China faces a shortfall of RMB 44 trillion ($6.5 trillion) in green financing over the next four decades as it strives to hit its carbon neutrality goal, according to a new report, reports the South China Morning Post. The country will need to raise about RMB 140 trillion from green bonds and other environmentally friendly funding tools to become carbon neutral by 2060, but will fall short by RMB 44 trillion, said the report published by the World Economic Forum (WEF) and consulting company Oliver Wyman on Thursday.
This means it needs to fill a funding gap of RMB 1.1 trillion each year between 2020 and 2060 in the financing of green innovative technologies across all sectors including electricity, steel, mobility and construction, said the report.
“China’s net-zero commitment will require a revolutionary transformation of its economy driven by the widespread adoption of green technologies, all of which will require enormous investment,” said Qian Hang, a partner at Oliver Wyman in a statement on Thursday. “China’s unique economic model will shape this transition.”