Investment

China is Determined to Invest in Clean Energy

China is Determined to Invest in Clean Energy

China, the world’s biggest producer of greenhouse gases, is determined to rebalance its energy mix by incorporating more

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China, the world’s biggest producer of greenhouse gases, is determined to rebalance its energy mix by incorporating more clean energy. That assurance is reflected in the capital it invested in renewable energy in 2017, exceeding spending by the U.S. as the biggest investor in the space.

A year ago, almost 50% of the world’s new renewable energy investment of $279.8 billion came from China, based on a report distributed on April 5 by Bloomberg New Energy Finance and the sustainable energy finance center run by the United Nations Environment Program and the Frankfurt School of Finance and Management. China’s investment in renewable energy—excluding huge hydro projects—rose 30% in 2017 compared with 2016, and the aggregate value of investment was more than three times of that of the U.S., whose investment in this space dropped 6% YoY to $40.5 billion in 2017.

China, India, and Brazil together represented a record 63% of global investment in renewable energy in 2017. More than two-thirds of China’s total investment in clean energy went to solar, adding some 53 gigawatt (GW) of capacity, which is enough to meet the power consumption of more than 38 million homes. Solar was followed by wind for which China spent almost one-third of its total investment in clean energy.

China has been aggressively souring electricity from renewable sources to reduce pollution. The country turned itself into the world’s largest solar-energy producer in 2016, boosting its photovoltaic capacity to about 78 GW by, for instance, converting shutdown coal mines into the world’s largest floating solar farms.

Around 26% of China’s total electricity production came from renewables, well above the 12% for the world as a whole.

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