Warning over tariff impact on clean energy deployment

Global trade tariff tensions are likely to lead to higher costs for clean energy technologies, a report has warned.

Consultancy McKinsey & Company said the evolving tariff environment has the potential to significantly affect the global economy, energy and transportation demand, commodity prices, and supply chains.

It looked at a series of scenarios for the clean energy sector based on how the tariff  situation may develop.

Although it said moderate tariffs alone would likely have a limited effect on the adoption of clean technologies, especially in Europe, it said a higher tariff scenario could lead to a stalling of renewable energy adoption.

“However, across the board, tariffs likely mean clean-energy technologies will cost more,” it concluded.