China to plough $372 billion into cutting carbon intensity, triggering green shares jump
- 23 August 2012
BEIJING: The Chinese Government has announced it will spend $372 billion on energy conservation and anti-pollution measures, a move our Greater China Director, Changhua Wu welcomes as a key initiative in helping the nation meet its 12th Five Year Plan energy intensity targets.
The State Council’s announcement comes as part of its push to cut energy consumption by 300 million tons of standard coal. The $372 billion will also help China meet its target of cutting energy intensity to 16% below 2010 levels, by 2015.
So far, it has been announced that an allocated $155 million will go towards slashing energy use, with the largest portion expected to go to industry.
With the news already triggering a jump in shares for environmental protection companies, the Government investment is forecast to stimulate further support from the private sector as it is implemented over the 12th Five Year Plan period, which runs from 2011-2015.
Changhua Wu, Greater China Director, The Climate Group welcomes the announcement. She said: "The year 2012 is a most critical year in China towards achieving a series of mandatory targets of energy saving, renewable energy and environmental protection by 2015. The newly announced commitment of financing and investment in those strategic industry sectors is expected to put the country on track for both short term and long term targets."
She added: "It is believed that such level of public support will really leverage much greater private capital flow into the efforts of China's clean revolution."
In a separate announcement that also looks to bolster China's 12th Five Year Plan targets, the Chinese Government has approved 94 new clean energy projects that could generate 14 million UN backed offset credits a year, for the country’s Clean Development Mechanism.