(3BL Media/Justmeans) - There are many forces at play on both sides of the challenge to rein in carbon emissions before it’s too late. Some of the most important, like the plummeting price of oil, or China’s need to protect citizens by reducing air pollution, are not even directed at the problem. Still, they both have enormous impact.
Another such trend is the recent decision by Chinese leaders to initiate a supply side reform in their economy. What this means is that at the beginning of the 13th Five Year Plan, the Chinese want to shift away from a production-based economy to one that is more consumer and service-based.
The primary reason for this is the economic slowdown that China is experiencing which has led to substantial overcapacity in their manufacturing sector. The Chinese economic growth rate dropped to 6.9% in 2015, the lowest since the downturn of 2008. But at the same time, in the post COP21 world, the desire to cut emissions plays a key role. A full 25% of China’s emissions comes from the production of goods for the export market. Furthermore, Premier Li Keqiang, is looking to heavy industries like steel and coal to take the lead. Specifically, he said, they should, cut “overcapacity, digest unreasonable inventories, reduce costs and improve efficiency.”