Global Cooperation Powers Energy Transition

Against the backdrop of adjustments to Europe’s renewable energy supply chain, the importance of global industrial cooperation is becoming increasingly evident

Key Policy: Starting in May 2026, the EU’s new “supply chain de-risking” financing regulations for renewable energy projects will officially take effect. Under these regulations, EU public financial institutions such as the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) will cease providing loans, financing, and public subsidies to any new renewable energy projects that use inverters or energy storage PCS (power conversion systems) from specific “high-risk suppliers.”

Policy Scope: Financial Restrictions, Not a Comprehensive Ban. It is important to clarify that this policy constitutes a “financing restriction” rather than a “blanket import ban.” Privately funded or purely commercial projects utilizing Chinese equipment may still proceed normally and in compliance with regulations. However, since approximately 20% of large-scale ground-mounted power plants and public energy storage projects in Europe rely heavily on EU public funding, these projects will be forced to adjust their supply chains.

As one of the world’s largest markets for solar and energy storage, Europe is actively advancing its energy transition and carbon neutrality goals. However, industry organizations generally believe that balancing supply chain security with industrial development efficiency, project economic viability, and the pace of the energy transition will be a critical challenge for the European market in the coming years.

Over the past decade, the global new energy industry chain has gradually developed a highly specialized division of labor. Through continuous innovation, large-scale manufacturing, and a well-established supply chain system, Chinese enterprises have made significant contributions to the global PV and energy storage industries. Currently, Chinese-made inverters, energy storage systems, and PV modules are widely used in many countries and regions around the world, playing a positive role in reducing the cost of clean energy and improving energy accessibility.

Faced with the growing demand for global energy transition, the interconnections between national markets are tighter than ever before. The International Energy Agency (IEA) has repeatedly emphasized that achieving global climate goals requires a more open, efficient, and stable international supply chain system. For the new energy sector, technological innovation, industrial synergy, and cross-regional cooperation remain the key drivers of green development.

The current international landscape is complex and volatile, with factors such as geopolitics, energy security, and economic development profoundly influencing the global industrial landscape. 

However, regardless of how market conditions evolve, the transition to a green and low-carbon future remains a global consensus. Open cooperation rather than market fragmentation, and mutual benefit rather than zero-sum competition, remain the optimal path for the long-term, healthy development of the new energy industry.

In the future, the global new energy industry must seek a more balanced development model that harmonizes security, innovation, and efficiency. By strengthening international cooperation, promoting technological exchange, and optimizing supply chain coordination, all parties can not only enhance industrial resilience but also create more opportunities for achieving global energy transition goals.

Under the shared mission of addressing climate change and promoting sustainable development, building an open, inclusive, and stable international new energy industry ecosystem serves the common interests of enterprises across the global industrial chain and markets in all countries, and will also inject sustained momentum into the green growth of the world economy.