At the heart of the uncertainty is China’s commitment to carbon neutrality by 2060. President Xi Jinping has repeatedly used the slogan “clear waters and lush mountains are priceless assets”, highlighting an intimate relationship between China’s decarbonization policy and underlying economic benefits.
“Changing China’s energy mix is the most feasible way to reshape its carbon emissions trajectory, as the energy sector is the biggest emitter of carbon. “
The obstacles China faces to cut carbon dioxide emission are high. It is the largest contributing country in the world carbon dioxide (CO2) emissions. International experience suggests that developed economies typically take 50 to 60 years on average to achieve carbon neutrality after peaking in emissions.
Even so, the impact will be felt almost immediately. the 14 of Chinae The five-year plan set a binding target of reducing carbon emissions per unit of gross domestic product (GDP) by 18% between 2021 and 2025, the same as over the past five years.
Changing China’s energy mix is the most feasible way to reshape its carbon emissions trajectory, as the energy sector is the most important carbon emitter. However, the associated policies will have a broader impact for the commodity complex.
China’s energy imports have exploded in recent years. Coal and petroleum imports jumped to 304 million tonnes (mt) and 542 mt in 2020, from 2 mt and 70 mt, respectively, in 2000. ANZ Research analysis shows that in the scenario of 1 , 5 ° C, China will likely reduce its overall energy imports by 95%. in 30 years.
Coal, which accounts for 63 percent of electricity production and 57 percent of China’s primary energy mix, contributed 7.5 billion tonnes (bnt). However, clean energy, particularly natural gas, only accounted for 7.8% of its total energy mix, compared to a global average of 24.2%.