China’s Carbon Emissions Are Set to Decline Years Earlier Than Expected
Kanebridge News
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China’s Carbon Emissions Are Set to Decline Years Earlier Than Expected

By SHA HUA
Mon, Feb 12, 2024 8:37amGrey Clock 4 min

China’s massive rollout of renewable energy is accelerating, its investments in the sector growing so large that international climate watchdogs now expect the country’s greenhouse-gas emissions to peak years earlier than anticipated—possibly as soon as this year.

China installed 217 gigawatts worth of solar power last year alone, a 55% increase, according to new government data. That is more than 500 million solar panels and well above the total installed solar capacity of the U.S. They appeared everywhere from the deserts of Inner Mongolia to the mountains of southwest China to rooftops across the country, including on the Great Hall of the People on the edge of Tiananmen Square.

Wind-energy installation additions were 76 gigawatts last year, more than the rest of the world combined. That amounted to more than 20,000 new turbines across the country, including the world’s largest, planted on towers in the sea off China’s east coast.

The low-carbon capacity additions, which also included hydropower and nuclear, were for the first time large enough that their power output could cover the entire annual increase in Chinese electricity demand, analysts say. The dynamic suggests that coal-fired generation—which accounts for 70% of overall emissions for the world’s biggest polluter—is set to decline in the years to come, according to the Paris-based International Energy Agency and Lauri Myllyvirta , the Helsinki-based lead analyst at the Centre for Research on Energy and Clean Air.

China’s expanding renewables footprint is shaping the global response to climate change. Its companies are the leading manufacturers of clean-energy technology, from solar panels and wind turbines to electric vehicles. That is stoking concerns in the rest of the industrialized world about depending on China for their energy supplies in the future.

At the same time, China’s deployment of renewables at home is breathing new life into international climate diplomacy . Its rapid emissions growth long provided fodder for critics who said Beijing wasn’t committed to fighting climate change or supporting the Paris accord , the landmark climate agreement that calls for governments to attempt to limit warming to 1.5 degrees Celsius over preindustrial temperatures. Now, analysts and officials say Beijing’s efforts are lending momentum to the Paris process, which requires governments to draft new emissions plans every five years.

“An early peak would have a lot of symbolic value and send a signal to the world that we’ve turned a corner,” said Jan Ivar Korsbakken, a senior researcher at the Oslo-based Center for International Climate and Environmental Research.

In 2020, Chinese leader Xi Jinping pledged that the country’s emissions would begin falling before 2030 and hit net zero before 2060, part of its plan prepared under the Paris accord. He also said China would have 1,200 gigawatts of total solar- and wind-power capacity by the end of this decade. The country is six years ahead of schedule: China reached 1,050 gigawatts of wind and solar capacity at the end of 2023, and the China Electricity Council forecast last month that capacity would top 1,300 gigawatts by the end of this year.

“China’s acceleration was extraordinary,” said Fatih Birol , the executive director of the Paris-based International Energy Agency.

Chinese authorities publish regular data on energy consumption and generation but not overall greenhouse-gas emissions. Transition Zero, a U.K.-based nonprofit that uses satellite images to monitor industrial activity and emissions in China, says the official data are “broadly aligned and consistent” with theirs.

Once the peak arrives, some analysts expect an emissions plateau to follow rather than a rapid fall in the following years. That is a problem, scientists say, because the world’s major emitters must sharply cut global emissions this decade—by 43% compared with 2019—to fulfill the Paris accord.

Climate Action Tracker, a scientific consortium that evaluates governments’ emissions plans, rates China’s current policies as “highly insufficient” to meet the 1.5 degrees Celsius goal . Its latest analysis, published in November, says China’s emissions should peak by 2025. If wind and solar installations can average 300 gigawatts a year—as they did last year—China’s emissions should fall significantly by the end of the decade, the consortium says. The actions and policies of the U.S., where emissions have been falling, were graded as “insufficient.”

