Strengthening Climate Policy in China’s Private Sector

At the UN conference in September 2020, President Xi Jinping announced that China will “have CO2 emissions peak before 2030 and achieve carbon neutrality before 2060”. Details of how this target will be achieved will probably not be released until the 14th Five-Year Plan (FYP) is announced. Nonetheless, if China fully implements a strategy to reach this goal, it will have massive implications for reaching the global 1.5 degrees Celsius target. This is because China accounts for the highest percentage of CO2 emissions worldwide, with Chinese power plants burning 25% of the world’s coal reserves and with renewable energy output only accounting for 9% of the country’s total energy [1]. Paradoxically, despite its massive energy consumption, it is also the largest producer of solar and wind energy and the leading investor in clean energy technologies worldwide [2]. Not only does China have 47% of all electric cars in the global market [3], it also refines four-fifths of the world’s supply of cobalt, an essential component in lithium ion batteries, the most common storage of clean electricity [4]. In addition to investment and manufacturing of sustainable energy technology and following several regional pilot emissions trading schemes (ETS), the Chinese government implemented a National Emissions Trading Scheme (NETS) in 2017 and enforced it in 2020, initially covering 2,267 power plants [5]. 

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