China’s President Xi Jinping called for more efforts to curb carbon dioxide emissions, a sign that the biggest polluter will not back down on climate goals, even as it turns to fossil fuels for energy security.
There needs to be better regulation of energy consumption and a gradual shift towards “dual control” – usually the setting of specific targets – for both the total volume and the intensity of carbon emissions, he said. Xi said at a meeting on deepening reforms on Tuesday, according to a Xinhua transcript.
Even as domestic oil and gas production increases, China must also accelerate the adoption of cleaner energy sources and gradually reduce the proportion of fossil fuels, according to the transcript. China’s new electricity system will need to provide clean, safe and abundant supplies that are economically efficient, flexible and promote self-reliance, Xi said.
His decision to emphasize the country’s climate goals, which call for China to peak emissions by 2030 and reach zero by 2060, is an indication that Beijing will expect the regions to maintain progress in curbing pollution . Thus, they also strive to maintain food sources during the extreme heat of summer.
The remarks come ahead of US climate envoy John Kerry’s visit to China later this month for talks on global warming ahead of a UN climate conference in november
The renewed emphasis on controlling carbon emissions is “highly likely” to be positive for independent renewable energy producers, Daiwa Capital Markets said in a note from analysts including Dennis Ip. There will possibly be a value assigned to the carbon reduction and it comes amid recent discussions about reviving the stagnant offsets market, he said.
Shares of Longi Green Energy Technology Co., the world’s largest maker of solar equipment, rose as much as 6 percent in Shanghai on Wednesday.
Xi’s focus on emissions comes as China has increased coal production and imports this year to try to minimize any repeat blackouts in 2022. The country has also made efforts to increase crude oil production in recent years and is increasingly focusing on deepwater drilling in the South China Sea to increase production.
Boosting domestic oil and gas production was one of the key areas mentioned by Xi, and some of the main beneficiaries of this would be PetroChina Co. and Sinopec, Citigroup Inc. said. in a note National energy security is one of China’s top development priorities, the bank said.
PetroChina shares rose as much as 3.3 percent in Hong Kong, while Sinopec, formally known as China Petroleum & Chemical Corp., rose as much as 2 percent.
The newspaper of the week
Wednesday July 12:
- China’s Ministry of Agriculture (CASDE) publishes a monthly supply and demand report
Thursday, July 13:
- China’s first batch of June trade data, incl. exports of steel, aluminum and rare earths; imports of steel, iron ore, copper, soybeans, edible oil, rubber, meat and offal, oil, gas and coal; imports and exports of petroleum products
Friday July 14:
- China iron ore port weekly stocks
- Shanghai Exchange Weekly Commodity Inventory, ~ 15:30 local time
Al Filferro
Chinese President Xi Jinping has called for greater openness of the world’s second-largest economy to focus on foreign cooperation in areas such as trade and investment.
China is expected to boost fiscal support for the economy with more policy tools, such as special local government bonds to finance infrastructure projects, the China Securities Journal said in a front-page report.
–With help from Kathy Chen.
