China Pledge to Invest $27 Billion in Renewable Energy in 2012

In 2011 global carbon dioxide emissions rose to the highest level ever recorded. The increase was mainly driven by the world’s largest emitter of CO2, China, who experienced their own record increase of emissions due to the high use of coal. According to the IEA, the 9.3 percent that Chinese emissions increased by, offset the decreased emission levels achieved in the United States and Europe.

In an attempt to reduce their carbon emissions and promote energy conservation, China has pledged to invest $27 billion in renewable energy projects throughout 2012.

China already has invested huge amounts of capital in hydroelectricity projects, off shore wind farms, and solar power; in which the governments support has famously reduced the prices of Chinese solar cells to incredibly low levels. The Finance Ministry has said that some of the $27 billion will be used to promote energy saving products, develop more solar and wind installations, and perform more research into hybrid cars.

The IEA’s report, released on Thursday, noted that whilst China’s carbon emissions are at their highest ever level, that the CO2 emissions per unit of GDP has fallen by 15 percent between 2005 and 2011. Aware of its current high greenhouse gas levels, China has also set itself the target of reducing its carbon emissions by 40-45 percent by 2020, and hopes that the $27 billion investment will help it to boost the contribution that renewable energies make to their overall electricity consumed by 15%.

By. Joao Peixe of Oilprice.com