The end of the fossil era: China on the way to a climate-neutral economy by 2030

The end of the fossil era: China on the way to a climate-neutral economy by 2030

According to a report from www.merkur.de, the International Energy Agency (IEA) reports that China is successfully implementing its goal of building a climate-neutral economy. One of the main reasons for this success is the decline in demand for fossil fuels such as coal, oil and natural gas in China. Instead, the need for renewable energies is growing, which means China is taking a pioneering role in the expansion of green technologies. According to the report, in 2022, 60% of all electric cars sold, 50% of new wind turbines and 45% of all new solar systems worldwide were installed in China. Furthermore, 30% of new global nuclear power capacity comes from China. The IEA predicts that China will achieve its self-imposed climate goals by 2030 earlier than planned.

This impressive data has significant implications for the market and the financial industry. The decline in demand for fossil fuels in China means that the investment environment for this sector will change. Companies dependent on fossil fuels must develop alternative strategies to remain competitive. On the other hand, the renewable energy boom in China opens up new investment opportunities for companies in this sector.

In addition, the decline in emissions in China is also linked to the downturn in the Chinese economy. The construction sector, which has been a key driver of Chinese growth in recent years, is losing importance. This leads to a decrease in CO2 emissions as the construction industry produces large amounts of CO2.

China's efforts to build a climate-neutral economy are of great importance to achieving global climate goals. However, the IEA stresses that China is unlikely to be carbon neutral by 2050 and will still be the largest consumer of fossil fuels. Emissions from natural gas are not expected to peak until 2040, while emissions from oil are expected to peak by 2030 and then slowly decline.

Overall, the report is optimistic and highlights the positive impact of China's decline in coal use on global CO2 emissions. However, there is still a lot to be done to reach the 1.5 degree target. Nevertheless, developments in China clearly show that the course is being set towards a green and sustainable economy.

Source: According to a report from www.merkur.de