At the BloombergNEF Summit in Shanghai, executives emphasized the need for China to increase investment in the development of clean energy technology, such as storage, hydrogen, and sustainable aviation fuel. This is crucial for the country to achieve its goal of peaking emissions before 2030, as it has already made significant progress in funding renewables and electric vehicles.
However, the current focus on these mature technologies has led to oversaturation in supply chains, resulting in lower profits for companies and trade tensions with other countries. To address this issue, Alan Chan Ying-lung, chief investment officer at Hong Kong & China Gas Co., suggests that companies should shift their spending towards areas that still require scaling up and cost reduction. For instance, Towngas is investing in sustainable aviation fuel, using biofuels to decarbonize the challenging aviation sector.
According to Chan, it is essential to direct more capital towards meeting unmet demand rather than investing in already saturated areas. This will help bridge the gap and accelerate the development of new clean energy technologies.
Moreover, the rapid growth of renewables has also created an imbalance in grids, with an excess of solar power during the day that disappears at night. This issue needs to be addressed to ensure a stable and reliable energy supply.
In conclusion, while China has made significant progress in clean energy investment, there is still a need to shift focus towards emerging technologies. This will not only help the country achieve its emission reduction goals but also create new opportunities for companies and promote sustainable development.