Green Transition and Economic Growth Analysis

This technical report from Allianz Research discusses the economic implications of the green transition, focusing on the clean energy sector's contribution to global GDP growth. In 2023, the clean energy sector added USD320 billion to the global economy, accounting for 10% of GDP growth. The report highlights the significant increase in clean energy investments, which have surpassed USD2 trillion in 2024, with China and Europe being the leading regions. However, it notes that while China's investments continue to rise, Europe's have plateaued, raising concerns about competitiveness. The report also addresses the risks associated with green protectionism in Europe, which has led to an increase in tariffs and non-tariff measures against Chinese imports. It emphasizes the need for a balanced approach to protect local industries while avoiding fragmentation that could hinder the green transition. The analysis concludes with a call for international cooperation to enhance competitiveness and achieve decarbonization goals effectively.