China to open energy sector to foreign investment as it seeks to balance energy security with carbon neutral pledge
- Ensuring energy security and transitioning away from fossil fuels are key concerns outlined in a new government energy white paper
- China will lift investment restrictions on coal, oil, gas, power generation and new energy businesses as part of its near-term strategy
China will open its energy sector wider to foreign investment as part of its plan to ensure security and prioritise the development of renewables, according to a new government white paper, although “efficient” use of fossil fuels will continue.
Investment restrictions will be lifted on coal, oil, gas, power generation – except nuclear – and new energy businesses during the 14th five-year plan period between 2021-25, said Zhang Jianhua, head of the National Energy Administration, on Monday.
At the same time, the government will continue to phase out subsidies for clean energy like solar and wind power due to rapidly declining costs and let the market play a more decisive role, he said after the release of the white paper.
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