China is emerging as a dominant force in renewable energy, setting the pace for the global transition while the United States struggles to meet its climate commitments. Last year, the country’s greenhouse gas emissions showed a slight decline, hinting at a possible peak in carbon use soon. Analysts believe this could mark a turning point in the global energy landscape.
China’s investment in renewable energy remains unprecedented. In 2024, the country’s wind and solar projects under construction were double the rest of the world combined, helping it reach an installed capacity of 1,200GW, six years ahead of schedule. Chinese companies now hold the top four positions in global wind turbine manufacturing and dominate photovoltaic cell and electric vehicle production. Li Shuo, director of China Climate Hub, says, “There is only one player. The US is not even in the room.”
Despite rapid clean energy growth, coal continues to play a significant role due to energy security concerns and political influence from major domestic coal companies. Fossil fuels still account for nearly half of China’s installed generation capacity, and current policies would push global temperatures toward a 4°C rise if continued. The country’s revised nationally determined contribution (NDC) is expected to show 8–15% emission reductions, short of the 1.5–2°C Paris targets, though sectoral targets for electric vehicles, renewable capacity, and energy-efficient buildings are projected to be ambitious.Economically, the green push is highly beneficial. Clean energy expansion could add CNY 15tn ($2.1tn) to China’s economy by 2035. Diplomats and experts expect Beijing to support climate finance initiatives, including forest conservation and overseas renewable projects, further reinforcing China’s role as a constructive global partner in multilateral climate efforts.
