China’s clean energy investments in 2024 amounted to 6.8tn yuan ($940bn), nearing the scale of $1.12tn global investment in fossil fuels, according to a new analysis by UK-based Carbon Brief.
Despite a slowdown in growth from 40% in 2023 to 7% in 2024, Reuters reports that 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, as reported by the Centre for Research on Energy and Clean Air (CREA) for Carbon Brief.
Clean energy industries such as batteries, power generation, renewable manufacturing and electric vehicles grew three times faster than the Chinese economy.
However, 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.
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The reduced contribution to GDP growth was attributed to deflation and declining prices for renewable energy equipment such as solar panels and batteries, although lower prices boosted renewable adoption.
China’s electric vehicle industry was the largest GDP contributor, with 3tn yuan from electric vehicle and hybrid production and 1.4tn yuan from factory investment. Charging infrastructure added a further 122bn yuan.
Solar followed with a 2.8tn yuan contribution, including 1tn yuan for power generation projects and 779bn yuan for solar manufacturing.
The researchers anticipate continued rapid growth in clean power investments through 2025, the final year of the current five-year plan.
However, they emphasise the need for more ambitious targets from 2026 to 2030 plan to maintain current levels of clean energy deployment.
China’s National Development and Reform Commission, alongside the country’s energy administration, is moving to reduce subsidies for renewable energy projects.
In 2024, China saw an unprecedented surge in solar installations, marking a 45% increase compared to the previous year.
According to data from the International Renewable Energy Agency, the nation now has 887GW of installed solar power – six times more than the US.
