China's low-carbon investment pathway under the 2 °C scenario

The generally adopted worldwide target is to keep the increase in the global mean temperature lower than 2 °C by 2100, which is comparable with that of the preindustrial era. It is feasible for China to realize an emission pathway that is consistent with this target; however, we need to understand the roadmap to do so. In this paper, the results of a modeling study by the Integrated Policy Assessment Model for China (IPAC) concerning the investment required to realize the 2 °C scenario by examining the penetration of low-carbon technologies including energy supply and energy efficiency improvement in end-use sectors is presented. It is found that the investment required in the energy supply sector to realize the 2 °C scenario could reach CN¥1.2 trillion by 2020, CN¥1.0 trillion by 2030, and CN¥1.4 trillion by 2050. The investment needed for energy saving could reach CN¥1.6 trillion by 2020, CN¥1.8 trillion by 2030, and CN¥1.5 trillion by 2050, which represents the additional investment as compared with the use of old technologies. If the investment required both in the energy supply sector and in energy saving in end-use sectors is considered, the total investment is estimated to be CN¥2.8 trillion by 2020, CN¥2.8 trillion by 2030, and CN¥2.9 trillion by 2050. These investments account for 2.5% of China's total GDP in 2020, 1.3% in 2030, and 0.6% by 2050, which represents quite a small investment percentage to realize the goal of low-carbon development.