Working Paper Series in Economics and Institutions of Innovation,
Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

Abstract: The net-zero agreement on carbon emission from Paris 2015 gives a key role to fossil-free energy technologies with an expected multifold growth rate over the coming decades, when successively replacing oil, coal, and gas. In this paper, we delve into the EU’s competitive advantage in the evolving trade war in clean energy, investigate European strengths and weaknesses in innovation and production, and discuss the impact of the upcoming trade war on the global warming challenge. Our results show that the EU has a strong position in innovation capabilities in the strategic net-zero technologies. However, this is not matched by production capabilities: EU has only a few firms among the leading manufacturers in net-zero technologies.

Keywords: energy geopolitics; net-zero technologies; patents; innovation

JEL-codes: F02; O18; Q50; R10

Language: English

32 pages, November 30, 2023

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