Non-profit organisation Climate Council’s latest report has revealed that despite US federal climate policy setbacks under President Donald Trump’s administration, US states, companies and competitors such as China are making strides in renewable energy adoption.
The report titled ‘Power Shift: The US, China and the Race to Net Zero’ highlights that several US states and companies continue to uphold their net-zero goals.
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Powered by two-thirds clean energy, California remains a national climate action leader, especially after the Los Angeles fires. In addition, Texas has become the top wind power producer in the US.
Moreover, 84% of US companies are steadfast in their climate commitments, with 37% increasing their ambitions.
The retreat by the Trump administration has created opportunities for other nations to take the lead, with China reinforcing its position as a clean energy leader.
For Australia, a stronger 2035 climate target could unlock an A$190bn ($124.1bn) export opportunity, stimulate local business investment, and create jobs.
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By GlobalDataThis target could also aid in transitioning from a fossil fuel-dependent economy to a leader in clean exports.
As China, Australia’s second-largest coal export market, moves towards renewables, Australia is also working towards adapting and capitalising on this shift, alongside other major economies such as the UK, India, the EU, Japan, and South Korea.
China has seen a decrease in emissions in the first half of 2025 and has contributed to a 1% reduction in global climate pollution through its clean energy exports in 2024.
Furthermore, China’s solar and wind capacities have surged since 2020, and the country’s renewable energy sector has grown so robustly that it reached its 2030 targets six years ahead of schedule.
Climate Councillor and economist Nicki Hutley said: “In 2025, global renewables investment is double that of fossil fuels, with countries investing trillions of dollars. Yet the US, under Trump, has made the dumbfounding choice to head in the opposite direction.
“Even though many heavyweight states and companies in the US are still forging ahead with renewable energy projects, it’s clear China is now leading—and profiting. Over the past five years, China’s solar capacity has almost quadrupled and its wind capacity has doubled.”
Global investment in renewable energy is projected to reach A$3.4tn by 2025, which is double the investment in coal, oil, and gas.
Renewable power generation is on track to surpass coal-fired generation by 2025 or 2026.
By 2030, it is expected to nearly double, satisfying the combined power demands of China and the US.
This shift comes as numerous countries commit to phasing out fossil fuels and ending subsidies for coal, oil and gas.
Although China continues to build coal power stations, coal generation dropped by 3.4% year-on-year in the first half of 2025, the report stated.
