Bloomberg asked for the calculations and it will demand $5.5 trillion.
China is known for its incentives toward electric mobility, but its president committed to sustainable energies ever more official. At his UN General Assembly speech, Xi Jinping said China would be a carbon-neutral country by 2060. Bloomberg asked specialists how much that would demand, and Sanford C. Bernstein & Co came with an answer: $5.5 trillion.
All that money will be used not only on incentives to make electric cars prevalent but also in renewable energy sources and new technologies. Changing the energy mix is a “monumental challenge,” according to Neil Beveridge, an analyst at that consultancy.
China uses a lot of coal: in 2019, 58 percent of the energy China used came from it. In 2024, half of the world’s demand for this fuel will come from that country, but China plans to have only 14 percent of its energy needs supplied by coal by 2050.
When it comes to electric cars, China expects them to be most of the vehicles in the country by the mid-2030s. That’s the result of the current efforts to implement clean transportation, but China will probably intensify them.
Hydrogen will also play a significant role in decreasing China’s need for fossil fuels. The country already invests in clean hydrogen: alkaline electrolyzers there have a $200/kWh cost, while that cost is $1,200/kWh in North America and Europe, according to BloombergNEF.
Some of the new technologies that need to be implemented probably refer to fourth-generation nuclear power, which promises to be much safer and cleaner than current reactors.
Bill Gates firmly believes it will be our primary option for clean energy, and TerraPower – the nuclear company he is investing in – planned to make its first tests in China, which speaks a bunch.
According to some specialists Bloomberg interviewed, if there is one country that can get this done is China. They politely put it as “strong state support and coordination” to refer to the fact that the CCP (Chinese Communist Party) will get people to do as it says. Well, it now says that “China will be carbon-neutral by 2060.” Let’s hope most of us see that happening not only in China but all over the world.