New Delhi: The global market for clean energy technologies is projected to rise from $700 billion in 2023 to over $2 trillion by 2035, nearly equaling the value of the world’s crude oil market, according to the International Energy Agency’s latest report, Energy Technology Perspectives 2024 (ETP-2024).
Trade in clean tech, including solar PV, wind turbines, electric cars, and batteries, is expected to reach $570 billion in the next decade, outpacing the global trade in natural gas by over 50 Percent .
IEA Executive Director Fatih Birol commented, “The market for clean technologies is set to multiply in value, increasingly catching up with fossil fuel markets. Clean energy transitions present a major economic opportunity, and countries are rightly seeking to capitalise on that.” He emphasized the importance of policies that promote competition, innovation, and cost reductions to support energy and climate goals.
The report identifies China, the EU, the US, and India as dominant players, with China’s exports forecast to exceed $340 billion by 2035, close to this year’s oil export revenue for Saudi Arabia and the UAE combined. Emerging markets in Southeast Asia, Latin America, and Africa currently account for less than 5 Percent of clean tech production value but hold significant potential. The report outlines that Southeast Asia could become a leading producer of solar components, while Brazil may scale up wind turbine manufacturing. North Africa could develop an electric vehicle manufacturing hub, while sub-Saharan Africa has potential in low-emissions iron production using hydrogen.The shift from fossil fuel imports to clean technology imports, according to ETP-2024, enhances energy security as clean tech requires less frequent replenishment. However, the report highlights that half of all clean energy tech trade passes through the Strait of Malacca, making maritime security a crucial factor. The interactive trade explorer tool on IEA’s website offers further insights into trade evolution within this sector.
