ESG, Recycling, & Climate | Monthly Thematic Piece

China: A Challenge With 2060 Goal But Also A Possible Edge
October 6, 2021
Products Mentioned:
Carbon, Hydrogen, Coal, Carbon Black, Steel, Cement, Aluminum, Natural Gas, Ethylene
Companies Mentioned:
Gevo, Dow, Danimer Scientific, Orion Engineered Carbons, Monolith, Origin Materials, ExxonMobil, Chevron, Philips 66
Subjects Covered:
Recycling, Renewables, Carbon Capture, Emissions, New Energy, The Hydrogen Economy, ESG Investing

C-MACC Weekly “CRETER” (Climate etc.)

China: A Challenge With 2060 Goal But Also A Possible Edge

  • The IEA study on China’s 2060 net-zero goals concludes that the pathway is theoretically possible but it will require sizable investment and new technologies.
  • The delay to 2026 means that not much happens before 2040 as the country continues to grow its economy. The West will be spending billions over that period.
  • China stands to gain from the learning curve pains in the West and could end up spending less per ton of carbon abated as a consequence – tariffs may be needed to protect other countries from even cheaper (relative) Chinese goods.
  • COP26 rhetoric is rising – we see progress on the acceptability of (clean) natural gas as a longer-term fuel as the most positive move that could be made.
  • Otherwise, we look at battery vs hydrogen storage, making a case for hydrogen.

See PDF below for all charts 

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