A quick primer on China's renewable energy revolution. I will cover this theme in greater detail next week.

China is rapidly emerging as the world's renewable-energy superpower, driven by a massive expansion in solar and wind power capacity. The country is on track to achieve an ambitious goal of 3,600 gigawatts of wind and solar capacity by 2035, more than doubling its current 1,700 gigawatts. This scale of deployment is unmatched globally, with China supplying 60-80% of the world's solar panels, wind turbines, and lithium batteries. The green technology sector has become a major pillar of China's economy, accounting for 10% of GDP and 26% of GDP growth, surpassing traditional industries like property.

China's shift to renewables is motivated by a combination of environmental necessity, economic opportunity, and geopolitical strategy. The country faces severe climate risks, including rising temperatures, droughts, and sea-level rise, which threaten its population and development. At the same time, investing in renewable energy supports economic growth, reduces dependence on imported fossil fuels, and enhances China's global influence through exports and diplomatic engagement. This green transition aligns with President Xi Jinping's vision of "socialist modernization" by 2035 and national rejuvenation by mid-century.

Despite still being the world's largest emitter of greenhouse gases and heavily reliant on coal, China's emissions appear to have peaked or are close to peaking, ahead of earlier targets. The country has committed to cutting emissions by 7-10% from their peak by 2035, a modest but concrete pledge. However, challenges remain, including balancing coal use with energy security, managing oversupply in green tech industries, and navigating geopolitical tensions fueled by China's dominant position in critical minerals and renewable technology exports.

China's leadership in renewable energy not only helps limit global climate damage but also reshapes international power dynamics. While the path forward involves difficult choices and trade-offs, China's role as a climate leader is increasingly central to the world's efforts to combat climate change.