In what some might consider a surprising development, China - currently the world's largest emitter of carbon dioxide - is emerging as a global leader in climate policy as it seeks to build a cleaner and more efficient economy. Indeed, China's efforts to curb pollution and environmental destruction, while shifting to a more sustainable growth model, can provide valuable lessons for governments worldwide. The first step towards sustainable economic growth is to recognise, as China's leaders have, that pollution - produced largely through coal-fired power plants - is profoundly damaging citizens' lives and livelihoods, particularly in major cities like Beijing and Shanghai. Moreover, greenhouse-gas emissions are contributing to climate change, the effects of which, as the Intergovernmental Panel on Climate Change warns, could prove devastating for all countries, with China highly vulnerable. Moreover, China is already the world's largest oil importer, and energy demand continues to increase rapidly. In this context, the authorities' effort to accelerate the shift of China's growth model to one that is more innovative, inclusive, efficient, and sustainable represents the only feasible way forward. The good news is that some progress has already been made. China is now the world's largest investor in clean energy, with a record US$68 billion channelled towards renewable-energy development in 2012 and another US$54 billion last year. Furthermore, its non-fossil energy supply more than doubled from 2005 to 2013 while the carbon dioxide intensity of gross domestic product fell by 28 per cent. But much more needs to be done. Fortunately, China's government recognises the need to pursue more stable, higher-quality GDP growth. At the same time, given slower growth in world markets and the challenges of domestic structural adjustment, the annual growth target has been reduced, to around 7.5 per cent. These structural adjustments are aimed at reducing China's dependence on heavy industry and manufacturing exports while fostering domestic consumption, promoting higher-tech activities, and strengthening the services sector. This shift will naturally bring about a decline in demand for energy-intensive raw materials like iron, steel, and cement. To support these efforts, China will build generating stations that rely on natural gas, nuclear power, and renewable sources. Along with more stringent restrictions on coal consumption and greenhouse-gas emissions, the upcoming 13th five-year plan, for 2016-2020, will include additional investment in research and development. With this mix of policies, Chinese carbon emissions could peak by 2030. Coal consumption is likely to peak by 2025. These targets may be ambitious, but they are entirely achievable. This transformation promises not only to benefit the environment, but also to create new sources of economic growth and employment opportunities. And the benefits will not be limited to China. Other countries can learn from China's experience through observation and collaboration. At the same time, they can benefit from the technological advances and cost reductions that Chinese investment in renewable-energy research and development, and deployment is enabling. He Jiankun is director of the Energy, Environment, and Economy Research Institute at Tsinghua University. Nicholas Stern, a member of the British House of Lords, is a professor at the London School of Economics and Political Science, vice-chair of the Global Commission on the Economy and Climate, and president of the British Academy. Copyright: Project Syndicate
