China’s clean energy investments are approaching fossil fuel levels, solidifying its role in the global transition
China invested 6.8 trillion yuan ($940 billion) in clean energy in 2024, nearly matching the $1.12 trillion invested globally in fossil fuels, according to Carbon Brief. This surge in investment occurred despite a slowdown in China's clean energy investments, which dropped from 40% in 2023 to 7% in 2024, amid overcapacity in certain sectors. More than half of that investment came from China's burgeoning electric vehicle, battery and solar industries, reported Reuters.
According to Centre for Research on Energy and Clean Air (CREA), the sector's contribution to China's GDP grew to 10% in 2024, up from 9% in 2023.
Clean energy grew three times as fast as China’s overall economy, but its contribution to China's economic growth fell to 26% of China's GDP last year against 40% in 2023, as the clean-energy sector’s growth slowed. Much of this investment is being directed to industries such as electric vehicles, solar energy and battery technology, marking China’s dominance in the global green transition.
China spent more than twice as much on its green transition in 2023 than any other country, making it a global powerhouse in clean energy production. A closer look at China’s dominance in specific technologies reveals the depth of its clean energy strategy.
China is the world’s largest EV battery exporter with Chinese EV battery makers having a global market share of 60%. These Chinese EV battery makers increased their exports by 30% year-on-year in 2023. This is just one example of China’s leadership in sectors that are crucial for the global clean energy transition.
China is similarly dominant in transitioning to low-emission hydrogen energy, a residue-free energy source that releases steam instead of smoke. The largest green hydrogen project on the planet is located in China, as are around 40% of the world’s hydrogen refuelling stations. These stations support a small but quickly growing population of hydrogen fuel cell vehicles. These advancements in hydrogen technology further highlight China’s ambitious push to dominate multiple sectors in clean energy.
The country commissioned as much solar photovoltaic capacity as the entire world did the year before and was responsible for 75% of global wind farm installations in 2023, according to World Economic Forum. This showcases the scale of China’s role in the global renewable energy market.
The rapid growth of green technology production in China has helped cut green energy costs worldwide. Besides, China’s low-cost solar panels are helping to light rural Zimbabwean communities, while Chinese EVs, which are affordable, clean transportation choices on city streets from Mexico to Thailand, are growing in popularity.
The nation’s sustainable development drive also makes tackling emission-cutting targets easier for other countries. In New Zealand, which aims to reach net-zero emissions by 2050, China supplied 89% of solar PV equipment by value in 2023.