BRI injects impetus into green transition efforts

China's energy engagement under the Belt and Road Initiative reached a record high in the first half of 2026, with more than half directed to green projects for the first time, according to a new study.

Experts said China's world-leading technologies are providing countries around the world with green energy solutions, and expect the country's investment in industries related to the "new three" products to continue growing amid global trade uncertainty.

Total energy engagement stood at about $36.3 billion, almost double the level recorded in the first half of any year since 2013 except for 2025. Green energy engagement reached $19.6 billion, including $14.3 billion in wind, solar and waste-to-energy projects, and $5.3 billion in hydropower projects.

Those figures were highlighted in the latest "China Belt and Road Initiative Investment Report 2026 H1", released by the University of Queensland Business School late last month.

Christoph Nedopil, the report's author and a professor at the university, told China Daily that both push and pull factors had contributed to the development.

"China's green technology is world-leading, offering substantial opportunities for low-cost and high-quality green energy solutions for countries around the world," he said.

At the same time, Nedopil said many countries seeking to reduce greenhouse gas emissions and limit their exposure to fossil fuel price volatility were looking for long-term green energy solutions.

Published twice a year for the past seven years in collaboration with the Green Finance & Development Center founded at Fudan University in Shanghai, the report said its latest analysis found record deals in the first half of 2026 with a focus on energy, mining and new technologies.

According to data released by China's Ministry of Commerce and the State Administration of Foreign Exchange at the end of last month, China's outbound direct investment across all sectors reached 596.42 billion yuan ($86.53 billion) in the first six months of 2026, up 3.8 percent year-on-year.

Nonfinancial outbound direct investment totaled 453.06 billion yuan, including 120.77 billion yuan invested in countries involved in the BRI.

Record investments

Beyond investment, China's trade with BRI partner countries reached 12.97 trillion yuan during the same period, up 14.8 percent year-on-year and accounting for 50.9 percent of the country's total foreign trade, according to the General Administration of Customs.

The report also found that technology and manufacturing, key growth sectors for China's BRI engagement, reached record levels in the first half of 2026.

Technology investments, in particular, increased significantly in utility-scale batteries and included significant investments in green ammonia.

Looking ahead, the report expects BRI investment and construction contracts to expand further in the second half of 2026 despite global economic headwinds caused by United States-led trade impositions and fossil fuel price volatility linked to the Strait of Hormuz crisis.

It said the global trade uncertainty could further drive Chinese investment in green energy and related industries, including sectors linked to China's "new three" products — electric passenger vehicles, lithium-ion batteries and solar cells.

China's exports of the "new three" products rose 27.1 percent year on year in 2025, while exports of other green products surged 48.7 percent, according to the General Administration of Customs.

The report also noted that global trade volatility and uncertainty could further drive Chinese companies to invest more in supply chain resilience and explore new markets.

"Many countries around the world aim to reduce carbon emissions and improve energy security through green energy, driving demand for Chinese technology in solar, batteries and EVs," Nedopil said.

"Importantly, many countries also aim to strengthen their role in the green economy value chain by attracting investment in local green economy manufacturing, such as manufacturing related to the solar, wind, battery or electric vehicle industries," he said.

Nedopil said many industry leaders in these sectors were Chinese companies looking at investment opportunities in localized manufacturing that were often supported by governments in BRI countries and beyond.

He also said Chinese engagement in data centers in BRI countries was already increasing and was likely to expand further as Chinese companies became more confident about investing overseas.