China's exports of clean energy in 2024 are projected to reduce carbon dioxide emissions abroad by one percentage point
China's Clean-Tech Exports Significantly Reduce Global CO2 Emissions
China's clean-technology exports are making a substantial impact on global carbon emissions, according to a 2024 Carbon Brief analysis. The report estimates that these exports will cut annual CO2 emissions by approximately 220 million tonnes (MtCO2), equivalent to the total annual emissions of Spain [1][3].
Despite the carbon-intensive manufacturing of these clean-energy products, which generated around 110 MtCO2 in 2024 from exports alone, the net effect is a significant reduction in emissions worldwide.
Key findings of the analysis include:
- Net CO2 savings: The exported products such as solar panels, batteries, electric vehicles, and wind turbines will avoid 220 MtCO2 each year once in operation overseas.
- Manufacturing carbon footprint: Producing these technologies is energy- and carbon-intensive, producing 110 MtCO2 in 2024 from exports alone.
- Lifetime emissions savings: The clean-tech exports from 2024 will cumulatively avoid around 4 billion tonnes of CO2 over their operational lifetimes [1][3].
The CO2 savings estimates account for the carbon intensity of electricity generation in the destination countries where these clean technologies are used, adjusting avoided emissions accordingly [3]. Besides product exports, overseas clean-energy investments, including solar manufacturing plants and power generation projects announced by Chinese companies in 2023-24, are expected to yield further annual CO2 savings of 130 Mt (90 Mt from manufacturing facilities and 40 Mt from power projects) [1].
The largest avoided emissions result from solar, at 280MtCO2, followed by batteries and EVs at 50MtCO2, and wind turbines at 20MtCO2. In the Middle East and north Africa (MENA) region, these exports are expected to cut emissions by 4.5% per year once completed. Much of China's overseas manufacturing investment is in markets with a lower average CO2 intensity of power generation than in China itself, which shortens the CO2 payback time from clean-energy equipment produced by those overseas manufacturing plants.
The value of solar projects using Chinese equipment is based on averages for total investment costs in 2023 from IRENA, adjusted for the reported 35 per cent fall in module costs in 2024. The downstream value of overseas clean-energy products and projects relying on Chinese components is estimated to be US$720 billion annually, four times the value of the exported raw components.
China's clean-energy footprint is the largest in south-east Asia in countries like Malaysia, Thailand, the Philippines, Indonesia, and Vietnam. However, China's central role in global supply chains has raised concerns over supply security, leading many countries to diversify their sourcing of key components such as solar panels, batteries, and EVs. China's rapid expansion in clean-energy manufacturing and exports is already reshaping emissions trajectories in several key regions, particularly in MENA and sub-Saharan Africa.
[1] Carbon Brief (2024). China's clean-tech exports to cut global CO2 emissions by 220Mt annually. [Online]. Available: https://www.carbonbrief.org/chinas-clean-tech-exports-to-cut-global-co2-emissions-by-220mt-annually
[3] Carbon Brief (2024). How China's clean-energy exports are helping to meet global climate goals. [Online]. Available: https://www.carbonbrief.org/chinas-clean-energy-exports-are-helping-to-meet-global-climate-goals
- The transition to clean energy, driven in part by China's clean-tech exports, is a significant contributor to achieving the Sustainable Development Goals (SDG) related to climate-change mitigation.
- Although the manufacturing of these clean-energy products has a carbon footprint, the carbon savings from exports alone are projected to reduce annual global CO2 emissions by around 110 million tonnes (MtCO2).
- Over their operational lifetimes, the clean-tech exports from 2024 are expected to cumulatively save approximately 4 billion tonnes of CO2, contributing to the energy transition and the fight against climate-change.
- The savings from the use of China's clean-tech exports, such as solar panels, batteries, electric vehicles, and wind turbines, will help various countries, including those in the Middle East and North Africa (MENA) region, meet their environmental-science-based emission reduction targets.
- The financial sector stands to benefit significantly from the overseas sales of clean-energy products and projects relying on Chinese components, with an estimated annual value of US$720 billion, four times the value of the exported raw components.
- However, questions of supply security have arisen as China holds a central role in global supply chains for key clean-energy components like solar panels, batteries, and electric vehicles, prompting some countries to seek diverse sourcing options.
