For the first time, China is investing more overseas in wind and solar energy than coal. The country, known as a top global polluter, seems to be creating opportunities to push clean energy forward.

A study by Boston University’s Global Development Policy Center shows that between 2022 and 2023, the Chinese government spent 68% of its overseas power funding on wind and solar energy projects. Meanwhile, the country is following through on a 2021 promise to stop funding coal plants.

Renewable energy is a new focus in China’s state-backed Belt and Road Initiative, which is connecting the globe through infrastructure in nations across Asia, Africa, South America, and beyond. Previously, the initiative primarily funded coal power plants abroad. But that’s changed since 2021.

In 2024, China invested a total of $940 billion in clean energy, nearly canceling out the worldwide investment of $1.12 trillion in fossil fuels.

At the same time, the country doesn’t seem to be slowing down on coal projects approved before the promise. China is the world’s largest polluter, with about 58% of its energy coming from coal alone. Its coal production reached a record high in 2023, as the nation mined 4.66 billion metric tons, up 2.9% from 2022.

Still, the investment is a step in the right direction. It will help reduce global carbon pollution, which increased 0.8% in 2024. With a slowing economy and a surplus of wind and solar technology, China is looking for new markets to take what it has.

“They need to export; they don’t have any choice,” said Alicia García-Herrero, chief economist for Asia Pacific at the investment bank Natixis. “It is basically an economic argument.”

It also makes renewable energy more accessible. Switching to solar energy, in particular, is the ultimate home energy hack because it can bring energy costs down to as low as $0. EnergySage makes it easy, offering free services to compare solar panel installation quotes and saving homeowners up to $10,000. That kind of upfront investment may not be for everyone’s budget, so Palmetto’s LightReach program offers solar panel installation and leasing deals for no money down.

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