Our Planet Climate and Geopolitics
Decoupling with China would be a lot easier if the fate of the planet didn’t depend so heavily on the clean tech it produces. A report from consultancy Wood Mackenzie estimates the energy transition would cost an extra $6 trillion in capital expenditure if other countries decided to shun cheaply-made batteries, wind turbines and solar panels from China. That’s an extra 20 per cent increase on the $29 trillion bill of getting to net zero by 2050. A total cut-off is clearly fantasy. But western countries are still striving to reduce critical dependencies – particularly in the green minerals sector which China dominates. Indeed, Australian rare earth producer Hastings says there is an emerging “ex-China premium market developing”. Translation: industry in Europe and America is prepared to pay a little more to swap out Chinese products if it brings their value chains closer to home.