Business / Industry Watch

China to pay 20% of global energy outlay

By DU JUAN ( Updated: 2014-06-19 20:16

China is expected to invest around $5.7 trillion in energy supply between this year and 2035, accounting for 15 percent of global investment in the sector, according to a report from the International Energy Agency (IEA) on Thursday.

Fatih Birol, chief economist of IEA, said China is making an outstanding effort to increase energy efficiency and reduce coal use in reaching global climate targets during a workshop on world energy investment outlook in Beijing.

According the report, China will invest $1.6 trillion in energy efficiency between now and 2035, accounting for about one-fifth of global investment in energy efficiency.

Birol said transport will be the largest sector of China's investment, accounting for about 71 percent, followed by industry and building sectors.

Capital costs to produce energy have doubled since 2000 and last year $1.6 trillion was invested to provide consumers with energy globally.

"Today's investments lock in patterns of consumption, fuel use and emissions for long into the future," said the report.

Global investment needs in energy supply are $40 trillion between now and 2035, two thirds of which will be in emerging economies, while the core investment area will shift from China to other countries in Asia, Africa and Latin America.

Up to $23 trillion among the $40 trillion in investment will go to fossil fuel exploration, transportation and refining while $10 trillion will go to power generation. The rest will be for power transmission and distribution.

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