Recent observations highlight a complex and often debated aspect of China's energy strategy, characterized by significant investment in clean energy alongside continued expansion of its fossil fuel sector. Velina Tchakarova, in a recent tweet, asserted that "China is „green washing“ the eyes of the naive Europeans while boosting its fossil fuels portfolio (oil, gas and coal)." This perspective underscores the perceived duality in the nation's approach to energy and climate goals.
China has emerged as a global leader in clean energy investment, pouring approximately 6.8 trillion yuan ($940 billion) into the sector in 2024. This massive investment, primarily driven by burgeoning electric vehicle, battery, and solar industries, approaches the scale of global fossil fuel investments. Clean energy sectors contributed significantly to China's GDP growth, accounting for 26% of its expansion last year, demonstrating a strong economic pivot towards low-carbon technologies.
Despite this substantial clean energy push, China's energy mix remains heavily reliant on fossil fuels, particularly coal. The country continues to build new coal-fired power plants, with nearly all new global coal-fired capacity originating from China. In 2023, coal production reached a record high, and fossil fuels still provided 62% of China's electricity in 2024, highlighting the persistent role of conventional energy sources in meeting its vast energy demands.
This dual strategy is often attributed to China's overarching focus on energy security and economic stability. While committed to long-term decarbonization goals, the immediate need to power its rapidly growing economy and ensure reliable energy supply often necessitates continued reliance on abundant domestic resources like coal. Furthermore, China's Belt and Road Initiative, while recently shifting towards renewable energy, historically involved significant fossil fuel investments in partner countries.
Experts note that China's clean energy expansion is now sufficient to cover its rising electricity demand, potentially leading to a structural decline in fossil fuel use in the power sector. However, the sheer scale of China's energy consumption means that even with record renewable deployment, fossil fuels continue to play a dominant role. The nation's path forward involves a delicate balance between ambitious climate targets and the practicalities of economic development and energy independence.