China’s climate goals: action plan calling for renewal of equipment can also boost green transition, experts say
- The campaign ‘has the potential to create successful green stimulus’: Greenpeace analyst
- A circular economy, second-hand trading and recycling are in line with current consumer trends in China, executive at NYSE-listed ATRenew says
In an action plan released last month, the State Council, China’s cabinet, called for the promotion of “a new round of large-scale equipment renewals and trade-ins of consumer goods” to propel the “high-quality” development of its economy and to boost investment and consumption.
Heavy industries such as iron and steel, cement and petrochemicals need to upgrade and replace their equipment with more energy-efficient and lower-emitting alternatives, according to the State Council. Other sectors that have been ordered to renew large-scale equipment include construction and urban infrastructure, transport and agriculture, education and healthcare.
The action plan also highlights trade-ins of big-ticket consumer goods such as cars, home appliances and furniture. By 2027, China aims to double the recycling volume of scrapped cars from 2023 levels, while achieving 45 per cent growth in the trading volume of second-hand cars and 30 per cent growth in the recycling volume of used home appliances.
“The campaign is primarily about boosting the economy,” said Yao Zhe, a Beijing-based global policy analyst at Greenpeace East Asia. “But it has the potential to create successful green stimulus.
“The policy communicates a clear intention to expand the market for energy-efficient products. That is plausible. By incentivising both industrial and residential consumers to upgrade and retrofit, it can lead to energy efficiency improvements that are essential for decarbonisation.”
