{"id":10402,"date":"2022-06-12T11:30:04","date_gmt":"2022-06-12T11:30:04","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=10402"},"modified":"2025-04-23T09:39:47","modified_gmt":"2025-04-23T09:39:47","slug":"how-chinas-economic-development-zones-are-turning-green","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/how-chinas-economic-development-zones-are-turning-green\/","title":{"rendered":"How China\u2019s economic development zones are turning green"},"content":{"rendered":"

Reaching peak carbon emissions and achieving carbon neutrality has not only become a common goal in the international community, but it has also become a part of China\u2019s national strategy. As pioneers of China\u2019s economic development, national economic and technological development zones (NETDZs) have launched a series of measures to contribute to green development \u2013 so what should you look out for when investing in them?<\/h2>\n

Reining in industry\u2019s contribution to carbon emissions will be key to fulfilling China\u2019s carbon neutrality<\/a> policy. The 230 national economic and technological development zones (NETDZs) that the Ministry of Commerce (MofCom) has approved to date are responsible for 11% of China\u2019s GDP despite only occupying 0.32% of its geography. Targeted and localised action aimed at making the country’s economic zones more environmentally friendly, therefore, holds enormous potential in terms of making Chinese industry greener more broadly.<\/p>\n

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While numerous economic zones have been quick to adopt green principles when considering their development, further funding is required to realise a green transition of such magnitude. Analysts estimate that China will need to invest over RMB 100 trillion over the next 30 years to reach its goal of carbon neutrality. While extraordinarily high, that number is not an impossible target given that China manufactures much of the technology and equipment necessary for decarbonisation. And the country should expect to continue to receive significant investment \u2013 both foreign and domestic \u2013 in its green industries as a result.<\/p>\n

But a sophisticated policy framework will be required, too. Unfortunately, that is something that is lacking at present. China\u2019s 14th Five-Year Plan simply commits to reducing the carbon and energy intensity of China\u2019s GDP growth. It lacks specific targets. Thankfully, local governments are taking the initiative to formalise their province\u2019s contributions to achieving carbon neutrality. The Hainan Free Trade Port initiative, for example, has put green finance, ecologically-friendly tourism and research and development into green technologies at the centre of its development agenda. Beijing has followed suit in the pursuit of its new professional services pilot free trade zone, and the same negative list for trade and services in Hainan will also be applied in the nation\u2019s capital.<\/p>\n