How a Cleantech “Competition” is Dominating the Global Economy
What you’ll learn:
- Market competition is accelerating the maturation, adoption, and implementation of clean energy and its related industries.
- A recent study shows that the innovation fueling this competition occurs more at the regional level than between large geopolitical blocs.
- Its findings also indicate that even the most laggard regions may be compelled to embrace
Despite recent changes in U.S. government policy, cleantech continues to play a rapidly growing role in the global economy, driven from the bottom up. At first glance, it appears the economic evolution is being fueled by competition for leadership between three major blocs—Europe, the United States, and China. However, a recent study published by the Rocky Mountain Institute reveals that the real frontier of change lies within, at the country, state, and province level inside each bloc.
In the report, "Inside the Race to the Top,"* RMI looks at how the progress and pace of the energy transition is unfolding within each of the 110+ territories that comprise the three major blocs. This follow-up to a previous report on cleantech progress digs deeper into the local trends, observing the regional differences within each bloc on their deployment of renewable energy, electric-vehicle (EV) adoption, electrification, and cleantech manufacturing.
By taking such a detailed look at each region’s progress in the adoption and deployment of those technologies, the report makes it clear that new global cleantech leaders are rising rapidly throughout the world—and that there’s a wide variation in cleantech uptake within each bloc today.
Cleantech’s S-Curve Growth
This uneven pattern means that while a few trailblazing territories continue to accelerate the transition to a sustainable economy, other regions are falling behind. For example, some 20% still lag the Global South average in wind and solar uptake and electrification. Surprisingly, however, when taken in aggregate across all regions, cleantech appears to be growing rapidly along a remarkably uniform S-curve.
The study also shows that most of the upward growth required to keep the world on track with this S-curve in the coming decade can be achieved by simply finding ways to encourage the laggard regions to adopt the policies and practices of today’s leaders.
Most developed nations already understand that cleantech revolution is a technology revolution, and that early movers will benefit most from a virtuous cycle of market power, lower prices, and rising economic activity. The report underlines this, while showing how the benefits of cleantech are most apparent at the local level, in the form of stimulating growth, creating jobs, lowering energy costs, improving energy security, and boosting public health. These localized incentives mean that change is likely to be driven from the ground up.
As the race intensifies, the regions that invest decisively in this future will secure their position as leaders in growth, innovation, and resilience.
*Authored by Daan Walter, Kingsmill Bond, and Sam Butler-Sloss
