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China's Green Energy Boom Drives 90% of Investment Growth

New analysis shows 90% of China's 2025 investment growth came from green energy, transforming its economy and rivaling national GDPs. Solar expected to overtake coal in 2026.

This development matters profoundly because China's energy transition directly impacts global climate goals and economic stability. As the world's largest emitter and second-largest economy, China's pivot toward green energy accelerates the global shift away from fossil fuels, potentially lowering renewable technology costs worldwide through economies of scale. For investors, this represents massive opportunities in clean energy sectors, while for policymakers, it demonstrates that economic growth and decarbonization can be mutually reinforcing. The rapid scaling also highlights the urgency for other nations to accelerate their own transitions to remain competitive in the emerging green economy. However, the warnings about potential stranded assets and transition costs serve as crucial reminders that rapid expansion requires careful planning to ensure long-term sustainability and avoid economic disruptions.