Oriented on making people closer

At the XXV International Conference “Oil and Gas of Turkmenistan 2020” that ended its work on October 29, the issues of the country’s energy potential and strategy were considered in the broad context of international cooperation and new global challenges that affect both the policies of each country and the formation of the global energy landscape. Foreign participants of the forum emphasized that issues such as restoration of the global economy undermined by COVID-19 and sustainability of the world energy, ensuring of wide access to affordable and reliable energy sources and achieving the goals of the UN 2030 Development Agenda as well as change of fuel balance and ecology are closely connected.

Taking into account the changes that have happened in the world, the proposals of Turkmenistan on updating the Energy Charter Treaty have been submitted. The proposals cover not only the issues related to the international investment regime, the specific features of investing in a new transit cross-border energy infrastructure, legal and commercial aspects of regulating partnerships between countries and other participants in energy projects, but also the issue of environment protection. New Treaty has to take into consideration that all members of the Energy Charter have undertaken obligations on the Paris Treaty under the UN Framework Convention on Climate Change, which regulates the measures for reduction of carbon dioxide content in the atmosphere starting from 2020.

In this regard, a road of China as the largest consumer of energy resources and active implementer of green energy towards carbon neutrality is of great interest. The features of this path and other related tasks are considered in the article published by China Daily on October 30. The author of article Lars Faeste, a managing director and senior partner in Boston Consulting Group (BCG) and a managing partner of BCG China, believes that greater investment, new technologies and stronger public awareness of climate issues will enable 2060 target on carbon neutrality to be reached. At the 75th United Nations General Assembly, President Xi Jinping stated China’s commitment to reach carbon neutrality by 2060. The commitment reflects China’s long-term vision of collective global climate action to control the global temperature rise. It also marks China’s determination to commit to and invest in this vision.

The author of article contributed to China Daily underlines that China has an irreplaceable role to play in the global efforts to combat climate change. The “Climate Plan for China” produced by Boston Consulting Group breaks down China’s climate commitment into a practical pathway. It translates China's ambitious target into more than 50 specific initiatives, listing the de-carbonization contribution and incurred investment for each of them. Although some breakthroughs are required, the pathway is highly realistic considering China’s existing capabilities in relevant areas such as nuclear power, solar, wind, new energy vehicles, and future potential scale-up and technology improvement.

China will need to take decisive measures in the energy, industry, transport, building, and agriculture sectors in order to reach carbon neutrality. Under the 1.5 C pathway, each of the sectors will need to reduce emissions by 60 percent to 105 percent, meaning close to zero emissions for some industries. This requires decisive policy support and mechanism reform, as well as effective carbon reduction levers to push sector upgrading, company transformation and public awareness. For example, the energy sector should be reformed to encourage fair competition and technological innovation. The industry sector should promote process innovation, and help companies establish emissions monitoring and management capabilities. The transportation and building sectors should push for the electrification of vehicles, cooking appliances and water boilers.

According to China Daily, to achieve the 1.5 C target, China will need to invest 90 trillion yuan ($13 trillion) to 100 trillion yuan on climate measures by 2050, equivalent to about 2 percent of its expected cumulative GDP from 2020-2050. The biggest investment will be in the transport sector to cover vehicle electrification and the development of clean aviation fuels. The energy sector will also need major investments in order to expand the use of renewable energy, nuclear and carbon capture and storage technology. At the same time, process innovation in the industry sector, as well as the adoption of heat pumps in the building sector and waste treatment technology in the agricultural sector will also account for a significant share.

As well as being a major carbon emitter, China is also a model for green energy technology and land development. The sustainable development strategies and emission reductions measures China takes in the future will undoubtedly have a major impact on the world.

Ogulgozel REJEPOVA