China has just raised the stakes in the global climate race. On September 24, President Xi Jinping announced the country’s first-ever short- to mid-term climate target: cutting greenhouse gas emissions by “7 to 10% across the economy by 2035, compared to peak level”. The pledge, unveiled during a UN climate summit, signals more than just numbers. It positions China as a contender for global leadership in the green transition, with carbon neutrality still set for 2060. Let’s examine how China is already taking the lead in green energy across solar, wind, hydrogen and energy storage.
UN Climate Conference
Yesterday, speaking from Beijing at the United Nations Climate Conference in New York, Chinese President Xi Jinping said,
“The green and low-carbon transition is the trend of our time. Although some countries act against it, the international community must stay the course.”
Among China’s new commitments for 2035, cutting greenhouse gas emissions by 7 to 10% across the economy by 2035 “compared to peak levels,” which are not yet known but could be reached this year. Beijing also aims to increase the share of non-fossil energy in total energy consumption to over 30%. And the country plans to multiply its installed solar and wind capacity sixfold compared to 2020 and further expand the adoption of electric vehicles.
While China had never before committed to such a precise short- or medium-term target, its ambitions in clean energy are not new. The country has long signaled its intentions and has already taken concrete actions in recent years.
China’s Green Energy Ambitions
In 2000, China filed 18 clean energy patents that were internationally competitive. In 2022 the number was over 5,000, says a 2025 New York Times article. For batteries and solar power, the number was higher than in any other country, and China appears to be on the verge of taking technical leadership in smart grids as well.
According to Zhang Yameng, Director of Sustainability and ESG at XJTLU’s International Business School Suzhou (IBSS), this is no accident and is a combination of various forces:
“China’s leading position in green energy is not the result of a single driver; it is achieved through a powerful synergy between proactive government direction and vigorous, voluntary innovation and investment by companies.”
The figures behind China’s embrace of green energy are staggering. As of May 2025 photovoltaic (solar) power installations were 1.08 terawatts, with nearly 198 gigawatts installed in the first five months of this year alone. China is also currently the home of the world’s largest solar farm in Midong, Urumqi, Xinjiang Province. Wind power was quoted as 490 GW by the end of 2024, and currently, all forms of renewables are undergoing considerable expansion in China.
Nonetheless, fossil fuels remain dominant in China’s national grid, making up about 62% of the supply in 2024 compared to only around 18% for solar and wind. This reliance on fossil fuels comes not just with an environmental cost but a strategic one too, as Professor Majid Ghorbani, Deputy Director of Global MiM CEIBS (Switzerland)-ESCP Double Degree Programme, China Europe International Business School, explains:
“With the current state of technology and sources of energy, China heavily depends on importing fossil fuels, which may be a threat to its sovereignty, security, and independence. Domestic sources of energy are limited, depletable, and mostly environmentally unfriendly. As such, China needs to develop alternative sources of energy. “
Chinese companies are rapidly expanding into key industries related to greening power infrastructure, including solar equipment, power storage, and green hydrogen technologies.
Solar
China accounted for 67% of the world’s new installations of photovoltaic (PV) power generation in the first half of 2025. Furthermore, Chinese companies likely supplied around 80% of all PV equipment in 2024. According to Ghorbani while China has dominance in the sector there are still other notable players:
“In terms of production capacity and volume, China has no global competition in solar and wind energy. When it comes to technology, Chinese firms are also at the forefront of new technologies and materials for the production of solar and wind power, but they are not alone. There are companies in Germany and the US that can match Chinese technology; in some niche sectors, they may even have better technology.”
Where Chinese companies particularly dominate is with crystalline silicon modules, the most common type of solar panel. In 2023 four Chinese companies controlled the market with shares of 14.7% for JinkoSolar, 13.7% Trina Solar, 13.1% LONGi, and JA Solar with 12.8% market share.
Energy Storage
With the intermittent nature of renewables such as solar and wind power generation, the need for energy storage to balance the grid has increased. Predominantly, this uses battery storage and so unsurprisingly Chinese battery companies such as CATL, along with BYD, through its battery unit FinDreams, are some of the major players in the area.
BYD supplies modular storage units, with the latest MC Cube-T unit providing 6.432 MWh of storage. The company is providing 6,240 units as part of Spanish firm’s Grenergy’s solar project in Chile’s Atacama Desert.
Exact figures are hard to come by, but it appears that Chinese companies likely constitute 4 out of the top 5 battery energy storage systems (BESS) providers worldwide with only Tesla, at number one, being non-Chinese. Sungrow with around 14% market share, is ranked at number 2 with CRRC at 8% in third, followed by Envision Energy. The number five spot likely belongs to either BYD or HyperStrong, both Chinese companies.
It is noteworthy that BESS has been spared from the US imposition of 93.5% tariffs on Chinese battery anode products.
Green Hydrogen Production
Green hydrogen, which is the production of hydrogen gas usually through the electrolysis of water using green energy, remains controversial due to its costs and inefficiencies. Unlike with many other areas of green technology, China is not currently the market leader, according to Ghorbani:
“Japan has established early leadership in green hydrogen production, China is rapidly emerging as a formidable competitor. With its vast renewable energy infrastructure and declining costs of solar and wind power, China is positioned to scale low-cost electrolysis for green hydrogen.”
One promising company is Beijing start-up Dynamic Hydrogen, which has innovated low-iridium PEM electrolyser catalysts and membranes. The company’s system uses very little iridium, a rare earth metal, and the process is claimed to be around six times more efficient than mainstream competitors.
Earlier this year Huaneng opened China’s largest photovoltaic adaptive electrolysis hydrogen production system in Zhangye, Gansu Province. The system was developed fully in-house by Huaneng.
Government Policies
Government policies have certainly had a push effect on Chinese companies, but many Chinese companies are now willingly seizing market opportunities as the world propels towards a greener future. China has dual carbon targets of reaching a peak in CO2 emissions in 2030, before becoming carbon neutral by 2060.
Many critics point to headlines showing that China is increasing its number of coal-fired power plants. Sources claim that in 2023 up to 300 new plants were either under construction, had received a permit or were awaiting a permit. Although China is certainly increasing the number of coal-fired power plants, it is likely that many will never be constructed. According to Dr King Yoong Lim, Associate Professor in the Department of Economics XJTLU’s International Business School Suzhou (IBSS):
“While the recent approvals and new construction of coal-fired plants have dominated headlines, these are largely driven by demand factors. In the longer term, we believe China is still on track to meet its own 30-60 goals, given that the massive green energy investment remains in place.”
In any case, yesterday’s speech seems to point in that direction.
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