China’s Belt and Road Initiative (BRI) is entering a new phase. Once synonymous with the construction of highways, ports, railways and coal-fired power plants, Beijing’s flagship overseas infrastructure programme is increasingly becoming a vehicle for exporting clean energy technologies. New data suggest that green investment has become the fastest-growing pillar of the initiative, reflecting both changing global energy markets and China’s broader geopolitical ambitions.

According to recent research by the University of Queensland and Shanghai’s Green Finance & Development Center, China committed a record $20.1 billion to green energy projects through the Belt and Road Initiative during the first half of 2026. This figure has already equalled the total green energy financing recorded throughout all of 2025, and with this, 56 per cent of China’s energy engagement in the BRI is now in renewables as well as hydro-electricity.

This shift reflects declining renewable energy costs, rising geopolitical uncertainty and China’s ambition to consolidate its position as the world’s leading supplier of clean technologies.

From Infrastructure Diplomacy to Green Diplomacy

When President Xi Jinping launched the Belt and Road Initiative in 2013, its primary objective was to strengthen China’s economic influence through large-scale infrastructure projects connecting Asia, Africa, Europe and Latin America.

For years, investments focused on roads, ports, industrial parks and conventional power generation. Critics frequently accused Beijing of financing carbon-intensive infrastructure while burdening developing countries with unsustainable debt; however, supporters argue that many of these projects filled critical infrastructure gaps in developing economies.

However, China’s overseas investment strategy has gradually evolved.

Today, solar farms, wind parks, battery manufacturing and electricity transmission networks are replacing coal plants as the defining features of many new BRI projects. Rather than simply exporting capital, China is exporting its industrial strengths in renewable technologies. Increasingly commercial considerations appear to be playing a larger role alongside Beijing’s strategic priorities.

Energy Security In Uncertain Times

The latest surge in green investment comes amid renewed volatility in global energy markets.

Military tensions involving Iran, one of China’s partners, have once again highlighted the vulnerability of economies that rely heavily on imported oil and natural gas for growth. Higher fossil fuel prices have made renewable energy increasingly attractive for developing countries seeking long-term energy security.

Although the transition towards renewable energy has been underway for years, recent geopolitical instability has strengthened the economic and strategic case for accelerating it. Volatile fossil fuel prices have reinforced the appeal of domestically generated renewable electricity, particularly for developing economies seeking greater energy independence.

All of this represents a strategic advantage for Beijing. While geopolitical instability continues to affect traditional energy markets, China’s renewable manufacturing industry benefits from economies of scale, integrated supply chains and sustained industrial investment, all of which have significantly reduced production costs over the past decade.

China’s Cleantech Industry Reaches Global Scale

The expansion of green Belt and Road financing also reflects the remarkable growth of China’s domestic clean technology sector.

Chinese manufacturers dominate global production of solar panels, lithium batteries and electric vehicles and their components. Years of industrial policy, integrated supply chains and large-scale manufacturing have enabled Chinese firms to achieve significant cost advantages over many international competitors. As domestic production capacity continues to expand, overseas markets have become drastically more important.

The Belt and Road Initiative provides an ideal platform for exporting these technologies while simultaneously strengthening China’s economic relationships with emerging markets.

Beyond energy generation itself, many projects now include electricity grids, battery storage facilities and manufacturing investments that create long-term industrial partnerships rather than one-off construction contracts.

Private Companies Take the Lead

One of the most significant developments revealed by the latest data is the growing role of China’s private sector. Historically, Belt and Road projects were dominated by large state-owned enterprises backed by policy banks. In 2020, the private sector accounted for only 13 per cent of total engagements, compared with 48 per cent in 2026.

This shift suggests that commercial viability is becoming significantly more important relative to the state’s direction, and that the Chinese government is willing to allow a greater role for domestic private enterprise. Instead of relying primarily on government-driven strategic projects, Chinese firms increasingly view overseas renewable energy investments as profitable business opportunities. This commercialisation could make the Belt and Road Initiative more sustainable over the long term by reducing dependence on state financing.

Africa Emerges as a Key Destination

Africa has emerged as one of the principal destinations for China’s green investment in recent years. Chinese investment across the continent has almost tripled since the first half of 2025, reaching USD33.5 billion, underlining the continued demand for infrastructure, electricity generation and industrial development.

Many African economies face rapidly growing electricity demand while seeking affordable alternatives to fossil fuels. Chinese renewable technologies provide relatively low-cost solutions that can be deployed faster than many conventional energy projects.

At the same time, Beijing strengthens its economic influence across a region expected to play an increasingly important role in global growth over the coming decades.

Persistent Criticism Remains

Despite its greener image, the Belt and Road Initiative continues to face substantial criticism. Western governments and international institutions have long argued that some participating countries accumulate excessive debt while negotiating opaque financing agreements. Concerns also remain regarding environmental standards, governance, transparency and unequal market access for foreign companies operating in China.

Furthermore, analysts have argued that renewable energy investment should not obscure the broader geopolitical objectives of the initiative. Infrastructure financing continues to serve as a tool for expanding China’s diplomatic influence, securing access to strategic resources and strengthening trade relationships across the Global South. Through the BRI, Chinese influence has arrived in many countries that were previously close to western powers.

A New Phase for the Belt and Road

The latest investment figures suggest that the Belt and Road Initiative is no longer defined solely by ports, highways and railways. Instead, it is increasingly becoming a platform through which China exports renewable energy technology, industrial expertise and commercial investment. The combination of global energy uncertainty, growing electricity demand, and the competitiveness of Chinese clean technology manufacturers has accelerated this transformation.

Whether viewed as green development, industrial strategy or geopolitical influence, the direction is becoming ever clearer: Beijing is positioning clean energy as one of the central pillars of its global economic strategy. For investors, policymakers and developing economies alike, the evolution of the Belt and Road Initiative offers an important glimpse into how the global balance of energy leadership may be reshaped over the coming decade.