China clean energy sector was biggest driver of 2023 GDP growth -research report

China Clean Energy

25/01/2024 09:49

By Andrew Hayley
       BEIJING, Jan 25 (Reuters) - China's clean energy sector
accounted for the largest portion of the country's economic
growth in 2023, according to a report by global research agency
released on Thursday, contributing 40% of the its economic
expansion last year. 
    The findings, published in an analysis by the
Finland-registered Centre for Research on Energy and Clean Air
(CREA), underscore the scale of China's investment in renewable
energy infrastructure, which totalled $890 billion last year,
nearly equal to global investments in fossil fuel supply for
2023. 
    Clean energy, comprising renewable energy sources, nuclear
power, electricity grids, energy storage, electric vehicles (EV)
and railways, accounted for 9.0% of China's GDP in 2023, up from
7.2% the previous year. 
    The increased share came mostly from the solar, EV and
energy storage sectors. China's solar sector grew by 63% to 2.5
trillion yuan ($350 billion) in 2023. EV production grew by 36%.
    The rapid expansion of clean energy and its weight in the
economy was amplified by the ongoing slowdown in China's
property sector. Capital, including bank loans and government
spending, was reallocated from real estate to high-end
manufacturing, representing a "major pivot" in the country's
macroeconomic strategy, CREA said. 
    In 2020, Beijing announced a set of targets to achieve peak
emissions by 2030 and carbon neutrality by 2060. The government
committed to construct 1,200 gigawatts of renewables capacity by
2030 to support this, but China is on track to meet that goal
five years early.
     The sector risks overcapacity, however, if its growth rate
is maintained as there is a limit to how much China's domestic
economy can absorb, the CREA report noted. 
    Low-priced Chinese exports of EVs, batteries and solar
panels have already stoked concerns over dumping from China's
trade partners, leading to calls for customs authorities to
consider taking protectionist measures. 
    
    ($1 = 7.1645 yuan)

 (Reporting by Andrew Hayley; Editing by Tom Hogue)
 ((Andrew.Hayley@thomsonreuters.com;))