In recent decades, China has become a leader in green industrial development, not only making considerable progress in its own country, but also becoming a global leader in providing efficient, clean, and sustainable technologies. The development of green industries has been of high priority for China in so many ways, as the Chinese government strives to build up the green economy and reduce its energy intensity.
According to the Climate Policy Initiative’s (CPI) Green Investment Index 2019, China has invested $45.5 billion in green industries in 2018, outranking all other countries in the world in green investments. China has been gradually transitioning from conventional power sources to renewable energy, and that encourages the country to develop green industries to achieve new thresholds of sustainability.
In recent years, China has implemented various measures to boost the development of green industries across the country, such as planning and investing in green energy projects, establishing strict environmental targets, and providing incentives for green industries. For example, in 2015, the Chinese government issued its 13th Five Year Plan on Climate Change, establishing quantified objectives for the promotion of green industry development. The plan also establishes a goal of increasing clean energy to 40% of total energy consumption by 2030, as well as aiming to reduce carbon intensity by 18% from 2015 to 2020.
What are Green Industries?
Green industries are businesses that focus on providing clean and renewable energy, as well as manufacturing products for environmental protection. For example, green industries may manufacture products such as solar panels, wind turbines, energy-efficient lighting, electric cars, and more. These products are instrumental in reducing air pollution and thus, contributing to a healthier environment.
Examples of Chinese Green Industries
Solar Energy – China is one of the world’s leading manufacturers in solar energy and has invested heavily in renewable energy. China is currently the largest producer of solar energy in the world and is the leading provider of solar power equipment and development services. Solar energy has been fundamental in China’s green industry transformation and was the leading source of investment in 2018, with the Chinese government investing $12.5 billion in solar energy, around 27% of total green investments.
Wind Energy – Wind energy has also played a major role in the development of green industries in China and the Chinese government invested $11.1 billion in 2018, making it the second-largest source of green investments. Wind power has been instrumental in helping China to transition from traditional sources of energy and the country is forecasted to be the leading producer of wind energy by the end of 2020, with a capacity of 212 GW.
Nuclear Energy – Nuclear energy is also an important part of China’s green industry development. The Chinese government has been investing heavily in the sector, especially in terms of research and development. In 2018, China invested $10.2 billion in nuclear energy, making it the third largest contribution to green investments.
Biomass Energy – Biomass energy has been one of the major sources of investment in the green industry in China. In 2018, the Chinese government invested $8.3 billion in biomass energy, making it the fourth-largest contribution to green investment. Biomass energy is a major source of renewable energy in China and the government is continually investing in research and development to improve the efficiency and cost-effectiveness of biomass energy.
Innovations in China’s Green Industries
China has been making impressive advancements in the development of green industries and there are many innovative ways in which the country is achieving this. One of the most notable innovations is the development of the world’s first nuclear fusion reactor. The International Thermonuclear Experimental Reactor (ITER) is an experimental reactor being built in the south of France with the support of China and other countries around the world. It is expected to be operational by 2035 and will be capable of producing clean, limitless energy from nuclear fusion.
In addition to this, China has been investing heavily in the research and development of green technologies, such as electric vehicles, energy storage systems, energy-efficient buildings, solar energy generation, and renewable energy thermal storage technologies. The Chinese government has also been investing in the development of smart cities, which are cities designed to be energy-efficient and incorporate clean energy sources into the city infrastructure. Currently, over 500 cities in China have adopted the smart city development model.
Lastly, China has been taking an active role in terms of promoting green industries globally. In 2018, China set up the US$10 Billion South-South Climate Cooperation Fund to help finance programs and projects on climate change in developing countries. This fund has enabled China to develop relationships with a number of developing countries around the world and to promote the development of green industries.
We can see that China has made significant progress in the development of green industries. The Chinese government has invested heavily in green energy projects, established strict environmental targets, and provided incentives for green industries. Additionally, China has made great strides in terms of developing innovative technologies and promoting green industries globally. It is clear that the Chinese government is serious about the development of green industries and is highly committed to achieving its environmental objectives.
