China’s President Xi Jinping called for greater efforts to curb carbon dioxide emissions, a signal the biggest polluter won’t backslide on climate targets even as it turns to fossil fuels for energy security
There needs to be better regulation of energy consumption and a gradual shift toward “dual control” — typically the setting of specific targets — for both the total volume and intensity of carbon emissions, Xi said Tuesday at a meeting on deepening reforms, according to a transcript from Xinhua.
Even as it raises domestic oil and gas production, China needs to also accelerate the adoption of cleaner energy sources and gradually lower the share of fossil fuels, according to the transcript. China’s new power system will need to offer clean, safe, abundant supplies that are economically efficient, flexible and promote self-sufficiency, Xi was cited as saying.
His decision to emphasize the country’s climate targets, which call for China to peak emissions before 2030 and hit net zero by 2060, is an indication Beijing will expect regions to maintain progress on curbing pollution. That’s as they also strive to maintain power supplies during extreme summer heat.
The remarks come before US Climate Envoy John Kerry’s visit to China later this month for talks on global warming ahead of a United Nations climate conference in November.
The renewed emphasis on controlling carbon emissions is “highly likely” to be positive for independent renewable power producers, Daiwa Capital Markets said in a note by analysts including Dennis Ip. There will possibly be a value assigned to carbon reduction and it comes amid recent discussions on reviving the stalled offsets market, he said.
Shares of Longi Green Energy Technology Co., the world’s largest solar equipment maker, rose as much as 6% in Shanghai on Wednesday.
Xi’s focus on emissions comes as China has ramped up coal production and imports this year in a bid to minimize any repeat of blackouts in 2022. The country has also made efforts to lift crude oil production over the last few years, and is increasingly focused on deepwater drilling in the South China Sea to boost output.
Encouraging domestic oil and gas production was one of the key areas mentioned by Xi, and some of the main beneficiaries of this would be PetroChina Co. and Sinopec, Citigroup Inc. said in a note. National energy security is one of the top development priorities in China, the bank said.
PetroChina shares were up as much as 3.3% in Hong Kong, while Sinopec — formally known as China Petroleum & Chemical Corp. — rose as much 2%.
The Week’s Diary
Wednesday, July 12:
- China’s agriculture ministry (CASDE) releases monthly supply and demand report
Thursday, July 13:
- China’s 1st batch of June trade data, incl. steel, aluminum & rare earth exports; steel, iron ore, copper, soybean, edible oil, rubber, meat & offal, oil, gas and coal imports; oil product imports and exports
Friday, July 14:
- China weekly iron ore port stockpiles
- Shanghai exchange weekly commodities inventory, ~3:30pm local time
On the Wire
Chinese President Xi Jinping called for greater opening up of the world’s second-biggest economy to focus on foreign cooperation in areas including trade and investment.
China is expected to boost fiscal support to the economy with more policy tools, including special local government bonds to fund infrastructure projects, the China Securities Journal said in a front-page report.
--With assistance from Kathy Chen.
(Updates to add details from first paragraph.)
