Renewables dominate economic expansion
China’s clean energy industries accounted for more than 90% of the country’s total investment growth last year, according to a new analysis, underscoring how central renewables have become to the world’s second-largest economy.
The report found that sectors including batteries, electric vehicles, solar and wind power, and related technologies generated over a third of China’s overall economic growth. Their scale now rivals that of all but seven national economies worldwide.
The analysis was produced by the Centre for Research on Energy and Clean Air and published by Carbon Brief. It showed that China’s clean energy sectors nearly doubled in real value between 2022 and 2025.
Trillions in output and rising dependence
In 2025 alone, clean energy industries generated a record 15.4 trillion yuan, roughly $2.2 trillion, an amount comparable to the entire GDP of countries such as Brazil or Canada. That figure represented 11.4% of China’s gross domestic product, up sharply from 7.3% in 2022.
Without this surge in renewables and related technologies, China would have fallen well short of its official 5% growth target. Analysts noted that most of the new capacity is being absorbed domestically, as China continues an unprecedented rollout of wind and solar installations.
Batteries, EVs and global exports
The battery sector stood out as the fastest-growing area of investment, driven by efficiency gains in electric vehicles and large-scale grid storage upgrades. Chinese advisers now describe the shift as a system-wide transformation, affecting not just power generation but also transportation and manufacturing.
Exports of clean energy technologies are also accelerating. Expanding production has helped drive down global costs, with the International Energy Agency crediting solar power with delivering “the cheapest electricity in history.” This has made renewable energy increasingly accessible in many developing economies.
“Many African countries have imported large volumes of solar,” said Lauri Myllyvirta, the report’s lead author. He added that electric vehicles are beginning to gain traction in markets previously not expected to adopt them for years.
Climate implications and coal tension
The continued expansion of clean energy in China could have major global implications. If the world’s largest greenhouse gas emitter maintains this pace, it may soon reach peak carbon emissions, a potential turning point for global climate efforts.
However, the transition is not guaranteed. China’s coal sector remains politically influential. Last year alone, developers proposed 161 gigawatts of new coal-fired power capacity, with additional projects under consideration. The balance between coal and renewables is expected to become clearer when Beijing releases its next five-year plan.
A decisive moment ahead
Climate advocates say China faces a critical choice. “Solar power is set to overtake coal in China for the first time in 2026,” said Andreas Sieber of 350.org. He called the shift proof that clean energy has won on cost, scale and air quality.
At the same time, campaigners warn that continued coal expansion risks creating stranded assets and higher long-term costs, potentially complicating China’s energy transition despite the rapid rise of renewables.
