Given the rising concern on the environment, President Xi Jinping pledged one year ago for carbon emission peak by 2030 and carbon neutrality by 2060. China’s ambitious carbon plan drives radical structural changes to power generation.
Favourable economics and supportive policies underpin the secular growth opportunity of the Clean China theme. The environment theme remains one of the highest conviction ideas in the Chinese equity market over the longer term.
China is the largest source of carbon dioxide (CO2) emissions worldwide, representing 28% of global emissions and more than half of the 48% global emissions from countries with a national net-zero pledge. On a GDP carbon intensity basis, China emits 0.51 tonne of CO2 for each US$1,000 ($1,430) of GDP in 2019. This is significantly higher than the global average of 0.29 tonne, but the difference has been rapidly narrowing.
