Are the Chinese Also Naive for Their Massive Investment in Renewable Energy?

Europeans are often labeled as naive for their efforts to rapidly develop renewable energy sources (RES), perhaps faster than wise. However, this criticism overlooks a fundamental fact: Europe isn’t the only region pouring vast sums into this sector. China recently announced that this year, for the first time, installed RES capacity surpassed conventional units within its borders. Notably, last year, China accounted for 64% of all new green energy installations globally. The numbers are staggering, as China produced nearly 1 petawatt-hour of green electricity last year. Even the unit of measurement is impressive, as until now, we were accustomed to discussing gigawatts and terawatts in the industry. Are the Chinese also naive for investing so heavily in RES? The answer is no; their investment makes sense because they produce their own solar panels and batteries, unlike Europeans. Thus, domestic added value is high, and the money circulates back into their economy. For both the EU and China, another critical factor influences developments: energy security. Earlier this week, during an international meeting hosted by the International Energy Agency (IEA) in London, European officials clashed with Americans. The U.S. Deputy Energy Secretary criticized Europe’s policy, receiving this response: A continent lacking significant natural gas production must develop every alternative domestic energy source to avoid dependence on expensive imports. The same applies to China, which has long sought greater energy autonomy, especially amid a harsh trade war. Therefore, investments in green energy have clear strategic and geopolitical significance for major powers, beyond purely energy-related concerns. It’s easy to criticize the EU for past mistakes, but these criticisms often relate more to specifics rather than the overall direction it aims to pursue.