China has initiated a significant action plan aimed at enhancing sustainable energy investments, with a goal of increasing these investments by over 25 percent by 2027. This initiative will focus on multiple energy sources including coal, wind, solar, and hydropower.

On Wednesday, Chinese authorities introduced a strategic framework designed to encourage large-scale equipment renewals within the energy sector. This action is part of the country's broader commitment to achieving its carbon reduction goals.

The action plan, jointly issued by the National Development and Reform Commission and the National Energy Administration, anticipates that investment in critical areas of China's energy industry will rise by over 25 percent by 2027 when compared to the levels in 2023.

Central to this plan are measures aimed at transforming coal-fired power generation units. Additionally, there will be a renewed focus on the technological upgrades of equipment across wind, solar, hydropower, and other energy sectors.

The action plan outlines key tasks that emphasize promoting equipment renewals and advancing technical transformations pertaining to power transmission and distribution, as well as upgrading clean energy heating systems.

To support the successful execution of this initiative, China plans to strengthen fiscal, tax, and financial assistance. There will also be encouragement for financial institutions to access supportive policies and increase medium- to long-term loans directed at the manufacturing sector.

In March, the State Council had already announced a complementary action plan that focuses on facilitating significant upgrading of equipment and the trade-in of consumer goods. This earlier plan outlines a series of essential tasks organized into five distinct categories.

Furthermore, China has set ambitious targets for its climate agenda, declaring its intention to reach peak carbon dioxide emissions by 2030 and to achieve carbon neutrality by 2060.