Last year, China’s net zero goals received a rating of Poor by the Climate Action Tracker, an international group of scientists and policy experts. The country had submitted its mid- and long-term strategies to combat climate change in October 2021 where it aimed to reach carbon neutrality by 2060. The organization clarified that if minor improvements were made to China’s climate change goals the rating could be upgraded to Average.
A recent World Bank report has found that as global warming threatens China’s future, the country will need to spend an additional $17 trillion in investments to meet its net zero emissions goals by 2060. In 2021, many fund managers joined the net-zero initiative to combat climate change.
China’s net zero goals
As the world’s second largest economy, China currently emits the highest levels of CO2 annually. In 2006, it became the largest emitter of carbon dioxide and is responsible for almost 27% of the world’s greenhouse gas emissions. However, its emissions have fallen by a record 8% in the second quarter of 2022. In comparison, the United States has emitted more CO2 in the past three centuries. In 2021, the European Union unveiled plans to end carbon emissions by 2050.
The World Bank report makes it clear that private investments are the need of the hour to meet China’s net zero goals. The hefty price tag pales in comparison to the damages that could occur if CO2 emissions by China are left unchecked.
If China’s climate change goals are not fast-tracked, global warming could swallow up its low-lying coastal areas and cut economic output by 0.5% to 2.3% as early as 2030.
“China’s long-term growth prospects are increasingly dependent on rebalancing the economy from infrastructure investment to innovation, from exports to domestic consumption, and from state-led to market-driven allocation of resources,” said Manuela Ferro, the World Bank’s vice president for East Asia and the Pacific.
Earlier, Chinese ministries had estimated that the investment to achieve carbon neutrality by 2060 would stand at a massive $14.725 trillion, an average of nearly $5 trillion every decade. Studies have already shown that China’s economy will benefit greatly by transitioning to low-carbon methods within the next 30 years. China’s net zero goals require heavy investments in tech in the coming next decade to accelerate its move towards carbon neutrality.
China’s commitment to change
At the 75th session of the UN General Assembly in September 2021, President Xi Jinping pledged that China will “aim to have CO2 emissions peak before 2030 and achieve carbon neutrality before 2060.”
According to experts, President Xi’s pledge is an easy diplomatic win for the country as China’s climate change goals align with the world’s. However, the premier did not detail how the country will set about achieving them.
Cities contribute nearly 85% of CO2 generated by the country. Coal has been the country’s main source of energy for decades but President Xi has plans to phase down coal-based projects from 2026. That is still a good four years away. But looking at the current situation, far from shutting down projects, China is building multiple coal-fired power stations, at over 60 locations in the country.
On the other hand, Tsinghua University researchers say 90% of power should come from nuclear and renewables by 2050. China first turned to green technology as a means to combat air pollution that threatens to choke its cities, which was a result of rapid industrialization.
As global warming threatens China’s industry with the possibility of floods and droughts, the government is turning to green technology to bolster its economic position and to save the environment. Today, China generates more solar power than any other country. Researchers have even found a way to manipulate solar cells for more energy.
China estimates that green energy will power nearly 25% of its needs by 2030. Studies have found that renewable energy investments can be recovered within six years.
Currently, China is the biggest buyer of EVs. One in every two EVs sold is bought in China.
Although China is getting greener at a faster rate than any other country, it is mainly due to its forestry programs that aims to combat soil erosion and advance the of the Gobi Desert.
David Tyfield of the Lancaster Environment Centre says, “Unless China decarbonizes, we’re not going to beat climate change.” The World Bank report echoes his sentiments as it states, “This transition will require a massive shift in resources, innovation and new technologies to enhance energy efficiency and resource productivity.”
