Chinese Firms' Role in Climate Action
To achieve climate and decarbonization commitments, governments must be open to green technology and investment from world-leading Chinese firms.
An estimated $5 trillion of investment is needed annually to reach Paris Agreement climate goals.
Countries with current account deficits have two options: import savings from countries with surpluses, such as China, or face higher interest rates and less domestic consumption.
Blocking Chinese foreign investment on political grounds may lead to inferior technology and lower domestic consumption.
The world must increase the speed and ambition of its green transition.
The countries that do not have enough domestic savings to finance this investment have two choices.
Author's Summary
Chinese firms can help achieve climate goals with green technology and investment.