Every opportunity — and every problem — in China is big! There is no such thing as a small opportunity, or a small problem, in the world’s most populous country.
That is certainly true when it comes to environmental and energy issues. With more cars on the road every year and increasing demands for power from individuals and industrial users alike, China is fast becoming the world’s largest consumer of energy. In 2013, China’s growth in oil consumption accounted for one-third of the world’s oil consumption growth. In 2014, China will likely surpass the United States as the world’s largest oil importer. China’s dependence on imported oil, combined with its well-publicized air-pollution problem, gives the country two big reasons to reduce its dependence on fossil fuels.
The good news is that China recognizes its energy problem and is making big bets on renewable energy. According to The Global Status Report, which was released earlier this month by the Renewable Energy Policy Network for the 21st Century, China once again led the rest of the world in renewable energy investment in 2013, spending a total of $56.3 billion on wind, solar and other renewable projects. The report stated that China accounted for 61 percent of the total investment in renewables by developing countries, and that China invested more in renewable energy than all of Europe last year.
China’s continued commitment to renewable energy investment is all the more striking because it came in the face of a global decline in renewable energy investment. In 2013, global new investment in renewable power and fuels was approximately $214.4 billion, down 14 percent compared to 2012, and 23 percent lower than the record high in 2011. By way of contrast, China has increased its investment in renewables nearly every year for the past ten years. New renewable power capacity surpassed new fossil fuel and nuclear capacity in China for the first time in 2013. China is now home to about 24 percent of the world’s renewable power capacity, including an estimated 260 gigawatts of hydropower.