India, China emerged as game changers in green industrial era

A new report from European think tank Strategic Perspectives highlights the rapidly evolving landscape of zero-carbon technologies in the wake of global efforts to combat climate change and achieve net zero emissions.

The report analyzes the top five major economies – China, the European Union, the United States, Japan, and India – and assesses their respective positions in the race to dominate the emerging green industrial era.

The report highlights the progress and strategies of all five economies, but the findings on India and China are interesting. India and China possess different characteristics and hold significant potential in the global shift towards sustainability.

India's progress towards net zero special

An emerging economy India, has positioned itself in the global Net Zero supply chain. India can demonstrate significant growth potential despite facing unique challenges, if more financial support is provided, as asserted by the report.

India has notably achieved progress in incorporating solar and wind power into its electricity generation, nearly doubling its share from 2017 figures. The country expects the electric vehicle industry to undergo substantial growth, with an anticipated compound annual growth rate of 49% between 2022 and 2030.

India's starting position is not directly comparable to the fiscal capabilities of some other major economies despite its promising trajectory. Nevertheless, additional investment could transform India into a showcase of successful net-zero development in a variety of sectors, further accelerating its green transition.

China has emerged as a leader in the global race for zero-carbon technologies. The report highlights China's substantial progress in manufacturing lithium cells for solar photovoltaics, wind turbines, and batteries, as well as substantial job creation and investment in the green sector.

China's ambitious goal is to capture a significant share of the growing net-zero market and secure control of technology and component supply chains for the rest of the world.

China, the European Union, and the United States fiercely compete with each other for leadership in the green industrial era. However, China, backed by its impressive manufacturing capabilities and substantial investments in renewable energy, clearly takes the lead in most of the sectors analyzed.

Global race to the top

"The report emphasizes that all five major economies are actively seeking to position themselves in this new industrial era, recognizing the associated socio-economic benefits. Countries at the forefront of the technology race recognize manufacturing and investment in renewable energy, battery electric vehicles, and heat pumps as competitive advantages."

The European Union is rapidly decarbonizing its economy, and the United States excels in innovation through research and development investments. Japan is also a strong competitor in innovation, especially on a per capita basis. However, Japan can further enhance its competitiveness by committing to a full energy transition.

Net-zero technologies cannot underestimate the importance in this emerging scenario. As indicated by the findings of the report, countries that miss the train on the net-zero transition risk falling behind in industrial development and relying heavily on costly and environmentally damaging fossil fuels.

The global race for eventual zero-carbon technologies is in full swing, and major players with distinct roles and strategies are emerging, namely India and China.

While China leads in most aspects, it is clear that India has significant growth potential. Both countries play important roles in shaping the future of sustainable industrialization. As the world urgently grapples with the need for climate action, the outcomes of this race will unquestionably shape the future of the planet.

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