Advancing Clean Technology Manufacturing

Advancing CleanTechnologyManufacturing An Energy Technology PerspectivesSpecial Report INTERNATIONAL ENERGYAGENCY The IEA examines thefull spectrumof energy issuesincluding oil, gas andcoal supply anddemand, renewableenergy technologies,electricity markets,energy efficiency,access to energy,demand sidemanagement andmuch more. Throughits work, the IEAadvocates policies thatwill enhance thereliability, affordabilityand sustainability ofenergy in its31member countries,13associationcountries and beyond. IEA membercountries: IEA associationcountries: AustraliaAustriaBelgiumCanadaCzech RepublicDenmarkEstoniaFinlandFranceGermanyGreeceHungaryIrelandItalyJapanKoreaLithuaniaLuxembourgMexicoNetherlandsNew ZealandNorwayPolandPortugalSlovak RepublicSpainSwedenSwitzerlandRepublic of TürkiyeUnited KingdomUnited States ArgentinaBrazilChinaEgyptIndiaIndonesiaKenyaMoroccoSenegalSingaporeSouth AfricaThailandUkraine This publication and anymap included herein arewithout prejudice to thestatus of or sovereignty overany territory, to thedelimitation of internationalfrontiers and boundaries andto the name of any territory,city or area. The EuropeanCommission alsoparticipates in thework of the IEA Source: IEA.International Energy AgencyWebsite: www.iea.org Abstract Governments and firms around the world are racing to define their place in theclean energy economy, which is growing quickly as policy makers develop newindustrial strategies that also bolster energy security and address climate change.This Energy Technology Perspectives Special Report is structured to providedecision makers with an analytical toolkit to design and evaluate their strategiesfor clean technology manufacturing. Acknowledging that there is no “one size fitsall” approach, it lays out guiding principles that can help inform future planning. This analysis was produced in response to a request from G7 Leaders in2023. Itbenefits from the insights gathered during aHigh-level Dialogueon DiversifyingCleanTechnology Manufacturing held at the IEA headquarters in Paris inNovember 2023. It also builds on analysis conducted as part of the latest editionof the IEA’s flagship technology publication,Energy Technology Perspectives, andtwoSpecial Briefingson the topic of clean technology manufacturing during thecourse of 2023. Acknowledgements This study was prepared by the Energy Technology Policy (ETP) Division of theDirectorate of Sustainability, Technology and Outlooks (STO) of the InternationalEnergy Agency (IEA). The study was designed and directed by Timur Gül, IEAChiefEnergy Technology Officer.Araceli Fernandez Pales,Head of theTechnologyInnovation Unit,provided strategic guidance throughout thedevelopment of the project. Peter Levi co-ordinated the analysis and productionof the report. The lead authors (in alphabetical order) were: Simon Bennett (innovation), JoséBermudez Menendez (electrolysers), Chiara Delmastro (heat pumps), MathildeFajardy(manufacturing costs),Alexandre Gouy(manufacturing costs),CarlGreenfield(policy),Mathilde Huismans(wind and data management),TeoLombardo(batteries),Rafael Martinez Gordon(heat pumps),FaidonPapadimoulis (solar PV) and Francesco Pavan (electrolysers), and Chang Tan(manufacturing costs). Other key contributors were: Caleigh Andrews, Piotr Bojek,Johannes Hampp, Jean-Baptiste Le Marois and Biqing Yang. Per-Anders Widell and Anna Kalista provided essential support throughout theprocess.Lizzie Sayer edited the manuscript.Thanks also to the IEACommunications and Digital Office for their help, particularly to Jethro Mullen,Poeli Bojorquez, Curtis Brainard, Astrid Dumond, Merve Erdil, Grace Gordon,Julia Horowitz and Clara Vallois. Valuable comments and feedback were provided by other colleagues within theIEA, in particular Heymi Bahar, Alessandro Blasi, Laura Cozzi, Trevor Criswell,Tim Gould, Dennis Hesseling and Thomas Spencer. The analysis and findings in this report draw on strategic guidance and insightsgathered during aHigh-level Dialogueon Diversifying Clean Technology SupplyChains in Paris in November 2023. The work could not have been achieved without the financial support provided bythe Government of Japan. Several senior government officials and experts provided essential feedback toimprove the quality of the report. They include: Dries Acke (Solar Power Europe);Jeremy Avins and Giulia Siccardo (Department of Energy, United States); BenBackwell (Global Wind Energy Council); Marco Baresi (Turboden); Edwin Basson(WorldSteel); Marek Bielewski, Francesco Dolci, Aliki Georgakaki, Arnulf Jaeger-Waldau, Evdokia Tapoglou and Agne Toleikyte (JRC, European Commission); Reed Blakemore (Atlantic Council); Roberto Bocca (World Economic Forum);Rina Bohle Zeller (Vestas); Laura Casuscelli (WindEurope); Sam Cornish (IIGCC);Leandro de Oliveira Albuquerque (Ministry of Mines and Energy, Brazil); RebeccaDell (ClimateWorks Foundation); Miriam D’Onofrio and Sarah Ladislaw (NationalSecurity Council, United States); Daniel Dufou