Despite posting its lowest GDP growth in 25 years, China is still a land of opportunity for investors looking for growth. While in the past investors targeted the manufacturing sector, new areas for investment growth have sprung up, with one area being alternative energy and environmental protection.

According to recent PwC data, investors are showing renewed interest in renewable and cleantech ventures. Investment by private equity and venture capital in the sector in 2015 reached 143 deals compared to 96 in 2014. The total value of investments in 2015 was equivalent to US$1.1 billion. Around 50% of investments were predominantly made in the energy-saving and environmental protection industry with new energy investments attracting 31% of investment flows.          

“The Chinese government has taken a number of effective measures that will enhance the renewable and cleantech industry. Key steps have been made towards supporting the development of wind, solar and other pivotal renewable energy sources, alongside efforts to promote more sustainable energy consumption,” explains Gavin Chui, PwC China energy, utilities and mining industry leader. “We see China's future energy industry transitioning to a lighter structure, aided by continuous advances in green technology.”    

It reveals a new mindset in China, which has been implementing environmental-friendly policies. During the world Paris Climate Conference (COP21) in November, China pledged to modernize its coal power plants by 2020 and cut pollutant emissions by 60%. Just last year the People’s Bank of China (PBOC) released guidelines on green bonds or bonds used for environmental purposes, leading to a blooming Chinese green bond market in 2016. Moody’s data shows that China was the biggest producer of green bonds in the first quarter 2016, raising a total of US$7.9 billion in green investments, twice the amount seen in the US in the period.