Australia should be prepared as China’s remarkable ascent in renewable energy generation is poised to reshape the global energy paradigm, argued Climate Energy Finance (CEF), in recent report.
The report forecasts a monumental milestone: the cessation of new coal power construction in China before 2030. This marks a significant triumph for the world’s decarbonisation efforts as China currently accounts for 96 per cent of the world’s new coal plants under construction.
For Australia, which is heavily reliant on coal exports, this is a wakeup call. The report highlights the country’s need to pivot towards renewables-powered industries and capitalise on our rich reserves of critical minerals. It argues that the recently passed Future Made in Australia Act provides the framework for this transition.
Lead author Xuyang Dong, CEF China energy policy analyst said modelling shows a staggering decarbonisation trajectory of profound global importance.
“China’s electricity market transformation, which we model in detail, holds huge potential to decarbonise the world,” Dong said.
“The expansion of utility renewables at or above the scale and speed we model, and the accelerating rollout of transmission, pumped hydro storage and utility scale battery storage, suggests China can generate enough zero-emissions energy to supply the country’s electricity demand whilst progressively reducing its over-reliance on thermal power.
“The positive reform in China’s electricity market that we describe holds the overwhelming critical mass to accelerate the global energy transition.”
CEF director Tim Buckley said that for Australia, aligning with China’s trajectory toward accelerated net zero is not merely a “strategic imperative – it’s a prerequisite for our sustained economic prosperity”.
“This report serves as a clarion call for action. As China leads the charge towards a greener future, we must heed the call, recognising the immense opportunities that lie ahead in embracing a carbon-neutral world. By embracing this transition, we can not only secure our economic future but also foster stronger ties with China and contribute to global efforts to combat climate change,” Buckley said.
David Olsson, national president and chair of the Australia-China Business Council, said the urgency for Australia to seize the opportunity presented by China’s renewables revolution prevalent.
“The relationship between our nations, both of which play a key role in the profound energy and economic transformation that defines our era, has never been more important and presents unprecedented opportunities to work side by side as global renewables superpowers,” Olsson said.
For more renewable and solar news, subscribe to ecogeneration.