More than a dozen wildfires have been sweeping through Los Angeles in California, consuming tens of thousands of acres of land and devastating some of the wealthiest neighbourhoods in the US.
As firefighters battle to contain the blazes, at least 24 people have died, while tens of thousands of people have been forced to evacuate and thousands of properties have been razed to the ground.
The disaster has received widespread attention across international media, covering the scale of the damage through to the causes of the fires – and the political spats they have triggered.
Both US president Joe Biden and his Californian vice-president Kamala Harris made the link between climate change and the fires.
Meanwhile, many scientists have pointed to “climate whiplash” – rapid switches from wet to dry conditions that are becoming more common in a warmer climate – as a factor in the scale of the devastation.
Many outlets have highlighted misleading claims by right-wing commentators about the Los Angeles fire department, as well as statements from incoming president Donald Trump casting blame on California’s Democratic governor, Gavin Newsom.
A number of outlets have also explored the impact of the wildfires – which have already been dubbed the costliest in US history – on the state’s already-fragile property insurance market.
In this article, Carbon Brief examines the role of climate change in the Los Angeles wildfires and how the media has covered the disaster.
- How did the wildfires develop around Los Angeles?
- How were the fires ignited?
- What have been the impacts of the fires?
- Does climate change have a role in driving the fires?
- What has been the political reaction?
- How has the media responded to the wildfires?
- What are the implications for insurance in the state?
How did the wildfires develop around Los Angeles?
Over the course of just a week in early January, multiple fires erupted in and around Los Angeles in southern California.
The first – and what became the largest – wildfire was the Palisades fire. This was first reported at around 10:30am on Tuesday 7 January and quickly spread, explained the Washington Post, “as winds gust[ed] to about 50 mph in the area”.
The Financial Times reported that more than 29,000 acres [11,174 hectares] were burned on Tuesday in Palisades, “an affluent coastal community with some of the most expensive property in the US”. With thousands of homes at risk, evacuation orders were issued for around 30,000 people, according to the newspaper.
Rescuers were “forced to use a bulldozer to clear a path” through gridlocked, abandoned cars for emergency services to pass, reported the Times.
Through the day, a “life-threatening” windstorm “accelerated the fire’s spread across a parched landscape that has had very little rain in months”, the FT said. This storm was the “strongest to hit southern California in more than a decade”, the Associated Press noted.
An AP photographer reported seeing “multi-million dollar mansions on fire as helicopters overhead dropped water loads”.
The Washington Post described the Palisades fire as a “monster from the start”, noting that it spanned “the size of 150 football fields within half an hour and an area larger than Manhattan a day after that”.
On Tuesday night, a fast-moving fire broke out in the hills above Altadena near Eaton Canyon, reported the Los Angeles Times, prompting further evacuation orders.
The Eaton fire had “quickly grown to 200 acres” [81 hectares] by Tuesday night, said the Times, while “another fire had ignited in Sylmar, a suburb north-west of Los Angeles, and had already consumed 50 acres [20 hectares] with some nearby residents ordered to evacuate”.
These three fires – Palisade, Eaton and what would later be named the Hurst fire – would become the focus of media coverage, but a number of other fires, such as Kenneth, Archer, Sunset, Lidia, Woodley and Olivas, also ignited across the region through the week.
By Tuesday evening, California governor Gavin Newsom had declared a state of emergency, CBS News reported.
On Wednesday, the wildfires “burned uncontrollably across a wide swathe of greater Los Angeles”, reported the Washington Post, “transforming the landscape into scenes of apocalyptic destruction with blocks and blocks of neighborhoods reduced to ash”.
By the end of the day, more than 1,000 structures had been destroyed, at least 130,000 people were under evacuation orders and nearly 1.5 million residents were without power, the newspaper said. The fires were still raging with “almost zero containment”, it added.
The newspaper quoted Los Angeles county fire chief Anthony Marrone, who warned that his department was prepared for one or two major fires, but not for “this type of widespread disaster”. He added:
“There are not enough firefighters in LA county to address…fires of this magnitude.”
In response, firefighting teams from across California and the west “poured into the Los Angeles region in recent days to help relieve and reinforce local crews”, said the Washington Post.
Reports also emerged that firefighters were, in the words of BBC News, “struggl[ing] with water supply to their hoses and hydrants”. Reuters noted that “Los Angeles authorities said their municipal water systems were working effectively but they were designed for an urban environment, not for tackling wildfires”.
In total, at least a dozen fires have raged across the greater Los Angeles area over the past week. By Friday, the two largest fires of Palisades and Eaton were 8% and 3% contained, respectively, reported the Los Angeles Times. This increased to 11% and 15% by Saturday morning.
[As of early Monday 13 January (Pacific Standard Time), fire containment stood at 14%, 33% and 95% for the Palisades, Eaton and Hurst fires, respectively, according to California’s Department of Forestry and Fire Protection. All other fires have been contained.]
With more heavy winds expected this week, a local fire chief told BBC News that the fight against the blazes is “at a fork in the road”, warning that the fires could “take off on Tuesday or Wednesday”.
How were the fires ignited?
Investigators are still exploring the initial cause of the fires, reported the Associated Press.
While lightning is the “most common source of fires in the US…investigators were able to rule that out quickly”, the newswire said. It explained:
“There were no reports of lightning in the Palisades area or the terrain around the Eaton fire.”
The next two most-common causes are “fires intentionally set and those sparked by utility lines”, it added.
NBC News reported that the key to identifying the cause of the Palisades fire lies “on a brush-covered hilltop where the blaze broke out just after 10:30am on Tuesday”. A former battalion chief for the Los Angeles Fire Department told the outlet that arson was an unlikely cause:
“This is what we call inaccessible, rugged terrain…Arsonists usually aren’t going to go 500 feet off a trailhead through trees and brush, set a fire and then run away.”
Analysis by the Washington Post suggested the cause was an extinguished fire from New Year’s Eve. Combining photos, videos, satellite imagery, radio communications and interviews, the newspaper concluded that “the new fire started in the vicinity of the old fire, raising the possibility that the New Year’s Eve fire was reignited, which can occur in windy conditions”.
The Daily Mail picked up the Washington Post’s reporting, describing it as a “haunting new theory”.
Other fires, such as the Eaton fire, were linked to power lines, reported NBC News (link above):
“Whipping winds can cause the lines to slap together, shedding small balls of superhot molten metal.”
The Guardian noted that “it is routine for utilities to shut off power during ‘red-flag events’, but the power lines were on near the Eaton and Palisades fires” when they started last week.
However, NBC News said, this was just one theory, adding that “it’s also possible that it was started by a person operating a camping stove or a car or lawn mower that ejected a hot spark onto dry grass”.
What have been the impacts of the fires?
The fires that swept through Los Angeles have consumed more than 40,000 acres [16,187 hectares] of land, spread across a number of neighbourhoods in both the city and Los Angeles county, according to an update from the Washington Post on Monday 13 January.
The outlet also noted the fires had claimed the lives of 24 individuals at the latest count.
NPR added that more than 12,000 structures, including houses and businesses, had been destroyed by the fires over seven days.
In a separate article, the Washington Post mapped the wildfires in various areas in Los Angeles – Palisades, Eaton and Hurst. It noted that, as of 12 January, the Lidia, Sunset, Woodley, Archer and Kenneth fires had been contained.
In response to the fires, evacuation orders were issued for approximately 153,000 people in LA county, NBC Los Angeles reported.
The New York Times added that some evacuees found temporary housing in Los Angeles hotels, including a luxury hotel in Santa Monica and 19 hotels owned by the IHG chain, which includes Intercontinental, Regent and Holiday Inn.
Evacuations were ordered in “many parts of Pacific Palisades, Malibu, Santa Monica, Calabasas, Brentwood and Encino”, Los Angeles Times reported. Meanwhile, in areas including Glenoaks Canyon and Chevy Chase Canyon, evacuation orders were lifted, allowing residents to return to their homes, according to the outlet.
However, due to poor air quality affecting regions not directly impacted by the fires, schools in Los Angeles were cancelled on Friday, according to NBC Los Angeles. “Nearly all LA unified [school district] campuses and all offices would reopen Monday”, the Los Angeles Times added.
Cultural events have also been impacted, with the nominations for the 97th Academy Awards, and the Critics’ Choice Awards being postponed, as well as television shows such as Grey’s Anatomy and Jimmy Kimmel Live!, as reported by ABC News.
Meanwhile, an early estimate of total damages by insurance provider AccuWeather, widely cited in the media, including BBC News, predicts the fires have caused $135-150bn in total damages.
The fires are expected to have a major impact on California’s property insurance market. (See: What are the implications for insurance in Los Angeles?)
Does climate change have a role in driving the fires?
The severity and likelihood of wildfires are affected by a wide range of conditions. Some of these are related to the climate, such as temperature, wind speed and rainfall. Meanwhile, others are linked to land use, such as the density and type of vegetation, or human-implemented fire-suppression techniques.
Nevertheless, there is a wide body of evidence showing that climate change is making wildfire conditions more likely in many parts of the world. Attribution studies have revealed that climate change has already made many individual wildfires more intense or likely. However, no such attribution study has yet been published about the Los Angeles wildfires.
News outlets and experts across the world have been making the climate connection to the fires in recent days. Many outlets note that Los Angeles has seen rapid swings between extremely dry and wet conditions over the past few years.
BBC News reported that “decades of drought in California were followed by extremely heavy rainfall for two years in 2022 and 2023”, which allowed lots of vegetation to grow. However, the state saw a switch to very dry conditions in the autumn and winter of 2024, which dried out the vegetation, providing ideal fuel for the wildfire.
The outlet highlighted a timely academic paper, which explains that climate change has increased “hydroclimate whiplash” conditions – the rapid swings between periods of high and low rainfall – globally by 31-66% since the middle of the 20th century.
Dr Daniel Swain – a climate scientist from UCLA, who led the research – wrote a Bluesky thread explaining why climate “whiplash” can create the ideal conditions for fires to spread. He said:
“In coastal southern California, where grass and brush (including chaparral) are predominant vegetation types, there is actually a historical relationship between wetter winters and increased fire activity in [the] following fire season.”
Many outlets unpacked the rapid changes in California’s rainfall. The Guardian reported that in both the rainy seasons of 2023 and 2024, more than 25 inches of rain fell over southern California. However, it said this year’s rainy season “is running at just 2% of normal for Los Angeles, which has only seen 0.16in [4mm] of rain so far”.
Al Jazeera reported that, on 7 January, only 39% of California was completely drought-free, with the rest of the state described as “abnormally dry”. However, around the same time last year, 97% of the state was classed as “drought-free”, with only 3% classed as abnormally dry, it said.
Many outlets also pointed to the Santa Ana winds. According to the Guardian, these winds blow dry, warm air into California from the US western desert during cooler months, and have contributed to many forest fires in the past. The Associated Press reported that the winds were “much faster than normal” this year and have been “whipping flames and embers at 100mph – much faster than normal”.
BBC News reported that the low-humidity Santa Ana wind “strips the vegetation of a lot of its moisture, meaning that fire can catch quicker and the vegetation burn more readily”.
Inside Climate News said the “unusually warm” band of the Pacific Ocean near southern California is bending the jet stream, allowing high pressure to settle over the north-east of Los Angeles, while intensifying the Santa Ana winds.
In the Conversation, Prof Jon Keelet from the University of California, Los Angeles, explained his research, which shows a shift in the timing of Santa Ana winds. “Due to well-documented trends in climate change, it is tempting to ascribe this to global warming, but, as yet, there is no substantial evidence of this,” he said.
What has been the political reaction?
As the fires blazed, US president Joe Biden met with California’s Democratic governor, Gavin Newsom, and approved his request for a major disaster declaration, enabling increased federal funding, according to the Los Angeles Times.
When asked by NBC News if he thought these fires would be the worst “natural” disaster in US history, Newsom replied: “I think it will be just in terms of just the costs associated.”
Craig Fugate, the Federal Emergency Management Agency (FEMA) administrator under former president Barack Obama, told the Los Angeles Times that the fires were LA’s “Hurricane Katrina” – a moment that would “forever change the community”.
Bloomberg reported that Biden said federal support would cover 100% of the costs of the fire response for 180 days. The president also directed 400 additional federal firefighters and more than 30 helicopters and planes towards the region, the news outlet added.
Both Biden and his Californian vice-president Kamala Harris made the link between climate change and the fires in their public statements.
The wildfires come at a fraught political moment for the US. Biden, who has championed climate action during his presidency, will soon be replaced by Donald Trump, a climate sceptic who has vowed to roll back many of his predecessor’s policies.
Trump’s response to the fires was summarised in an Associated Press headline that stated: “As wildfires rage in LA, Trump doesn’t offer much sympathy. He’s casting blame.”
The article said Trump had taken aim at his “longtime political foe” and falsely blamed Newsom’s forest management policies and fish conservation efforts in California for the water shortages affecting the response effort . It added that Trump “has a history of withholding or delaying federal aid to punish his political enemies”.
The Los Angeles Times noted that both Biden and current FEMA administrator Deanne Criswell “stopped short” of guaranteeing that aid would continue under Trump.
Following the incoming president’s remarks, Newsom addressed a letter to Trump inviting him to visit LA fire victims and stating “we must not politicise human tragedy or spread disinformation”, according to the Los Angeles Times.
There were also claims in right-wing media that Democratic LA mayor Karen Bass had cut the fire department’s budget, but the Los Angeles Times noted that its budget “actually grew by more than 7%”. BBC News and Media Matters both ran articles fact-checking various claims made about Democrats by figures on the US right.
The Guardian reported on “misinformation” spread by the US right, including claims that the LA fire department prioritised “diversity schemes” – often referred to as “DEI” – over fighting fires. Elon Musk, Trump’s new “efficiency tsar”, supported such claims, and wrote on Twitter: “Wild theory: maybe, just maybe, the root cause wasn’t climate change?”
Meanwhile, another Guardian article noted that “nearby blue and red states as well as foreign countries are making their own political statements in their decisions to deploy firefighters to aid California”. CBS Austin reported that Republican Texas governor, Greg Abbott, has provided resources to California.
Canada and Mexico sent firefighters to help in California, with Canadian prime minister Justin Trudeau offering his nation’s “full support”. Trump has threatened to impose punitive tariffs on both nations.
How has the media responded to the fires?
There has been extensive coverage in the media of the wildfires, across the US and around the world.
This has taken many forms, but there has been a particular focus in editorials on political divisions and the role of climate denial. For example, an editorial in the Guardian argued that “political obstruction is deepening a climate crisis that needs urgent action”.
In the Washington Post, columnist Jennifer Rubin said that the fires should affect the spread of climate denial, “but won’t”. She wrote:
“The hellish fires tearing through the Los Angeles area are a preview of what’s to come if politicians, ideologues and big oil continue to ignore climate change…These sorts of horror shows will become routine if climate change deniers, led by the [Make America Great Again] anti-science crowd, get their way.”
Explainers on the role of climate change in the Los Angeles wildfires have formed a notable part of the media reaction. This included pieces from the Associated Press, Al Jazeera, Channel 4 News, Le Monde, Axios and the Los Angeles Times, among others.
