"China’s industrial policy for renewables has been embedded in the context of resource security as a significant consideration from the very beginning.
"The consistent lack of a stable energy supply has caused the Chinese state to carry out top-down incentives.
"The announcement seems consistent with the national ambition of creating a self-reliant new energy industry for future sources. However, this action might indirectly contribute to better China’s perception, both locally and globally. After all, China's environmental performance still needs to be significantly improved".
Jason Barefoot, chartered financial planner at Ascot Lloyd said: “This may create further opportunities for private investors to benefit in the form of raising share prices of those public companies in China that get involved.
"However, investors needn’t amend portfolios because of this, since those that invest globally will have a small exposure to China anyhow.
"Global equities capture global advancements, after all."
China has been pushing hard for green renewables, as to follow their pledge of being carbon neutral by 2060, and projects to reach peak CO2 emissions by 2030.
Yet in actual terms, China still has the highest CO2 emissions on earth producing 27% of total world emissions, possibly due to its high population and industrial strength.
In relative terms if one were to compare by tonnes of carbon dioxide per inhabitant, China emitted an average of 8.2 tonnes in 2020. As compared to Saudi Arabia (17 tonnes), Australia (15.2 tonnes) and United States of America (13.7 tonnes).
Yet, other large populous countries such as Nigeria produce 1.59 tonnes of carbon dioxide per their 211mn capita.
Many countries are too, increasing their focus on renewable energies. The Ukraine war has made it abundantly clear as to how reliant they are on fossil fuels and investors stand to profit off of their green turnaround also.
Last year, Dr Kay Swinburne, vice-chairperson of financial services for KPMG in the UK, told attendees at the Association of British Insurers' virtual 2021 conference there were two main themes that would emerge over the coming years.
She said the first would be the continued rise of environmental, social and governance issues. The second was how companies use data.
At the time, she commented: "There is a global appetite for making sure every sector does its part, especially with regards to the short-term climate change commitments."