Report Unveils Complex Dynamics of Clean Energy Policies and Trade, Projecting $2 Trillion Market by 2035

IEA analysis reveals the intricate relationship between energy, industrial, and trade policies as nations strive to secure supply chains and economic growth.

The new report, Energy Technology Perspectives 2024 (ETP-2024) highlights the significant opportunities presented by the rapid adoption of clean energy technologies. While countries aim to manufacture and trade these technologies, they face complex decisions influenced by their chosen industrial and trade policies.

ETP-2024 focuses on six key mass-manufactured clean energy technologies: solar PV, wind turbines, electric vehicles, batteries, electrolysers, and heat pumps. With current policies, the global market for these technologies is projected to grow from $700 billion in 2023 to over $2 trillion by 2035, nearing the recent value of the global crude oil market. Clean technology trade is expected to surge, tripling to reach $575 billion in a decade—over 50% larger than today’s global natural gas trade.

“The market for clean technologies is set to multiply in value in the coming decade, increasingly catching up with the markets for fossil fuels. As countries seek to define their role in the new energy economy, three vital policy areas – energy, industry and trade – are becoming more and more interlinked. While this leaves governments with tough and complicated decisions ahead, this groundbreaking new IEA report provides a strong, data-driven foundation for their decisions,” said IEA Executive Director Fatih Birol. “Clean energy transitions present a major economic opportunity, as we have shown, and countries are rightly seeking to capitalise on that. However, governments should strive to develop measures that also foster continued competition, innovation and cost reductions, as well as progress towards their energy and climate goals.”