Global transition to renewable energy without China's help would cost $6 trillion

If the world pursues the proposed energy transition away from fossil fuels to one powered by renewable energy without China, it will cost an extra $6 trillion, according to a new report by Wood Mackenzie.

The study looked at how diversifying the supply chains of components and critical minerals would impact the cost of the energy transition.

China dominates manufacturing capacity and capabilities across all key technologies, according to the report. That includes 60% share in wind foundations and 97% share in solar PV wafers.

China’s manufacturers, according to the study, have achieved the lowest costs across these technologies.

The capital investment for Wood MacKenzie’s net zero case is $29 trillion from 2023 to 2050.

Should the world’s market pursue that goal without any of China’s manufactured clean tech products, it will result in a 20% increase in capital expenditure on key equipment, such materials such a lithium-ion batters, wind turbine blades, wind towers, and the polysilicon used in solar panels.

The study attributes cost reductions in green technology to China’s participation.

“Without China at the table, aggressive cost reductions we have become accustomed to are over,” the study concludes.