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Implications of Peak Carbon Emissions on Chinese Economy

Mar 28-2021   



China’s commitment to hit the peak of carbon emissions by 2030 and become carbon neutral by 2060 is of epoch-making importance to the world’s climate initiative. But is China fully ready? Prof. Xu Jintao of the NSD said that there are still quite a few gaps to cross and the country must be braced for dramatic transformation in its development model.

 

He spoke in the 56th version of the NSD’s China Economic Observation, which centered on China’s policies and economy in the wake of the Two Sessions (NPC and CPPCC). Seven NSD professors each spoke on an area based on their respective research and then took questions from the media. Prof. Xu is Deputy Dean of the NSD and Director of PKU Environment and Energy Economics Institute.

 

For the world to tame global warming, China must play a key role – even a leading one – because the country accounts for up to 30% of global carbon emissions. Carbon-related goals feature prominently in the 14th Five-Year Plan and government reports, putting high demands on the Chinese government and society to make concerted moves.

 

To spur the transition of development model, China’s economic structure must undergo dramatic changes. Firstly, its energy structure faces immense pressures to get coal consumption down to 20-30% of total energy consumption. The hope lies in the fast growth of renewable energies, for which policies have been improved. If one or two institutional hurdles are further removed, for example regional energy silos, it will be highly possible for renewable energies to ram up their proportion. The ongoing efforts to build a nation-wide electricity market and adopt distributive energy grids demonstrate the increasing opening and flexibility of energy policies, which is imperative for further development of alternative energies.

 

The second transformation concerns the unprecedented importance attached to the carbon-neutral function of the eco-system. China has become the only developing country to ensure growth in both forest acreage and stock. More tools are now available to fight climate change through the lumping of ecological construction and recovery with industrial emission reductions, thus considerably lowering costs for the whole society to go green.

 

Changes can also be expected of the policy system. Severe air pollution in Beijing during this year’s Two Sessions shows that the battle to reclaim a blue sky is not yet won, despite the many administrative measures that have been undertaken. To balance economic development with carbon goals, Prof. Xu advised the use of economic policies to lower societal costs while achieving higher degree of sustainability. In fact, many policies are already in place; government departments in charge of environment and energy should undergo conceptual changes by using economic policies as the premier tool for carbon neutrality and emission reductions and parting ways with administrative measures and campaigns of one kind or another.

Implications of Peak Carbon Emissions on Chinese Economy

Mar 28-2021   



China’s commitment to hit the peak of carbon emissions by 2030 and become carbon neutral by 2060 is of epoch-making importance to the world’s climate initiative. But is China fully ready? Prof. Xu Jintao of the NSD said that there are still quite a few gaps to cross and the country must be braced for dramatic transformation in its development model.

 

He spoke in the 56th version of the NSD’s China Economic Observation, which centered on China’s policies and economy in the wake of the Two Sessions (NPC and CPPCC). Seven NSD professors each spoke on an area based on their respective research and then took questions from the media. Prof. Xu is Deputy Dean of the NSD and Director of PKU Environment and Energy Economics Institute.

 

For the world to tame global warming, China must play a key role – even a leading one – because the country accounts for up to 30% of global carbon emissions. Carbon-related goals feature prominently in the 14th Five-Year Plan and government reports, putting high demands on the Chinese government and society to make concerted moves.

 

To spur the transition of development model, China’s economic structure must undergo dramatic changes. Firstly, its energy structure faces immense pressures to get coal consumption down to 20-30% of total energy consumption. The hope lies in the fast growth of renewable energies, for which policies have been improved. If one or two institutional hurdles are further removed, for example regional energy silos, it will be highly possible for renewable energies to ram up their proportion. The ongoing efforts to build a nation-wide electricity market and adopt distributive energy grids demonstrate the increasing opening and flexibility of energy policies, which is imperative for further development of alternative energies.

 

The second transformation concerns the unprecedented importance attached to the carbon-neutral function of the eco-system. China has become the only developing country to ensure growth in both forest acreage and stock. More tools are now available to fight climate change through the lumping of ecological construction and recovery with industrial emission reductions, thus considerably lowering costs for the whole society to go green.

 

Changes can also be expected of the policy system. Severe air pollution in Beijing during this year’s Two Sessions shows that the battle to reclaim a blue sky is not yet won, despite the many administrative measures that have been undertaken. To balance economic development with carbon goals, Prof. Xu advised the use of economic policies to lower societal costs while achieving higher degree of sustainability. In fact, many policies are already in place; government departments in charge of environment and energy should undergo conceptual changes by using economic policies as the premier tool for carbon neutrality and emission reductions and parting ways with administrative measures and campaigns of one kind or another.