Clean energy accounted for a record 10% of China’s gross domestic product in 2024, according to a recent analysis. With sales and investments totaling 13.6 trillion yuan (£1.5 trillion; $1.9 trillion), the clean energy sector has surpassed real estate in terms of value. Key contributors to this remarkable growth include solar power, electric vehicles (EVs), and batteries.
The analysis, conducted by Carbon Brief using official statistics, industry data, and analyst reports, defined “clean energy” broadly to encompass renewables, nuclear power, electricity grids, energy storage, EVs, and railways. Notably, EVs and vehicle batteries represented the largest share of China’s clean energy economy last year, accounting for approximately 39% of the total value.
Simon Evans from Carbon Brief remarked, “China has been making significant investments in these sectors for some time. While the scale and speed of growth may have surprised some, the country has been developing its electric vehicle industry for years. This is a strategic initiative driven by multiple factors, including China’s status as a major oil importer, which motivates them to enhance their energy security and improve their balance of payments by reducing oil imports for transportation.”
The future trajectory of the clean energy sector will hinge on the new targets and policies outlined in China’s upcoming five-year plan for economic and social development, set to take effect in 2026. Evans expressed confidence that, despite global uncertainties, China is likely to maintain its momentum in clean energy: “Following the US election results, many speculated about the implications for the global climate agenda. However, China made it clear at COP29 that it intends to continue its current path. Their commitment is not driven by altruism but by financial rationale, as they have heavily invested in developing these industries. They are unlikely to reverse course simply because of political changes elsewhere.”
