Our Green Transition Chart Pack has been updated with the latest data and our analysis of recent developments.
Following a period of upward pressure on renewable and battery costs in recent years, the tide is turning once again. This partly reflects declines in key input costs such as lithium, as well as huge growth in global manufacturing capacity, particularly of solar panels. Meanwhile, expectations of looser monetary policy have already relieved some of the pressure on financing costs, which disproportionately affect renewables projects. Looking ahead, the main wildcard is policy. For example, it is easy to imagine ways in which a victory for President Trump could weaken the tailwinds to the green transition from the IRA package of subsides and tax credits in the US. More generally, China’s dominance and cost advantage in the supply of green technology leaves western governments torn between protecting domestic industries and securing progress on the green transition.
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