A new report examines the energy transition of Asia’s largest economy.
China is a leader in the expansion of renewable energies, yet it emits 33 percent of global CO2 emissions in the energy sector. China’s energy policy is correspondingly important in achieving the global targets for more climate protection. However, Asia’s largest economy is not aiming for climate neutrality until 2060, ten years later than the European Union, for example.
In a new report, DNV, a company specializing in risk management, has examined the premises China is following in its energy transition. The policy is primarily aimed at economic autonomy and the resilience of the domestic economy to market dynamics and trade tensions. Accordingly, coal will remain important for a long time, with a significant decline in its use by a third not forecast until 2040. Until then, this energy source will be the backbone of energy security, according to the report. By 2050, the energy mix will be sustainable at 88 percent wind power, photovoltaics, and the like. Even now, 38 percent of the world’s wind energy is generated by plants in China.
Thanks to its natural resources, China can draw on necessary raw materials, such as rare earths, to expand renewable energies. Beijing secures other resources through investments abroad, such as nickel from Indonesia.
The full report can be requested here.
Photo: iStock/Airubon
