Green Sector Prospects and Supply-Chain Concentration

This document is a research report that outlines the current state and future prospects of the green sector, particularly focusing on supply-chain concentration and the implications of competitive fragmentation. It details the significant economic contributions of the clean energy sector, which added USD320 billion to the global economy in 2023, representing 10% of global GDP growth. The report highlights the dominance of China in green manufacturing, particularly in photovoltaics, where it accounts for a substantial share of global production. It also discusses the EU's response to China's market position through increased protectionism and the adoption of green industrial policies. The report warns that isolationist approaches may hinder the green transition and lead to higher costs and delays in achieving decarbonization goals. Furthermore, it emphasizes the importance of international cooperation to avoid fragmentation and ensure a coordinated transition towards net-zero emissions, which could yield significant economic benefits in the long run.