Wopke Hoekstra, the EU’s climate chief, added that the EU’s increasing dependence on China, which aims to cut greenhouse gas emissions and switch to green technologies, would be a “problem” in the future.
Europe was once the leader in solar panel manufacturing, but lost that position to China more than a decade ago, Hoekstra said at an event in Brussels on Tuesday, February 13.
“Now, this is primarily a China issue,” the Dutch chief said at an event organized by economic think tank Bruegel.
“And, you know, while we’re getting greener, we’re getting redder,” Hoekstra said of China’s growing dominance in clean technology.
“We are becoming more dependent on China as we strive to become a greener society, and this is a problem.”
European solar panel manufacturers have warned they are “ready to shut down production lines” unless the EU takes urgent measures to save the sector.
Inventories have built up in recent years due to the influx of cheap solar panels imported from China, and European manufacturers are now facing a glut that is reducing demand for their products.
If purchasing excess stock is not possible, the industry has called on the European Commission to consider “safety measures” such as import duties or quotas.
But the European Commission has warned that import restrictions could hinder the EU’s goal of increasing solar power capacity from 263 GW now to 600 GW by 2030.
“Given that we currently rely on imports to a very significant degree to meet the EU’s solar penetration targets, any measures we take regarding the energy transition will be weighed against the goals we have set for ourselves. They need to be considered together,” EU Commissioner Mairead McGuinness said. Responsible for financial services.
Solar panel manufacturing is not the only industry affected by imports from China. The EU also faces increasing competition from China for wind turbines and electric cars, which are produced in large quantities cheaply within the bloc and exported to Europe.
Rather than importing, Hoekstra said Europe should take the lead when it comes to manufacturing clean technology.
“We should be at the forefront of this issue. Our business wants to be at the forefront of this. And we believe there are great business opportunities here as well.”
Last week, EU lawmakers agreed to a proposed Net Zero Industry Act (NZIA) that would see 40% of technologies such as solar panels, wind turbines, heat pumps and batteries produced on European soil by 2030.
[Edited by Alice Taylor]
