Sustainability, Energy Transition, ESG | Weekly Thematic

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