China's Clean Energy Sector: A Transformative Economic Force

China's clean energy industries have emerged as a significant driver of economic growth, accounting for over 90% of the country's investment increase in 2025. According to a report by the Centre for Research on Energy and Clean Air (CREA), these sectors generated a record 15.4 trillion yuan (approximately $2.2 trillion), representing 11.4% of China's gross domestic product (GDP). This growth trajectory positions China's clean energy sector as comparable to the GDPs of Brazil and Canada, making it the eighth-largest economy globally if treated as a separate entity. The report indicates that without these clean energy sectors, China would have fallen short of its 5% GDP growth target, achieving only 3.5% growth in 2025.

China’s clean power energising economy, adding a Brazil’s worth of GDP: reportGreen energy sector drove more than 90% of China’s investment growth last year, analysis findsFrom solar panels to batteries, China dominates renewable energy and forces the rest of the world to play by its rules; Chinese plans expand across Africa and Latin America, including Brazil.

The expansion of clean energy technologies, particularly solar power and electric vehicles (EVs), has been pivotal. The sector's annual growth accelerated from 12% in 2024 to 18% in 2025, nearly doubling in real value from 2022 to 2025. This shift is not merely a transition in power generation but reflects a comprehensive change in China's energy infrastructure. The Chinese government has committed to achieving peak carbon emissions by 2030 and carbon neutrality by 2060, underscoring its investment in renewable technologies.

Green energy sector drove more than 90% of China’s investment growth last year, analysis finds

China's aggressive investment strategy, often referred to as a "Green Marshall Plan," aims to reshape the global energy landscape. Since 2011, China has invested approximately $227 billion in over 450 renewable energy projects, with a significant portion of this investment occurring since 2022. The Belt and Road Initiative (BRI) plays a crucial role in this strategy, facilitating the export of renewable technologies to developing countries. In 2024, Chinese exports of green technologies reached $177 billion, with $72 billion directed towards developing nations.

From solar panels to batteries, China dominates renewable energy and forces the rest of the world to play by its rules; Chinese plans expand across Africa and Latin America, including Brazil.Green energy sector drove more than 90% of China’s investment growth last year, analysis findsChina’s clean power energising economy, adding a Brazil’s worth of GDP: report

Despite the rapid growth of clean energy, challenges remain. The coal industry in China continues to exert considerable political influence, with proposals for new coal-fired power plants still being submitted. Climate campaigners have expressed concern that while solar power is set to surpass coal in 2026, the continued investment in coal infrastructure could hinder the transition to renewables. Critics argue that this dual approach may lead to stranded assets and increased system costs, complicating the energy transition.

Green energy sector drove more than 90% of China’s investment growth last year, analysis findsFrom solar panels to batteries, China dominates renewable energy and forces the rest of the world to play by its rules; Chinese plans expand across Africa and Latin America, including Brazil.

The upcoming five-year plan from the Chinese government is expected to clarify the future direction of the energy sector. Experts emphasize the need for decisive action to ensure that the momentum towards clean energy is sustained. Andreas Sieber from 350.org remarked, “This is a historic turning point: solar power is set to overtake coal in China for the first time in 2026.”

Green energy sector drove more than 90% of China’s investment growth last year, analysis finds

China's clean energy sector is not only a cornerstone of its economic growth but also a critical player in the global energy transition. As the country navigates the complexities of its energy landscape, the balance between coal and renewables will be pivotal in determining its future role in combating climate change.

Green energy sector drove more than 90% of China’s investment growth last year, analysis finds