Featured Image

International News From the Field: China

Jul 02, 2021

In order for China to reach its goal of becoming carbon neutral by 2060, massive investments in solar, wind, and hydrogen technologies will be necessary. The amount is estimated to be in the range of $340 billion per year for the next 10 years and $600 billion per year for the following 30 years. This will create massive demands for technologies associated with green power generation, transportation, construction, and manufacturing. For some background and highlights, read on.

  • At the 75th U.N. conference last September, China stated that it will adopt stronger policies and measures to begin to decrease carbon dioxide emissions by 2030 (“carbon peak”) and strive to achieve “carbon neutrality” by 2060. Later, in December, at the annual Central Economic Work Conference, the government released a statement that they would offer “support” to industries that had favorable conditions to reach the peak emissions date ahead of the 2030 target.

  • China sees two paths to reducing carbon emissions and reaching a carbon neutral state. The first, naturally, is to reduce the use of fossil fuels, and the second is to promote technological progress in clean energy, such as photovoltaics, wind, and hydrogen. The conversion of fossil energy to clean energy will bring new development opportunities and alter the country’s economic structure.

  • China sees "green manufacturing" as a key factor in achieving carbon neutrality. According to data from the China Carbon Accounting Database, the carbon emissions from energy-intensive manufacturing industries such as steel, cement, petrochemicals, and non-ferrous metals accounted for 36% of the national carbon emissions in 2017.

  • For these industries, technological innovation is the key, which generally takes a long time and requires a large amount of capital investment. Among these technologies, photovoltaic is the clean energy field with the largest investment scale.

  • China believes photovoltaics and energy storage will be the most important way to achieve carbon neutrality in the power sector. It is estimated that by 2060, the cumulative installed capacity of photovoltaics in China may reach 9,500 GW, which is 40 times the current capacity, and the annual demand for photovoltaics will reach 700 GW, which is about 20 times the current demand.

  • Hydrogen power will also see tremendous growth. China International Capital Corp. (CICC) estimates that by 2060, 8% of China's energy consumption structure will be supported by green hydrogen. In the next 40 years, the cumulative investment in the field of green hydrogen could reach $462 billion.

  • CICC also estimated that by 2060, clean power, including photovoltaics, wind power, hydropower, and nuclear power, will account for 70% of China's energy consumption structure, an increase of 54% from 2020.

  • The carbon peak and carbon-neutrality strategies in China will bring unprecedented green investment demands and huge opportunities in the coming decades. To achieve the goal of carbon neutrality by 2060, it is estimated that $21 trillion of green investment will be needed. The annualized investment demand for the first 10 years is $338 billion per year, and $600 billion per year for the following 30 years. In terms of different industries, the demand for green investment in electricity generation, transportation, and construction will be the largest.

  • Green investment mainly includes the investment required for existing carbon-free technologies, carbon reduction upgrades of old equipment, and innovative carbon reduction technologies corresponding to the expansion of production capacity.

 

PicturePicture
Author
Fred Qian
General Manager - Shanghai Technology and Service Center of AMT
Recent international News
China’s manufacturing PMI signals headwinds, but long-term growth is projected. The country shows resilience, with new investments flowing in and manufacturing technology consumption staying strong. For more industry intel and other tidbits, read on.
China's strong machine tool market, supported by a successful CIMT show and ongoing investments, demonstrates resilience in the manufacturing sector. Will this be sufficient to address recent challenges? For more industry intel and other tidbits, read on.
China's economy continues to show resilience and strength. The first quarter of 2025 experienced 5.4% GDP growth, driven by consumer subsidies and a surge in export shipments in anticipation of tariffs. For more industry intel and other tidbits, read on.
In a turbulent landscape of changing trade policies, geopolitical tensions, and structural challenges, China’s policy-driven industrial investment stabilizes growth and creates business opportunities. For more industry intel and other tidbits, read on.
Fluctuations from China's efforts to boost consumption and address trade challenges show its economy is strong. With some growth expected in 2025, China continues to attract investments and opportunities. For more industry intel and other tidbits, read on.
Similar News
undefined
International
By Fred Qian | Jul 01, 2025

China’s manufacturing PMI signals headwinds, but long-term growth is projected. The country shows resilience, with new investments flowing in and manufacturing technology consumption staying strong. For more industry intel and other tidbits, read on.

4 min
undefined
International
By Mike Lauer | Jun 24, 2025

Vietnam's economy is flourishing. With positive trends in FDI inflows and impressive GDP growth forecasts, the market is poised for business expansion. For more industry intel and other tidbits, read on.

5 min
undefined
International
By Arun Mahajan | Jun 10, 2025

With a much higher manufacturing PMI, India outperforms other developed and emerging markets. Key factors sustaining the country’s growth include strong private consumption and a robust service sector. For more industry intel and other tidbits, read on.

5 min