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China’s emissions fall as economy hit by asset downturn

China’s carbon dioxide emissions fell for the first time since last year’s shutdown, the latest signal that a downturn in the property sector and energy shortages have hit public demand. industry in the world’s second largest economy.

According to data published by Carbon Brief, a climate research and news service fell about 0.5% in the three months to the end of September.

“The reasons [for the decline] Lauri Myllyvirta, an analyst at the Center for Clean Air and Energy Research, an independent research group, said: based in Helsinki.

However, Myllyvirta also believes that the latest drop in emissions in the world’s biggest polluter “could mark an early turning point and peak in China’s emissions” – years ago Beijing’s goals by 2030.

Third-quarter emissions fall this year on the heels of their biggest gain in a decade as China’s factories, construction and heavy industry revive last year, spurring a wave of pandemic stimulus spending.

In early 2020, China’s industrial activity halted in response to the coronavirus crisis that first emerged in Wuhan, causing emissions to drop.

China’s property sector, which accounts for an estimated one-third of total economic activity, has been hit by a liquidity crunch. A bunch of indebted developers – including Evergrande with $300 billion in liabilities – leaning towards on the verge of bankruptcy, raising concerns about systemic risks and economic contagion.

Beijing is loosening credit controls to prevent a collapse of the sector. However, there is little sign that such moves are fueling a sustained recovery in sectors such as steel and cement. And the Carbon Summary data also suggests that the downward trend will only gradually increase in the final quarter.

Emission trends also reflect that in China’s recent months coal consumption decreased amid record high commodity prices and supply shortages.

Serious energy shortage resulting in power distribution across parts of the country, including industrial zones in the northeast and high-tech manufacturing zones in the south.

“One thing to watch out for is whether these industries that are still in strong demand will increase production to make up for lost time,” says Myllyvirta.

Its emissions per capita are about half that of the United States. But as the world’s factory responsible for about 30% of global greenhouse gas emissions, Beijing’s emissions reduction plan is seen as crucial in winning the fight against climate change. Queen.

Data is released as lively international debate on China’s role in responding to climate change. President Xi Jinping has set a goal of being carbon neutral by 2060. The task is huge for fossil fuels that account for 85% of the country’s total energy.

At the UN COP26 summit in Glasgow this month, China, along with India, was criticized for undermining efforts to end fossil fuel and coal power subsidies. Critics, including the US government, are pushing Beijing to act faster.

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