China’s High-Quality Green Production Fuels Global Energy Transition

China’s High-Quality Green Production Capacity Fuels Global Energy Transition

Recently, the International Renewable Energy Agency released a report indicating that global renewable energy installed capacity reached a historic high in 2024. Notably, China accounted for 60% of the world’s total increase in renewable energy generation. However, the report also pointed out that there remains a significant gap compared to the targets set by the 28th Conference of the Parties to the UN Framework Convention on Climate Change (COP28), highlighting the critical role of China’s flourishing green industry in the global energy transition.

Currently, the demand for green production capacity worldwide is experiencing rapid growth. On one hand, the unique low-carbon and environmentally-friendly attributes of the green industry are becoming key means for many countries to achieve carbon neutrality. The solar, wind, and hydro energy sectors are quickly developing on a global scale, with renewable energy increasingly becoming the main source to meet the rising demand for new electricity. In 2024, 80% of the increase in global electricity generation is expected to be met by renewable energy and nuclear power, together surpassing a 40% share for the first time. According to estimates, to further achieve green transition goals, global renewable energy installed capacity needs to grow by 16.6% annually until 2030, especially given the enormous potential demand for new energy products in many developing countries.

On the other hand, continuous technological advancements are driving the emergence of new green technologies and solutions, providing robust momentum for the development of the green industry. Innovations in technologies such as smart grids, distributed energy, and carbon capture and storage are opening new territories for green industries and becoming crucial forces in driving energy transition. Meanwhile, new green products and services, like electric vehicles and solar photovoltaic panels, are stimulating global demand for green consumption due to their energy-saving and resource-conserving advantages, which are highly favored by consumers in various countries.

Climate change is a global challenge, and as long as there is room for carbon reduction, global green production should not be considered excessive but rather insufficient. In the context of energy transition, international opinion generally recognizes that China’s high-quality green production capacity is making positive contributions to the global energy transition.

China’s high-quality green production capacity not only strengthens its own energy security but also plays a significant role in building a diversified global energy supply structure. In 2023, the overseas supply of “new three samples” products, represented by Chinese electric passenger vehicles, lithium batteries, and photovoltaic products, exceeded one trillion yuan for the first time. In 2024, exports of Chinese wind turbine units grew by 71.9%; photovoltaic products maintained exports above 200 billion yuan for four consecutive years; and lithium battery exports reached a historic high of 3.91 billion units. Additionally, China has collaborated on green energy projects with over 100 countries and regions, completing landmark projects such as the Karot Hydropower Station in Pakistan and the Adama Wind Power Project in Ethiopia, enabling many developing countries to turn their dreams of utilizing renewable energy into reality.

Moreover, China’s high-quality green production capacity has reduced global green transition costs. In recent years, rapid iterations of China’s new energy technologies have led to continuous improvements in the conversion efficiency of mass-produced photovoltaic cells, the development of multiple mature routes for megawatt-level wind turbine technology, and a leading number of patents in electric vehicles, all of which have driven down the costs of related green products and projects. For instance, low-cost solar panels made in China are lighting up rural areas in Zimbabwe, while high-cost-performance electric vehicles produced in China are gaining popularity, being spotted in numerous countries and regions. The International Renewable Energy Agency’s report indicates that over the past decade, the average levelized cost of electricity for global wind and solar projects has decreased by more than 60% and 80%, respectively, with a significant portion of this reduction attributed to China’s innovation, manufacturing, and engineering.

China’s high-quality green production capacity has optimized the global green industry supply chain. Through continuous technological innovation and a well-established production and supply chain system, Chinese new energy companies are increasingly localizing their operations in export countries, covering aspects such as products, services, marketing, human resources, and supply chains. For example, the lithium battery company CATL has established a battery factory in Hungary, while companies like LONGi Green Energy, Trina Solar, and JinkoSolar have set up production bases in Southeast Asia, forming integrated overseas capacities and comprehensive supply chain systems. Through these international collaborations and resource sharing, China and other countries are building a new model for mutually beneficial low-carbon energy transition, jointly promoting the steady advancement of global green energy transformation.

Currently, China’s high-quality green production capacity has become a core driving force in the global energy transition, demonstrating a strong commitment to addressing climate change and fulfilling its responsibilities as a major power. In contrast, certain developed countries, while discussing climate change initiatives, continue to impose trade barriers that hinder the global circulation of green technologies and products, contradicting the universal pursuit of sustainable green development. This highlights the essence of anti-globalization and trade protectionism, which does not aid countries in fulfilling their climate commitments or achieving a low-carbon economy, ultimately undermining the prospects for global energy transition.