WEMO 2025 (complet) - Flipbook - Page 77
03 Energy transition: countries perspective
Economic prosperity matters to achieve net zero. Sovereignty has become critical with geopolitical troubles.
Recently, the European Union introduced the Competitiveness Compass
following the Draghi report, which highlighted the contrast between the
European and Chinese approach to net zero targets. China's policy has
focused on boosting its economy to dominate the global economy, often
at the expense of net zero progress. Nowadays, China's policy is ambitious
on climate change and lands also on dominating the clean energy market
by providing a昀昀ordable materials and 昀椀nished products such as batteries,
EVs, solar panels, rare earths and metals, as well as wind turbines,
gigafactories, and hydrogen electrolysers. E昀昀ectively, China has
positioned itself as the world’s primary supplier of clean technologies.
The EU, on the other hand (6.4% of world emissions), has been imposing
much more ambitious decarbonization targets and wanted to be frontrunner and example for countries. Still, high energy prices have made it
di昀케cult for European companies to remain competitive and invest in net
zero. The Competitiveness Compass was therefore an extension of the
old strategy: Instead of imposing strict targets, it aims to boost
competitiveness and support businesses through lower energy prices,
grid fees and subsidies.
FIGURE 9
EU imports vs exports of green energy products (2023) [EUR bn]
Source: Europe-data
*Green energy products include solar panels, wind turbines and liquid biofuels