Elsewhere, right-leaning, climate-sceptic media has called into question the role of climate change and conservation on the wildfires. Many have also criticised the Democratic government of California, as well as the Los Angeles fire chief and members of her department.
In the Daily Telegraph, Freddy Gray, deputy editor of the Spectator, argued that “the LA fires are an epitaph for Democrat misrule”, hitting out at the “climate change lobby” and arguing that the Biden administration “spent far too much time and resources pursuing politically correct causes at the expense of competent or even sane governance”.
An article in the New York Post hit out at Los Angeles mayor Karen Bass’s “botched response” to the fires. It also amplified the comments made across social media by celebrities such as actor James Woods, who claimed that “the fire is not from ‘climate change’” and instead blamed “liberal idiots” for electing “liberal idiots like Gavin Newsom and Karen Bass”.
As noted in a piece in Forbes, Youtubers have been among the right-wing influencers pushing criticism of fire department policy. For example, journalist Megyn Kelly – recently dubbed the “Rumplestiltskin of irritation” in Vox – alleged that the fire chief “has made not filling the fire hydrants top priority, but diversity” in a viral clip.
Similar misleading claims have been made on social media, including by Twitter CEO and leader of the new US Department of Government Efficiency Elon Musk, who, as noted above, argued the Los Angeles fire department “prioritised [DEI] over saving lives and homes”.
In response to the misinformation and disinformation being spread, there has also been a wave of articles attempting to counter or factcheck claims. This includes articles in the Guardian, the Los Angeles Times, BBC News and the Times, among others.
One specific aspect of the coverage of the Los Angeles wildfires has been the impact on celebrities, with the homes of Billy Crystal, Paris Hilton and Eugene Levy destroyed in the fires. As such, there has been a range of coverage from sources for whom disasters would generally fall outside their remit, including Hello!, Elle, TMZ and others.
An editorial in the Daily Mirror argued that “the destruction of celebrity mansions has captured attention, but we should not forget ordinary Americans”.
What are the implications for insurance in Los Angeles?
Media coverage has highlighted how the fires are set to deliver a major blow to the area’s property insurance market – seen as in “crisis” already – with major consequences for the Californian economy and households across the state.
Insured losses of the Los Angeles fires are expected to be in the tens of billions, according to early predictions from the insurance industry cited by Bloomberg and Reinsurance News.
The eye-watering damages are driven in part by Los Angeles’ expensive real estate. The National Post said the wildfires could prove to be “the costliest in US history, specifically because they have ripped through densely populated areas with higher end-properties”. Properties in the affected Palisades neighbourhood, for example, have a median home value of $3.1m, according to real-estate data cited in a CBS News report.
After wildfires in 2017 and 2018 decimated the industry’s profits, insurers have pulled back from California’s property insurance market in recent years, making it difficult for homeowners to find affordable cover. State Farm, Allstate and Farmers Insurance are among the insurers that have either dropped California policies or halted underwriting in recent years, CBS News said.
As a result, the Los Angeles Times said the fires threaten “to deepen a crisis that has already left hundreds of thousands of Californians struggling to find and keep affordable homeowners insurance”.
Meanwhile, the New Yorker said the “insurance crisis” has been “years in the making”, noting that people had been moving to wildfire-prone areas, despite fires “becoming more destructive, in large measure due to climate change”.
The retreat of insurers from California means a significant proportion of homeowners in Los Angeles rely on the state’s insurer of last resort, California’s Fair Access to Insurance Requirements (FAIR) plan.
There are now concerns the FAIR plan – which is run by the state government, but pools funds from insurers – could run out of money, putting private insurance firms on the hook to foot the bill. These costs – which could be as large as $24bn, according to the San Francisco Chronicle – would likely be passed on to insurance policyholders across the state.
The New York Times said such a scenario “would further strain the financial health of those insurers, adding to the pressure to pull back from the [California property insurance] market”. It adds:
“The potential consequences are huge. Without insurance, banks won’t issue a mortgage; without a mortgage, most people can’t buy a home. Fewer buyers mean falling home prices, threatening the tax base of fire-prone communities. It’s a scenario that could come to define California, as rising temperatures and drier conditions caused by climate change intensify the risk of wildfires.”
The Los Angeles Times said rising insurance costs for homeowners were just one way the fires would exacerbate the region’s “housing affordability crisis”. The paper has also pointed to higher rents and fierce competition for contractors that can rebuild destroyed and damaged properties.
The crisis comes as insurers around the world grapple with the rising costs attached to escalating climate impacts. Munich Re data – covered by Reuters – reveals that extreme weather events in 2024 caused an estimated $140bn in insured losses globally, up from $106bn the previous year.
Dave Jones, the former insurance commissioner of California and director of the Climate Risk Initiative at Berkeley School of Law, told Time the dynamics hurting California’s beleaguered insurance market could spread to other states as climate impacts intensified. He said:
“In the long term, we’re not doing enough to deal with the underlying driver, which is fossil fuels and greenhouse gas emissions, so we’re going to continue to see insurance unavailability throughout the US. We are marching steadily towards an uninsurable future in this country.”
The post Media reaction: The 2025 Los Angeles wildfires and the role of climate change appeared first on Carbon Brief.
Media reaction: The 2025 Los Angeles wildfires and the role of climate change
Greenhouse Gases
DeBriefed 6 February 2026: US secret climate panel ‘unlawful’ | China’s clean energy boon | Can humans reverse nature loss?
Welcome to Carbon Brief’s DeBriefed.
An essential guide to the week’s key developments relating to climate change.
This week
Secrets and layoffs
UNLAWFUL PANEL: A federal judge ruled that the US energy department “violated the law when secretary Chris Wright handpicked five researchers who rejected the scientific consensus on climate change to work in secret on a sweeping government report on global warming”, reported the New York Times. The newspaper explained that a 1972 law “does not allow agencies to recruit or rely on secret groups for the purposes of policymaking”. A Carbon Brief factcheck found more than 100 false or misleading claims in the report.
DARKNESS DESCENDS: The Washington Post reportedly sent layoff notices to “at least 14” of its climate journalists, as part of a wider move from the newspaper’s billionaire owner, Jeff Bezos, to eliminate 300 jobs at the publication, claimed Climate Colored Goggles. After the layoffs, the newspaper will have five journalists left on its award-winning climate desk, according to the substack run by a former climate reporter at the Los Angeles Times. It comes after CBS News laid off most of its climate team in October, it added.
WIND UNBLOCKED: Elsewhere, a separate federal ruling said that a wind project off the coast of New York state can continue, which now means that “all five offshore wind projects halted by the Trump administration in December can resume construction”, said Reuters. Bloomberg added that “Ørsted said it has spent $7bn on the development, which is 45% complete”.
Around the world
- CHANGING TIDES: The EU is “mulling a new strategy” in climate diplomacy after struggling to gather support for “faster, more ambitious action to cut planet-heating emissions” at last year’s UN climate summit COP30, reported Reuters.
- FINANCE ‘CUT’: The UK government is planning to cut climate finance by more than a fifth, from £11.6bn over the past five years to £9bn in the next five, according to the Guardian.
- BIG PLANS: India’s 2026 budget included a new $2.2bn funding push for carbon capture technologies, reported Carbon Brief. The budget also outlined support for renewables and the mining and processing of critical minerals.
- MOROCCO FLOODS: More than 140,000 people have been evacuated in Morocco as “heavy rainfall and water releases from overfilled dams led to flooding”, reported the Associated Press.
- CASHFLOW: “Flawed” economic models used by governments and financial bodies “ignor[e] shocks from extreme weather and climate tipping points”, posing the risk of a “global financial crash”, according to a Carbon Tracker report covered by the Guardian.
