China is the largest national source for global carbon emissions. China has committed to peak carbon emissions by 2030 and achieve net-zero carbon emissions by 2060. The ‘dual carbon’ targets have been a high priority for China’s central and regional policy makers.
To achieve carbon neutrality, major emitting sectors in China need to reduce their emissions between 65% and 100% by 2050. This climate commitment would require massive technological and structural changes in infrastructures, industries and urban systems to deploy decarbonization technologies and solutions in unprecedented ways.
It is estimated that China would demand nearly RMB 140 trillion (USD 22.1 trillion) in green investment over the next 40 years. As the world’s top carbon emitter, China has the biggest market to deploy a broad range of decarbonization technologies and net-zero solutions.
Despite geopolitical tensions between the U.S. and China, tackling climate change has become one of the few significant and potential areas of cooperation between the two countries. Both countries agreed to take concrete actions during the ten years in the 2020s to reduce emissions and accelerate the transition to a net-zero economy.
This report analyzed the decarbonization market needs in China’s major sectors as well as the consensus reached between U.S. and China for cooperation in climate change. It concluded that the decarbonization products and market solutions in the following categories – Renewable Energy, Electrification, Hydrogen, Biomass, Carbon Capture, Utilization and Storage (CCUS), Energy Efficiency, Energy Storage, Methane Mitigation, Waste Management, and Pollution Control are the most promising areas for business and trade cooperation and have the biggest potentials for US companies to export to China.
This research report is the first in a series of four reports focusing on China’s decarbonization market and provides an overview of China’s drive to reach net-zero goals and its burgeoning decarbonization market. In the ensuing reports, UCCTC will focus on in-depth and individualized analyses of decarbonization markets in China’s key emitting sectors and in China’s Greater Bay Area in particular.
Download the report  China Decarbonization Market Report 1.
