Global investment in renewable energy by China reaches 625 billion, expediting the worldwide shift away from fossil fuels.
China Leads Global Energy Transition with Record Renewable Investments
China has taken the helm in the global energy transition, breaking records with a staggering $625 billion investment in renewable energy in 2024. This investment has transformed China's power system, making it a dominant force in the production and export of renewable energy technologies.
The country now produces 80% of the world's solar panels and 60% of its wind turbines, supplying batteries, panels, and turbines to countries in Africa, Asia, and Latin America. This has enabled these nations to electrify their development without relying on coal or gas, making a significant contribution to the global fight against climate change.
In the first half of 2025, China installed an additional 260 gigawatts of renewable energy, more than double the rest of the world in the same period. This rapid expansion has seen China double its wind and solar capacity to reach 1.4 terawatts between 2021 and 2024. By 2025, solar and wind generation in China surpassed demand growth, reducing fossil fuel consumption by 2%.
The clean energy sector in China contributes $1.9 trillion to the national economy, approximately one-tenth of China's GDP. This growth is a testament to the fact that it is possible to grow and decarbonize at the same time, as demonstrated by China's experience.
However, China faces significant challenges in integrating renewables into its power grid, where generation peaks often exceed transportation and storage capacity. Some countries show resistance to transition, whether due to dependence on fossil fuels, political interests, or pressure from extractive industries.
Despite these challenges, the fossil fuel decline dynamic is considered irreversible by analysts due to the benefits of renewable energy investments, such as job creation, reduced electricity costs, and improved energy security. A world where coal, oil, and gas consumption starts to fall before 2030 is now a possible reality, thanks to China's leadership in the global energy transition.
Chinese companies lead global technological innovation in clean energy, with nearly 75% of the world's patents in this field registered by the country's researchers. In 2023, a quarter of emerging economies surpassed the US in electrification due to low-cost Chinese solutions.
The author of the Ember report predicting the global reduction of fossil fuel consumption through China's renewable energy expansion by 2030 is Dave Jones. If the current trend continues, global fossil fuel demand will enter structural decline by 2030.
The challenge now is for the rest of the world to keep up, investing in smart grids, storage, and energy efficiency to match China's pace in the global energy transition. The world must follow China's lead to ensure a sustainable future for all.
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