China 15th Five-Year Plan ecological and energy goals

China has established strategic frameworks for its “15th Five-Year Plan,” focusing on ecological protection and a green transition to support carbon peak and neutrality goals. Initial targets include increasing forest coverage to 25.8%, maintaining natural protected areas at no less than 18% of land territory, and improving the Ecological Quality Index.

To support these environmental objectives, the government is planning massive investments in the energy sector, projected to exceed 20 trillion yuan. This investment strategy focuses on three pillars: power sources, the power grid, and new energy business models. While renewables like wind and solar will receive nearly 60% of power source investment, there is also an emphasis on nuclear and hydropower stability. The power grid sector is expected to see over 5 trillion yuan in investment, shifting focus toward local distribution networks to integrate distributed renewable energy. Additionally, approximately 2 trillion yuan is earmarked for new energy models, including green hydrogen, new energy storage, and virtual power plants.