A New Era in Energy Dominance: How China Took Down the 'Green Premium'
China's relentless pursuit of clean energy has dealt a devastating blow to North America and Europe, leaving them facing an economic and geopolitical reckoning. The "green premium" – once touted as a badge of honor for eco-conscious consumers – is now dead, replaced by an increasingly formidable "fossil premium." This shift in the global energy landscape is forcing nations to confront the harsh reality that cheap, abundant solar and wind power has made fossil fuels woefully uncompetitive.
The numbers tell the story. A recent report from financial advisory firm Lazard found that onshore wind and utility-scale solar have been the most affordable sources of energy for the past decade, outpacing fossil fuels by significant margins. Solar power was 41% cheaper on average, while onshore wind was 53% more cost-effective. This stark contrast has dealt a devastating blow to industries reliant on subsidies and protectionism.
Meanwhile, China's dominance in clean energy is accelerating at an exponential rate. The country now controls over 90% of global solar cell production, 85% of battery cell capacity, 60% of wind-turbine manufacturing value, and 69% of rare earth mineral production. Its installed solar and wind capacity has surpassed its coal capacity for the first time, cementing China's position as a leader in the clean energy revolution.
The fossil premium is not just limited to individual vehicles; it also applies to electricity generation. As onshore wind and utility-scale solar continue to undercut fossil fuels, nations are faced with an existential choice: adapt or atrophy. The IEA estimates that investment in clean energy will hit $2.2 trillion by 2025, roughly double the $1.1 trillion allocated to fossil fuels.
The West's reluctance to confront this reality has led to a curious phenomenon – protectionist policies aimed at shielding domestic industries from the clean energy revolution. Tariffs and subsidies are being used to prop up struggling companies, but this approach is doomed to fail. As BloombergNEF founder Michael Liebreich noted, if global energy demand grew at 2% annually, renewables would grow at 5%, leading to fossil fuel use plummeting to near-zero levels by 2045.
The West's reluctance to adapt has been fueled by misinformation and crony capitalism. Billionaire magnates are using their influence to block competition and stifle innovation, instead relying on outdated industries to maintain their grip on power.
However, it remains to be seen whether the US can learn from its past mistakes. In the 1980s, Japanese automakers began building plants in North America, spreading their expertise and adapting to changing market conditions. This approach allowed them to thrive while American competitors faltered.
Perhaps a similar transformation is possible for the West today. By embracing clean energy, investing in emerging technologies, and opening up to foreign competition, nations can regain their competitiveness and avoid an uncertain, potentially dystopian future. The choice is clear: join China on its path to clean energy dominance or risk being left behind, facing economic stagnation and environmental disaster.
The green premium may be dead, but the opportunity for a new era of sustainable growth remains very much alive.
China's relentless pursuit of clean energy has dealt a devastating blow to North America and Europe, leaving them facing an economic and geopolitical reckoning. The "green premium" – once touted as a badge of honor for eco-conscious consumers – is now dead, replaced by an increasingly formidable "fossil premium." This shift in the global energy landscape is forcing nations to confront the harsh reality that cheap, abundant solar and wind power has made fossil fuels woefully uncompetitive.
The numbers tell the story. A recent report from financial advisory firm Lazard found that onshore wind and utility-scale solar have been the most affordable sources of energy for the past decade, outpacing fossil fuels by significant margins. Solar power was 41% cheaper on average, while onshore wind was 53% more cost-effective. This stark contrast has dealt a devastating blow to industries reliant on subsidies and protectionism.
Meanwhile, China's dominance in clean energy is accelerating at an exponential rate. The country now controls over 90% of global solar cell production, 85% of battery cell capacity, 60% of wind-turbine manufacturing value, and 69% of rare earth mineral production. Its installed solar and wind capacity has surpassed its coal capacity for the first time, cementing China's position as a leader in the clean energy revolution.
The fossil premium is not just limited to individual vehicles; it also applies to electricity generation. As onshore wind and utility-scale solar continue to undercut fossil fuels, nations are faced with an existential choice: adapt or atrophy. The IEA estimates that investment in clean energy will hit $2.2 trillion by 2025, roughly double the $1.1 trillion allocated to fossil fuels.
