Thailand Business News – “Top 5 Challenges Facing China’s Green Economy by 2026”

China’s upcoming five-year plan for 2026-2030 aims to achieve carbon peaking by 2030 and carbon neutrality by 2060. Despite these ambitious targets, coal remains the dominant energy source, accounting for over 51% of the energy supply. This heavy reliance on coal presents significant challenges for the country’s climate goals.

One of the primary obstacles is the inefficient distribution of renewable energy. Current grid limitations often force the curtailment of excess energy production, preventing full utilization of renewable resources. Additionally, costly upgrades to the aging power grid are necessary to support the transition to cleaner energy.

To address these challenges, the State Grid Corporation plans to invest 650 billion yuan in modernizing the power network. This investment is crucial for enhancing energy transport and storage capabilities, ensuring that renewable energy can be effectively integrated into the overall energy system. As China navigates its economic difficulties, overcoming these barriers will be vital for meeting its carbon reduction objectives.