China is planning to invest $315-630 billion every year for the next five years to promote green economy. The march towards a low-carbon economy and creating a global green energy network will bring tremendous opportunities, according to experts.
China will promote green, low-carbon, and sustainable development through institutional innovation. Moreover, Chinese government also released an integrated reform proposal on environment, highlighting the efficient use of resources, which can be used as an effective tool for establishing a strong green economy.
Earlier in September, Chinese President Xi Jinping also narrated his desires at the UN Sustainable Development Summit that China wants to establish a strong global green energy setup and cater to the increasing power demand with green and clean alternatives.
However, $315-360 billion investment every year is a huge test. The People’s Bank of China’s deputy governor clearly stated that the government can provide only 15% of the total investment over the next five years. The remaining amount has to be covered by private sector and for that the government is planning to provide a good incentive mechanism.
By the end of 2017, China is also planning to launch a nationwide “cap and trade” program to force major greenhouse gas emitters to purchase credits to fulfill pollution reduction targets. The country is also planning to introduce different carbon market schemes to encourage low-carbon investments.