Asian Development Bank
As the People’s Republic of China (PRC) targets an emissions peak before 2030 and pre-2060 carbon neutrality, this report shows that overhauling its energy, industry, and transport systems can help balance its fiscal sustainability and climate goals. It outlines PRC’s '1+N' policy framework designed to improve energy efficiency, lower emissions, and increase non-fossil energy use. Highlighting a green investment funding gap, it explores how PRC can switch away from its expenditure-focussed strategy. It shows how measures including developing carbon markets, introducing carbon taxes, and reducing fossil fuel subsidies, can help cut fiscal pressures and underpin the growth of a low-carbon economy.
