China’s Low Carbon Transformation: Drivers, Challenges, and Paths

Abstract

National climate change mitigation actions and objectives could be taken from both active and passive considerations. China has multiple objectives to develop a low carbon economy and to decrease carbon dioxide emission per unit of GDP, including mitigation of global climate change, security of energy supply, promotion of sustainable development (environmental protection, poverty alleviation, employment and natural conservation). In this regard, China’s actions are more at the active side than from a pressure outside. However, there are some suspicions in the international society about whether China has the determination and efficiency in mitigation actions. The author demonstrates that China’s low carbon transformation is largely driven from domestic considerations. For China the question is not to make the transformation into a low carbon economy, but how to accelerate the process. In the meantime, low carbon transformation in China has to face many serious challenges. A dilemma exists that a higher carbon may actually help raise necessary resources for promoting low carbon solutions. Understanding and international cooperation are essential for China’s low carbon transformation.

Keywords: low carbon transformation, sustainable development, mitigation of climate change, carbon dilemma, China

JEL Classification: Q54, Q56, O53