Western countries are pushing for net-zero economies, despite outsourcing high-emission activities to China and other Asian countries. China leads in wind, solar, and EVs, but Europe, the UK, and Australia are leading emission cuts. However, the outsourcing trend is deepening the energy divide between countries.

China dominates global cement production, followed by India, with no European countries in the top 10. The West outsourced heavy industry to the East over 30 years ago, fueling China’s growth. The outsourcing trend is now moving to Africa, deepening the energy divide between outsourcers and outsourcees.

In 2024, $2.4 trillion was spent on energy transition activities, with China accounting for 49%. Western countries are investing in moving away from oil, gas, and coal, unlike China and other heavy industry-dependent economies. The outsourcing of heavy industries has made it challenging for Western countries to transition.

Despite record investments in net zero, global coal demand hit 8.77 billion tons in 2024, growing to 8.85 billion tons in 2025. Demand for hydrocarbons is driven by the growth in data center construction, powering Western economies. The divide between basic material industries and AI-driven economies is widening.

There is a growing divide between countries betting on AI for economic growth and those relying on basic material industries. Countries like China are powering net-zero ambitions by providing cheap and abundant energy. The energy transition is heavily dependent on industries like cement, steel, and coal, despite the push for net-zero economies.

Read more at Yahoo Finance: The Net Zero Paradox No One Admits