The COVID-19 crisis has had a massive impact on economies across the world, with several governments now seeking to design recovery programs. Ideally such programs should not only support recovery from recession but help achieve greener and more sustainable economies for the future.
According to the government annual work program announced in May 2020, the Chinese government has acknowledged the importance of investing in new infrastructure, supporting new forms of higher-quality urban development, and accelerating the shift to new energy vehicles.
This report recommends that China’s green recovery package combine four key actions:
- Accelerate investment in zero-carbon electrification. This should combine increased investment in wind and solar capacity, ultra-high voltage transmission lines, energy storage, and distribution grids, plus the accelerated rollout of electric vehicle charging infrastructure.
- Strengthen investment in “new” technology-based forms of infrastructure, such as 5G, artificial intelligence, internet of things, data centers, and optical fiber, which will build Chinese capacity in a range of vital future technologies.
- Ensure that investment in traditional infrastructure supports green and energy efficient urbanisation.
- Promote green consumption, including via support for electric vehicles and more efficient electric heating systems.