World Bank moves to diversify renewables supply chain amid fears of Chinese dominance
Brussels has warned against becoming dependent on Chinese renewables products in the same way countries were on Russian gas
Amid mounting concern over Chinese dominance over green energy supply chains, the World Bank and Japan have launched a new partnership to help developing countries boost their green manufacturing capabilities.
The partnership will help developing countries and emerging markets ramp up manufacturing of clean energy products and boost their participation in the minerals industry.
The “Resilient and Inclusive Supply-chain Enhancement” or “RISE” partnership also counts Italy, South Korea, Canada and the UK as members.
The partners are together putting more than $40m into the initiative, with $25m of that coming from Japan.
The partnership was announced during a World Bank-International Monetary Fund summit in Marrakech.
Japan’s Minister of Finance, Suzuki Shunichi, said the partnership will support the sustainable development of low and middle income countries and “supply chain diversification of clean energy products.”
World Bank President Ajay Banga said the partnership will hand countries “new economic opportunities in clean energy and minerals industries; leading to jobs that help them build better lives for themselves and their families.”
The new partnership comes amid mounting concern in the West over China’s stranglehold on renewable energy supply chains, with concepts such as friend-shoring, near-shoring and diversification of supply all gaining ground.