Clean energy bolsters China's GDP growth in 2024, study shows

China's global dominance of clean-energy technologies has raised the hackles of some nations and led to tariffs and trade spats, but the industry has proved a boon for the world's second-largest economy, which has struggled to boost sluggish growth.

- David Fogarty

While some economic sectors in China, such as the property market, have slumped on falling demand, clean-energy technologies are on a roll, contributing to a record 10 per cent of the nation's gross domestic product (GDP) in 2024 - and this could rise further in 2025, an analysis released on Feb 19 shows.

Electric vehicles (EVs), batteries and solar continued to dominate the economic contribution of clean energy in China, attracting more than half of all investment in clean-energy technologies, according to an analysis by the Centre for Research on Energy and Clean Air (Crea) for Carbon Brief, a British climate and energy policy news site.

In 2023, clean energy accounted for 9 per cent of China's GDP; the figure was 7.2 per cent in 2022, Crea said.

Overall, clean-energy technology sectors, which also include nuclear, wind, hydropower and railways, accounted for 26 per cent of overall China GDP growth in 2024, the analysis found.

"The finding is significant because it shows that clean-energy investment can be a major driver of economic growth and investment," said co-author Lauri Myllyvirta, lead analyst at Crea and a senior fellow at Asia Society Policy Institute.