Emissions success depends on China's economy slowing

Significance

However, the 14th Five-Year Plan, published in March 2021, failed to provide clear guidance on how to achieve this. Meanwhile, a post-COVID-19 economic stimulus has accelerated infrastructure investment, increasing carbon emissions.

Impacts

• Chinese and foreign firms operating in China will increasingly be pressed to draw up emissions reduction strategies.
• Firms struggling to reduce emissions in China may choose to move operations to countries with cleaner energy sources.
• Piecemeal policy may encourage offshoring, as is now underway with bitcoin mining.