China’s growing dominance in clean energy investments
China's energy portfolio is rapidly expanding beyond fossil fuels as the nation is making a variety of clean energy investments Image: REUTERS/Stringer
Get involved with our crowdsourced digital platform to deliver impact at scale
Stay up to date:
Energy Transition
In brief
A new report from the IEEFA is positioning China as a world leader in clean energy investments. The country has put $44 billion into renewable energy projects around the world.
Clean energy investments: made in China
China continues to be an unstoppable force in the realm of renewable energy. A new report released by the Institute for Energy Economics and Financial Analysis (IEEFA) delves deep into the country’s efforts to lead the world in laying an international foundation for renewable energy generation. The report states that in 2017, China’s total investment in clean-energy projects represented more than $44 billion in clean energy investments— a significant growth from 2016’s $32 billion.
According to the report’s lead author, Tim Buckley, IEEFA’s Director of Energy Finance Studies, the United States’ decision to withdraw from the Paris climate agreement was an important catalyst for China’s growing dominance in clean energy investments. “Although China isn’t necessarily intending to fill the climate leadership void left by the U.S. withdrawal from Paris, it will certainly be very comfortable providing technology leadership and financial capacity so as to dominate fast-growing sectors such as solar energy, electric vehicles, and batteries.”
Pushing for clean energy investments
While the commitment to renewables is impressive, China has not completely divested from its ties to fossil fuels. The country still relies on coal to meet part of its massive energy needs. Still, the nation’s energy portfolio is rapidly expanding beyond fossil fuels as the nation embraces a variety of renewable resources, such as hydro, wind, solar, bioenergy, and other renewables.
China has experienced some serious growth in the past few decades, making it an industrial powerhouse — but with that has come a reputation for dangerous levels of pollution. In recent years, the Chinese government has made significant strides in changing that tide, even going so far as to shut down 40 percent of its factories for not abiding by emissions regulations.
Experts from the International Energy Agency (IEA) are projecting that China’s reliance on coal will continue to decline and its clean energy investments around the world will continue to grow. With many nations around the world stepping up to more fully embrace renewable energy, the U.S. will have a lot of catching up to do if it hopes to be a force in the renewable energy revolution.
Don't miss any update on this topic
Create a free account and access your personalized content collection with our latest publications and analyses.
License and Republishing
World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.
The views expressed in this article are those of the author alone and not the World Economic Forum.
The Agenda Weekly
A weekly update of the most important issues driving the global agenda
You can unsubscribe at any time using the link in our emails. For more details, review our privacy policy.
More on Energy TransitionSee all
Maciej Kolaczkowski
October 10, 2024
Megha Bhargava and Digvijay Sujlana
October 10, 2024
Azeem Azhar and Nathan Warren
October 9, 2024
Roberto Bocca
October 9, 2024
Jade Rodysill and Charlie Tan
October 7, 2024
David Elliott
October 3, 2024