In 2015, China announced that it will invest $US2.5 trillion throughout the next 15 years on various clean energy projects. In June 2015, the nation submitted its action plan for climate change to the United Nations, where it promised the organization to cut down its carbon emissions and widen the percentage of sustainable non-fossil energy creation and consumption.
That same year, on June 10, the Chinese government released its Environmental Protection Tax Law, which was aimed at taxing polluters and enforced rules crafted toward improving the quality of air.
At the Caring for Climate event of the China Summit, Rae Kwon Chung, who was the UN Secretary General’s principal adviser on climate at the time, revealed that the country had already expended $US90 billion in the renewable energy industry in 2014, an amount that was more than a quarter of the world’s entire share.
In 2015, solar power contributed only 1 percent of China’s energy production, but today, in 2017, the country boasts the world’s largest wind turbine production facility and the sixth largest solar module manufacturing company.
China is heavily engaging in investments internally and all over the world in renewable energy and its complementary technologies, even leaving the developed world behind, according to the Institute for Energy Economics and Financial Analysis (Ieefa).
The Institute reported that among all foreign investments of over US$1 billion by China in 2016, a total of 13, worth US$32 billion, were made in green technologies.
This investment represents a 60 percent jump over similar investments made in 2015 even though the nation had already made headlines as being a major investor in renewable energy in 2015 with US$102 billion spent during the year, according to Bloomberg, which was double of that by the U.S. domestically and five times the U.K.’s investment.
Last year, China’s largest international investments were made in Australia, Germany, Brazil, Chile, Indonesia, Pakistan, Egypt, and Vietnam. Different projects were started in each of these countries regarding energy and power.
For example, in Australia, China Light and Power made an over US$1 billion deal that will allow them to buy power directly from the wind and solar power producers. Similarly, in Chile, investments were made in lithium batteries, which are to be used as battery storage for electric vehicles and home electrical storage.
In Germany, Chinese companies invested in waste energy developments of around US$1.6 billion. In addition to these, the report highlights that the country also owned the world’s largest lithium-ion producer and the largest electrical utility.
With such moves, fiscal and energy sector speculators have remarked that China is leading the world in amassing the benefits that the fast-growing clean energy industry has to offer, whereas in the U.S. and Australia, for example, with their governments’ stances on the issue, they are evidently losing ground.
However, the magnitude of the industry is vast, and there is ample time for other nations to catch up. The world is still transitioning to this new way of energy production for massive projects, and therefore, there are still investment opportunities before the major slices of the market are all taken away by China.
Carla Adams is an enthusiastic dreamer and a super workaholic to achieve all of that. She is a blogger, writer, basketball player, technology, and fashion freak. Currently, she is associated with Alfa Romeo Central Florida, dealers of premium new and used cars in greater Orlando area, for their blog operations. For all the updates, follow her on Facebook and Twitter.