The West's reluctance to confront this reality has led to a curious phenomenon – protectionist policies aimed at shielding domestic industries from the clean energy revolution. Tariffs and subsidies are being used to prop up struggling companies, but this approach is doomed to fail. As BloombergNEF founder Michael Liebreich noted, if global energy demand grew at 2% annually, renewables would grow at 5%, leading to fossil fuel use plummeting to near-zero levels by 2045.
The West's reluctance to adapt has been fueled by misinformation and crony capitalism. Billionaire magnates are using their influence to block competition and stifle innovation, instead relying on outdated industries to maintain their grip on power.
However, it remains to be seen whether the US can learn from its past mistakes. In the 1980s, Japanese automakers began building plants in North America, spreading their expertise and adapting to changing market conditions. This approach allowed them to thrive while American competitors faltered.
Perhaps a similar transformation is possible for the West today. By embracing clean energy, investing in emerging technologies, and opening up to foreign competition, nations can regain their competitiveness and avoid an uncertain, potentially dystopian future. The choice is clear: join China on its path to clean energy dominance or risk being left behind, facing economic stagnation and environmental disaster.
The green premium may be dead, but the opportunity for a new era of sustainable growth remains very much alive.
! They're basically crushing it in solar and wind power 
, leaving the West scrambling to keep up. The numbers are straight - clean energy is now cheaper than fossil fuels 
, and China's got 90% of global solar cell production 
. It's like they're saying, 'Hey, we've had enough of your green premium hype 
, let's see you adapt or atrophy 
.
️, but it's just not working out 
. Protectionist policies and subsidies aren't gonna cut it anymore 
. We need a new approach - one that invests in emerging tech and lets foreign competition come in 
, like they did with automakers coming to North America.
! We just gotta get on board and invest in a cleaner future 
.
but seriously, 41% cheaper on average for solar power? That's a game-changer. And don't even get me started on this whole fossil premium thing... it's time to switch sides 
. The numbers don't lie - solar and wind power are now cheaper than fossil fuels 
.
. It's not about being "anti-fossil fuel" or anything like that; it's just about embracing new tech and changing with the times 
.
. If they don't, we might be facing some serious economic and environmental challenges 
. Either way, it's been interesting to watch this whole "green premium" thing die on the vine 
.
China's clean energy push is a game-changer... Interesting how the West is struggling to adapt 
. The numbers on solar and wind power being way cheaper than fossil fuels are insane 
. If the US can learn from Japan's playbook and go green, they might just avoid an uncertain future... Interesting! 
And with investment in clean energy set to hit $2.2 trillion by 2025, it's clear that this is going to be a massive shift for the global economy.
. I mean, we've been preaching about saving the planet and using solar and wind power, but China just went and did us! They're making fossil fuels so uncompetitive now, it's like they're basically giving them away for free 
. We just need to invest in clean energy and make some big changes if we wanna avoid an uncertain future 
. The clock is ticking!
. And don't even get me started on the whole wind turbine thing 
.
and start thinking about the future 
!
what's wrong with just using solar power for everything anyway? 
it would be amazing if the west could learn from china and japan like in that article about how they adapted to change 
They're like the new kingpins of solar and wind power, and everyone else is just trying to keep up. It's kind of sad when you think about all those struggling American automakers who used to be so dominant on the world stage... 
. Maybe it's time for us to take a cue from Japan back in the 80s and start building those plants ourselves? 
It's not going away, so we might as well try to keep up 
.
instead of playing catch up, we need to be leading the charge on clean energy and sustainable growth 
. Billionaires using their cash to block competition is not cool 
. But it's gonna take some serious changes to get there – and fast 
. Europe and North America are feeling the heat as fossil fuels become less competitive. The "fossil premium" is a thing of the past 
.
.
. But I'm hopeful that the West will find a way to adapt and thrive in this new era of sustainable growth 
!
! Meanwhile, we're still stuck on subsidies and protectionism, like a fossil premium 
, and if we don't adapt, we risk being left behind 
, and maybe it's time for us to take a page from China's book 
It's not too late to make a change, but we need to start now