China is moving towards substantial investments with the green energy projects in regions like Africa, the Middle East, and Central Asia. Despite earlier challenges, these regions are now witnessing significant advancements in power generation and solar energy equipment production, thanks to collaborations with Chinese companies. Last year alone, Chinese-backed projects in these areas experienced remarkable growth in dollar terms.
As per reports, Africa saw a record high of around US$2.7 billion invested in alternative power in 2023, while the Middle East received a total of US$9.48 billion in investments from 2018 to 2023, dwarfing the figures from the previous decade. Central Asia also hit a milestone last year with US$1.3 billion in Chinese investments.
Chinese investors are now focusing on green energy projects that offer solid financial returns without the challenges associated with earlier mega-projects. This shift aligns with China’s efforts to reshape the image of its Belt and Road Initiative (BRI) by prioritizing smaller, environmentally friendly projects that benefit both host countries and investors.
The initiative aims to address past criticisms of China’s dealings with developing countries, particularly regarding debt and environmental concerns. By emphasizing green energy projects, China aims to enhance its global reputation as a responsible player in sustainable development.
Recent investments in solar and wind power reflect China’s competitive advantage in policy consistency and low capital costs. Projects like Qatar’s 800-megawatt photovoltaic station demonstrate China’s expertise in harnessing renewable energy sources, with plans for further cooperation on renewables between China and countries like Egypt and Mauritius.
China’s dominance in renewable energy is indisputable, with the country contributing over half of the world’s installed renewable energy capacity last year. This growth indicates China’s role as a driving force in global clean energy development, with significant potential for collaboration and economic growth in partner countries.
As nations worldwide prioritize clean energy to combat climate change, partnerships with China offer opportunities for mutual benefit and sustainable development. From Africa to Central Asia, Chinese investments in green technology are shaping the future of energy production and environmental stewardship on a global scale.
