Green investments could cut China’s emissions by 1.6 billion tons by 2030.
Emissions may peak in 2028, but coal generation is hindering progress.
China needs a 40% increase in green investments to meet 2030 carbon targets.
China’s could reduce its carbon emission by 1.6 billion tons by 2030 if the country can mobilise $2.5 trillion (17.5 trillion yuan) in green investments over the next five years, Bloomberg reported citing the China International Capital Corporation.
The leading investment bank further predicted that the country’s emissions could peak in 2028 at 11.3 billion tons. China, on of the major producers of global emissions, produces about one third of the world’s emissions. The country is yet to announce its 2035 climate goals ahead of the COP30 talks in Brazil this year.
The country’s energy transition faces significant challenges, with a rebound in coal generation hindering efforts to control emissions. Policy measures to decarbonise heavy industries have also been impacted by declining demand and ongoing trade tensions.
Bloomberg further stated that China will need to boost green investment by 40% to 3.5 trillion yuan per year through the end of the decade to achieve its goal to cut carbon intensity by 65% by 2030 from 2005.
Green Transition Faces Roadblocks
In 2023, coal-fired electricity generation increased by 7%, reversing a previous trend of decline. In addition, the country experienced its largest coal-power building boom in a decade, with nearly 95 gigawatts of new generation starting construction, according to a 2024 International Energy Agency (IEA) report.
The World Bank stated that while China has made achievements in solar and wind, coal remains cheaper, more reliable and politically entrenched in China’s energy strategy. The ongoing global supply chain disruptions and slowing domestic economic growth add complexities to China’s decarbonisation goals.
The international community will be closely watching China’s next steps as the country prepares to announce its 2035 climate goals during COP30 in Brazil later this year. More than half of China's electricity is still produced using coal, though, and the nation saw its largest coal-power building boom in ten years last year, with nearly 95 gigawatts of new generation beginning construction.
