New Energy Geopolitics: Global Transition, Clean Tech Arms Race, or Trade Wars?

The geopolitical landscape is more turbulent than ever in a world marked by rapid changes in energy policies and technologies. The International Energy Agency’s (IEA) 2023 World Energy Outlook highlights significant shifts in global energy systems driven by geopolitical tensions, fragile energy markets, and rapid advancements in clean technology.

Clean energy adoption is accelerating, with major markets such as the United States, the European Union, and China leading the charge. For instance, policies like the Inflation Reduction Act in the U.S. and the Net Zero Industry Act in the EU are spurring substantial investments in renewable energy and electric vehicles. This surge in clean technology fosters a competitive environment. It is often called a “clean tech arms race,” where countries fight for dominance in producing and deploying clean energy solutions.

The geopolitical situation is also complex, including potential trade wars, as nations seek to secure their energy supplies and technology supply chains. Diversifying clean energy supply chains is a critical strategy to reduce dependence on imports and enhance energy security. However, this also leads to new trade dynamics and potential conflicts as countries implement protectionist measures to support their domestic industries.

On June 12, CFTNI president Paul Saunders joined Tatiana Mitrova, founder and director of the New Energy Advancement Hub (NEAH), to discuss the complexities and interconnections of energy, geopolitics, innovation, and manufacturing in this engaging discussion.