The Great Energy Transformation in China

Abstract

In 2020, China started the drive to commence a reduction in carbon emissions by 2030 and reach carbon neutrality by 2060, setting in motion a transition to a green, sustainable and clean economy. China has ambitiously developed clean energy alternatives to coal. This transformation encompasses multifaceted strategies ranging from investment in renewable energy and the development of low-emission technologies to more stringent policy regulations on emissions. Renewable energy sources like hydroelectric power, wind, solar and biomass have received substantial attention and investment, with China emerging as a global leader in renewable energy capacity. In the technology space, China's transitioning to electric vehicles (EVs) has catalysed the development of a robust EV market, fostering innovation in battery technology and charging infrastructure. China has now become the largest exporter of EVs in the world market. These developments have the potential to materially help curb the world’s carbon footprint and mitigate environmental degradation. Nevertheless, challenges persist domestically, including the need for grid modernisation to accommodate intermittent renewable energy sources and addressing the socio-economic impacts on coal-dependent regions. In the international market, China’s efforts towards a cleaner and more sustainable energy landscape have helped position it as a leader in sustainable economic development. This could enhance trade of green products, the development of global renewable energy and international investments in energy transformation. However, global trade and investment in green technologies and products are faced with rising geopolitical tensions and trade protectionism. This book discusses China’s achievements in its transition towards renewable energies and identifies new opportunities and challenges for deepening energy transformation in China.