"China's Fossil Fuel Investment Increases Despite Carbon Neutrality Policies"

Increase of 5-22% Since 2020 in Wealthy Regions Such as Guangdong, Zhejiang, and Shanghai

[Asia Economy Reporter Kwon Hyun-ji] Amid China's announcement to achieve carbon neutrality by 2060, a survey revealed that fossil fuel investments are actually increasing in some wealthy regions such as Guangdong Province, Zhejiang Province, and Shanghai.

In a report released on the 18th by Greenpeace East Asia, an international environmental organization, it was stated, "Some of the regions in China with the highest Gross Domestic Product (GDP), including Guangdong Province, Zhejiang Province, and Shanghai, are pouring a lot of money into low-carbon technologies and renewable energy development, but these regions have also continued to increase investments in fossil fuel projects, especially focusing on gas."

Among them, Guangdong Province, which has the largest economic scale in China, was found to be increasing its dependence on fossil gas. Since the beginning of this year, Guangdong Province has invested 385.1 billion yuan (approximately 75 trillion won) in fossil fuel projects, which is a 21.8% increase compared to 2020.

In the cases of Zhejiang Province and Shanghai, the investment amounts this year recorded 92.3 billion yuan (approximately 18 trillion won) and 31.5 billion yuan (approximately 6 trillion won), respectively, showing annual increases of 5% and 19.9% compared to two years ago.

The reason for the increase in China's fossil fuel investments despite carbon neutrality policies is analyzed to be in response to rising consumer demand. Lauri Myllyvirta, an analyst at the Finnish Energy and Clean Air Research Institute, told Hong Kong's South China Morning Post (SCMP), "In the power sector, the need for more reserve power to handle the surge in electricity demand caused by heatwaves and increased air conditioner use is emerging." Gas is a cost-effective alternative during peak electricity seasons.

Analyst Myllyvirta pointed out, "Increasing gas usage may seem like progress in energy transition to address climate change, but since gas cannot be produced without pollution or carbon emissions, this is a dead end."

This content was produced with the assistance of AI translation services.