- HEATING UP: The International Olympic Committee is discussing options to hold future winter games earlier in the year “because of the effects of warmer temperatures”, said the Associated Press.
54%
The increase in new solar capacity installed in Africa over 2024-25 – the continent’s fastest growth on record, according to a Global Solar Council report covered by Bloomberg.
Latest climate research
- Arctic warming significantly postpones the retreat of the Afro-Asian summer monsoon, worsening autumn rainfall | Environmental Research Letters
- “Positive” images of heatwaves reduce the impact of messages about extreme heat, according to a survey of 4,000 US adults | Environmental Communication
- Greenland’s “peripheral” glaciers are projected to lose nearly one-fifth of their total area and almost one-third of their total volume by 2100 under a low-emissions scenario | The Cryosphere
(For more, see Carbon Brief’s in-depth daily summaries of the top climate news stories on Monday, Tuesday, Wednesday, Thursday and Friday.)
Captured
Solar power, electric vehicles and other clean-energy technologies drove more than a third of the growth in China’s economy in 2025 – and more than 90% of the rise in investment, according to new analysis for Carbon Brief (shown in blue above). Clean-energy sectors contributed a record 15.4tn yuan ($2.1tn) in 2025, some 11.4% of China’s gross domestic product (GDP) – comparable to the economies of Brazil or Canada, the analysis said.
Spotlight
Can humans reverse nature decline?
This week, Carbon Brief travelled to a UN event in Manchester, UK to speak to biodiversity scientists about the chances of reversing nature loss.
Officials from more than 150 countries arrived in Manchester this week to approve a new UN report on how nature underpins economic prosperity.
The meeting comes just four years before nations are due to meet a global target to halt and reverse biodiversity loss, agreed in 2022 under the landmark “Kunming-Montreal Global Biodiversity Framework” (GBF).
At the sidelines of the meeting, Carbon Brief spoke to a range of scientists about humanity’s chances of meeting the 2030 goal. Their answers have been edited for length and clarity.
Dr David Obura, ecologist and chair of Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES)
We can’t halt and reverse the decline of every ecosystem. But we can try to “bend the curve” or halt and reverse the drivers of decline. That’s the economic drivers, the indirect drivers and the values shifts we need to have. What the GBF aspires to do, in terms of halting and reversing biodiversity loss, we can put in place the enabling drivers for that by 2030, but we won’t be able to do it fast enough at this point to halt [the loss] of all ecosystems.
Dr Luthando Dziba, executive secretary of IPBES
Countries are due to report on progress by the end of February this year on their national strategies to the Convention on Biological Diversity [CBD]. Once we get that, coupled with a process that is ongoing within the CBD, which is called the global stocktake, I think that’s going to give insights on progress as to whether this is possible to achieve by 2030…Are we on the right trajectory? I think we are and hopefully we will continue to move towards the final destination of having halted biodiversity loss, but also of living in harmony with nature.
Prof Laura Pereira, scientist at the Global Change Institute at Wits University, South Africa
At the global level, I think it’s very unlikely that we’re going to achieve the overall goal of halting biodiversity loss by 2030. That being said, I think we will make substantial inroads towards achieving our longer term targets. There is a lot of hope, but we’ve also got to be very aware that we have not necessarily seen the transformative changes that are going to be needed to really reverse the impacts on biodiversity.
Dr David Cooper, chair of the UK’s Joint Nature Conservation Committee and former executive secretary of the Convention on Biological Diversity
It’s important to look at the GBF as a whole…I think it is possible to achieve those targets, or at least most of them, and to make substantial progress towards them. It is possible, still, to take action to put nature on a path to recovery. We’ll have to increasingly look at the drivers.
Prof Andrew Gonzalez, McGill University professor and co-chair of an IPBES biodiversity monitoring assessment
I think for many of the 23 targets across the GBF, it’s going to be challenging to hit those by 2030. I think we’re looking at a process that’s starting now in earnest as countries [implement steps and measure progress]…You have to align efforts for conserving nature, the economics of protecting nature [and] the social dimensions of that, and who benefits, whose rights are preserved and protected.
Neville Ash, director of the UN Environment Programme World Conservation Monitoring Centre
The ambitions in the 2030 targets are very high, so it’s going to be a stretch for many governments to make the actions necessary to achieve those targets, but even if we make all the actions in the next four years, it doesn’t mean we halt and reverse biodiversity loss by 2030. It means we put the action in place to enable that to happen in the future…The important thing at this stage is the urgent action to address the loss of biodiversity, with the result of that finding its way through by the ambition of 2050 of living in harmony with nature.
Prof Pam McElwee, Rutgers University professor and co-chair of an IPBES “nexus assessment” report
If you look at all of the available evidence, it’s pretty clear that we’re going to keep experiencing biodiversity decline. I mean, it’s fairly similar to the 1.5C climate target. We are not going to meet that either. But that doesn’t mean that you slow down the ambition…even though you recognise that we probably won’t meet that specific timebound target, that’s all the more reason to continue to do what we’re doing and, in fact, accelerate action.
Watch, read, listen
OIL IMPACTS: Gas flaring has risen in the Niger Delta since oil and gas major Shell sold its assets in the Nigerian “oil hub”, a Climate Home News investigation found.
LOW SNOW: The Washington Post explored how “climate change is making the Winter Olympics harder to host”.
CULTURE WARS: A Media Confidential podcast examined when climate coverage in the UK became “part of the culture wars”.
Coming up
- 2-8 February: 12th session of the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES), Manchester, UK
- 8 February: Japanese general election
- 8 February: Portugal presidential election
- 11 February: Barbados general election
- 11-12 February: UN climate chief Simon Stiell due to speak in Istanbul, Turkey
Pick of the jobs
- UK Met Office, senior climate science communicator | Salary: £43,081-£46,728. Location: Exeter, UK
- Canadian Red Cross, programme officer, Indigenous operations – disaster risk reduction and climate change adaptation | Salary: $56,520-$60,053. Location: Manitoba, Canada
- Aldersgate Group, policy officer | Salary: £33,949-£39,253. Location: London (hybrid)
DeBriefed is edited by Daisy Dunne. Please send any tips or feedback to debriefed@carbonbrief.org.
This is an online version of Carbon Brief’s weekly DeBriefed email newsletter. Subscribe for free here.
The post DeBriefed 6 February 2026: US secret climate panel ‘unlawful’ | China’s clean energy boon | Can humans reverse nature loss? appeared first on Carbon Brief.
Greenhouse Gases
China Briefing 5 February 2026: Clean energy’s share of economy | Record renewables | Thawing relations with UK
Welcome to Carbon Brief’s China Briefing.
China Briefing handpicks and explains the most important climate and energy stories from China over the past fortnight. Subscribe for free here.
Key developments
Solar and wind eclipsed coal
‘FIRST TIME IN HISTORY’: China’s total power capacity reached 3,890 gigawatts (GW) in 2025, according to a National Energy Administration (NEA) data release covered by industry news outlet International Energy Net. Of this, it said, solar capacity rose 35% to 1,200GW and wind capacity was up 23% to 640GW, while thermal capacity – which is mostly coal – grew 6% to just over 1,500GW. This marks the “first time in history” that wind and solar capacity has outranked coal capacity in China’s power mix, reported the state-run newspaper China Daily. China’s grid-related energy storage capacity exceeded 213GW in 2025, said state news agency Xinhua. Meanwhile, clean-energy industries “drove more than 90%” of investment growth and more than half of GDP growth last year, said the Guardian in its coverage of new analysis for Carbon Brief. (See more in the spotlight below.)
DAWN FOR SOLAR: Solar power capacity alone may outpace coal in 2026, according to projections by the China Electricity Council (CEC), reported business news outlet 21st Century Business Herald. It added that non-fossil sources could account for 63% of the power mix this year, with coal falling to 31%. Separately, the China Renewable Energy Society said that annual wind-power additions could grow by between 600-980GW over the next five years, with annual additions of 120GW expected until 2028, said industry news outlet China Energy Net. China Energy Net also published the full CEC report.
STATE MEDIA VOICE: Xinhua published several energy- and climate-related articles in a series on the 15th five-year plan. One said that becoming a low-carbon energy “powerhouse” will support decarbonisation efforts, strengthen industrial innovation and improve China’s “global competitive edge and standing”. Another stated that coal consumption is “expected” to peak around 2027, with continued “growth” in the power and chemicals sector, while oil has already peaked. A third noted that distributed energy systems better matched the “characteristics of renewable energy” than centralised ones, but warned against “blind” expansion and insufficient supporting infrastructure. Others in the series discussed biodiversity and environmental protection and recycling of clean-energy technology. Meanwhile, the communist party-affiliated People’s Daily said that oil will continue to play a “vital role” in China, even after demand peaks.
Starmer and Xi endorsed clean-energy cooperation
CLIMATE PARTNERSHIP: UK prime minister Keir Starmer and Chinese president Xi Jinping pledged in Beijing to deepen cooperation on “green energy”, reported finance news outlet Caixin. They also agreed to establish a “China-UK high-level climate and nature partnership”, said China Daily. Xi told Starmer that the two countries should “carry out joint research and industrial transformation” in new energy and low-carbon technologies, according to Xinhua. It also cited Xi as saying China “hopes” the UK will provide a “fair” business environment for Chinese companies.
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OCTOPUS OVERSEAS: During the visit, UK power-trading company Octopus Energy and Chinese energy services firm PCG Power announced they would be starting a new joint venture in China, named Bitong Energy, reported industry news outlet PV Magazine. The move “marks a notable direct entry” of a foreign company into China’s “tightly regulated electricity market”, said Caixin.
PUSH AND PULL: UK policymakers also visited Chinese clean-energy technology manufacturer Envision in Shanghai, reported finance news outlet Yicai. It quoted UK business secretary Peter Kyle emphasising that partnering with companies “like Envision” on sustainability is a “really important part of our future”, particularly in terms of job creation in the UK. Trade minister Chris Bryant told Radio Scotland Breakfast that the government will decide on Chinese wind turbine manufacturer Mingyang’s plans for a Scotland factory “soon”. Researchers at the thinktank Oxford Institute for Energy Studies wrote in a guest post for Carbon Brief that greater Chinese competition in Europe’s wind market could “help spur competition in Europe”, if localisation rules and “other guardrails” are applied.
More China news
- LIFE SUPPORT: China will update its coal capacity payment mechanism, which will raise thresholds for coal-fired power plants and expand to cover gas-fired power and pumped and new-energy storage, reported current affairs outlet China News.
- FRONTIER TECH: The world’s “largest compressed-air power storage plant” has begun operating in China, said Bloomberg.
- PARTNERSHIP A ‘MISTAKE’: The EU launched a “foreign subsidies” probe into Chinese wind turbine company Goldwind, said the Hong Kong-based South China Morning Post. EU climate chief Wopke Hoekstra said the bloc must resist China’s pull in clean technologies, according to Bloomberg.
- TRADE SPAT: The World Trade Organization “backed a complaint by China” that the US Inflation Reduction Act “discriminated against” Chinese cleantech exports, said Reuters.
- NEW RULES: China has set “new regulations” for the Waliguan Baseline Observatory, which provides “key scientific references for the United Nations Framework Convention on Climate Change”, said the People’s Daily.
Captured
New or reactivated proposals for coal-fired power plants in China totalled 161GW in 2025, according to a new report covered by Carbon Brief.
Spotlight
Clean energy drove China’s economic growth in 2025
New analysis for Carbon Brief finds that clean-energy sectors contributed the equivalent of $2.1tn to China’s economy last year, making it a key driver of growth. However, headwinds in 2026 could restrict growth going forward – especially for the solar sector.
Below is an excerpt from the article, which can be read in full on Carbon Brief’s website.
Solar power, electric vehicles (EVs) and other clean-energy technologies drove more than a third of the growth in China’s economy in 2025 – and more than 90% of the rise in investment.
Clean-energy sectors contributed a record 15.4tn yuan ($2.1tn) in 2025, some 11.4% of China’s gross domestic product (GDP)
Analysis shows that China’s clean-energy sectors nearly doubled in real value between 2022-25 and – if they were a country – would now be the 8th-largest economy in the world.
These investments in clean-energy manufacturing represent a large bet on the energy transition in China and overseas, creating an incentive for the government and enterprises to keep the boom going.
However, there is uncertainty about what will happen this year and beyond, particularly due to a new pricing system, worsening industrial “overcapacity” and trade tensions.
Outperforming the wider economy
China’s clean-energy economy continues to grow far more quickly than the wider economy, making an outsized contribution to annual growth.
Without these sectors, China’s GDP would have expanded by 3.5% in 2025 instead of the reported 5.0%, missing the target of “around 5%” growth by a wide margin.
Clean energy made a crucial contribution during a challenging year, when promoting economic growth was the foremost aim for policymakers.
In 2024, EVs and solar had been the largest growth drivers. In 2025, it was EVs and batteries, which delivered 44% of the economic impact and more than half of the growth of the clean-energy industries.
The next largest subsector was clean-power generation, transmission and storage, which made up 40% of the contribution to GDP and 30% of the growth in 2025.
Within the electricity sector, the largest drivers were growth in investment in wind and solar power generation capacity, along with growth in power output from solar and wind, followed by the exports of solar-power equipment and materials.
But investment in solar-panel supply chains, a major growth driver in 2022-23, continued to fall for the second year, as the government made efforts to rein in overcapacity and “irrational” price competition.
Headwinds for solar
Ongoing investment of hundreds of billions of dollars represents a gigantic bet on a continuing global energy transition.
However, developments next year and beyond are unclear, particularly for solar. A new pricing system for renewable power is creating uncertainty, while central government targets have been set far below current rates of clean-electricity additions.
Investment in solar-power generation and solar manufacturing declined in the second half of the year.
The reduction in the prices of clean-energy technology has been so dramatic that when the prices for GDP statistics are updated, the sectors’ contribution to real GDP – adjusted for inflation or, in this case deflation – will be revised down.
Nevertheless, the key economic role of the industry creates a strong motivation to keep the clean-energy boom going. A slowdown in the domestic market could also undermine efforts to stem overcapacity and inflame trade tensions by increasing pressure on exports to absorb supply.
Local governments and state-owned enterprises will also influence the outlook for the sector.
Provincial governments have a lot of leeway in implementing the new electricity markets and contracting systems for renewable power generation. The new five-year plans, to be published this year, will, therefore, be of major importance.
This spotlight was written for Carbon Brief by Lauri Myllyvirta, lead analyst at Centre for Research on Energy and Clean Air (CREA), and Belinda Schaepe, China policy analyst at CREA. CREA China analysts Qi Qin and Chengcheng Qiu contributed research.
Watch, read, listen
PROVINCE INFLUENCE: The Institute for Global Decarbonization Progress, a Beijing-based thinktank, published a report examining the climate-related statements in provincial recommendations for the 15th five-year plan.
‘PIVOT’?: The Outrage + Optimism podcast spoke with the University of Bath’s Dr Yixian Sun about whether China sees itself as a climate leader and what its role in climate negotiations could be going forward.
COOKING FOR CLEAN-TECH: Caixin covered rising demand for China’s “gutter oil” as companies “scramble” to decarbonise.
DON’T GO IT ALONE: China News broadcast the Chinese foreign ministry’s response to the withdrawal of the US from the Paris Agreement, with spokeswoman Mao Ning saying “no country can remain unaffected” by climate change.
$6.8tn
The current size of China’s green-finance economy, including loans, bonds and equity, according to Dr Ma Jun, the Institute of Finance and Sustainability’s president,in a report launch event attended by Carbon Brief. Dr Ma added that “green loans” make up 16% of all loans in China, with some areas seeing them take a 34% share.
New science
- China’s official emissions inventories have overestimated its hydrofluorocarbon emissions by an average of 117m tonnes of carbon dioxide equivalent (mtCO2e) every year since 2017 | Nature Geoscience
- “Intensified forest management efforts” in China from 2010 onwards have been linked to an acceleration in carbon absorption by plants and soils | Communications Earth and Environment
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China Briefing is written by Anika Patel and edited by Simon Evans. Please send tips and feedback to china@carbonbrief.org
The post China Briefing 5 February 2026: Clean energy’s share of economy | Record renewables | Thawing relations with UK appeared first on Carbon Brief.
Solar power, electric vehicles (EVs) and other clean-energy technologies drove more than a third of the growth in China’s economy in 2025 – and more than 90% of the rise in investment.
Clean-energy sectors contributed a record 15.4tn yuan ($2.1tn) in 2025, some 11.4% of China’s gross domestic product (GDP) – comparable to the economies of Brazil or Canada.
The new analysis for Carbon Brief, based on official figures, industry data and analyst reports, shows that China’s clean-energy sectors nearly doubled in real value between 2022-25 and – if they were a country – would now be the 8th-largest economy in the world.
Other key findings from the analysis include:
- Without clean-energy sectors, China would have missed its target for GDP growth of “around 5%”, expanding by 3.5% in 2025 instead of the reported 5.0%.
- Clean-energy industries are expanding much more quickly than China’s economy overall, with their annual growth rate accelerating from 12% in 2024 to 18% in 2025.
- The “new three” of EVs, batteries and solar continue to dominate the economic contribution of clean energy in China, generating two-thirds of the value added and attracting more than half of all investment in the sectors.
- China’s investments in clean energy reached 7.2tn yuan ($1.0tn) in 2025, roughly four times the still sizable $260bn put into fossil-fuel extraction and coal power.
- Exports of clean-energy technologies grew rapidly in 2025, but China’s domestic market still far exceeds the export market in value for Chinese firms.
These investments in clean-energy manufacturing represent a large bet on the energy transition in China and overseas, creating an incentive for the government and enterprises to keep the boom going.
However, there is uncertainty about what will happen this year and beyond, particularly for solar power, where growth has slowed in response to a new pricing system and where central government targets have been set far below the recent rate of expansion.
An ongoing slowdown could turn the sectors into a drag on GDP, while worsening industrial “overcapacity” and exacerbating trade tensions.
Yet, even if central government targets in the next five-year plan are modest, those from local governments and state-owned enterprises could still drive significant growth in clean energy.
This article updates analysis previously reported for 2023 and 2024.
Clean-energy sectors outperform wider economy
China’s clean-energy economy continues to grow far more quickly than the wider economy. This means that it is making an outsize contribution to annual economic growth.
The figure below shows that clean-energy technologies drove more than a third of the growth in China’s economy overall in 2025 and more than 90% of the net rise in investment.
In 2022, China’s clean-energy economy was worth an estimated 8.4tn yuan ($1.2tn). By 2025, the sectors had nearly doubled in value to 15.4tn yuan ($2.1tn).
This is comparable to the entire output of Brazil or Canada and positions the Chinese clean-energy industry as the 8th-largest economy in the world. Its value is roughly half the size of the economy of India – the world’s fourth largest – or of the US state of California.
The outperformance of the clean-energy sectors means that they are also claiming a rising share of China’s economy overall, as shown in the figure below.
This share has risen from 7.3% of China’s GDP in 2022 to 11.4% in 2025.
Without clean-energy sectors, China’s GDP would have expanded by 3.5% in 2025 instead of the reported 5.0%, missing the target of “around 5%” growth by a wide margin.
Clean energy thus made a crucial contribution during a challenging year, when promoting economic growth was the foremost aim for policymakers.
The table below includes a detailed breakdown by sector and activity.
| Sector | Activity | Value in 2025, CNY bln | Value in 2025, USD bln | Year-on-year growth | Growth contribution | Value contribution | Value in 2025, CNY trn | Value in 2024, CNY trn | Value in 2023, CNY trn | Value in 2022, CNY trn |
|---|---|---|---|---|---|---|---|---|---|---|
| EVs | Investment: manufacturing capacity | 1,643 | 228 | 18% | 10.4% | 10.7% | 1.6 | 1.4 | 1.2 | 0.9 |
| EVs | Investment: charging infrastructure | 192 | 27 | 58% | 2.9% | 1.2% | 0.192 | 0.122 | 0.1 | 0.08 |
| EVs | Production of vehicles | 3,940 | 548 | 29% | 36.4% | 25.6% | 3.94 | 3.065 | 2.26 | 1.65 |
| Batteries | Investment: battery manufacturing | 277 | 38 | 35% | 3.0% | 1.8% | 0.277 | 0.205 | 0.32 | 0.15 |
| Batteries | Exports: batteries | 724 | 101 | 51% | 10.1% | 4.7% | 0.724 | 0.48 | 0.46 | 0.34 |
| Solar power | Investment: power generation capacity | 1,182 | 164 | 15% | 6.3% | 7.7% | 1.182 | 1.031 | 0.808 | 0.34 |
| Solar power | Investment: manufacturing capacity | 506 | 70 | -23% | -6.5% | 3.3% | 0.506 | 0.662 | 0.95 | 0.51 |
| Solar power | Electricity generation | 491 | 68 | 33% | 5.1% | 3.2% | 0.491 | 0.369 | 0.26 | 0.19 |
| Solar power | Exports of components | 681 | 95 | 21% | 4.9% | 4.4% | 0.681 | 0.562 | 0.5 | 0.35 |
| Wind power | Investment: power generation capacity, onshore | 612 | 85 | 47% | 8.1% | 4.0% | 0.612 | 0.417 | 0.397 | 0.21 |
| Wind power | Investment: power generation capacity, offshore | 96 | 13 | 98% | 2.0% | 0.6% | 0.096 | 0.048 | 0.086 | 0.06 |
| Wind power | Electricity generation | 510 | 71 | 13% | 2.4% | 3.3% | 0.51 | 0.453 | 0.4 | 0.34 |
| Nuclear power | Investment: power generation capacity | 173 | 24 | 18% | 1.1% | 1.1% | 0.17 | 0.15 | 0.09 | 0.07 |
| Nuclear power | Electricity generation | 216 | 30 | 8% | 0.7% | 1.4% | 0.216 | 0.2 | 0.19 | 0.19 |
| Hydropower | Investment: power generation capacity | 54 | 7 | -7% | -0.2% | 0.3% | 0.05 | 0.06 | 0.06 | 0.06 |
| Hydropower | Electricity generation | 582 | 81 | 3% | 0.6% | 3.8% | 0.582 | 0.567 | 0.51 | 0.51 |
| Rail transportation | Investment | 902 | 125 | 6% | 2.1% | 5.8% | 0.902 | 0.851 | 0.764 | 0.714 |
| Rail transportation | Transport of passengers and goods | 1,020 | 142 | 3% | 1.3% | 6.6% | 1.02 | 0.99 | 0.964 | 0.694 |
| Electricity transmission | Investment: transmission capacity | 644 | 90 | 6% | 1.5% | 4.2% | 0.64 | 0.61 | 0.53 | 0.5 |
| Electricity transmission | Transmission of clean power | 52 | 7 | 14% | 0.3% | 0.3% | 0.052 | 0.046 | 0.04 | 0.04 |
| Energy storage | Investment: Pumped hydro | 53 | 7 | 5% | 0.1% | 0.3% | 0.05 | 0.05 | 0.04 | 0.03 |
| Energy storage | Investment: Grid-connected batteries | 232 | 32 | 52% | 3.3% | 1.5% | 0.232 | 0.152 | 0.08 | 0.02 |
| Energy storage | Investment: Electrolysers | 11 | 2 | 29% | 0.1% | 0.1% | 0.011 | 0.009 | 0 | 0 |
| Energy efficiency | Revenue: Energy service companies | 620 | 86 | 17% | 3.8% | 4.0% | 0.62 | 0.528003 | 0.52 | 0.45 |
| Total | Investments | 7,198 | 1001 | 15% | 38.2% | 46.7% | 7.20 | 6.28 | 6.00 | 4.11 |
| Total | Production of goods and services | 8,216 | 1,143 | 22% | 61.8% | 53.3% | 8.22 | 6.73 | 5.58 | 4.32 |
| Total | Total GDP contribution | 15,414 | 2144 | 18% | 100.0% | 100.0% | 15.41 | 13.01 | 11.58 | 8.42 |
EVs and batteries were the largest drivers of GDP growth
In 2024, EVs and solar had been the largest growth drivers. In 2025, it was EVs and batteries, which delivered 44% of the economic impact and more than half of the growth of the clean-energy industries. This was due to strong growth in both output and investment.
The contribution to nominal GDP growth – unadjusted for inflation – was even larger, as EV prices held up year-on-year while the economy as a whole suffered from deflation. Investment in battery manufacturing rebounded after a fall in 2024.
The major contribution of EVs and batteries is illustrated in the figure below, which shows both the overall size of the clean-energy economy and the sectors that added the most to the rise from year to year.
The next largest subsector was clean-power generation, transmission and storage, which made up 40% of the contribution to GDP and 30% of the growth in 2025.
Within the electricity sector, the largest drivers were growth in investment in wind and solar power generation capacity, along with growth in power output from solar and wind, followed by the exports of solar-power equipment and materials.
Investment in solar-panel supply chains, a major growth driver in 2022-23, continued to fall for the second year. This was in line with the government’s efforts to rein in overcapacity and “irrational” price competition in the sector.
Finally, rail transportation was responsible for 12% of the total economic output of the clean-energy sectors, but saw relatively muted growth year-on-year, with revenue up 3% and investment by 6%.
Note that the International Energy Agency (IEA) world energy investment report projected that China invested $627bn in clean energy in 2025, against $257bn in fossil fuels.
For the same sectors as the IEA report, this analysis puts the value of clean-energy investment in 2025 at a significantly more conservative $430bn. The higher figures in this analysis overall are therefore the result of wider sectoral coverage.
Electric vehicles and batteries
EVs and vehicle batteries were again the largest contributors to China’s clean-energy economy in 2025, making up an estimated 44% of value overall.
Of this total, the largest share of both total value and growth came from the production of battery EVs and plug-in hybrids, which expanded 29% year-on-year. This was followed by investment into EV manufacturing, which grew 18%, after slower growth rates in 2024.
Investment in battery manufacturing also rebounded after a drop in 2024, driven by new battery technology and strong demand from both domestic and international markets. Battery manufacturing investment grew by 35% year-on-year to 277bn yuan.
The share of electric vehicles (EVs) will have reached 12% of all vehicles on the road by the end of 2025, up from 9% a year earlier and less than 2% just five years ago.
The share of EVs in the sales of all new vehicles increased to 48%, from 41% in 2024, with passenger cars crossing the 50% threshold. In November, EV sales crossed the 60% mark in total sales and they continue to drive overall automotive sales growth, as shown below.
Electric trucks experienced a breakthrough as their market share rose from 8% in the first nine months of 2024 to 23% in the same period in 2025.
Policy support for EVs continues, for example, with a new policy aiming to nearly double charging infrastructure in the next three years.
Exports grew even faster than the domestic market, but the vast majority of EVs continue to be sold domestically. In 2025, China produced 16.6m EVs, rising 29% year-on-year. While exports accounted for only 21% or 3.4m EVs, they grew by 86% year-on-year. Top export destinations for Chinese EVs were western Europe, the Middle East and Latin America.
The value of batteries exported also grew rapidly by 41% year-on-year, becoming the third largest growth driver of the GDP. Battery exports largely went to western Europe, north America and south-east Asia.
In contrast with deflationary trends in the price of many clean-energy technologies, average EV prices have held up in 2025, with a slight increase in average price of new models, after discounts. This also means that the contribution of the EV industry to nominal GDP growth was even more significant, given that overall producer prices across the economy fell by 2.6%. Battery prices continued to drop.
Clean-power generation
The solar power sector generated 19% of the total value of the clean-energy industries in 2025, adding 2.9tn yuan ($41bn) to the national economy.
Within this, investment in new solar power plants, at 1.2tn yuan ($160bn), was the largest driver, followed by the value of solar technology exports and by the value of the power generated from solar. Investment in manufacturing continued to fall after the wave of capacity additions in 2023, reaching 0.5tn yuan ($72bn), down 23% year-on-year.
In 2025, China achieved another new record of wind and solar capacity additions. The country installed a total of 315GW solar and 119GW wind capacity, adding more solar and two times as much wind as the rest of the world combined.
Clean energy accounted for 90% of investment in power generation, with solar alone covering 50% of that. As a result, non-fossil power made up 42% of total power generation, up from 39% in 2024.
However, a new pricing policy for new solar and wind projects and modest targets for capacity growth have created uncertainty about whether the boom will continue.
Under the new policy, new clean-power generation has to compete on price against existing coal power in markets that place it at a disadvantage in some key ways.
At the same time, the electricity markets themselves are still being introduced and developed, creating investment uncertainty.
Investment in solar power generation increased year-on-year by 15%, but experienced a strong stop-and-go cycle. Developers rushed to finish projects ahead of the new pricing policy coming into force in June and then again towards the end of the year to finalise projects ahead of the end of the current 14th five-year plan.
Investment in the solar sector as a whole was stable year-on-year, with the decline in manufacturing capacity investment balanced by continued growth in power generation capacity additions. This helped shore up the utilisation of manufacturing plants, in line with the government’s aim to reduce “disorderly” price competition.
By late 2025, China’s solar manufacturing capacity reached an estimated 1,200GW per year, well ahead of the global capacity additions of around 650GW in 2025. Manufacturers can now produce far more solar panels than the global market can absorb, with fierce competition leading to historically low profitability.
China’s policymakers have sought to address the issue since mid-2024, warning against “involution”, passing regulations and convening a sector-wide meeting to put pressure on the industry. This is starting to yield results, with losses narrowing in the third quarter of 2025.
The volume of exports of solar panels and components reached a record high in 2025, growing 19% year-on-year. In particular, exports of cells and wafers increased rapidly by 94% and 52%, while panel exports grew only by 4%.
This reflects the growing diversification of solar-supply chains in the face of tariffs and with more countries around the world building out solar panel manufacturing capacity. The nominal value of exports fell 8%, however, due to a fall in average prices and a shift to exporting upstream intermediate products instead of finished panels.
Hydropower, wind and nuclear were responsible for 15% of the total value of the clean-energy sectors in 2025, adding some 2.2tn yuan ($310bn) to China’s GDP in 2025.
Nearly two-thirds of this (1.3tn yuan, $180bn) came from the value of power generation from hydropower, wind and nuclear, with investment in new power generation projects contributing the rest.
Power generation grew 33% from solar, 13% from wind, 3% from hydropower and 8% from nuclear.
Within power generation investment, solar remained the largest segment by value – as shown in the figure below – but wind-power generation projects were the largest contributor to growth, overtaking solar for the first time since 2020.
In particular, offshore wind power capacity investment rebounded as expected, doubling in 2025 after a sharp drop in 2024.
Investment in nuclear projects continued to grow but remains smaller in total terms, at 17bn yuan. Investment in conventional hydropower continued to decline by 7%.
Electricity storage and grids
Electricity transmission and storage were responsible for 6% of the total value of the clean-energy sectors in 2025, accounting for 1.0 tn yuan ($140bn).
The most valuable sub-segment was investment in power grids, growing 6% in 2025 and reaching $90bn. This was followed by investment in energy storage, including pumped hydropower, grid-connected battery storage and hydrogen production.
Investment in grid-connected batteries saw the largest year-on-year growth, increasing by 50%, while investments in electrolysers also grew by 30%. The transmission of clean power increased an estimated 13%, due to rapid growth in clean-power generation.
China’s total electricity storage capacity reached more than 213GW, with battery storage capacity crossing 145GW and pumped hydro storage at 69GW. Some 66GW of battery storage capacity was added in 2025, up 52% year-on-year and accounting for more than 40% of global capacity additions.
Notably, capacity additions accelerated in the second half of the year, with 43GW added, compared with the first half, which saw 23GW of new capacity.
The battery storage market initially slowed after the renewable power pricing policy, which banned storage mandates after May, but this was quickly replaced by a “market-driven boom”. Provincial electricity spot markets, time-of-day tariffs and increasing curtailment of solar power all improved the economics of adding storage.
By the end of 2025, China’s top five solar manufacturers had all entered the battery storage market, making a shift in industry strategy.
Investment in pumped hydropower continued to increase, with 15GW of new capacity permitted in the first half of 2025 alone and 3GW entering operation.
Railways
Rail transportation made up 12% of the GDP contribution of the clean-energy sectors, with revenue from passenger and goods rail transportation the largest source of value. Most growth came from investment in rail infrastructure, which increased 6% year-on-year
The electrification of transport is not limited to EVs, as rail passenger, freight and investment volumes saw continued growth. The total length of China’s high-speed railway network reached 50,000km in 2025, making up more than 70% of the global high-speed total.
Energy efficiency
Investment in energy efficiency rebounded strongly in 2025. Measured by the aggregate turnover of large energy service companies (ESCOs), the market expanded by 17% year-on-year, returning to growth rates last seen during 2016-2020.
Total industry turnover has also recovered to its previous peak in 2021, signalling a clear turnaround after three years of weakness.
Industry projections now anticipate annual turnover reaching 1tn yuan in annual turnover by 2030, a target that had previously been expected to be met by 2025.
China’s ESCO market has evolved into the world’s largest. Investment within China’s ESCO market remains heavily concentrated in the buildings sector, which accounts for around 50% of total activity. Industrial applications make up a further 21%, while energy supply, demand-side flexibility and energy storage together account for approximately 16%.
Implications of China’s clean-energy bet
Ongoing investment of hundreds of billions of dollars into clean-energy manufacturing represents a gigantic economic and financial bet on a continuing global energy transition.
In addition to the domestic investment covered in this article, Chinese firms are making major investments in overseas manufacturing.
The clean-energy industries have played a crucial role in meeting China’s economic targets during the five-year period ending this year, delivering an estimated 40%, 25% and 37% of all GDP growth in 2023, 2024 and 2025, respectively.
However, the developments next year and beyond are unclear, particularly for solar power generation, with the new pricing system for renewable power generation leading to a short-term slowdown and creating major uncertainty, while central government targets have been set far below current rates of clean-electricity additions.
Investment in solar-power generation and solar manufacturing declined in the second half of the year, while investment in generation clocked growth for the full year, showing the risk to the industries under the current power market set-ups that favour coal-fired power.
The reduction in the prices of clean-energy technology has been so dramatic that when the prices for GDP statistics are updated, the sectors’ contribution to real GDP – adjusted for inflation or, in this case deflation – will be revised down.
Nevertheless, the key economic role of the industry creates a strong motivation to keep the clean-energy boom going. A slowdown in the domestic market could also undermine efforts to stem overcapacity and inflame trade tensions by increasing pressure on exports to absorb supply.
A recent CREA survey of experts working on climate and energy issues in China found that the majority believe that economic and geopolitical challenges will make the “dual carbon” goals – and with that, clean-energy industries – only more important.
Local governments and state-owned enterprises will also influence the outlook for the sector. Their previous five-year plans played a key role in creating the gigantic wind and solar power “bases” that substantially exceeded the central government’s level of ambition.
Provincial governments also have a lot of leeway in implementing the new electricity markets and contracting systems for renewable power generation. The new five-year plans, to be published this year, will therefore be of major importance.
About the data
Reported investment expenditure and sales revenue has been used where available. When this is not available, estimates are based on physical volumes – gigawatts of capacity installed, number of vehicles sold – and unit costs or prices.
The contribution to real growth is tracked by adjusting for inflation using 2022-2023 prices.
All calculations and data sources are given in a worksheet.
Estimates include the contribution of clean-energy technologies to the demand for upstream inputs such as metals and chemicals.
This approach shows the contribution of the clean-energy sectors to driving economic activity, also outside the sectors themselves, and is appropriate for estimating how much lower economic growth would have been without growth in these sectors.
Double counting is avoided by only including non-overlapping points in value chains. For example, the value of EV production and investment in battery storage of electricity is included, but not the value of battery production for the domestic market, which is predominantly an input to these activities.
Similarly, the value of solar panels produced for the domestic market is not included, as it makes up a part of the value of solar power generating capacity installed in China. However, the value of solar panel and battery exports is included.
In 2025, there was a major divergence between two different measures of investment. The first, fixed asset investment, reportedly fell by 3.8%, the first drop in 35 years. In contrast, gross capital formation saw the slowest growth in that period but still inched up by 2%.
This analysis uses gross capital formation as the measure of investment, as it is the data point used for GDP accounting. However, the analysis is unable to account for changes in inventories, so the estimate of clean-energy investment is for fixed asset investment in the sectors.
The analysis does not explicitly account for the small and declining role of imports in producing clean-energy goods and services. This means that the results slightly overstate the contribution to GDP but understate the contribution to growth.
For example, one of the most important import dependencies that China has is for advanced computing chips for EVs. The value of the chips in a typical EV is $1,000 and China’s import dependency for these chips is 90%, which suggests that imported chips represent less than 3% of the value of EV production.
The estimates are likely to be conservative in some key respects. For example, Bloomberg New Energy Finance estimates “investment in the energy transition” in China in 2024 at $800bn. This estimate covers a nearly identical list of sectors to ours, but excludes manufacturing – the comparable number from our data is $600bn.
China’s National Bureau of Statistics says that the total value generated by automobile production and sales in 2023 was 11tn yuan. The estimate in this analysis for the value of EV sales in 2023 is 2.3tn yuan, or 20% of the total value of the industry, when EVs already made up 31% of vehicle production and the average selling prices for EVs was slightly higher than for internal combustion engine vehicles.
The post Analysis: Clean energy drove more than a third of China’s GDP growth in 2025 appeared first on Carbon Brief.
Analysis: Clean energy drove more than a third of China’s GDP growth in 2025
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