Investment Institute
Macroeconomic Research

China: Decarbonizing the economy

  • 08 April 2021 (5 min read)

Key points

  • A successful transition to carbon neutrality will require China to undertake transformational changes in its economic and energy systems over the coming decades
  • Slower economic growth won’t be enough to curb carbon additions. Instead, China needs to rebalance its economy towards the energy-lite services sector and shift its energy use away from fossil fuels
  • Overhauling the world’s largest energy system will require trillions in investment. While China has led the world in building renewable power capacity, significantly more investments are needed to meet the net-zero goal
  • The green transformation will create winners and losers. The renewable energy and electric vehicle industries will benefit from a strong influx of capital and favourable regulatory changes. However, traditional industries that rely on fossil fuels will face a grim future, suffering concentrated, as opposed to systematic damages
  • The net effect of China’s decarbonisation drive is hard to quantify, although both positive and negative impacts will discernibly be large and long lasting. Beyond the domestic implications, the changing needs of the world’s largest energy user will have far-reaching ramifications for the rest of the world
Download the full insight
Download insight (548.86 KB)

Have our latest insights delivered straight to your inbox

Subscribe to updates.

Related Articles

Macroeconomic Research

Framing the ECB’s rate cutting cycle

Macroeconomic Research

2024’s elections around the world: The who’s who and the so what…

  • by AXA IM Investment Institute
  • 23 January 2024 (7 min read)
Macroeconomic Research

The key drivers of 10-year US Treasury yields


    This document is for informational purposes only and does not constitute investment research or financial analysis relating to transactions in financial instruments as per MIF Directive (2014/65/EU), nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services, and should not be considered as solicitation or investment, legal or tax advice, a recommendation for an investment strategy or a personalized recommendation to buy or sell securities. 

    It has been established on the basis of data, projections, forecasts, anticipations and hypothesis which are subjective. Its analysis and conclusions are the expression of an opinion, based on available data at a specific date. 
    All information in this document is established on data made public by official providers of economic and market statistics. AXA Investment Managers disclaims any and all liability relating to a decision based on or for reliance on this document. All exhibits included in this document, unless stated otherwise, are as of the publication date of this document. 
    Furthermore, due to the subjective nature of these opinions and analysis, these data, projections, forecasts, anticipations, hypothesis, etc. are not necessary used or followed by AXA IM’s portfolio management teams or its affiliates, who may act based on their own opinions. Any reproduction of this information, in whole or in part is, unless otherwise authorised by AXA IM, prohibited. 

    Back to top