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Decoding China's Massive Green Energy Boom

• China is rapidly expanding its renewable energy capacity, adding new capacity at the same pace as the rest of the world combined, driven by strong government policies and funding.
• The Asian superpower could reach 1,800 GW of renewable energy capacity by the end of the decade, 50% higher than its own target, potentially achieving peak emissions before 2030.
• While China's commitment to renewable energy is impressive, it continues to depend heavily on coal for its energy needs, approving the highest number of new coal-fired plants since 2015 in 2022.

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As China continues to accelerate its green transition, the rest of the world should pay attention and follow its model for rapidly growing its renewable energy capacity. Largely thanks to strong government policies on expanding the energy mix to include a range of renewable energy sources over the last decade, China is growing its green energy capacity at the fastest rate of any country in the world. And while it still relies heavily on the dirtiest fossil fuel – coal, other countries may be able to undergo a green transition much faster if they follow China’s example when it comes to renewables. 

Despite its continual reliance on fossil fuels to meet its energy needs, China is currently adding new renewable energy capacity at around the same speed as the rest of the world combined. In 2020, it added three times the wind and solar power as the U.S. And in the first half of last year, it invested $100 billion in more wind and solar projects. This will be followed by the addition of a record quantity of added wind and solar capacity this year. China’s grid was 33 percent carbon-free in 2020. And based on its rate of renewable energy capacity growth, China is on its way to achieving 80 percent carbon-free electricity by 2035 – yet it is unlikely to make the shift away from coal that it perhaps could by this time. 

China is viewed as the world leader in green energy expansion. The Asian superpower plans to continue using fossil fuels to meet its growing energy demand while also expanding its renewable energy sector to reach peak emissions “in a well-planned and phased way.” But China is now far surpassing expectations. Mike Hemsley, deputy director at the Energy Transitions Commission think tank, explained “China is building renewables at such a staggering rate [that] it is said to outperform the targets they have set themselves.” Related: Shell Expects ‘Significantly Lower’ Earnings From Gas Trading

If it continues at the pace we’re currently seeing, China could achieve 1,800 GW of total renewable energy capacity by the end of the decade. That’s around 50 percent higher than President Xi Jinping’s 2030 target of 1,200 GW. In fact, China could achieve the initial 1,200 GW goal by as early as 2025. At this rate, it could reach peak emissions before 2030, perhaps around the mid-decade.