KATHMANDU: China’s clean energy sector accounted for more than 90 percent of the country’s investment growth last year, according to a new analysis.
The report shows that industries linked to electric vehicles, batteries, solar, wind power, and related technologies contributed over one-third of China’s total economic growth in 2025.
The sector is now larger than the economies of all but seven countries worldwide.
The analysis, prepared by the Center for Research on Energy and Clean Air and published by Carbon Brief, found that China’s clean energy industries almost doubled in real value between 2022 and 2025.
Last year, the sector generated about USD 2.2 trillion, equal to 11.4 percent of China’s GDP, up from 7.3 percent in 2022.
Experts say China would have missed its 5 percent annual growth target without the contribution from clean energy. Most new capacity is being used to meet strong domestic demand for solar and wind power, with China installing more renewable energy than the rest of the world combined.
The battery sector recorded the fastest growth, driven by demand for electric vehicles and grid energy storage. Exports of clean energy products are also rising, helping make solar power affordable in many developing countries.
Despite the strong momentum, the report warns that China continues to approve new coal-fired power projects, with 161 GW proposed last year and more under review.
The government’s next five-year plan, expected soon, is expected to clarify China’s long-term energy direction.
Analysts say China’s rapid shift towards clean energy could help the country reach peak carbon emissions, marking a major global climate milestone. However, continued investment in coal remains a key challenge.
