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Guidebook to Carbon Neutrality in China
How to deal with carbon emissions—a rare externality that spans a large
time frame and geographical scope—is a difficult task for the world. This task
is particularly challenging for China, mainly in that the country must coordinate
dual objectives, including existing economic growth targets and the newly added
carbon neutrality goal. Over the past 40 years of reform and opening up, China has
been setting economic growth targets and striving to achieve them. In recent years,
although growth targets have softened along with the secular decline in potential
growth rate, economic growth remains a top priority for China, the world’s largest
developing country. We expect China to reach the current standard for a high-income
country by the end of the 14th Five-Year Plan period, and to double its GDP or per
capita income by 2035. Currently, China is adding a new constraint over the next
40 years. As the world’s largest carbon emitter, China has set out a clear timetable
for carbon neutrality—to reduce its carbon emission intensity in 2030 by more than
65% from the 2005 level, and reach the peak of carbon dioxide emissions by 2030
and become carbon neutral by 2060.
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