Green transition plan shows China's commitment to low-carbon goals

Editor's note: Alexander Ayertey Odonkor, a special commentator on current affairs for CGTN, is a global economist with a keen interest in the social, environmental and economic landscape of both developing and developed countries, particularly in Asia, Africa and Europe. The article reflects the author's opinions and not necessarily the views of CGTN.

On August 11, China unveiled a set of guidelines which aims to foster the country's green transition in all areas of economic and social development. Jointly released by the Communist Party of China (CPC) Central Committee and the State Council, the guidelines, for the first time, present a systematic national approach to China's green transition.

According to the guidelines, China will achieve "remarkable results" by 2030 in its green transition across all areas of economic and social development, with the scale of the country's energy conservation and environmental protection industry forecast to reach about $2.1 trillion. By 2035, a green, low-carbon, and circular ecosystem will be basically established, and the goal of a beautiful China will be basically achieved.

To accomplish this daunting task, China, guided by the plan, will vigorously embark on a host of activities including promoting green and low-carbon transition in various sectors such as energy, manufacturing and transport across urban and rural communities.

Through enhanced national efforts delineated by the guidelines, China, seeks to increase the share of non-fossil energy to approximately 25 percent of energy consumption by 2030 and concurrently reduce carbon emission intensity of commercial transport per unit of turnover by about 9.5 percent compared with 2020. Ultimately, these colossal gains, if successfully achieved within the specified timeframe, will undoubtedly mark another significant milestone towards a sustainable future, not only for China but the entire world.

In fact, the feat would not be the first time China had delivered on its climate promise. At the general debate of the 75th session of the United Nations General Assembly in September 2020, Chinese President Xi Jinping indicated that China is committed to its climate goals. He said, "China will scale up its Intended Nationally Determined Contributions by adopting more vigorous policies and measures. We aim to have carbon dioxide emissions peak before 2030 and achieve carbon neutrality before 2060."

True to his word, since 2020 China has embarked on an enhanced and concerted national agenda to bolster renewable energy capacities in the country's energy generation mix and promoted green and low-carbon transition in industrial structure and other key sectors such as transport. During this period, enhanced national action has not only yielded concrete results in China, but has also injected strong impetus into green development and low-carbon transition worldwide.

According to the International Energy Agency (IEA) China is the world's renewables powerhouse – the Asian giant accounts for nearly 60 percent of new renewable energy capacity expected to become operational by 2028. IEA forecasts show China is on track to achieve its national 2030 target for solar and wind installations by the end of 2024, six years ahead of schedule.

It was reported last December that data, released by the National Energy Administration, shows China's renewable energy capacity, which includes solar power, wind power, hydropower and biomass energy, surpassed thermal power for the first time, accounting for more than 50 percent of the country's installed power generation capacity.

As a result of China's unwavering commitment to its green transition and low-carbon goals, for more than a decade, the Asian powerhouse has made significant inroads in efficient use of energy, witnessing a decline in carbon emissions in the process. Data from the National Development and Reform Commission (NDRC) reveal that in 2023, China's energy consumption and carbon emission intensity per unit of GDP reduced by more than 26 percent and 35 percent, respectively, compared to 2012 figures.

Since the 18th CPC National Congress in 2012, China's green transition and low-carbon push, which strongly supports economic and social development, has continued to gain steam – though formidable challenges remain; as of the end of June 2024, the country's installed capacity of renewables had reached about 1.65 billion kilowatts, accounting for 53.8 percent of the nation's total installed capacity.

While China's rapid progress in renewables is commendable, the share of coal and fossil energy remains high in the national energy mix – suggesting there's still room for improvement.  

Considering China's outstanding historical green transition gains and unflinching commitment to low-carbon goals, it is expected that the newly introduced guidelines will further eliminate barriers to the country's low-carbon transition and unlock new opportunities for innovation-led growth, especially in the green technology sector, known to produce various eco-friendly products including new energy vehicles, advanced waste management solutions and solar panels.

For example, the guidelines show China will extend the implementation period of carbon emission reduction support tools to the end of 2027 and actively develop various financial instruments, including green financial leasing, green trusts and green equity financing. 

With China already occupying the top spot in terms of the number of published patent applications in 2023 for green tech companies operating in China, access to additional financial resources will contribute to spur research and development investments. Ultimately this will foster innovation, which is essential for improving product technology and quality, creating high-value jobs and boosting productivity, which will be crucial for green development and low-carbon transition, not only in China but the entire world. 

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