In a bid to maintain its global leadership in green technology, the central government of China has announced increased funding for low-carbon technology projects. The move comes in support of the country’s ambitious goal of achieving carbon neutrality by 2060.
According to the International Energy Agency (IEA), China currently produces over 75 percent of the world’s electric vehicle (EV) batteries and controls the entire downstream EV battery supply chain, from mining and processing to manufacturing.
The country’s cost competitiveness in manufacturing electric vehicles, batteries, wind turbines, and solar photovoltaic panels has allowed it to dominate the global green tech supply chain.
In order to uphold this leading position, the recently announced funding will be allocated towards pilot initiatives that highlight innovative, environmentally friendly, and low-emission technologies. The National Development and Reform Commission (NDRC), along with nine other state organizations, has encouraged local governments to submit project proposals.
These projects will primarily focus on the development of advanced power grids, energy storage systems, and green hydrogen technologies. In addition, China aims to tackle emissions from industries that heavily contribute to carbon emissions through decarbonization initiatives and the deployment of advanced carbon capture, utilization, and storage technologies.
Eligible projects will receive funding from the local and central governments, utilizing budgetary funds and different incentives. Additionally, the government will actively promote the use of a loan program introduced in 2021 to assist initiatives aimed at decreasing carbon emissions.
As the world’s largest emitter of greenhouse gasses, China recognizes the importance of investing in clean and sustainable technologies to mitigate climate change.
By boosting funding for low-carbon technology projects, China aims to not only reduce its carbon footprint but also solidify its position as a leader in climate-forward projects.
This initiative is expected to drive innovation and promote the adoption of renewable energy sources, contributing to global efforts towards a more sustainable future.