Nation biggest contributor to global renewables capacity amid green transition

China is the largest contributor to the development of the global renewable energy industry, according to a recently released report by the International Energy Agency.

Last year, the scale of newly installed renewable energy capacity in China exceeded the total of other regions worldwide. The country is expected to remain an indispensable force driving the development of the global renewable energy industry, it said.

The IEA estimates that by the end of 2030, China will be contributing nearly 40 percent of global renewable energy installed capacity and its installed capacity of solar power, wind power, and hydropower will also witness significant growth by then.

Countries worldwide are lagging in their actual actions to achieve the goal of doubling global renewable energy capacity by 2030. Without China's significant progress, the prospects would be even dimmer, it said.

The installed capacity of renewable energy saw record growth last year, said IEA's senior energy analyst Heymi Bahar. Additionally, China has ample solar manufacturing capacity, which is expected to further solidify the foundation of the renewable energy industry.

According to the agency, Chinese investments in energy remained extremely strong, accounting for one-third of clean energy investments worldwide and an important share of China's overall GDP growth.

China has announced dual carbon goals, to peak carbon emissions before 2030 and achieve carbon neutrality before 2060, and has shown remarkable progress in adding renewable capacity, it said.

Figures released by the agency reveal that China commissioned as much solar PV last year as the entire world did in 2022, while its wind additions also grew by 66 percent year-on-year. Over the past five years, China also added 11 gigawatts of nuclear power, by far the largest of any country in the world.

There was robust growth in the three major tech-intensive green products — new energy vehicles, photovoltaic products and lithium batteries, dubbed the "new three", which saw a 30 percent jump in exports in 2023 from a year earlier, making them a major factor in Chinese trade.

These trends are expected to continue into 2024, with the largest portion of China's investments heading toward low-emission power, said the agency.

Ample domestic manufacturing capacity and continued government support for clean technologies provide a foundation for strong clean energy investment within China. Overall energy investment levels in China are comparable to the amounts required to meet national energy and climate goals, it said.