China triples solar investments

China tripled investment in solar power projects in the first four months, putting the nation on track to install record amounts of new clean energy capacity.

Investment in solar was 29 billion yuan (HK$34.2 billion) from January through April, about 204 percent higher than in the same period a year earlier, according to a National Energy Administration statement.

That compares to 51.3 billion yuan invested in solar in the first 11 months of last year.

China, which already has the world's largest fleet of renewables, is rapidly accelerating investments in solar and wind projects as it aims to build a larger and more flexible grid to meet goals to peak carbon emissions before 2030 and zero them out by 2060 or earlier.

The nation is forecast to add a record 220 gigawatts of total power capacity this year, according to the NEA. Coal will continue to play a central role in the country's energy mix for years, and Beijing has expanded plans to adapt power plants using the fuel to act as backup to renewables.

Meanwhile, sales of green asset-backed securities, which package together assets that generate income, totaled 56.1 billion yuan in the first four months of 2022, according to data compiled by Bloomberg.

These securities can be considered green even if the funds raised aren't used for green projects, so long as the seller "operates in a green industry" or the underlying income stream comes from a green venture, according to the Shanghai Stock Exchange. That flexibility is making it a popular option for borrowers because, by contrast, bonds can only be classified as green if proceeds are used for green projects, said Gao Huike, a senior research director at CSCI Pengyuan Credit Rating.