China takes the lead in green technology

China takes the lead in green technology
China completely dominates the production and supply of solar panels / bne IntelliNews
By bne IntelliNews April 24, 2024

China has taken the lead in green technology. President Xi Jinping, highlighting the country's dominance in key segments of this burgeoning industry, has drawn sharp criticiam from the US for non-market practises.

Transitioning from its traditional reliance on the housing market, green energy has become the primary economic driver in China, supporting Xi's push to promote the "green agenda" globally.

The figures from 2023, highlight China’s aggressive expansion in the sector, with the deployment of solar photovoltaic systems growing 2.5 times to reach a capacity of 261 gigawatts (GW). In stark contrast, the United States and the European Union have deployed only 32 GW and 53 GW, respectively.

China has also made substantial progress in regulating carbon emissions. Launched in 2021, its national carbon emission trading system initially targeted the power sector and is set to expand to include high-emission industries such as oil refining, petrochemicals, chemical production, and aviation.

With a current carbon price of around €8 per ton, the system is designed to progressively encompass all major carbon emitters and is expected to see a gradual increase in permit costs.

China takes the lead of green technology supply chains