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REPORT | GREEN CAPITAL TSUNAMI: China’s >$100 billion outbound cleantech investment since 2023 turbocharges global energy transition
CEF’s news report shows that a green capital tsunami of investments from China into cleantech around the world is speeding decarbonisation, but Australia, with its opaque foreign investment regime, is missing out, as investment hit a multidecade low last year, forgoing its massive opportunity to co-invest with China in clean energy-powered onshore value-adding, including green iron. Read more
MONTHLY CHINA ENERGY UPDATE | Increasing Electricity Demand Showcasing China’s Economic Resilience
During the first 8 months of 2024, China added 210GW of new capacity to the grid, a 14% y-o-y increase. August alone saw China add 25.1GW of new capacity additions. From January to August 2024, China spent RMB333bn (US$47bn) on power grid projects, a 19% y-o-y increase. In August alone, China invested RMB79bn (US$11bn) in the power grid. From January to August in 2024, China’s electricity demand increased by 7% y-o-y, reaching 6,456TWh. This is a sign of China’s continued economic resilience and as a result of the country’s continuous electrification-of-everything strategy. CEF expects China’s electricity demand to continue to climb in the coming decade. Read more
OP ED | AMID IRON ORE WOES, BHP POSTS STRONG FY24 RESULTS BUT DECARBONISATION FAIL – Must keep eyes on the green iron prize
The iron ore slump means Australia must pivot at speed and scale to its immense opportunities in green iron, which requires action on decarbonisation. BHP, we’re looking at you. Read more
MONTHLY CHINA ENERGY UPDATE | China Reaches 2030 Wind & Solar Targets 6 Years Early, New Coal Power Permits Slow Significantly
This July, China reached its 1,200GW of installed wind and solar capacity by 2030 target, 6 years ahead of time. As of the end of July CY2024, China has a total installed wind and solar capacity of 1,207GW. This early success could inspire other major powers to accelerate their renewable energy efforts, benefiting global climate goals. However, China must continue to focus on areas like energy efficiency and steel sector decarbonization, as well as address challenges such as grid connectivity and energy storage to sustain its progress. As China’s electricity demand grows, particularly with the ongoing electrification strategy, the need for increased power generation and grid modernization becomes more pressing. To meet its carbon targets, CEF estimates that China will need to add approximately 330GW of solar, 80GW of wind, and 4GW of nuclear capacity annually until 2040. Read more
MONTHLY CHINA ENERGY UPDATE | China’s Power Market Half Year 2024 Review
During the first 6 months of CY2024, China installed a total of 152.8GW of new capacity additions, a 14% y-o-y increase. 134.5GW or 88% were zero emissions capacity, a 25% y-o-y increase. Although China’s thermal new additions during the first 6 months of CY2024 show a decline, CEF believes for China to reach its ‘dual carbon’ targets – peaking carbon emissions by 2030 and achieving carbon neutrality by 2060 – it needs to cease new thermal expansion as early as possible, even noting its orientation to new low utilisation, flexible coal plants. Read more
MONTHLY CHINA ENERGY UPDATE | China to Achieve its 2030 Installed Clean Energy Target in July 2024
China will achieve its 1,200GW wind and solar installed capacity by 2030 target by end July 2024, six years ahead of schedule. 103.5GW of zero-emissions capacity was added during the first 5 months of CY2024, as thermal power additions declined by 45% y-o-y as the end of May CY2024 notwithstanding a still exceptionally strong +6.9% y-o-y YTD2024 increase in electricity demand. Read more
OP ED | Warmer Ties Could Cool the Planet: Potential for Australia-China Green Energy Collaboration
Australia and China’s improving diplomatic relationship, highlighted by recent high-level meetings and record trade, presents significant opportunities for green energy collaboration. With China facing overcapacity in solar panels, batteries, and electric vehicles, Australia stands to benefit from redirected Chinese investments. By leveraging its abundant renewable resources and enhancing critical mineral processing, Australia can become a more appealing supplier, particularly in the wake of global trade tensions. Read more
OP ED | China’s Massive Investment into Cleantech R&D and Manufacturing is Catalysing the Global Energy Transition
10 years ago, President Xi Jinping delivered a speech outlining that developing a New Energy Vehicle (NEV) industry was the only way for China to become a global automobile manufacturing powerhouse. This speech marked the pivotal moment of China’s trajectory in developing its new energy industry. Fast forward a decade, through strategic industry and energy policy, and a core focus on research and development (R&D), China has become the largest NEV manufacturer in the world, and in 2023, overtook Japan as the world’s largest auto exporter. Read more
