China can turn its challenges into clear opportunities for greener growth

Confronted with a cooling economy and global headlines declaring an "Airpocalypse", China faces challenges on multiple fronts. While many people are quick to point out the hurdles, the reality is that its leaders are moving ahead with significant policy measures and reforms. If successful, these actions will not only help drive China's economic development, they will address another mounting threat: climate change.

The latest report from the Intergovernmental Panel on Climate Change confirms the risks of climate change and humans' central role in it. China is no less vulnerable. One-third of its coastline is highly vulnerable to rising seas that will probably lead to the relocation of coastal communities. China's agricultural production - including rice, wheat and corn - could fall dramatically within a few decades due to shifts in precipitation and soil quality. Health impacts, including malaria and other infectious diseases, are also expected to mount as global temperatures rise.

As China moves to tackle issues related to the economy, pollution and urbanisation, each carries opportunities to shift the country's emissions trajectory and make progress on climate change.

First, the economy. At the just-completed third plenum of the party's 18th Central Committee, China's economic reform was high on the agenda. The need to restructure the economy and adopt a new growth model for the coming decades is widely recognised. While major questions remain about the scope of reform, China's leaders identified the environment and innovation as two key areas to address.

As China's economy undergoes a transition, the country will benefit from this emphasis on innovation. This shift can be seen in the deployment of renewable- energy technologies that can drive growth and alter the country's emissions profile.

China is already the world's leading investor in clean energy, putting in more than US$65 billion last year. According to the latest report from the International Energy Agency, by 2035, China is expected to have built more renewable power plants than the US, European Union and Japan combined. China also has the largest installed wind capacity in the world and is working to update its power grid to match.

Moreover, China is investing heavily in research and development for clean energy and energy efficiency. Its 12th five-year plan included targets to increase R&D spending by focusing on seven priority industries, three of which - new energy, energy conservation and environmental protection, and clean vehicles - would contribute to low-carbon growth.