Energy-saving and new energy industries will be global investment hotspots

According to the “2050 China Energy and Carbon Emissions Report” released by the National Development and Reform Commission’s Energy Institute recently, it is expected that by 2020, at least two trillion yuan in the energy-saving and new energy industries and other environmental protection industries will require funding gaps to be filled. The "Report" predicts that in the next 15 years, the country will establish new energy and renewable energy development investment funds and absorb private capital, and encourage the listing of outstanding renewable energy companies.
The "Report" believes that if China considers the role of China in reducing the promotion of imports to the economy, as well as reducing domestic investment in the energy industry and increasing the effect of investment in some emerging industries, the carbon tax will bring very limited losses to GDP. It may even be a positive influence and have a positive effect on the suppression of energy prices.
In addition, the international implementation of a border adjustment tax on climate change is currently under discussion, that is, a carbon tax is imposed on imported goods. According to the Report, “Even if China does not collect carbon taxes, export products may also pay carbon taxes abroad; if China imposes carbon, Taxes may avoid the imposition of carbon taxes abroad.".
“In the long run, adopting a carbon tax or a carbon tax combined with an energy tax is a viable option.” The “Report” proposes that China can transition from an energy tax to a carbon tax. The carbon tax can start with a lower tax rate and then gradually increase. And it is recommended that a carbon tax be levied four to five years after the energy tax is collected. The initial period can be a mixed tax that coexists with the energy tax. At the same time, three to four years before the implementation of the carbon tax, the carbon tax implementation schedule and tax rate will be announced for consideration by companies and consumers when investing.
The "Report" believes that the renewable energy and energy efficiency industries will be the focus of global future development and will become investment hotspots.
"In the next 15 years, the country's main task for the development and utilization of renewable energy is to select key technologies that have significant value in the construction of the national economy and eco-environment, carry out research and development, strengthen the pilot demonstration of these technologies and the transformation of scientific and technological achievements, and promote the formation of industries." The "Report" believes that its measures include expanding market share, fully introducing market competition mechanisms and guaranteeing access to the Internet through quota policies, further developing markets, and diversifying investment and financing, namely the establishment of new energy and renewable energy development investment funds and absorption of private capital. And so on, and encourage the listing of outstanding renewable energy companies.
New energy and renewable energy will also become investment hot spots in our country. According to the joint forecast of the U.S. Energy Foundation and the National Development and Reform Commission, from 2005 to 2020, China needs 18 trillion yuan of energy investment, of which energy-saving, new energy and environmental protection demand is about 7 trillion yuan, and the average annual energy-saving and environmental protection market is 3,000. 100 to 400 billion yuan. At present, China invests less than 100 billion yuan in this market each year. The report predicts that according to the current rate of investment growth, the annual funding gap will be about 200 billion yuan. By 2020, there will be at least two trillion yuan or so in the energy-saving and new energy industries and other environmental protection industries that need to be filled. The "Report" therefore proposes to speed up the construction of the capital market, actively broaden sources of funding, and pay attention to diversified innovation of financing methods. It proposes that social and private capital and state-owned capital be encouraged to cooperate and cooperate in the construction and operation of new energy projects. Energy-saving projects should be completely open to the whole society.
In order to ensure economic development and effectively cope with climate change, the "Report" provides institutional plans and policy recommendations on carbon emission reduction under the premise of economic rigid growth and guarantee efficiency. The "Report" held that: "The system, policies, and measures for reducing emissions should be based on the promotion of marketization and remedy related market failures."
The "Report" suggests that policies should focus on saving coal, that is, giving priority to the marketization of the coal industry and the collection of resource taxes and environmental taxes. This will lead to a 23.1% increase in coal prices, while also reducing its consumption by 6.9%. Oil and natural gas consumption will increase by 0.83%.
For the development of new energy sources, the “Report” states: “From the perspective of social discount rates, it is worthwhile for the government to support the development of inexhaustible (low) carbon energy. This kind of strategic move will bring about changes in the global power structure. This may lead to the large-scale substitution of new energy sources for fossil fuels.” The “Report” predicts that under such scenarios, China’s carbon emissions will start to grow from zero in 2028, and will continue to negative growth in 2036.
The "Report" also estimates that if China is to develop a truly low carbon economy, it will need to increase additional investment by 1 trillion yuan annually. From the perspective of the contribution of various energy sources and various departments to the reduction of total terminal energy demand, coal contributes the largest amount of energy, followed by oil, heat and electricity; the industrial sector has made the largest contribution to reducing energy demand. Followed by transportation, civilian use, services and agriculture.

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