Clean Energy Drove Over One-Third of China’s GDP Growth in 2025

In 2025, clean energy technologies such as solar power, electric vehicles (EVs) and batteries became central drivers of China’s economic expansion, contributing substantially to both investment and overall growth. A Carbon Brief analysis published by analysts from the Centre for Research on Energy and Clean Air (CREA) shows that solar, EV, and related clean technology sectors were responsible for more than a third of China’s gross domestic product (GDP) growth in 2025. 

Without these sectors, China would have fallen well short of its official growth targets.

Scale of the Clean Energy Boom

The clean energy sector generated a record 15.4 trillion yuan (approximately USD 2.1 trillion) in 2025. This is equivalent to roughly 11.4 percent of China’s total GDP — a share comparable to the entire economy of Brazil or Canada. These industries nearly doubled in real value between 2022 and 2025, outpacing the overall economy and underlining their growing economic importance.

Analysts describe the combined role of EVs, batteries, and solar - often referred to as the “new three” in China’s clean tech economy - as dominant. Notably, they generated about two-thirds of the total value added and attracted more than half of all investment into clean technologies.

Investment Momentum and Growth Contribution

One of the most striking findings from the Carbon Brief study is that clean energy accounted for more than 90 percent of the increase in investment in China in 2025. This shows that nearly all new capital deployed in the Chinese economy was directed toward renewable energy and related technologies, reflecting a strong strategic push away from traditional fossil fuels.

If clean energy sectors were treated as a standalone economy, they would rank as the eighth-largest in the world, which is a remarkable achievement for a sector that only a decade ago was a small part of China’s industrial mix.

Wider Economic and Policy Implications

The clean energy surge was not just a climate story - it was an economic one. The analysis suggests that China would have missed its official growth target of around 5 percent in 2025 without the clean energy boom, with growth slowing to an estimated 3.5 percent in the absence of these industries.

This shift reflects long-term industrial strategy. China has actively supported large-scale deployment and manufacturing of renewables, EVs and batteries, not only for domestic use but also for export markets. This has helped China become a major global supplier of low-carbon technologies and strengthened its influence in international clean-energy supply chains.

Balancing Growth and Climate Goals

While the economic contributions of clean energy are clear, China’s energy transition still faces challenges. Growth in coal capacity continues alongside renewable expansion, and reducing carbon intensity remains a policy priority in the coming years. This duality underscores the complexity of transforming a vast industrial economy while maintaining energy security and growth.