Chinese interests in Australia’s renewable energy rise despite weak overall foreign investment

A report from Australia shows that 12 per cent of Chinese funds invested in Australia in 2022 went to renewable energy projects, up from some 3 per cent in 2021

Overall Chinese investment in Australia for 2022 rose just above US$1.4 billion but remained one of the lowest levels of investments in years

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Turbines at a wind farm north of Canberra. Photo: Reuters

Published: 5:00am, 19 Apr 2023Updated: 5:29am, 19 Apr 2023

Chinese investments in Australia’s renewable energy sector have risen, even as total foreign investments from China remained subdued, a new report from KPMG and the University of Sydney has shown.

Australia’s latest Chinese foreign investment report – “Demystifying Chinese Investment in Australia” – showed that 12 per cent of Chinese funds invested in Australia in 2022 went to renewable energy projects.

This amounts to about US$170 million, up from US$19 million in 2021. In 2021, renewable energy investments accounted for just over 3 per cent of total Chinese investments.

Before 2021, there had been no or little renewable energy investments by Chinese investors.

Sheep graze in front of wind turbines near the Australian capital city of Canberra, Australia. Photo: Reuters

In total, actual Chinese investments in Australia for 2022 rose just above US$1.4 billion but remained one of the lowest levels of investments in years, the report stated.