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Report: Energy costs to hit $5.7t

By Du Juan (China Daily) Updated: 2014-06-20 07:27

Report: Energy costs to hit $5.7t

A wind farm under construction in Chuzhou, Anhui province. A big proportion of the projected investment of $5.7 trillion by 2035 will go to clean energy production, including wind and solar power. [Photo/China Daily]

Report: Energy costs to hit $5.7t

China could invest as much as $5.7 trillion by 2035 to find, produce and save energy, accounting for 15 percent of global spending in the sector, a report from the International Energy Agency said on Thursday.

Fatih Birol, chief economist of the Paris-based IEA, told a workshop on the report in Beijing that China has made "outstanding efforts" to increase energy efficiency and reduce coal use to meet global climate targets.

According to the report, China will invest $1.6 trillion in energy efficiency by 2035, accounting for about one-fifth of the global total.

Birol said that transportation will be the largest target for China's investment in energy efficiency, accounting for about 71 percent of the $1.6 trillion, followed by industry and the building sector.

"The Chinese government is working hard to reduce oil consumption in cars, which will lead to increasing investment in raising energy efficiency in transportation," said Birol. "It is crucial for emission reduction."

From 2011 to 2013, China avoided 900 million metric tons of carbon emissions by curbing coal demand, according to IEA data.

Birol called that a "big story", since the amount saved was equal to about one year of global emissions.

"China's reduction of coal use has a much greater impact on global markets than the United States' shale gas revolution," he said.

Report: Energy costs to hit $5.7t

Report: Energy costs to hit $5.7t

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