China, India place strategic bets on clean energy out of favour in the West - Reuters
Published April 25, 2026
China and India Embrace Clean Energy Investments Amid Western Disinterest
As the global energy landscape continues to evolve, China and India are making significant investments in clean energy technologies, a contrast to the waning interest observed in some Western nations. The strategic moves by these two populous countries reflect their commitment to transitioning towards more sustainable energy sources, positioning themselves as leaders in the renewable energy sector.
China, recognized as the world's largest emitter of greenhouse gases, has announced ambitious plans to enhance its renewable energy capacity. The nation aims to achieve carbon neutrality by 2060, with a target of generating 1,200 gigawatts (GW) of wind and solar power by 2030. This goal is part of a broader strategy to reduce reliance on fossil fuels and mitigate the effects of climate change.
In 2022, China accounted for approximately 50% of the global solar photovoltaic (PV) market, with the country producing around 90% of the world's solar panels. This dominance is bolstered by substantial investments in research and development, as well as government policies that support the growth of the clean energy sector. The Chinese government has allocated significant funding to bolster advancements in energy storage technologies, which are crucial for optimizing the use of intermittent renewable sources like wind and solar.
India, too, is ramping up its efforts in clean energy, with a target of achieving 500 GW of renewable energy capacity by 2030. The country has seen a rapid increase in solar power capacity, which has grown from just 2.6 GW in 2014 to over 40 GW in 2022. India's commitment to renewable energy is evident in its participation in international initiatives such as the International Solar Alliance, which aims to promote solar energy adoption globally.
Both China and India are also focusing on expanding their electric vehicle (EV) markets. The Chinese government has implemented various incentives to encourage EV adoption, with the goal of having 20% of all vehicles on the road be electric by 2025. Meanwhile, India is working towards increasing the share of EVs in its transportation sector, with initiatives such as the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme, which aims to boost the adoption of electric and hybrid vehicles.
While the West has seen a decline in investments in certain clean energy technologies, China and India are seizing the opportunity to lead in areas such as battery production and clean hydrogen. The global demand for batteries is expected to surge, driven by the increasing adoption of electric vehicles and renewable energy storage solutions. China is already the largest producer of lithium-ion batteries, which are essential for EVs and grid storage applications.
In addition to battery production, both countries are investing in clean hydrogen technologies. China has set a target to produce 100,000 tons of hydrogen from renewable sources by 2025. India, on the other hand, has launched a National Hydrogen Mission, which aims to make the country a global hub for green hydrogen production. The focus on hydrogen is seen as a key component of their energy transition strategies, as it can serve as a versatile energy carrier and a means to decarbonize various sectors.
Despite the significant strides being made in clean energy, challenges remain for both nations. For China, the reliance on coal remains a significant hurdle, as the country continues to build new coal-fired power plants. This has raised concerns about the effectiveness of its climate commitments. In response, the Chinese government has pledged to peak carbon emissions before 2030, but achieving this goal will require substantial changes in energy consumption patterns.
India faces similar challenges, particularly in terms of financing its renewable energy projects. The country requires an estimated $20 billion annually to meet its renewable energy targets. While international funding and support are crucial, domestic financing remains a significant barrier. The Indian government is actively seeking partnerships with private investors and international organizations to bridge this gap.
As China and India continue to invest in clean energy technologies, their efforts have the potential to reshape the global energy market. By prioritizing renewable energy, both nations are not only addressing their domestic energy needs but also contributing to global efforts to combat climate change. The strategic bets placed by China and India on clean energy stand in stark contrast to the shifting priorities observed in some Western countries, where fossil fuel interests and economic concerns have led to a slowdown in renewable energy investments.
The growing emphasis on clean energy in China and India presents opportunities for collaboration and knowledge sharing among nations. As these countries advance their renewable energy sectors, they can serve as models for others looking to transition to more sustainable energy systems. The international community can benefit from learning from the experiences and innovations emerging from these rapidly developing markets.
In conclusion, the strategic investments made by China and India in clean energy technologies highlight a significant shift in the global energy landscape. As both countries work towards their ambitious renewable energy targets, they are positioning themselves as leaders in the fight against climate change. The contrasting trends observed in the West underscore the need for renewed focus and commitment to clean energy solutions on a global scale.
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