Shifts in trade policy are forcing clean energy companies to adjust their business strategies, but they have not significantly slowed down the overall global transition to greener technologies. According to the authors of the newly released report, while new taxes on imports are creating local cost pressures, the worldwide market remains strong due to falling material prices and the flexibility of international trade networks.
“Early evidence of the impact of tariff hikes in 2025 points to a flurry of short-term adjustments by manufacturers, including front-loaded shipments, deferred investments, precautionary stockpiles and a slowdown in some trade flows.” “The impact of tariff increases in 2025 on the average delivered cost of key technologies has often been outweighed by declining costs for key inputs and shifting trade patterns.”
In simple terms, when governments add new fees to imported equipment like solar panels or batteries to support local factories, companies react by rushing orders or building up extra supplies. However, these changes have not made green technology much more expensive for consumers yet. This is because the cost of the raw materials used to build these devices is decreasing, and businesses are finding new ways to trade across borders to keep their overall costs stable.
The report “Energy Technology Perspectives 2026” was published by the International Energy Agency (IEA) in Paris, France. It was prepared by the IEA’s Energy Technology Policy Division under the direction of Chief Energy Technology Officer Timur Gül.
