Xi Jinping, the first Chinese president to attend the World Economic Forum’s annual meeting. His appearance came at an important moment for China, as it increasingly takes on a global leadership role, including and critically on climate change. In his speech, President Xi stood up to defend the Paris Agreement and called for stronger international co-operation to meet today’s global problems.
By acting decisively now both domestically and abroad, China will reap the early benefits of the low-carbon economy. China is well placed to catalyse action on five fronts.
First, China’s cities — home to more than 750 million people — are already at the forefront of the government’s climate priorities.
Second, China is leaving the rest of the world behind on clean energy. It is home to five of the top six solar panel manufacturers and five of the top 10 wind turbine makers.
Third, Beijing is set to implement the world’s largest emissions trading system later this year. It will expand its seven pilot carbon trading systems to the national level. If the price levels are high enough, it will create strong incentives worldwide.
Fourth, China is exploring new and innovative financial vehicles to finance the low carbon transition. Its emerging green bonds market could deliver about $230 billion for renewable energy investment in the next five years.
Lastly, China’s foreign investment could play a big role in tipping the balance towards a greener global economy.
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Source: Financial Times, 20 January 2017