In response to the global economic slowdown, China has stepped up its investments in green energy, with a new focus on solar PV, wind and hydropower developments. On December 6, 2024, the Chinese government announced that it would allocate an additional $30 billion to renewable energy projects over the next five years, as part of its strategy to transition away from coal and fossil fuels.

Accelerating the transition to renewable energy

The new funding will support the development of offshore wind farms, solar power installations in western desert regions, and the expansion of hydropower projects in southern China. In addition, the government is setting ambitious targets for energy storage solutions, which are vital to ensuring a reliable supply of renewable energy despite intermittency.

China has long been a leader in solar energy production, and this latest investment is seen as an effort to maintain its global position in green technologies. The government has set a goal of generating 40% of its energy from renewables by 2030, with the ultimate aim of achieving carbon neutrality by 2060.

Environmental groups have applauded China’s increased commitment to clean energy, especially given the country’s significant role in global emissions. However, challenges remain in balancing the rapid expansion of renewables with the need to reduce carbon emissions from industries such as manufacturing, which still rely heavily on coal.

The new investments in green energy come at a time when the global economy is facing headwinds and China’s renewed focus on sustainable development is seen as an economic opportunity and a crucial element of its climate leadership.