China will have to invest about $6.4 trillion to achieve its pledge as a carbon-neutral economy by 2060, an industry consultancy group reported. However, it will also reduce the country’s oil and gas import dependency and boost its energy security.
The report said that under the green policy, China’s oil consumption could drop by half by 2040. Without the policy, China’s is expected to import more than 80% of its oil requirements by 2030. Under the report’s base case scenario, China’s oil demand would peak at 17 million bpd by the early 2030s before falling to 16 million bpd in 2040 and 14 million bpd in 2050.
China’s electricity use is expected to grow by 75%. Solar, wind, and battery storage are expected to meet the bulk of the increased demand, nuclear power continuing to have a role to play. China’s electricity could expand by 6,870 GW if it was to become a net-zero carbon emitter by 2060, the report said.
The study also warned that China’s green push would face challenges from its dependence on copper, aluminium, nickel, cobalt, and lithium imports. A separate report also said China’s reliance on natural gas imports would grow as the country plans to use the fuel to replace coal during the transition phase.
