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CPEC and 3rd Plenum Green Transformation

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GREEN is the colour of survival, productivity and prosperity creating numerous matching boxes for humanity, ecology and geography in the world. The green CPEC Phase-II would be a value addition towards Pakistan’s energy diversity, sustainability and stability.  China in its 3rd Plenum chalked out comprehensive programs to gear-up green transformation in the country. In continuation to this, most recently the Communist Party of China (CPC) Central Committee and the State Council announced a set of groundbreaking guidelines consisting of 33 points to accelerate green transition in all areas of economic and social development which would be its first systematic deployment of its green and low-carbon goals in China.

Its well-timed guidelines establish goals for key industries mainly green energy, recycling, green transportation, services, environmental protection, industrial parks and green remanufacturing transforming the country towards green transition and transformation. Interestingly, for the first time it proposed to build “world-class green and low-carbon industrial clusters” in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) and the Yangtze River Delta region which is indeed a paradigm shift. It seems that China is attempting to enhance the use of renewable energy through investment, financing, taxation and pricing policies in line with the global shift making it more reliable, relevant and functional.

Additionally, since the 18th CPC National Congress, China has made significant strides in eco-environmental protection and green growth. The country has reduced carbon dioxide emissions per unit of GDP by over 35% since 2012, and renewable energy capacity now exceeds thermal generation, accounting for over half of installed power capacity. The new guidelines are set to further advance China’s commitment to eco-civilizational and high-quality development, aiming to balance growth with sustainability and enhance global climate governance. Despite these achievements, China’s energy structure remains heavily reliant on coal and traditional industries. To meet carbon targets and achieve sustainable growth, a shift towards green technologies is essential.

It covers comprehensiveness and systematic approaches, covering territorial space, industrial structure, the energy sector, transportation and urban-rural development. Moreover, the key parts of macroeconomics, production, consumption, investment, and trade have all been highlighted in the recently announced guidelines. The development of different regions and different industries has been taken into account in the guidelines. Specific measures including establishing the collection, utilization and treatment system of agricultural wastes have been written into the documents to promote green growth in rural regions. Collaboration between traditional and emerging industries is another highlight of the guidelines. The scale of the energy-saving and environmental protection industry will reach about 15 trillion Yuan (US$2 trillion).

The guidelines pledge to achieve remarkable results in green transition in all areas of economic and social development by 2030 and basically establish a green, low-carbon and circular development economic system and basically achieve the goal of Beautiful China by 2035 will further cement China’s leading role in global green growth. China’s environmental protection over the past decades is playing a leading role in the global green governance system. Recent guidelines will boost China’s dedication to accelerate eco-civilizational and high-quality development. Through balancing growth and sustainability, China’s leadership in green transition will transform global climate governance and create a global community with a shared future.

The guidelines provide a clear roadmap for how important economic and social sectors will advance significantly in green transition by 2030. By 2035, the economy will be mostly green, low-carbon, and circular, with carbon emissions reaching a peak and then progressively falling, and social and economic growth completely embracing a green trajectory. By 2030, the nation’s non-fossil energy share will rise to roughly 25 percent of total energy consumption, the installed capacity of pumped storage hydropower will surpass 120 million kilowatts, and the energy conservation and environmental protection sector will be valued at approximately US$2.1 trillion.

According to the guidelines, by 2030, the annual utilization of bulk solid waste will reach approximately 4.5 billion tons, and the output rate of main resources will increase by approximately 45 percent compared with 2020. The carbon emission intensity of commercial transport per unit of turnover will decrease by approximately 9.5 percent from 2020. In 2023, China produced and sold approximately 4.5 million electric vehicles, capturing about 55 percent of the global market share. This achievement underscores China’s dominant position in the EV market, with over 2.1 million public charging stations, accounting for 65 percent of the global market.

The Three-North Shelter Forest Program, launched in 1978, has significantly boosted China’s forest cover from 12% to 23%, adding over 76 million hectares of new forest—equivalent to Germany’s size. Building on this success, CPEC should evolve into a model green Belt and Road Initiative (BRI), focusing on environmental preservation and green technology. Incorporating intensified plantation, supporting natural forestation, developing honey production, and promoting green tourism in CPEC Phase-II can further protect and enhance the region’s environment. This approach will not only advance sustainable energy production but also set a global standard for eco-friendly development within the CPEC framework.

It is crystal clear that China is one of the main drivers of green technologies, hub of alternative energies and biggest investor of renewables in the world having resources and appropriate expertise to assist Pakistan to maintain an ideal equilibrium between industrialization and green environment in the future. It is good omen that Pakistan and China are deepening cooperation in emerging green sectors through the CPEC. The green CPEC project should be a global model of people-centred, promote win-win cooperation that significantly advances new energy transition and sustainable economic development.

Acceleration of the Chinese industry relocation and technology transfer to Pakistan will further enhance bilateral cooperation across green sectors that will definitely fuel local economic development and energy transition allowing Chinese firms to benefit from Pakistan’s lower production costs, facilitating China’s green engagements with Central Asia and the Middle East. Interestingly, seeking investments from the Chinese Panda Bonds and green bonds issued by foreign entities in China and Chinese banks, will contribute to funding green projects and fostering sustainable development in Pakistan. Critical analysis reveals that China has been prioritizing ecological and environmental protection as integral to human development, focusing more on improving people’s living standards, which Pakistan views as a model for its modernization.

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