Is the supply chain ready for the green transformation?

The transition from fossil fuel-based energy systems to renewable energy systems is a cornerstone of the green transformation to decarbonize our economic systems and mitigate climate change. Given the urgency of effective climate change mitigation, renewable energy diffusion needs to accelerate drastically. Among the many constraints to renewable energy diffusion, the important role of the supply chain is often overlooked. Therefore, this article addresses the role of the supply chain in the renewable energy diffusion process. Using the offshore wind energy sector as a case, this article presents an analysis of supply chain readiness to ascertain the role of the supply chain in the green transformation. Examining Europe and China mainly within offshore wind logistics, the research findings show that this segment of the supply chain constitutes a key bottleneck for accelerated deployment. For Europe, the key findings indicate that legislation for offshore wind beyond 2020 is necessary to ensure the implementation of the required investments in logistics assets, transport equipment, and personnel. In China, the key findings indicate that the Chinese supply chain of wind energy is mainly organized around onshore wind. Key bottlenecks exist, predominantly in logistics, and this article identifies specific areas of the supply chain where international collaboration and knowledge transfer may speed up deployment.