China just stunned the world with its step-up on climate action – and the implications for Australia may be huge
China’s President Xi Jinping surprised the global community recently by committing his country to net-zero emissions by 2060. Prior to this announcement, the prospect of becoming “carbon neutral” barely rated a mention in China’s national policies.
China currently accounts for about 28% of global carbon emissions – double the US contribution and three times the European Union’s. Meeting the pledge will demand a deep transition of not just China’s energy system, but its entire economy.
Importantly, China’s use of coal, oil and gas must be slashed, and its industrial production stripped of emissions. This will affect demand for Australia’s exports in coming decades.
It is critically important for Australian industries and policymakers to assess the seriousness of China’s pledge and the likelihood it will be delivered. Investment plans for large mining projects should then be reconsidered accordingly.
Modelling in that report suggests China’s use of iron ore – and the coking coal required to process it into steel – will decrease by 75%. The implications for Australia’s mining industry would be huge; around 80% of our iron ore is exported to China.
It is critically important for Australian industries and policymakers to assess the seriousness of China’s pledge and the likelihood it will be delivered. Investment plans for large mining projects should then be reconsidered accordingly. [Read more]
What Does This Mean For Alberta
These Alberta mines expect to ship the majority of the metallurgical coal and thermal coal to Asian markets including China. Naturally if they are slashing their consumption, it could cause some concern for mining companies in Alberta, including Riversdale Resources. It will be interesting to see what happens.