean technology manufacturing. The meeting also follows a first Special Report on Clean Technology Manufacturing published in May 2023 to support deliberations at the G7 Leaders’ Summit.