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International supply chains pose green challenges

Friday, May 21, 2021

Significance

Trade-offs with other policy concerns such as domestic job creation pose political dilemmas. Both green technology products and their inputs are increasingly seen as strategic, prompting efforts to secure supply chains, which risk generating trade frictions and geopolitical disputes that could affect the cost efficiency of green technology.

Impacts

  • Global supply chain traceability will become more important for low-carbon companies and investors.
  • The need to meet increased demand for green-technology minerals will create opportunities in the areas of recycling and recovery.
  • Green technology transfer between Western and Chinese companies will become subject to trade disputes.

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