China’s Council of International Cooperation on Environment and Development (CCICED) released a report last week in which it outlined a strategy for green energy growth. The think-tank which relied on over 200 foreign and domestic experts as well as other leading institutes is led by Li Keqiang, China’s vice-premier. Li stated the need for harmony between the economy and environment as the world begins to cope with increasingly scarce energy resources, food and water. China became the largest investor in renewable energy at $49bn, the 2011 Global Trends in Renewable Energy Investment report showed, whilst also remaining the world’s largest polluter.
Economic Benefit
The report encourages a change in China’s future development approach where amongst other measures, substantial focus will lie on lowering emissions and developing greener industries. The council is advising central government spend 5.8 trillion Yuan to improve energy saving measures, environmental protection and the removal of heavily polluting industries. Introduction of a carbon tax and new pricing mechanisms could help achieve the council’s strategy by 2020.
Removal of energy intensive industries is likely to lead up to a million job losses whilst wiping around 100 billion Yuan off GDP. However, these downsides are easily overcome with the creation of 10.6m jobs and an 8 trillion Yuan boost to economic output. If energy saving measures are completed another 1.4 trillion Yuan is gained.
Environmental Caution
Economic optimism was certainly present in the report but Li Keqiang offered a note of caution stating that by 2020, China may still face serious environmental challenges. Such woes include worsening air pollution, a deepening water crisis, continuous degradation of ecological systems, and mounting hazardous wastes.
Comments (0)
Please login or register to comment.