Measures restricting clean tech exports slowing down energy transition

Major economies, representing 58% of the world's GDP, have enacted at least one measure to restrict the import of clean energy technologies, often targeting Chinese products, according to the Oxford Climate Policy Monitor's findings. Conversely, many small economies outside China, contributing about 8% of global GDP, are liberalising imports of electric vehicles, batteries, wind, and solar equipment, resulting in a de facto free trade area for clean technology.

Analysis conducted by the Blavatnik School of Government at the University of Oxford suggests that these restrictions are hindering the energy transition process, making it slower and more costly. However, the study also acknowledges that such measures may be necessary to balance climate policies with industrial development and economic security. The report emphasizes that "openness and protection can be combined, rather than traded off wholesale."

The researchers propose that large economies could opt for more targeted trade restrictions instead of striving to develop entirely self-sufficient industries. Meanwhile, smaller countries could specialize in specific manufacturing stages. According to Claas Mertens, co-author of the brief, "Our findings show that many countries have begun to implement this strategy."