China’s carbon neutral ‘transformation’ could cost US$6.4 trillion, but plan has ‘Achilles’ heel’
- Solar, wind, storage and nuclear power projects are set to take centre stage, according to a report by energy analysts Wood Mackenzie
- But China faces challenges in securing certain supplies of critical raw materials, mainly copper, aluminium, nickel, cobalt and lithium
China will need to spend US$6.4 trillion to build the new green power generation capacity needed to meet its goal of reaching carbon neutrality in 2060, but may fall short on the supply of key raw materials required, according to energy analysts Wood Mackenzie.
Solar, wind, storage and nuclear power projects are set to take centre stage to produce enough electricity to accommodate an estimated 75 per cent increase in demand and to replace lost energy from slashing fossil fuel sources by 2060, the “Tectonic shift: China’s world-changing push for energy independence” report from Wood Mackenzie said.
While China pushes ahead with its plans – it is already the world’s largest manufacturer of wind turbines and dominates global solar module production – it will have challenges in securing certain supplies of critical raw materials, mainly copper, aluminium, nickel, cobalt and lithium, the report added.
Most notably, China’s dependence on foreign miners for its copper supply is a major concern. This has fuelled the country’s determination to seek greater control of other raw materials
“Most notably, China’s dependence on foreign miners for its copper supply is a major concern. This has fuelled the country’s determination to seek greater control of other raw materials,” said Wood Mackenzie senior economist Yanting Zhou, one of the report’s authors.