China’s climate policy reaches critical juncture

Significance

This is an opportunity for China to renew its commitment to industrial and energy transformation. However, a massive expansion of coal-burning power generation is also planned.

Impacts

• China-US tensions pose an underestimated menace to the climate because they encourage China to seek energy self-sufficiency through coal.
• Coal, steel and mining industries will receive a short-term boost, despite their long structural decline and unsustainability.
• Greater use of coal power will increase air pollution, offsetting the benefits to human health of green innovation and industrial upgrading.
• President Xi Jinping’s promotion of the slogan ‘Ecological Civilisation’ suggests a desire for a green reputation internationally.