1、09 December 202404Green sector prospects and supply-chain concentrationAllianz ResearchDivided we fall The risks of 14Green fragmentation and implications for competitiveness09The risk of isolationcompetitive fragmentation on Europes road to net-zero22The way ahead:Avoiding fragmentation and creatin

2、g shared prosperity Allianz Research The green transition is a motor for economic growth.In 2023,the clean energy sector alone added USD320bn to the global economy in value added,accounting for 10%of global GDP growth.Worldwide,the momentum toward net zero has pushed up clean energy investments by o

3、ver 80%in the past decade,surpassing USD2trn in 2024.China and Europe have been leading this transformation.But while Chinas green investments continue to grow,reaching USD676bn in 2024(3.7%of its GDP),Europes investment levels have begun to plateau at almost USD500bn,and even decreased relative to

4、its GDP from 1.9%to 1.8%in the last two years following the onset of the global energy crisis.In green manufacturing,China has leveraged increased investments,economies of scale and low-cost energy,capital and labor to secure a dominant position.In the photovoltaics sector alone,China accounts for a

5、pproximately 80%of global production of polysilicon,solar cells and modules,as well as 97%of wafer production.The existing market dominance is reinforced by recent developments for manufacturing capacity additions.In 2023,around 70%of global clean manufacturing capacity was added in China while the

6、EU and the US only added 13%and 8%,respectively.In 2030,Chinas green manufacturing capacity is likely to be 74%higher than that of the rest of the world.With domestic demand expected to account for only one-third of this supply,it is evident that most of the expanded capacity will target global mark