• Fri. May 24th, 2024

Green Shift: China’s Quest for Carbon Neutrality and the Potential Risks

BySamantha Nguyen

Mar 27, 2024
China’s Economy is Undergoing a Great Transition, Not a Great Decline | articles

Throughout history, rapid industrialization has always resulted in heavy pollution. China, like many other countries, faced this issue in the early 2010s with a crisis of heavy smog and PM 2.5 pollution leading to major respiratory illnesses nationwide. This prompted a shift towards greener growth as a clear policy priority, which has been successful in reducing pollution levels and carbon intensity over the past decade.

The World Bank estimates that meeting China’s long-term policy goals of reaching Peak Carbon by 2030 and achieving full carbon neutralization by 2060 will require significant investment in green infrastructure and technology, totaling USD 14-17tn. Despite concerns about the potentially lower multiplier effect of green infrastructure investments compared to traditional sectors, they are still seen as crucial for productive fiscal policy in China.

While China’s efforts towards green development have been generally praised, some criticisms have been raised regarding industrial policies leading to overcapacity and global market dumping. For example, concerns about the solar industry in the 2010s have raised questions about the impact of Chinese policies on fair competition and the fate of companies that may fail as a result. Critics question whether these challenges will be replicated in the New Energy Vehicles (NEV) industry.

Overall, we believe that these criticisms overlook the broader benefits of China’s approach towards greener growth. Despite some challenges, the country’s efforts are positioning it to be competitive in key industries of the future, which aligns with its broader economic goals.

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

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