In 2024, clean energy accounted for a record 10% of China’s gross domestic product (GDP), according to an analysis.
With sales and investments totaling 13.6 trillion yuan (£1.5 trillion; $1.9 trillion), the sector has surpassed real estate in value. The rapid expansion of solar power, electric vehicles (EVs), and battery production has been key to this growth.
The analysis, conducted by Carbon Brief using official data, industry reports, and expert analysis, applied a broad definition of clean energy, encompassing renewables, nuclear power, electricity grids, energy storage, EVs, and railways. EVs and vehicle batteries contributed the most, making up 39% of the sector’s total value.
Simon Evans of Carbon Brief highlighted China’s long-term investment in these industries, noting that the scale and speed of development have surprised many. He emphasized that this strategic shift is partly driven by China’s efforts to reduce its reliance on oil imports, enhancing energy security and improving its trade balance.
The future of China’s clean energy expansion will depend on targets set in the country’s next five-year economic and social development plan, which takes effect in 2026. Despite global uncertainties, Evans believes China will maintain its momentum, citing the country’s financial commitment and strategic interests.
“At COP29, China made it clear that it will continue its clean energy push,” he said. “They’re not doing this out of altruism—it’s a financially sound decision, and they’ve invested too much to reverse course, regardless of political changes in the U.S.”
China’s commitment to clean energy is also reflected in its dominance of global markets for key technologies. The country is the world’s largest producer of solar panels, EVs, and lithium-ion batteries, giving it a competitive edge in the green transition. Its leadership in these industries is reinforced by government policies that support research, domestic manufacturing, and supply chain development.
Despite this progress, challenges remain. Overcapacity in certain sectors, such as battery production, could lead to market volatility. Additionally, trade tensions with Western nations, particularly the U.S. and the European Union, could result in tariffs or restrictions on Chinese clean energy exports. However, experts believe China’s domestic demand will help sustain growth even if international markets become more restrictive.
Looking ahead, China’s upcoming five-year plan will be crucial in shaping the trajectory of its clean energy industry. Analysts expect new policies to focus on grid modernization, energy storage, and expanding renewable energy capacity to support the country’s goal of achieving carbon neutrality by 2060.
China’s influence on the global clean energy landscape is undeniable. As other nations strive to accelerate their green transitions, they will likely continue to rely on China’s expertise and manufacturing capabilities. Whether through competition or collaboration, the country’s clean energy sector is set to play a defining role in the world’s efforts to combat climate change.
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