China’s investments in the energy sector could reach more than 100 trillion yuan ($13.7 trillion) between 2020 and 2060, the Xinhua News Agency reported, citing public utility company State Grid. Or China.
The timeframe for the investments is in line with President Xi Jinping’s pledge that China will achieve net-zero emissions of greenhouse gases, including carbon dioxide, by 2060.
Researchers say this goal, if achieved, could limit global warming by 0.2 to 0.3 degrees Celsius this century.
Xi also pledged in 2020 to reach China’s peak carbon emissions by 2030. The world’s second-largest economy is responsible for about 30% of global carbon dioxide emissions.
“Energy activities are the main source of carbon dioxide emissions in China,” Xinhua News Agency quoted State Grid in a recently published book.
To achieve the dual carbon goal, the transformation of China’s power generation mix toward clean and low-carbon sources must be accelerated, State Grid said.
In 2022, major energy companies in China invested a total of 1.25 trillion yuan, the official China News Agency reported in August, citing the China Electric Power Construction Enterprises Association.
Investments in solar power generation increased by 232.7% to 286.6 billion yuan in 2022.
China aims to get about 33% of its energy needs from renewable sources by 2025, up from 28.8% in 2020, the state planning agency said last year.
In an annual ranking of the top 40 renewable energy markets worldwide by consulting firm EY this year, China ranked third, after the United States and Germany.
The 40 economies were ranked based on their renewable energy investment attractiveness and deployment options.
In July, China’s ruling Communist Party said the country would double its energy system reforms as the focus shifts to cutting carbon emissions.
But obstacles remain, such as protectionism on the part of the regional government and a lack of coordination between provinces. Long-term fixed electricity trading agreements also limit system flexibility.
($1 = 7.3010 Chinese yuan) (Reporting by Ryan Wu; Editing by Mark Potter)
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