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Hydrogen and lower emissions can push China to carbon neutrality, report says

  • Royal Dutch Shell report suggests focusing on hydrogen, biofuels and carbon-removal technologies
  • China’s 2060 target is challenging but creates opportunities to be a global leader in low-carbon manufacturing, Shell International’s chief economist says

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China is the world’s biggest source of greenhouse gas emissions and is seen as critical to global climate efforts. Photo: AP
China has set itself a target of achieving carbon neutrality by 2060, but how it will reach the goal is unclear.
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According to a recent report by oil and gas multinational Royal Dutch Shell, one way China could build a carbon-neutral energy system before 2060 is by focusing on hydrogen, biofuels and carbon-removal technologies, while phasing out fossil fuels.

In its analysis, electricity’s share of China’s energy consumption is projected to rise to almost 60 per cent in 2060, from 23 per cent today, with buildings, light industry and road transport being largely electric-powered.

The forecast mirrors a prediction by PetroChina. In a report released last month, the oil and gas producer expected that electricity would account for 62 per cent of energy consumption. It, too, said that hydrogen, green fuels and carbon-removal technologies such as carbon capture, utilisation and storage (CCUS) were important in cutting emissions.

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But a projected 60 per cent share is lower than predictions from previous studies, some of which said electricity would account for about 80 per cent. A 2020 report by Tsinghua University suggested 70 per cent.

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