China’s Belt and Road Initiative (BRI) is entering a new phase. Once synonymous with building highways, ports, railways and coal-fired power plants, Beijing’s flagship international infrastructure program is increasingly turning into a vehicle for exporting clean-energy technology. The latest data show that «green» investments are now the fastest-growing segment of the initiative, a shift that reflects both changes in global energy markets and China’s broader geopolitical ambitions.
According to recent research by the University of Queensland and the Green Finance & Development Center in Shanghai, China committed a record $20.1 billion to green-energy projects under the Belt and Road Initiative in the first half of 2026. In just six months, that figure already matched the initiative’s entire green financing for all of 2025 — confirmation of the sharp acceleration underway — and brings the share of BRI energy investment going to renewable and hydroelectric projects to 56%.
This transformation reflects the falling cost of renewables, rising geopolitical uncertainty and Beijing’s determination to cement its position as the world’s leading supplier of clean technology.
From infrastructure diplomacy to green diplomacy
When President Xi Jinping launched the Belt and Road Initiative in 2013, his main goal was to strengthen China’s economic influence through large infrastructure projects designed to connect Asia, Africa, Europe and Latin America.
For years, that investment concentrated on roads, ports, industrial parks and conventional power plants. Critics have often accused Beijing of financing carbon-intensive infrastructure while also driving up the debt loads of developing countries; supporters of the initiative, by contrast, point out that many of these projects filled serious infrastructure gaps in emerging economies.
China’s overseas investment strategy, however, has evolved gradually.
Today, solar farms, wind parks, battery-manufacturing plants and power-transmission grids are replacing coal plants as the hallmarks of new BRI projects. China is no longer exporting only capital, but also its industrial know-how in renewable energy. At the same time, market logic appears to be carrying ever more weight alongside Beijing’s strategic priorities.
Energy security in uncertain times
The latest surge in green investment coincides with a new phase of volatility in global energy markets.
Recent geopolitical tensions involving, among others, Iran — one of China’s main partners — have again exposed the vulnerability of economies heavily dependent on oil and natural-gas imports. Rising fossil-fuel prices have made renewables even more attractive to developing countries seeking to strengthen their long-term energy security.
Although the shift toward renewables has been underway for years, recent geopolitical instability has reinforced the economic and strategic case for accelerating it. Volatile fossil-fuel prices have increased the appeal of electricity generated domestically from renewable sources, especially for emerging economies pursuing greater energy independence.
All of this represents a strategic advantage for Beijing. While geopolitical instability continues to buffet traditional energy markets, China’s clean-tech industry benefits from economies of scale, integrated supply chains and years of industrial investment — factors that have significantly cut production costs over the past decade.
China’s clean-tech industry goes global
The expansion of green financing under the Belt and Road Initiative also reflects the extraordinary growth of China’s clean-technology sector.
Chinese companies now hold a dominant position in the world’s main supply chains for solar panels, lithium batteries, electric vehicles and their components. Years of industrial policy, integrated supply chains and large-scale production have allowed Chinese manufacturers to build a significant competitive edge over many international rivals. As domestic production capacity keeps rising, foreign markets have become increasingly important.
The Belt and Road Initiative offers an ideal platform to export these technologies while simultaneously strengthening China’s economic ties with emerging markets.
Beyond power-generation plants, many projects now include electricity grids, battery-storage systems and manufacturing investments that foster long-term industrial partnerships rather than simple construction contracts.
Private firms take on a more central role
One of the most significant developments highlighted by the data is the growing presence of China’s private sector. Historically, Belt and Road projects were dominated by large state-owned enterprises backed by development banks. In 2020, the private sector accounted for just 13% of overall projects, versus 48% in 2026.
This shift suggests that the economic viability of projects is taking on greater importance relative to state directives, and that the Chinese government is willing to grant a larger role to domestic private firms. Rather than relying mainly on government-led strategic projects, a growing number of Chinese companies view overseas renewable-energy investments as genuine investment opportunities. This stronger market orientation could make the Belt and Road Initiative more sustainable over the long run by reducing its dependence on public financing.
Africa emerges as a strategic destination
In recent years, Africa has emerged as one of the main destinations for Chinese green investment. Chinese investment on the continent nearly tripled compared with the first half of 2025, reaching $33.5 billion — confirmation of strong demand for infrastructure, power generation and industrial development.
Many African economies face rapidly growing electricity demand as they search for economically viable alternatives to fossil fuels. Chinese renewable-energy technologies offer relatively cheap solutions that can be deployed faster than many conventional energy projects.
At the same time, Beijing strengthens its economic influence in a region set to play an increasingly important role in global economic growth over the coming decades.
The criticisms remain
Despite the green turn, the Belt and Road Initiative continues to draw sharp criticism. For years, Western governments and international institutions have argued that some participating countries have taken on excessive debt under opaque financing arrangements. Open questions also remain over environmental standards, governance, transparency and market-access conditions for foreign companies operating in China.
Several analysts also stress that renewable-energy investment should not obscure the initiative’s broader geopolitical aims. Infrastructure financing still functions as a tool through which China expands its diplomatic influence, secures access to strategic resources and strengthens trade ties with the Global South. Through the BRI, Chinese influence has also spread to many countries traditionally aligned with Western powers.
A new phase for the Belt and Road Initiative
The latest investment data indicate that the Belt and Road Initiative is no longer defined solely by ports, highways and railways. Increasingly, it is instead a platform through which China exports clean-energy technology, industrial expertise and capital. The combination of uncertain energy markets, growing electricity demand and the competitiveness of China’s clean-tech industry is accelerating this transformation.
Whether read as a sustainable-development strategy, an industrial policy or a tool of geopolitical projection, one trend is now clear: Beijing is making clean energy one of the pillars of its global economic strategy. For investors, policymakers and emerging economies, the evolution of the Belt and Road Initiative offers an important preview of how the balance of global energy leadership could shift over the next decade.
Editor’s note
This article was originally published in Italian on money.it by Oliver Hearn on August 01, 2026 as «La Nuova Via della Seta diventa sempre più verde: come le energie rinnovabili rafforzano l’influenza globale di Pechino». It has been translated and adapted for an international audience by the Money.it International desk.
