Supply chain risks in the EU’s clean energy technologies

This study focuses on the clean energy technologies (CET) defined as strategic in the proposed Net Zero Industry Act (NZIA) and considers their strategic importance. The study looks at each technology chosen in the NZIA (and other less strategic but relevant technologies) and uses desk research and expert input to consider the strategic importance of each technology. This comparison is based on three key criteria reflected in the NZIA: the technology’s overall impact on the EU’s climate goals, the need for building manufacturing capacity for the technology, and the various vulnerabilities that exist for the technology, in terms of competitiveness of EU production, market concentration, security of supply risks, and miscellaneous risk factors. The supply chains of various energy technologies have come under increased scrutiny in recent years. As strategic dependencies on energy from fossil fuels reduce, especially in response to geopolitical risks and threats, new dependencies take their place. In the context of rapid decarbonisation of the energy sector and other energy-intensive sectors, dependencies are beginning to appear to various clean energy technologies.