In setting its goal of carbon neutrality by 2060, China’s ultimate aim is to go from dependence on the rest of the world for imported fossil fuels to dominating the supply chains of clean energy that the world will need to decarbonise.
In the 3rd edition of our new Horizons series, Gavin Thompson, Vice Chair APAC Energy, Miaoru Huang, Director, APAC Gas & LNG Research, and Yanting Zhou, Senior Economist, provides an integrated Wood Mackenzie outlook on China’s ambitious goals and its global impact in the race towards leading clean energy.
China’s blueprint for energy independence and carbon neutrality
China dominates the supply and processing of the raw materials needed for batteries and other clean energy technologies. Today, three-quarters of global lithium-ion battery production, half of the world’s electric vehicles, and almost 70% of all solar panels are made in China. But this does not mean the game is up for the world outside China and for energy and metals and mining companies looking to invest in clean energy tech and the associated supply chains.
• Renewables and batteries are only part of the decarbonisation story
• Many of the technology and infrastructure ecosystems the world will need to meet carbon neutrality are not yet economic.
• China is far from being a leader in green hydrogen or carbon capture and storage.
Source: woodmac
