China is undergoing a massive clean energy transition that is poised to trigger a global decline in fossil fuel demand, according to a new report titled China Energy Transition Review 2025 by the think tank Ember. The report highlights China’s rapid pace of clean energy investment and deployment, which is being driven by strategic goals beyond just climate change, including energy security and economic competitiveness.
Key Findings from the Report
In 2024, China invested a staggering $625 billion in clean energy, which accounted for 31% of the global total. Its wind and solar capacity more than doubled in just three years to reach 1,408 gigawatts (GW), surpassing coal’s installed capacity by early 2025.
The growth of wind and solar generation is outstripping electricity demand growth. In the first half of 2025, it resulted in a 2% drop in fossil fuel generation compared to the previous year. For the first time, wind and solar power produced more electricity than hydro, nuclear, and bioenergy combined in the 12 months leading up to June 2025.
Electricity is rapidly becoming the dominant energy source in China. In 2023, electricity supplied 32% of final energy demand, compared to 24% in the US and the European Union.
China’s dominance in clean technology manufacturing is driving down costs globally. The country manufactures approximately 80% of the world’s solar panels and 60% of its wind turbines. This has made clean energy technologies affordable for emerging economies, allowing many to leapfrog traditional fossil fuel-based development.
The report concludes that China transition proves a fossil-fuelled development model is no longer viable and shows how decarbonization can be aligned with economic growth and job creation.