Stated energy transition goals Energy policy priorities Have CO2 emissions peak before 2030 Achieve 3,300 terawatt-hours of Achieve over 1.2 terawatts of wind and achieve carbon neutrality before annual renewable energy generation and solar power capacity by 2030 2060 by 2025 Strictly control coal-昀椀red power Lower CO emissions per unit of GDP Have renewables account for 33% projects during the 14th Five-Year 2 by over 65% from the 2005 level of energy consumption by 2025 Plan (FYP), and phase them down in the 15th FYP electricity consumption share of 33 percent (up Country analysis from 28.8 percent in 2020), and directs that 50 percent of China’s incremental electricity and energy Key progress on ETI consumption shall come from renewables over the period 2021-2025. … The RE plan is the second China ranks 17 out of 120 countries on the ETI major energy-related 14th FYP released [in 2022]. 2023 and is a new entrant in the top 20 countries. … [It] establishes detailed targets for primary energy It is among the biggest producers and consumers mix, power generation rate, electri昀椀cation rate, and of energy in the world while also being one of its more. …These two FYPs together reaf昀椀rm China’s biggest GHG emitters, currently accounting for commitment to honouring its carbon pledges one-third of the total global GHG emissions. China 66 through accelerated RE growth”. has maintained a consistent upward trajectory on the ETI over the past 10 years, improving strongly China has done a great deal to use green 昀椀nance on system performance and transition readiness. to increase renewables, investing over $380 billion Scores on the secure dimension within system in 2021, and being one of the 昀椀rst countries to performance have improved, mainly through better issue a green bond project catalogue, to develop quality of electricity supply diversi昀椀cation and its own Green Bond Principles and to work with the 67 associated grid improvements. Sustainable scores, EU to develop the Common Ground Taxonomy. however, remain low on an absolute scale as coal One of the most signi昀椀cant efforts in this surge is still the main fuel for generation, accounting for was powering industrial clusters with green and 63 despite large amounts renewable electricity. China’s environmental ministry 60% of total power output of renewable energy capacity 昀椀nanced and installed also proposed to support exploration of near over the years. zero-carbon emissions and carbon neutrality pilot demonstrations. Simultaneously, the country is Key imperatives and policies in place promoting construction of large-scale renewable energy bases, distributed development of wind and China’s attempts to improve the enabling photovoltaic in the central and south-east regions, environment for energy transition are steps in integrated development of water and solar bases in the right direction, evidenced by President Xi the south-west region, and centralized development Jinping’s September 2020 commitment at the of offshore wind in eastern coastal areas. UN General Assembly to reach peak carbon emissions before 2030 and achieve carbon What’s next? 64 China is emerging as a neutrality by 2060. world leader in innovation: public spending on The energy transition in China requires a huge shift research and development has risen by 35% in resources, innovation and new technologies 65 since 2014. In pursuing carbon neutrality, to enhance energy ef昀椀ciency and resource however, China faces the challenge of ensuring productivity. A recent World Bank report estimates continued energy security while shifting away that China will need between $14 trillion and $17 from fossil fuels. Nonetheless, in recent years, the trillion in additional investments up to 2060 for theme of China’s energy industry has been green green infrastructure and technology in the power development, with several policies and measures 68 and highlights and transport sectors alone designed to accelerate the energy transition, the important lessons, including the need for public net results of which are re昀氀ected in its high ETI and private sectors to work together, “a more score on regulation and political commitment. predictable regulatory environment as well as better access to markets and 昀椀nance that would allow In June 2022, China released its 14th FYP on the private sector to play a central role in delivering Renewable Energy Development (2021-2025). market solutions, improving productivity, reducing As reported by the Energy Foundation, it is “a costs, stimulating technological innovation, and comprehensive blueprint for further accelerating 昀椀lling the 昀椀nancial gap. … [In addition], training and [its] renewable energy (RE) expansion. The plan reskilling workers from the fossil fuel sector and targets a 50 percent increase in renewable energy providing targeted assistance to the most affected 69 could ensure an equitable generation (from 2.2 trillion kWh in 2020 to 3.3 local communities” trillion kWh in 2025), establishes a 2025 renewable energy transition. Fostering Effective Energy Transition: 2023 Edition 44