Author: PPD Team Date: 21/02/2025
China’s clean energy investments in 2024 totalled 6.8 trillion yuan ($940 billion), approaching the $1.12 trillion 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 a key economic driver.
More than half of China’s clean energy investments came 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, according to the Centre for Research on Energy and Clean Air (CREA) for Carbon Brief. However, its contribution to overall economic growth declined to 26% from 40% in 2023 due to deflation and falling prices for solar panels and batteries, which, despite lowering GDP impact, boosted renewable adoption.
China’s electric vehicle sector was the largest contributor, with 3 trillion yuan from EV and hybrid production and 1.4 trillion yuan from factory investments. Charging infrastructure added 122 billion yuan. The solar sector followed with a 2.8 trillion yuan contribution, including 1 trillion yuan for power generation projects and 779 billion yuan for solar manufacturing.
Researchers expect strong clean energy investments to continue through 2025, the final year of China’s current five-year plan. However, they highlight the need for ambitious targets in the 2026-2030 plan to sustain current levels of renewable energy deployment.
Meanwhile, China’s National Development and Reform Commission and the energy administration are working to reduce subsidies for renewable projects. In 2024, China recorded a 45% increase in solar installations, bringing total installed solar capacity to 887GW—six times that of the US—according to the International Renewable Energy Agency.
Source: Power Technology