China to cut renewable subsidies after meeting targets years early

China will scale back wind and solar subsidies after meeting its renewable energy targets six years early, a decision likely to shake those industries globally.

Electricity prices will now be set by market forces, rather than fixed by authorities. Clean energy has grown to account for 40% of China’s electricity capacity, boosted by years of subsidies, but Beijing now believes the cost of projects has dropped to the point where they are economically viable without government backing.

China accounted for about 40% of the world’s renewable energy growth between 2019 and 2024, according to the International Energy Agency.