A green industrial race has emerged between the European Union (EU), the United States (US), and China. Through aggressive green industrial policies targeted at cleantech, each region seeks to strengthen their position in the global value chains. The EU has built a robust regulatory framework, the US has developed a strong financial support scheme, and China is a market leader in several climate technologies. In short, policy is now aimed at reindustrialisation, energy security, and global competitiveness.

Simultaneously, decarbonisation efforts are more important than ever following an energy crisis in
Europe, floods in the Sahara Desert, a rapid increase of wildfires in the US, more extreme and frequent heat waves in Asia, and annual increments of global temperatures to unprecedented levels. Before climate change becomes irreversible, we must find a different way of inhabiting Earth. The biggest—and potentially fastest—impact we can make is changing how we power our energy demand.

The manufacturing of climate technology is a sector of growing strategic and economic importance
to achieving climate targets. How can the EU succeed in the energy transition—the Green Industrial Revolution—while leveraging economic and geopolitical interests? Is it a trilemma or an opportunity for Europe?