Political Economy of Net Zero: China

The document outlines China's '1+N climate framework' and its goals to peak carbon emissions by 2030 and achieve carbon neutrality by 2060. It identifies five key intervention areas for systemic transformation: power generation, energy distribution networks, transport, carbon sinks, and technology/energy policy. The authors argue that international collaboration, knowledge sharing, and philanthropic funding—which averaged $75 million per year between 2017 and 2020—can help overcome technical and financial barriers, create economies of scale for clean technologies, and improve the efficiency of China's national emissions trading scheme (ETS).

• China has committed to peaking carbon emissions by 2030 and achieving carbon neutrality by 2060, utilizing a "1+N climate framework" to coordinate reforms across major sectors.
• The power generation sector faces systemic challenges and supply shortfalls because fossil fuel plants are being retired early due to emissions standards before renewable capacity is fully sufficient.
• China's centralized electricity grid, managed primarily by the State Grid and China South Grid, is currently unfit for a distributed energy system based on renewables and digital technology.
• Despite having the world's largest electric vehicle (EV) market, further uptake is hindered by insufficient charging infrastructure, battery technical difficulties, and a public preference for cheaper fossil fuel vehicles.
• Carbon sink programs, particularly in northwest and southwest provinces, are limited by underdeveloped markets and a lack of resources for the long-term, technique-intensive management required.
• China's national emissions trading scheme (ETS) uses a rate-based permit allocation, which the authors suggest reduces market power and uncertainty compared to the mass-based cap used by the European Union's ETS.
• Carbon capture and storage (CCS) is identified as a necessary technology for achieving carbon neutrality, as coal may still account for approximately 20% of total power generation in 2060.

APA

Fan, Y., & Li, X. (n.d.). Political Economy of Net Zero: China. Climate Strategies. https://climatestrategies.org/wp-content/uploads/2022/11/Accelerating-systemic-net-zero-transitions-in-China.pdf

Chicago

Fan, Ying, and Xiaogu Li. Political Economy of Net Zero: China. Climate Strategies, n.d. https://climatestrategies.org/wp-content/uploads/2022/11/Accelerating-systemic-net-zero-transitions-in-China.pdf.

Wikipedia

{{cite report |last1=Fan |first1=Ying |last2=Li |first2=Xiaogu |title=Political Economy of Net Zero: China |publisher=Climate Strategies |url=https://climatestrategies.org/wp-content/uploads/2022/11/Accelerating-systemic-net-zero-transitions-in-China.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fanndpolitical, author = {Fan, Ying and Li, Xiaogu}, title = {{Political Economy of Net Zero: China}}, institution = {Climate Strategies}, url = {https://climatestrategies.org/wp-content/uploads/2022/11/Accelerating-systemic-net-zero-transitions-in-China.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }