Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC



WoodMac: China pledges carbon neutrality by 2060

With China announcing its ambition to be carbon-neutral by 2060, Wood Mackenzie experts weigh in on what this means. 

Research director Alex Whitworth said: “President Xi Jinping surprised the world by announcing to the UN General Assembly that China has set a target to become carbon-neutral by 2060. With this announcement, the world’s largest carbon emitter finally shifted from its long-term position of having limited responsibility to reduce global emissions as a developing country, to assuming clearer leadership in tackling climate change. President Xi also stated that China will reach peak emissions before 2030. The world’s largest, and growing, energy market, China currently contributes about 28% of global emissions. 

 

“Yesterday’s announcement was framed as a direct response to the coronavirus pandemic and the more recalcitrant position of the Trump Administration towards the 2016 Paris Agreement. Imploring urgent reforms in the systems of global governance towards a greener and more sustainable pathway, President Xi called on all countries to “stop only pursuing development rather than environment protection.” Clearly for China this needs to start at home, though the signal that China intends to take a greater and more vocal leadership role in global environmental protection was clear.” 

 

Asia Pacific vice chair Gavin Thompson added: “Of course, big questions remain. Firstly, China’s definition of ‘carbon neutrality’ is not well defined from the short announcement. Further, no roadmap was offered as to how this will be achieved. 2060 is a long time out and immediate, concrete steps have yet to be announced. But China’s upcoming 14th five-year plan has the potential to be the most important document in global energy market history. Increased investment in wind, solar, electric vehicle and battery storage technology deployment will almost certainly feature, and we can expect support for green hydrogen and carbon capture technology. It won’t of course be the complete roadmap and I expect clean coal will continue to receive strong support. 

 

“But if any country can achieve such ambitious goals it will be China. Strong state support and coordination have proven extremely effective at reaching economic goals; if this is now directed towards climate change then China is capable in transforming its carbon emissions trajectory over the coming four decades in exactly the same way it has transformed its economy over the past 40 years.” 

 

Asia Pacific head of markets and transitions Prakash Sharma said: “China currently emits over 10 billion tonnes of carbon and will need to make significant efforts to reach net-zero without affecting it economic development. 

 

“In Wood Mackenzie’s recently released Accelerated Energy Transition Scenario (AET-2), we have China’s emissions fall nearly 60% by 2040 from 2019 level using electrification, renewables, green hydrogen and carbon removal technologies. We expect China will need to deploy over a billion tonnes carbon, capture and storage capacity across its power and industrial sectors. These efforts will need to start much earlier and at a higher scale to deliver on carbon-neutral goal by 2060.   

 

“The impact on global energy and commodity markets and seaborne trade is significant in our AET-2 scenario. Major commodity exporters' strategies are reset too to align with China’s ambitions.”  

 


Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo

FEATURED COLUMNS

Editorial Comment
-Adrienne Blume
Between mid-2019 and mid-2020, the amount of LNG terminal capacity in construction around the world more than doubled.
Executive Viewpoint: Excelerate Energy sees huge new-market potential for FSRUs
-Cal Bancroft
Excelerate Energy is a pioneer and market leader in floating LNG regasification solutions.
Executive Viewpoint: Midstream seeks cost-effective, “fit-for-purpose” solutions amid downturn
-Gregory L. Hall
BCCK Holding encompasses BCCK Engineering Inc., an international natural gas engineering company specializing in nitrogen rejection, nitrogen rejection for landfill gas, NGL recovery, CO2 removal, helium recovery, skidded LNG plants and oxygen removal.
Regional Focus: The role of small-scale LNG in Russia’s energy agenda
-Lorenzo Micucci, John Motta
A number of factors are challenging Russia’s position in the energy markets: the change in the global natural gas landscape, the abundance of gas, expanding LNG trade, and the increased interconnectivity among pipeline systems that makes possible reverse flows.


GasPro 2.0: A Webcast Symposium

Register Now

Following the successful GasPro Webcast Symposium in October 2019, the third GasPro Webcast Symposium will take place on October 21, 2020.

The 2019 webcast drew attendees from around the world, with more than 80% of the audience working in company management or engineering divisions.

The 2020 web event will gather experts in the fields of LNG, gas processing and process safety to share market, operations and engineering technology and trends with our audience.

Attendees of the 2020 webcast will learn about market solutions and technology deployments in a number of areas: LNG delivery infrastructure, small-scale desulfurization for NGL, H2S removal for gas treating, process safety for safety instrumented systems, small-scale LNG project design, and advances in freeze component removal for LNG.

October 21, 2020 08:30 AM CDT

Register Now

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2020 Gulf Publishing Holdings LLC.