The European Union and United States have seen a resurgence in industrial policy focusing on clean technology supply chains, driven by legislative acts such as the Inflation Reduction Act in the US and the Net Zero Industry Act in the EU. To provide transparent data on clean-tech manufacturing and deployment, Bruegel and the Rhodium Group have developed monitoring tools for Europe and the US, respectively. Bruegel’s European Clean Tech Tracker and Rhodium Group Clean Investment Monitor track investment in clean-tech manufacturing and deployment in the US.
The Transatlantic Clean Investment Monitor, a collaboration between Bruegel and Rhodium Group, compares clean-tech deployment and manufacturing trends between Europe and the US. Analyzing data from these trackers reveals that Europe leads in wind, solar, and battery electric vehicle adoption, while the US has made gains in electric vehicle registrations and plug-in hybrid vehicle popularity. Europe also surpassed the US in electrolyser deployment for green hydrogen production.
The competition for new manufacturing facilities and associated jobs is intensifying as governments strive to balance domestic growth, clean energy transition, and supply chain security. Climate leadership necessitates navigating political realities, legal constraints, and international relations. Subsequent briefings will explore how policy disparities and economic factors influence project announcements and groundbreakings, indicating the pace of transition in these economies.
In terms of solar and wind power, the EU leads in overall deployment of solar PV and wind capacity compared to the US. Solar panel manufacturing involves various stages, from polysilicon production to module assembly. The EU and US exhibit significant capacities in certain stages, with the EU excelling in inverter manufacturing and the US focusing on solar cell and module manufacturing.
Electric vehicle (EV) registrations have surged in both the EU and US, with a preference for battery-electric vehicles (BEV). The EU has seen a more rapid increase in EV registrations compared to the US. The demand for batteries for EVs is rising, prompting attention to domestic battery manufacturing capacities. The US has significantly expanded its battery cell manufacturing capacity in recent years.
Hydrogen, particularly green hydrogen produced through electrolysis, is gaining traction as an energy vector. Europe has surpassed the US in electrolyser deployment for green hydrogen production. However, this capacity still lags behind EU targets. Both regions have under-utilized global electrolyser manufacturing capacities, indicating room for growth in clean hydrogen production.
The comparison between Europe and the US in clean-tech deployment and manufacturing reveals the evolving landscape of sustainable technologies in these regions. As both economies strive to meet climate goals and enhance energy security, investments in clean technology continue to shape the future of energy production and consumption.
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