Source: CGTN Published: 2024-08-15

By Djoomart Otorbaev

This week, the Communist Party of China (CPC) Central Committee and the State Council have issued guidelines to accelerate the transition to a more environmentally friendly society in critical economic and social development areas. These guidelines set specific goals and targets to facilitate the shift towards a greener, low-carbon economy, particularly in the industrial and energy sectors. They also aim to promote the transition to a green economy in the transportation sector and encourage low-carbon urban and rural development.

Beijing's ambitious plan to peak carbon emissions before 2030 and achieve carbon neutrality by 2060 is a monumental commitment to a sustainable and resilient economic model. It is also a potential game-changer for global environmental policies, setting a high bar for other nations to follow.

China's energy consumption, a key player in the global energy landscape, is a significant focus of its green transition. The country's installed power generation capacity, as reported by the National Energy Administration (NEA), reached a staggering 2.92 billion kilowatts by the end of 2023. However, the current energy consumption structure still favors fossil fuels – coal accounting for 56.2 percent of the total in 2022. At the same time, renewables, including nuclear power, only made up 25.9 percent. This distribution underscores the urgent need for a transition to more sustainable energy sources.

The country's rapidly growing economy, a driving force behind the increasing energy demand, has seen a nearly 20 percent rise in China's energy supply since the start of the 14th Five-Year Plan (2021-2025). With ongoing industrialization and urbanization, this trend is expected to continue. As a result, renewable energy production is projected to grow even faster to meet the escalating energy consumption, potentially reshaping the global energy market.

In recent years, China has invested massive resources in constructing renewable energy capacity, including extensive wind and solar power plants, particularly in the northwest, and hydroelectric stations. Presently, non-fossil energy capacity has exceeded fossil fuel capacity and makes up 50.9 percent of the country's total installed capacity.

Along with increasing energy generation and distribution, there is a need to work hard to generate more GDP with less energy. And this is happening at an accelerated pace. The use of innovative energy-saving technologies has led to energy consumption per unit of GDP falling by more than 26 percent compared to the level in 2012 and carbon emissions intensity per unit of GDP was down more than 35 percent.

Beijing has prioritized the widespread adoption of electric vehicles (EVs) and the expansion of charging infrastructure as critical initiatives to combat urban pollution. The shift is a significant step toward improving air quality and reducing the rapidly urbanizing country's carbon footprint. Sales of new energy vehicles (NEVs) in China, which include battery-only and hybrid cars, rose to 879,000 units in July, accounting for 50.8 percent of total vehicle sales, according to data released by the China Passenger Car Association on August 8.

This figure surpasses the sales of fossil fuel vehicles, marking a significant milestone in China's transition to green transportation. This growth is particularly noteworthy as it exceeds the 36 percent penetration rate recorded just a year ago and surpasses similar indicators in developed countries. For instance, the U.S. recorded an 18 percent penetration rate in the first quarter of this year, according to the latest estimates from Wards Intelligence. Yet just three years ago, new energy vehicle (NEV) sales accounted for just 7 percent of total car sales in China. This remarkable growth in NEV sales is a testament to Beijing's commitment to green transition and impressive green transportation strides.

The industry experienced rapid sales growth due to significant investments and public support. For example, government policies have been implemented to replace aging vehicles and purchase NEVs. These policies were complemented by preferential measures at the municipal level, such as granting NEV owners unlimited access to public roads while restricting fossil fuel vehicles to drive only part of the week. These initiatives, along with others, led to a steady growth in NEV sales, resulting in many local brands achieving new sales records.

The country is dedicated to a circular economy emphasizing recycling, reusing, and disposing of waste materials. The government exemplifies how economic growth can be achieved with minimal environmental impact by reducing waste and improving resource efficiency. The guidelines establish specific targets for waste management. For example, they stipulate that the annual utilization of solid municipal waste should be enormous 4.5 billion tons, while the production of primary resources should increase by approximately 45 percent compared to 2020.

In transitioning to more environmentally friendly practices, it is essential to note the country's focus on green finance. The guidelines emphasize the significance of incorporating environmental factors into economic planning. The extensive use of ESG (Environmental, Social, and Governance) methods and the introducing of green bonds and other financial tools help support sustainable initiatives and promote investment in green technologies. This strategy spurs creative thinking and conveys to the global market that sustainable practices will steer economic advancement.

China has made significant efforts to transition to green practices, demonstrating the country's commitment to creating a sustainable future. Ambitious targets, substantial investments, and innovative strategies all show an understanding of the necessity for balancing socio-economic development with environmental protection. With the eyes of the world on China, these efforts are likely to serve as a model and catalyst for achieving sustainable economic growth, making global progress on climate change, and maintaining a greener planet.