The Chinese government’s ambitious objectives are set to peak carbon emissions before 2030 and achieve carbon neutrality by 2060.

These targets are catalysts for enhancements in renewable energy infrastructure and for bolstering domestic demand, which in turn sustains the growth within the clean energy sector.

China’s strategic policies and economic goals

Unwavering governmental support fuels China’s clean energy sector.

An array of policies and incentives, including feed-in tariffs, issuance of green bonds and subsidies for EV manufacturers, are employed to stimulate growth. These initiatives have not only positioned China as a top producer but also as a key exporter of clean energy technologies.

However, China’s approach — backed by the state and involving hefty subsidies — has triggered criticisms from Western countries, which accuse it of flooding global markets with less expensive goods, such as EVs and solar panels.

Despite these controversies, China has adjusted to changing economic dynamics by phasing out feed-in tariffs in 2021 as solar and wind technologies achieved price parity with fossil fuels, demonstrating its capacity to harmonise market forces with broader economic ambitions.