China's Clean Energy Investments Near Global Fossil Fuel Scale, Researchers Find

China's clean energy investments have surged in recent years, nearing the scale of global fossil fuel investments, according to a new analysis by UK-based Carbon Brief. In 2024, China invested 6.8tn yuan ($940bn) in clean energies, approaching the $1.12tn global investment in fossil fuels. This rapid growth in clean energy investments can be attributed to several factors, including strong domestic demand, a focus on key sectors such as solar power, lithium batteries, electric vehicles, and power grids, government support and policies, cost reductions, and energy security and independence.

Despite a slowdown in growth from 40% in 2023 to 7% in 2024, China's clean energy sector remains significant. More than half of China's clean energy investment stemmed from its electric vehicle, battery, and solar industries. The sector's contribution to China's GDP increased to 10% in 2024, up from 9% in 2023. Clean energy industries grew three times faster than the Chinese economy, but their contribution to economic growth decreased to 26% of GDP in 2024, from 40% in 2023, due to cooling growth in the clean energy economy.

China's rapid investment surge widened its lead over other economies, with its energy transition spending more than double that of any other country. Even when adjusted for economic size, China's investment accounted for 4.5% of its GDP, far exceeding countries like the United States with 1.2%. China's renewable energy sector experienced a stellar year in 2024, with the total installed capacity of wind and solar power surpassing 1.4 billion kilowatts, further reinforcing the country's role as a global leader in renewable energy development.

Industry experts expect clean energy investments to continue growing rapidly until 2025, the final year of the current 5-year plan. They also emphasize the need for more ambitious targets in the next plan, which will be in 2026-2030, to maintain current levels of clean-energy deployment.

In conclusion, China's clean energy investments have grown significantly, nearing the scale of global fossil fuel investments. The country's strong domestic demand, focus on key sectors, government support, cost reductions, and energy security and independence have driven this growth. Despite a slowdown in growth, the sector remains significant and is expected to continue growing in the years ahead. To maintain current levels of clean-energy deployment, more ambitious targets are needed for the next 5-year plan.