Deploying clean energy technologies at the pace required to put the world on a trajectory consistent with net zero emissions by mid-century will demand rapid expansion in clean energy technology manufacturing1 capacity, underpinned by robust supply chains for their components and materials. As such, clean technology manufacturing plays a pivotal role in the energy transition required to meet climate, energy security and economic development goals.

Change is already happening apace in sectors such as electric vehicles and solar PV, heralding a new era in manufacturing, with countries around the world introducing policies to shore up their position in the emerging clean energy economy. This fast-moving transition has been given added impetus by the current global energy crisis, which has increased energy security concerns and starkly illustrates the need for clean energy technologies with diversified supply chains.

The place of clean technology manufacturing in industrial strategy is today a critical consideration for governments, with policy makers committing to scale up investments and diversify supply chains. Strategic policy making in the area of clean technology manufacturing will require a clear understanding of the expected demand for clean energy technologies in different regional and policy contexts, and an assessment of bottlenecks that need to be addressed in order to fulfil climate ambitions.

This briefing provides an update on recent progress in clean technology manufacturing in key regions. It builds upon the latest edition of the IEA’s flagship technology publication, Energy Technology Perspectives 2023 (ETP-2023), published in January 2023. The analysis in ETP-2023 has been updated to take into account recent announcements of expansions in manufacturing capacity, in order to inform considerations by decision makers seeking to tap into the opportunities offered by the emerging clean energy economy.

We begin with a review of recent developments, exploring how far the current project pipeline is consistent with the trajectory needed to reach net zero emissions by 2050. We consider where these developments are occurring by technology to assess levels of regional concentration in clean technology manufacturing. We go on to consider the global market for key clean energy technologies, and finally to explore how recent policy developments are shaping the landscape of clean technology manufacturing.