Can China's Clean Energy Sector Double in Value by 2035?

CGTN Europe spoke to Belinda Schaepe, China Policy Analyst at the Centre for Research on Energy and Clean Air (CREA).

Transcript

00:00Clean energy is on track to become a central pillar of China's economic growth, according to a new report.

00:06In 2024, the clean industry sector accounted for 10% of China's GDP,

00:12overtaking the value of real estate sales for the first time.

00:16And it's forecast to continue growing.

00:18The Center for Research on Energy and Clean Air says that in 10 years,

00:22China's clean energy industries could double in value.

00:25That would add $2.1 trillion to the economy.

00:29Well, Belinda Shaper is China Policy Analyst at the Center for Research on Energy and Clean Air.

00:34Good to see you, Belinda.

00:35So how is China managing to grow its clean energy sector so fast?

00:43What we're seeing is really an economic transformation away from heavy industry sectors towards high-end manufacturing,

00:51especially driven by clean energy sectors.

00:53And one of the key drivers behind that is a very clear policy direction,

00:58President Xi Jinping said in a recent high-level speech that since he made the climate announcements for China to peak emissions before 2030

01:07and achieve carbon neutrality by 2060,

01:11China has built the largest renewable energy system together with the relevant supply chain.

01:16So we expect if that policy direction continues and there is continued support for a build-out of renewables throughout the next decade,

01:25the sector could indeed double in value and make a huge contribution to China's targets to become a moderately prosperous society by 2035,

01:36adding around a fifth of the targeted GDP growth by then.

01:40So if China does keep growing this clean energy sector, what would that mean perhaps for global net zero targets?

01:49Yeah, it would make a huge contribution because those are technologies that China needs for its own domestic transition,

01:57but it's also technologies that the world needs for the transition.

02:00So in terms of China's domestic emissions, it could actually cut emissions by roughly 30% compared to the current levels by 2035.

02:10And that would put China on track to achieve the targets under the Paris Agreement and its international climate commitments

02:17and really maintain or strengthen its role as a global climate leader.

02:23When we see a withdrawal and tense multilateralism around the world,

02:29China could really stand out in bringing a strong commitment to global climate targets.

02:35So presumably this growth in clean energy, good for productivity, for China's GDP, just how big can the sector get?

02:44It's, yeah, it can really become a huge part.

02:49Already, as you mentioned last year, the sector contributed 10% to the economy.

02:56Doubling that in the next 10 years would result in roughly 30 trillion Chinese yuan that the sector contributes.

03:04And if we put that into context, that's around as big as the total GDP of G7 economies like Germany or Japan.

03:11So it would really contribute a large part of what is needed for China's targeted GDP by 2035, roughly 20%.

03:20And with that, take up a lot of the economic growth that is going to fall away from traditional growth sectors,

03:28such as the real estate sector and heavy industry.

03:32Belinda, thank you for coming on the programme.

03:33That's Belinda Shaper from the Centre for Research on Energy and Clean Air.