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Climate change
EconomyChina Economy

China’s carbon neutral goal could cost over US$5 trillion

  • President Xi Jinping told the United Nations General Assembly in September that China would achieve carbon neutrality before 2060
  • China is the world’s biggest emitter of carbon dioxide

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Experts say clean energy targets in China’s next five-year plan for the period covering 2021-25 will be critical in reaching the goal in bid to fight climate change. Photo: AFP
Reuters

China’s goal of reaching carbon neutrality by 2060 would require investments of more than US$5 trillion, which would include renewable power generation capacity, consultancy firm Wood Mackenzie said on Thursday.

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President Xi Jinping said at the United Nations General Assembly in September that China would achieve carbon neutrality before 2060, the first time the world’s biggest emitter of carbon dioxide has committed to ending its net contribution to climate change.

If delivered, the pledge would bring about the biggest reduction in projected global warming of any climate commitment made to date, according to research consortium Climate Action Tracker.

For China to reach its goal, Woodmac estimated that solar, wind and storage capacities will have to increase 11 times to 5,040 gigawatts (GW) by 2050 compared with 2020 levels.

Coal-fired power capacity will have to halve, while gas has to end at the same level as in 2019, the consultancy firm said.
The most challenging part of the shift is not the investment or magnitude of renewable capacity additions but the social transition that comes with it
Prakash Sharma

“The most challenging part of the shift is not the investment or magnitude of renewable capacity additions but the social transition that comes with it,” said Prakash Sharma, Woodmac’s Asia-Pacific head of markets and transitions.

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