Milestone Achievement in Clean Energy Contribution
In 2024, China’s clean energy sector reached a significant milestone, contributing over 10% to the nation’s Gross Domestic Product (GDP) for the first time. This equates to approximately 13.6 trillion yuan (US$1.9 trillion) in economic value, surpassing traditional sectors such as real estate and agriculture.
Investment and Growth Dynamics
The year saw clean energy investments totaling 6.8 trillion yuan (US$940 billion), approaching the global total investment in fossil fuels, which stood at US$1.12 trillion. While the growth rate of these investments slowed to 7% from the previous year’s 40% surge—attributable to market stabilization and overcapacity concerns—the sector’s expansion remained robust. Notably, the “new three” industries—electric vehicles (EVs), batteries, and solar energy—dominated the landscape, accounting for over half of the total clean energy investments.
Economic Impact and Sectoral Contributions
Clean energy industries were responsible for 26% of China’s GDP growth in 2024, underscoring their pivotal role in the nation’s economic development. The EV and battery sectors emerged as the largest contributors, representing 39% of the overall economic value within the clean energy domain. This surge is reflective of China’s strategic investments aimed at enhancing energy security and achieving a favorable balance of payments.
Future Outlook and Policy Implications
Looking ahead, the trajectory of China’s clean energy growth will be significantly influenced by forthcoming policies and targets outlined in the nation’s new five-year plan, set to commence in 2026. Analysts emphasize the necessity for ambitious objectives to sustain the current momentum in clean energy deployment. Despite global economic fluctuations, China’s commitment to expanding its clean energy sector is expected to persist, driven by both financial incentives and strategic imperatives.
