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'Europe isn't profitable' - Solar industry warns of hurdles to EU's green tech drive

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By illuminem briefings

· 2 min read

illuminem summarizes for you the essential news of the day. Read the full piece on Reuters or enjoy below

🗞️ Driving the news: Expanding Europe's green tech industry faces significant hurdles, including soaring energy costs and supply chain disruptions, as warned by solar industry representatives during a gathering in Madrid
• This concern arises as the European Commission and governments contemplate more stringent measures on imports while striving to enhance clean tech production within Europe, reducing dependence on China for essential green transition components

🔭 The context: European manufacturers encounter difficulties in competing with overseas counterparts due to higher production costs
• Gonzalo de la Vina, President for the Europe, Middle East, and Africa region of Trina Solar, a Chinese solar energy company, highlighted the challenge of manufacturing in Europe, citing the region's lack of profitability compared to other global manufacturing hubs

🌍 Why it matters for the planet: The EU's drive to boost its green tech sector is essential for climate goals and economic growth, but cost gaps with foreign-made products, particularly from China, hinder progress towards cleaner energy and sustainability

⏭️ What's next: To boost Europe's green tech sector, it's crucial to incentivize consumers to choose European-made products, addressing cost disparities and enhancing supply chains
• Tariffs on imports of materials for solar power generation, similar to discussions in Spain, could also be considered as part of these efforts

💬 One quote: "Without demand for European products, it is difficult to plan investments" (Christopher Atassi, Gonvarri Solar Steel)

📈 One stat: Solar panels manufactured in China cost as little as two-thirds of those produced in Europe due to higher energy and labor costs in Europe, as well as a less competitive supply chain

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