Cleantech in Europe - statistics & facts
Europe is set on playing a key role in the growth of the global cleantech industry. The continent is already a pioneer in low-carbon technologies such as wind power, and is home to some of the world’s leading climate tech hubs. But with stiff competition from the U.S. and China when it comes to manufacturing capacity, and a considerable investment gap, Europe has a lot to do to keep up in the cleantech race.
The deployment of other GHG emission-reducing technologies has also been growing. Since 2010, the number of installed heat pumps in Europe has risen more than fourfold to 19 million, while annual battery electric vehicle sales hit a record high of two million units in 2023. Carbon capture technologies are also gaining traction, with more than 100 facilities in various stages of development across the continent as of Q1 2024, four of which were operational.
To address this, the Net-Zero Industry Act (NZIA) has set the target for the manufacturing capacity of strategic net-zero technologies to meet at least 40 percent of the EU's annual deployment needs by 2030, and increase the bloc’s share of global production to 15 percent by 2040. It is estimated that the EU will require at least 92 billion euros of investments between 2023 and 2030 to achieve NZIA targets. However, even if public and private funding estimates are met, there would still be a cleantech investment gap of roughly 50 billion euros. While private investment in cleantech has grown significantly over the years, it must further increase if the EU is to achieve its manufacturing goals.
Europe is clearly getting serious about the cleantech revolution. But only by increasing manufacturing capacities and attracting further investment will it stay competitive in the cleantech race and continue on its road to climate neutrality by mid-century.
Cleantech deployment growth in Europe
The adoption of various clean technologies, particularly renewables, has helped Europe make significant progress in reducing its GHG emissions over the past decades. Europe’s renewable energy capacity has more than doubled since 2010, nearing 790 gigawatts in 2023. The continent’s wind power capacity saw particular growth during this time. In fact, the cumulative deployment of wind power since 2019 has helped the EU avoid roughly 100 million metric tons of carbon dioxide annually. Meanwhile, the capacity of Europe's battery energy storage systems continues to grow, with an additional 17 gigawatt-hours added in 2023.The deployment of other GHG emission-reducing technologies has also been growing. Since 2010, the number of installed heat pumps in Europe has risen more than fourfold to 19 million, while annual battery electric vehicle sales hit a record high of two million units in 2023. Carbon capture technologies are also gaining traction, with more than 100 facilities in various stages of development across the continent as of Q1 2024, four of which were operational.
Cleantech manufacturing challenges
While much has been done to increase the deployment of clean technologies in Europe, less has been done to strengthen the region's manufacturing capacity. As such, Europe has become heavily dependent on imports of clean technologies to meet domestic demand, especially solar PV technologies and batteries. Much of these imports come from China, where the manufacturing costs of clean technologies are significantly cheaper than in Europe.To address this, the Net-Zero Industry Act (NZIA) has set the target for the manufacturing capacity of strategic net-zero technologies to meet at least 40 percent of the EU's annual deployment needs by 2030, and increase the bloc’s share of global production to 15 percent by 2040. It is estimated that the EU will require at least 92 billion euros of investments between 2023 and 2030 to achieve NZIA targets. However, even if public and private funding estimates are met, there would still be a cleantech investment gap of roughly 50 billion euros. While private investment in cleantech has grown significantly over the years, it must further increase if the EU is to achieve its manufacturing goals.
Europe is clearly getting serious about the cleantech revolution. But only by increasing manufacturing capacities and attracting further investment will it stay competitive in the cleantech race and continue on its road to climate neutrality by mid-century.
