China Invests in Clean Energy Almost as Much as the Rest of the World in Fossil Fuels

In 2024, China invested $934 billion in renewable energy, approaching the $1203 billion investment, made globally in fossil fuels. These are the conclusions reached by researchers at the Centre for research on Energy and clean air (CREA), based in Helsinki, Finland.

China even produced significant overcapacity in renewable energy after which the growth of Chinese investment in clean energy slowed to 7% versus +40%, recorded in 2023. “More than half of the investments,” CREA’s Chinese researchers write, “have been made by the innovative electric vehicle, photovoltaic panel, and electric battery industries.” In 2024, according to analysts, the sector’s contribution to China’s Gross Domestic Product (GDP) reached an unprecedented 10%, one percentage point higher than the previous year.

Meanwhile, to give a boost to the development of innovative sectors and start-ups, China’s National financial regulatory administration (NFRA) has let it be known that it will maintain a “stable and effective” credit supply to private companies by stepping up support for their lending. The announcement was made after a meeting held on Monday, February 17 by president Xi Jinping (pictured) with the top management of the national private business giants.

The Chinese press points out that “support for the private sector is also the focus of a draft law to be considered on February 24 and 25 by the Standing Committee of the National People’s Congress” (China’s Parliament – ed.). These moves “became necessary in the context of increased technological rivalry with the United States.” During the February 17 talks, Xi Jinping called on entrepreneurs to “manifest their talents 100% to further the progress of China’s industry and technology sectors.”