On August 29, 2024, Gaz d’aujourd’hui reported that China has reached a significant milestone in its energy transition, with over 26% of its total energy consumption now coming from decarbonized sources, including renewables and nuclear energy. This progress aligns with the country’s efforts to stabilize or reduce emissions by 2030 and achieve carbon neutrality by 2060.
Over the past decade, the share of decarbonized energy in China’s energy consumption has grown from 15.5% to 26.4%. This increase is attributed to a rapid expansion of wind and solar capacity, which has grown 11-fold during the same period. In 2023, China installed nearly 350 GW of new renewable capacity, accounting for more than half of the global total. According to the International Energy Agency (IEA), China has been responsible for over 40% of annual global renewable capacity increases since 2013.
Despite these advancements, China remains the world’s largest emitter of greenhouse gases due to its massive population and status as a manufacturing powerhouse. The country continues to rely heavily on coal, creating a paradox between its leadership in renewable energy and its high fossil fuel consumption. Challenges also persist in transporting renewable energy produced in remote regions to densely populated economic hubs in the East.
China’s shift toward decarbonized energy presents investment opportunities in the renewable energy and green technology sectors. Companies involved in clean energy production, storage, and distribution are well-positioned to benefit from this transition. However, investors should remain mindful of ongoing challenges related to coal dependency and energy transport infrastructure, as these factors could impact the stability and profitability of investments in this sector.
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