China has caught up to and overtaken the EU across a range of low carbon economic sectors, including clean energy investment, R&D spending, power transmission grids and production and sales of electric vehicles.
The new five year plan accelerates these trends. China plans to more than double its wind energy capacity, nearly treble its solar capacity, and increase electric vehicles by a factor of 10. Meanwhile, clean investment in Europe has fallen sharply and will weaken further on the basis of current targets.
China's new plan poses a strategic challenge for Europe's low carbon economy. While growing markets will lower the cost of clean technology and create new opportunities for European firms, Europe's clean investment has fallen sharply and it is at risk of losing its low carbon competitive advantage if its domestic clean energy markets continue to weaken. European governments need to respond to this new economic reality—including by strengthening the EU's clean energy goals and low carbon economic strategies.
Tech Sovereignty: A Quest for Nepal
