By 2020, China’s low-carbon investment will require US$243 billion per year
A report commissioned by the China National Development and Reform Commission and written by the Climate Group and the Central University of Finance and Economics said that by 2020, China will need to raise up to US$243 billion per year for clean energy development. The report will be submitted to the Chinese government this month. China's investment in renewable energy last year (2012) was US$67.7 billion, an increase of 20% from 2011. In 2012, despite the overall decline in global clean energy investment, China's investment accounted for a quarter of the world. The report points out that in order to help achieve carbon intensity reduction and low-carbon energy goals, China will need to spend 3.5 times as much money by 2020 as last year. China plans to meet the domestic energy demand of 15% by low-carbon energy by 2020, reduce the carbon intensity by 17% from 2011 to 2015, and achieve the goal of reducing the carbon intensity to 40-45% of the 2005 carbon intensity by 2020. The report states that reaching these goals will require investments of up to US$333 billion in 2015 and US$413 billion by 2020. Current public and private funds are insufficient to complete investment. The financing gap is approximately 2% of the estimated GDP in 2015, or up to US$214 billion per year. By 2020, the funding gap will be as high as US$243 billion per year. The report also pointed out that "Although the funding gap is large, the 2% accounted for GDP is relatively small...Chinese leaders have ways to make up for the gap." Source: &nbs