China, the world’s largest emitter of greenhouse gases, is making strides toward reducing its carbon footprint with ambitious plans for renewable energy investments. As noted already, China now makes up roughly one-third of global emissions. The country plans to peak its emissions by 2028, reaching an estimated peak total of 11.3 billion tonnes. According to our recent analysis, the country could achieve cumulative reductions of 1.6 billion tonnes of carbon emissions by 2030. This cuts down quite a bit – if it leads to sufficient mobilization of green investments.
In 2024, China is expected to make massive $625 billion clean energy investments. That’s more than a quarter—almost 31%—of the world’s total renewable energy investments. Experts suggest that the country must increase its annual green investment by 40%, reaching 3.5 trillion yuan (approximately $491 billion), to meet its target of reducing carbon intensity by 65% from 2005 levels by 2030.
Future Projections for Renewable Energy
China’s renewable energy landscape will continue to see profound change in the years ahead. The country’s wind and solar power capacity will increase to 5,000 GW from 1,700 GW in 2025. By 2030, that number is projected to be over 2,800 GW. This increase will be key to helping China meet its energy objectives. Hydropower capacity could increase by 38 GW. At the same time, nuclear capacity is still expected to grow by 57 GW over that same period.
The country’s electrification ratio is now forecast to hit 35% by 2030, reflecting a move to cleaner energy. By that year, renewable resources will likely account for half of China’s electricity generation. Battery-based energy storage solutions have 188 GWh of new capacity planned by 2030. This clean growth will be key to absorbing more intermittent, renewable energy sources onto the grid.
Challenges Ahead in Energy Transition
China encounters important hurdles that may prevent the country from completing its energy transition. A potential resurgence in coal generation would create a tremendous setback to the hard-won progress that has been made toward cleaner energy. The challenge The heavy reliance on coal is a big part of the challenge. It undercuts our efforts to bring down emissions and fulfill our climate commitments.
China requires a cumulative 17.5 trillion yuan, or $2.5 trillion, in the coming five years. We need this funding badly to mobilize the necessary technical assistance, particularly for green investments. This investment infusion is critical. It ensures we’ll have the infrastructure, technology, and innovation required to make a successful economy-wide transition to renewable energy.
China is expected to announce its climate goals for 2035 very soon. This announcement will precede the first Conference of the Parties 30 negotiations in Brazil later this year. Expect this announcement to add new initiatives and plans to increase international climate action. It will increase China’s global leadership role in fighting climate change.
