Energy Transformation in China: Perspectives and Obstacles

Sustainable development is the core of China’s ecological strategy which includes climate problems as its part. It means that industrial development remains an important component of ecological policy, besides, the government undertakes gigantic projects which change the nature, for example a massive transfer of water from the southern rivers to the northern regions. Also, sustainable development is understood in China as one of the means to reduce poverty and has a complex social content. Energy transformation in China has accelerated during the 12th-13th five year plans (2011-2020), however coal remains the main source of energy for the world largest manufacturing power taking more than 56 percent of total consumption. Major national goals include now “creating of beautiful China” and some current plans to accelerate energy transformation are viewed in the article as well as a short history of the power sector of China’s economy in this century. Important part of the study is devoted to the analysis of “green” financial services, which are developing in modern China with growing speed. Despite tempting, the plans for speedy reforms and structural changes in energy sector run across major obstacles. They include efficiency and cost problems, the giant scope of the energy sector. Another set of obstacles comes from deep divide on climate problems and sustainable development in general between the developed and developing countries.