China’s energy industry update
This country outlook is part of a short series of introducing priority sectors that Team Finland China has chosen for 2022. Team Finland China is a network of public actors and Finnish business chambers in China. The network promotes Finland and its interests abroad: the internationalization of Finnish enterprises, investments in Finland, and the country brand. In total, there are nine focus areas, in which Team Finland actors proactively plan their activities, to help Finnish companies to enter China and grow in Chinese market. Team Finland China priority sectors for 2022 are 1) ICT, 2) food and agro, 3) health technology, 4) energy, 5) bio economy, chemicals and built environment, 6) metal and machinery, 7) maritime, 8) education (incl. research and talent boost) and 9) winter sports.
China has the world’s largest energy market. Driven by government’s “30.60” carbon target, China is persistently pushing forward the restructuring and reformation of energy industry to become greener, renewable, safer and smarter in national full-scale level.
China's greenhouse gas emissions and coal consumption have been growing year by year. China produces almost 60 percent of its energy needs from coal and has the largest installation of coal power plants in the world. Energy and construction industry is considered the most important area to undergo green transition. China is currently undertaking a significant transformation and restructuring with focus on increasing the use of renewable energy, such as wind, solar, hydro and biomass energy. In 2022, Chinese authorities released a series of policies and guidelines in different perspectives, including Five-Year plan on modern energy system, bio economy development, Five-Year plan on new energy storage, hydrogen industry development, Five-Year plan on technology innovation in energy industry, green and low-carbon transformation of energy industry mechanism improvement, etc. China also set up specific goals for decarbonization and energy transformation until 2025, 2030 and 2060.
China’s carbon neutrality target creates significant opportunities towards clean energy and energy efficient solutions. Investments in new energy are expected to rise to EUR 400 billion per year in the upcoming years. As one of the leading countries in clean tech and sustainable development, Finland is well-placed to offer solutions with its strong expertise and knowhow in clean and smart energy, including energy efficiency and conservation, renewable energy, smart district heating & cooling, grid flexibility and smart grid, waste to value and bioenergy, new energy such as hydrogen and energy storage technologies.
Memorandum of Understanding between Ministry of Economic Affairs and Employment of Finland and China National Energy Agency (NEA) provides a concrete framework for cooperation.
Business Finland in Beijing
E-mail: alex.liu (at) businessfinland.fi
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