Shifting Gears: Exploring the Dynamics of China's Energy Market Transition towards Renewable Energy Integration

Climate change is an existential threat to humanity and greenhouse gas (GHG) emissions is the primary driver of such a threat. Reducing GHG emissions has proved to be an intractable problem thus far given that most human productive activities result in GHG emissions. In particular, energy production accounts for ~70% of all GHG emissions globally.

In recent years, China has made several commitments to reducing its GHG emission and increase the share of its renewable energy. Such a position is quite different from its prior commitment and willingness to pursue economic growth regardless of the environmental costs. However, the magnitude of state-led investments and urgency of policy initiatives signal that China is quite serious in its endeavor to reach its climate goals.

Still, China's energy market has long been dominated by fossil fuels. The transition to a renewable driven energy market will inevitably encounter growing pains and obstacles, as evidenced by similar developments in the EU and China.