The World Bank says China needs $17 trillion in investment to achieve climate goals

A new World Bank report on China’s climate and development challenges finds that China needs up to $17 trillion in additional investment in green infrastructure and technology in the energy and transportation sectors to reach net zero emissions by 2060.

The report, one of a new series of country climate and development reports, said China – the world’s second-largest economy – would need private investment to cover the skyrocketing prices and unleash the needed innovations.

Climate change poses a major threat to China, especially its densely populated and economically critical low-lying coastal cities, and relentless climate change could cut its economic output by 0.5 percent to 2.3 percent as early as 2030, according to the report, which was released on Wednesday.

“China’s long-term growth prospects increasingly depend on rebalancing the economy from infrastructure investment to innovation, from exports to domestic consumption, and from state-led resource allocation to the market,” said Manuela Ferro, World Bank Vice President for Administration and Budgeting. . East Asia and the Pacific.

It would also be impossible to reach global climate goals without China transitioning to a low-carbon economy, the report said, noting that China exports 27 percent of global carbon dioxide and a third of the world’s greenhouse gases.

“This transformation will require a massive shift in resources, innovation and new technologies to enhance energy efficiency and resource productivity,” the report said.

Meanwhile, she said, China can take advantage of existing advantages, including higher returns on the production of low-carbon technologies, a high domestic savings rate, and a leadership position in green finance.

But he said private sector involvement was “critical” to ensuring China’s path to carbon neutrality, and emphasized the need for a more predictable regulatory environment and better access to markets and financing.

(Reporting by Andrea Shalal; Editing by Paul Simao)

Originally published at San Jose News Bulletin