A government study recently projected that China will invest $75 trillion in carbon neutrality in the years leading up to 2050.
The staggering amount is five times greater than the country’s national output in 2020 and may represent the most ambitious investment plan in history.
The study was conducted by a group of 40 private-sector, government and academic experts in December 2021, and has been released in the form of a 200-page report.
It includes the entire range of technology intended to bring about a carbon-neutral future, spanning from nuclear electric power to hydrogen-powered cars.
The study was done under the direction of president of the Beijing Institute of Finance and Sustainability, Ma Jun and the report was then released by the Research Group of the Green Finance Committee of China Society for Finance and Banking.
Where will all the carbon neutrality money go?
China’s projected $75 trillion investment in green solutions is set to encompass the entire spectrum of high-tech sectors that will eventually replace the nation’s smokestack industries and do away with their CO2 emissions and high energy consumption levels.
Its proposed scale, however, dramatically overshadows even the boldest Western estimates, including the very recent $16 trillion projection by Goldman Sachs.
Despite the obvious concern about the potential negative impact investments of such unprecedented scale may have on the economy, the research group behind the report has argued that, on the contrary, it may actually boost productivity and spur economic growth.
The plan is considered to be among the most ambitious in economic history and it has left no area of the country’s economic life untouched.
Furthermore, it is also indicative of China’s drive to dominate the realm of new technologies.
The report paints a picture of the not-so-distant future, in which most power generation needs will be met by renewables and nuclear energy.
The proposed vision also sees 50% of all industrial and transportation energy use relying on carbon-free electricity.