Harmony

China Net Zero: The Clean Tech Revolution

Sharmini Chetwode, Liz, Harmony

Driven by global political pressure and domestic sustainability goals, China targets peak emissions by 2030 and net zero by 2060 despite accounting for 64% of global emission growth since 2000. The nation's decarbonization roadmap relies on scaling renewables to address half of emissions while utilizing clean hydrogen and carbon capture for hard-to-abate industrial and transport sectors, necessitating a threefold surge in clean energy demand and base metal consumption. To enforce these transitions, the People's Bank of China is prioritizing green finance and the PBOC has launched an emissions trading scheme expanding to seven sectors, aiming to mitigate rising trade friction from the EU's proposed carbon border adjustments.