China’s Carbon Neutrality Bill Could Hit Over US $5 Trillion
Wood Mackenzie’s latest analysis shows over US$5 trillion of investments would be needed for China to reach its pathway for carbon-neutrality by 2060.
Analysis from global energy research and consultancy Wood Mackenzie indicates that in order for China to reach its goal of carbon-neutrality by 2060, investment to the tune of US$5 trillion will be necessary, overhauling every aspect of the superpower’s energy and industrial infrastructure. In the context of China’s current 10 billion tonnes of annual CO2 emissions – equating to a massive 28% of the global total – the need to rapidly pivot to renewable energy is clear.
Furthermore, China’s energy requirements are set increase by close to 2.5 times between now and 2050. It is not a case of a gradual transition to fulfil existing demand, but the colossal expansion of solar, wind and storage capacity, as well as carbon capture and storage (CCS) technology, to reach future needs. For example, the 4 million electric vehicles currently on China’s roads will swell to 325 million units, and a five-fold increase in hydrogen production will be needed to support essential sectors such as steel, cement, refining and chemicals.
The results of such a paradigmatic shift from the world’s largest consumer of fossil fuels would change the face of the international market, leading to the collapse of oil demand and speeding up the worldwide adoption of new green technologies.
The full report can be found here.