context: Resolving contradictions between economic growth, stability and carbon reduction is on the minds of China’s policymakers and experts. Liu Shijin is a top institutional economist who proposes ‘innovative carbon replacement and reduction’ as a model for sustainable development.
Contradictions between carbon reduction and growth are the biggest challenges for the green transition, according to Liu Shijin 刘世锦, CPPCC (Chinese People’s Political Consultative Conference) Economic Committee deputy director, in a speech made on 20 Dec 2022. China must follow an incremental, market-driven path of transformation, replacing old with new and stimulating innovation, says Liu. ‘Innovative carbon replacement and reduction’, relying on green technology to replace and reduce carbon emissions, is best and will both reduce emissions and increase economic growth, resolving the contradictory relationship between the two. According to Liu, innovative carbon replacement and reduction is a key starting point for achieving dual control of carbon emissions. Specifically, he suggests
- accelerating the formulation of 5-year and long-term plans with dual control and the ‘double win’ strategy of carbon reduction and growth as goals
- an aggressive carbon reduction strategy with three pillars:
- establishing an innovative carbon replacement and reduction market that supports all aspects of green technology
- formation of a regional autonomous emissions reduction responsibility system
- accelerating carbon accounting (mechanisms) and green micro-infrastructure construction with carbon accounts as a focus
We need ‘dual innovation’, one in technology, the other in conditions and policy, says Liu. From the perspective of green innovation, we should encourage grassroots economic layers, enterprises and individuals to show initiative and creativity. We must undergo a vigorous search for policies and methods that are innovative, actionable and effective, he adds.