The Geopolitics of Green Energy

Global Green Energy Commitments

In 2015, the Paris Agreement set a global target of net zero emissions to be achieved in the latter half of the 21st century. A number of governments began constructing national strategies to transform their countries into carbon-free utopias.

How China Became a Major Player in the Green Energy Space

China and the US have been major economic players in the fossil fuel industry, with their heavy consumption of oil and coal to produce energy. Xi Jinping has led China into global markets and Chinese investments in international organisations has grown, reaching over 70 countries.

The Fall of the U.S. as a Green Energy Leader

In the late 20th century, being an energy superpower came from the control of fossil fuels, but this is soon changing due to climate change and largely due to the limited supply of coal, gas, and oil.

The Struggle to Catch Up and Innovate

America’s energy sector largely relies on oil and has very little investment in renewable technology. China on the other hand, dominates the lithium ion battery supply chain with control over 60 percent of both the component manufacturing and cell capacity. And on top of that China also owns 70 percent of the world’s solar modules.

The Inevitable Losers of the Green Energy Race

Fossil fuels are largely controlled by nations who have an abundance of coal, gas, and oil as well as nations who can afford to extract them. The Middle East has dominated the world’s oil supply, making it a source with limited access. In the past, if supplies were cut off, this caused a stark increase in prices and people suffered from the cold freezing their homes.

How Green Energy Will Determine the Geopolitical Power Dynamics

Green energy sources are more readily available and numerous countries can produce energy in this way, especially if they invest in wind and solar projects as these are naturally abundant and unlimited. If resources are available to all nations, this eliminates control as all are free to use it. However, it may not level out the power balance in regard to energy because despite having these resources, many countries still do not have the funding to utilize them.

Who Will Power the Future?

The fossil fuel industry has been polluting the world for over a century. It has been controlled by a small number of countries, giving them power over much of the world. This power and growth has always been limited to these parts of the world with poorer nations never having any opportunity to develop themselves. Nations such as China, the US, and the UAE have become major political powers thanks to their export and consumption of fossil fuels.

Accelerate the world’s transition to sustainable and green energy.

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