When it comes to its energy initiatives, China is literally looking to clean up its act. More specifically, it is focusing on clean energy technology. This could be of major benefit to the rest of the globe, as well as surrounding countries.
The second largest economy’s sheer size means that a shift towards clean energy technology can be of benefit globally. While the country is working to make this shift, it has a loft of work to do.
“China plays a paradoxical role in the global picture of climate change,” a New Scientist article said. “It is now by far the largest emitter of greenhouse gases, annually pumping out more than the combined emissions of the 38 states in the OECD group of advanced economies.”
Nonetheless, the country is making progress per The Guardian. Capital investment in alternative energy sources like solar and wind should be a net positive in terms of energy emissions as well as industry growth that can help create job opportunities.
“This new data provides unrivalled granularity about China’s jaw-dropping surge in solar and wind capacity,” said Dorothy Mei, a project manager at Global Energy Monitor. “As we closely monitor the implementation of prospective projects, this detailed information becomes indispensable in navigating the country’s energy landscape.”
Other Countries Benefit from Clean Energy
Additionally, one of the positives of China’s clean energy push is the effect it has on surrounding nations like Indonesia. With its abundance of critical minerals supply, China’s push towards clean energy should bring investment dollars into Indonesia’s economy.
“The environmental cost of ‘green tech’ metals production is a familiar story to many in Indonesia, which mines bauxite, copper and particularly nickel for ostensibly clean batteries and modules made in China,” a Nikkei Asia article said. “But being part of China’s green tech supply chain is a win for Indonesia’s government, which is anxious to attract foreign investment into the processing of metals in an effort to create jobs and become an advanced manufacturing economy.”
Overall, the growth in clean energy tech should help the case of the (KGRN ). KGRN tracks the MSCI China IMI Environment 10/40 Index, charging 78 basis points (bps) for its approach.
The index includes Chinese firms that derive at least 50% of revenue from environmentally friendly products and services. That mainly focuses on clean tech revenue in alternative energy, energy efficiency, and green building.
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