Seizing the clean tech opportunity in Germany

This briefing by Zero Carbon Analytics examines the economic opportunity for Germany to rejuvenate its economy by expanding its manufacturing of clean technologies, specifically batteries and heat pumps, amidst global competition from China and the US.

• Germany is a European leader in the manufacture of heat pumps and batteries, though it faces significant global competition. In 2023, Germany invested USD 89.12 billion in clean technologies, which accounted for 29% of the total EU investment.
• While China, the US, and the EU control 80-90% of global clean technology manufacturing capacity, China dominates wind and solar PV. However, the EU and US have seen investment growth in battery manufacture, and their investment in heat pump and electrolyser manufacture exceeded that of China.
• Germany aims to establish itself as the world's third-largest battery manufacturer behind China and the US by achieving over 400 GWh of manufacturing capacity by 2030. The German energy storage market, including batteries, was valued at EUR 15.7 billion in 2023 and is projected to grow by 36% to EUR 21.4 billion in 2024.
• Germany leads the EU in clean technology manufacturing employment; IRENA estimated 354,000 people were employed in heat pumps and renewable energy in Germany in 2022. However, strong industrial policies in the US and China, such as the Inflation Reduction Act, pose risks to German investment, with companies like Tesla and Northvolt suggesting they may scale back German plans to focus on the US market.
• Germany previously lost its lead in solar PV and onshore wind manufacturing around 2012 and 2016 respectively due to Chinese competition and policy changes. The document argues that a new industrial strategy is required to avoid a similar decline in the battery and heat pump sectors.

APA

Team, Z. (2024). Seizing the clean tech opportunity in Germany. Zero Carbon Analytics. https://zerocarbon-analytics.org/insights/briefings/seizing-the-clean-tech-opportunity-in-germany/

Chicago

Team, ZCA. Seizing the clean tech opportunity in Germany. Zero Carbon Analytics, 2024. https://zerocarbon-analytics.org/insights/briefings/seizing-the-clean-tech-opportunity-in-germany/.

Wikipedia

{{cite report |last1=Team |first1=ZCA |title=Seizing the clean tech opportunity in Germany |publisher=Zero Carbon Analytics |date=27 May 2024 |url=https://zerocarbon-analytics.org/insights/briefings/seizing-the-clean-tech-opportunity-in-germany/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{team2024seizing, author = {Team, ZCA}, title = {{Seizing the clean tech opportunity in Germany}}, institution = {Zero Carbon Analytics}, year = {2024}, month = may, url = {https://zerocarbon-analytics.org/insights/briefings/seizing-the-clean-tech-opportunity-in-germany/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }