Clean Energy Transforms China and India: U.S. Quits and Loses

Source: energyintel

China and India are known as manufacturing and technology powerhouses, producing products for the entire world. Such resource and energy intensive operations have historically made both nations heavily reliant on fossil fuels, resulting in exporting emissions via the products they produce that the world consumes.

With the falling costs of solar and wind power and the rapid development of energy storage technologies, India and China are switching to renewable energy faster than many expected.

In 2025, nearly 60% of China’s total power capacity will come from renewable energy, a 15% increase YoY (National Energy Administration, 2025).

India’s clean energy surge has been equally dramatic: in the first half of 2025, utilities generated a record 236 TWh of electricity from non-fossil sources a 20% increase YoY, while fossil generation fell by 4% YoY (Ember, 2025). India’s largest coal miner, Coal India Ltd, even issued tenders to build 5 GW of renewable capacity, signaling structural change in the energy mix (Reuters, 2025).

Why This Matters

• Rationale: China and India together account for over one-third of global carbon emissions (IEA, 2024). Their rapid expansion in renewables directly reduces reliance on fossil fuels, curbs emissions, and demonstrates scalability in markets with surging energy demand.

• Transition Becoming Transformation: Fossil lock-in will continue to hurt laggards, like the U.S, as the leaders are increasingly able to secure more renewable energy at lower costs across their whole economy vs. laggards.

• Quitters Becoming Losers: While globally, all face worsening physical climate risks, laggards such as the U.S. fall back by reversing or delaying policies. Recently The National Association of REALTORS® warned that $12.7 trillion in U.S homes face climate-related threats. Without accelerated decarbonization, such risks from housing markets to insurance will multiply globally.

Clean energy growth in India and China is not just a regional achievement; it is a global safeguard. By reducing systemic climate risk, China and India are actively shaping global economic stability.

Will the Momentum Continue?

China and India are showing that clean energy at scale is possible and profitable. Yet challenges remain. Infrastructure, grid integration, and financing models must keep pace with record installation rates.

China’s storage expansion (CNESA, 2025) and India’s diversification into renewables by legacy coal companies show adaptation is underway, but financing constraints, and policy reversals remain risks.

Action Items

• Financial institutions should scale investment into Asia’s renewable sector, especially in storage, grids, and energy infrastructure.

• Technology partnerships: Western and Asian firms should collaborate to accelerate storage solutions and grid efficiency.

• Governments and regulators must resist lobbying from fossil fuel interests, prevent abrupt policy reversals, and focus on long-term climate transition pathways.

• Real estate and insurance sectors must recognize that decarbonization abroad reduces systemic risks at home, whether in U.S. housing markets or European supply chains.

  
  

China and India’s record-breaking clean energy shifts are both positive news and a milestone to applaud. They are proof that large, fast-growing economies can pivot on a scale. The only question is: will the other countries catch up or fall further behind?