Rising tariffs have a dampening effect on global economic growth but show a milder impact on renewable energy sectors compared to other industries, according to Francesco La Camera, Director-General of the International Renewable Energy Agency (IRENA). In an interview with CGTN, La Camera emphasized that while tariff hikes could slow the pace of the energy transition, the shift toward sustainable power sources remains unstoppable.
"Economic policies that restrict trade create headwinds for all sectors," La Camera noted. "However, renewable energy's long-term growth trajectory is less vulnerable due to its strategic role in addressing climate change and energy security."
The analysis aligns with IRENA's recent reports highlighting Asia's accelerating investments in solar, wind, and hydropower projects. Countries like India and Vietnam are prioritizing renewable infrastructure despite global trade tensions, signaling confidence in the sector's resilience.
For investors and policymakers, the remarks underscore a critical insight: Renewable energy markets may offer relative stability amid fluctuating trade dynamics. Academics and business leaders are now examining how tariff-related risks could reshape supply chains for clean technology components.
As cross-border collaborations face challenges, La Camera urged governments to "focus on multilateral frameworks that support green industrialization." His comments arrive as APEC members prepare for upcoming talks on harmonizing energy transition policies.
