China’s Clean Energy Sector Powers 2025 Economic Growth: Over One-Third of GDP Rise from Renewables, Batteries, and EVs

A fresh examination by the Centre for Research on Energy and Clean Air (CREA), featured via Carbon Brief, reveals that renewables and associated technologies fueled the bulk of China’s economic momentum last year.

These industries—including solar panels, wind turbines, lithium batteries, and electric vehicles (EVs)—generated a historic 15.4 trillion yuan (around $2.1 trillion) in output during 2025. This represented 11.4% of the country’s overall GDP, a sharp rise from 7.3% in 2022, and placed the sector’s scale ahead of most national economies worldwide, ranking it as the eighth-largest if treated independently.

The value of these clean tech areas nearly doubled in real terms from 2022 to 2025, expanding at an accelerated 18% pace in the latest year—far exceeding the broader economy’s performance.

Critically, without this surge, China would have fallen well short of its official 5% annual growth goal. The sectors contributed more than one-third of total economic expansion, while capturing over 90% of net investment increases nationwide.

Domestic deployment remains the primary focus, with wind and solar additions in recent periods roughly matching the combined totals installed elsewhere on the planet. This massive rollout satisfies rising local electricity needs and supports upgrades to energy storage and grid infrastructure.

Battery advancements stood out as the fastest-growing segment, powering EV adoption and enhanced grid resilience through improved storage solutions.

On the global stage, China’s manufacturing dominance continues to transform energy access. Surging exports of affordable solar modules have driven record installations across developing regions, enabling many countries in Africa and beyond to leapfrog traditional infrastructure. The International Energy Agency has noted that Chinese-led production has delivered the lowest-cost electricity ever recorded, broadening renewable viability worldwide.

Lead analyst Lauri Myllyvirta emphasized the broader implications: accelerating adoption in diverse markets signals a worldwide momentum shift, with EVs gaining traction in unexpected locations and solar imports bolstering energy security in the Global South.

This trajectory raises hopes that China—the planet’s top greenhouse gas emitter—may have already achieved or is nearing peak carbon emissions, potentially marking a pivotal moment for international climate efforts if the pace holds.

Challenges persist, however. The coal sector retains significant influence, with developers proposing a record 161 GW of new coal-fired plants in 2025. While actual construction starts dipped compared to prior years and many facilities operate at reduced utilization due to renewables covering demand growth, a substantial pipeline (around 290 GW permitted or underway) risks creating stranded assets and inflating long-term system expenses.

Climate advocates argue this duality highlights an urgent crossroads. Solar is poised to surpass coal in electricity generation for the first time in 2026, underscoring renewables’ superiority in cost, deployment speed, and environmental benefits like improved air quality.

Yet simultaneous coal expansions appear aimed at safeguarding legacy interests amid inevitable decline. The upcoming five-year plan, expected soon, will clarify priorities and determine whether Beijing fully commits to accelerating the shift or hedges with continued fossil reliance.

Overall, the data underscores China’s central role in the global energy pivot: a manufacturing giant turning clean tech into economic strength while navigating internal tensions between innovation and tradition.