Still, moving China’s timeline for an overall emissions peak forward could shave off around 0.3 to 0.4 degrees Celsius of projected global warming if emissions started to decline next decade, analysts say. Emissions plans submitted to date under the Paris accord would put the world on track to warm by 2.5 degrees Celsius this century, a United Nations Environment Program report said in November.

China is still building coal-fired power plants , fueling criticism from Western officials that it is locking in carbon-dioxide emissions years into the future. Beijing has been telling Western officials that the new plants won’t be as polluting as they fear. They are replacing older, higher-emitting plants, and will run far below full capacity, used largely to maintain electric-grid stability as China generates more of its power from intermittent wind and solar. In November, China unveiled a system of capacity payments for coal-fired plants that will allow them to earn money even when they are running as backup power sources. Xi said in 2021 that China would begin to phase down its coal consumption starting in 2026.

The exact timing of China’s peak depends on factors such as economic growth and weather in the next few years, analysts say. Growth is expected to slow following China’s real-estate sector slump —unless Beijing undertakes a major new program of economic stimulus that would boost industrial emissions. Another spell of drought this summer would push the country’s coal plants to run harder to replace lost hydropower generation.

The most certain variable in the equation is the breakneck pace of China’s renewable-energy rollout, which analysts expect will continue to add 200 to 300 gigawatts of new wind and solar capacity a year. The investments in renewable energy have become a major driver of the Chinese economy. The country’s clean-energy spending totaled $890 billion last year, up 40%. Without that growth, investment in China would have been flat as the country reels from the slump in its real-estate sector, according to the Centre for Research on Energy and Clean Air.

The investments include clean-energy installations and the construction of enormous factories to produce solar panels, wind turbines, batteries and electric vehicles—turning the country into the leading manufacturer of clean tech. Its factories in those sectors now have plenty of unused capacity . The adoption of electric vehicles is happening so rapidly that analysts say peak gasoline demand in China was already reached last year.

At the United Nations COP28 climate conference in Dubai in November, Xie Zhenhua , then China’s climate envoy , said the government would calculate the year and absolute volume of the country’s emissions peak. He also said Beijing is drawing up its next emissions plan under the Paris accord.

“Our country will do as it’s said and strive to do even better,” he said. “I have faith.”



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Revealed: The Smart Way Into Commercial Real Estate

Industrial assets offer a simple, low-risk entry into commercial real estate.

By Abdullah Nouh
Mon, Jun 30, 2025 3 min

Falling interest rates are sparking a rebound in interest in commercial property. However, for many first-time investors, commercial property can feel very intimidating. With commercial property, there are typically numerous different numbers, complex leases, and unfamiliar terminology.

But once you understand what to look for, the pathway into commercial becomes much clearer and far more achievable than most people realise. So, what does a smart entry point into commercial property actually look like?

If there’s one standout option, it’s typically an industrial property with value-add potential.

Why industrial is the right place to start

Among all the commercial sectors, industrial is currently the most stable and accessible. Demand is being driven by the trades, small manufacturers, logistics operators and e-commerce businesses, many of which are growing rapidly and need practical space to operate from.

Unlike retail and office properties, industrial assets are typically simpler to understand. They’re often lower maintenance, easier to lease and more resilient to changes in the economy. This makes them well-suited to first-time investors who want to enter the market with confidence.

The importance of value-add potential

When looking at entry-level opportunities, many investors make the mistake of prioritising presentation. But it’s generally not the flashiest property that delivers the best returns. It’s the one where you can create the most upside.

That might mean buying a property where the current rent is well below market value. When the lease ends, you have the opportunity to negotiate a new lease at a higher rate, instantly increasing the property’s value.

In other cases, it may be a warehouse with a short-term lease in a high-demand area, providing you the opportunity to renegotiate the terms and secure a better return. Even basic improvements like repainting, improving access, or updating signage can make a big difference to tenant demand.

Don’t chase yield for the sake of it

A common trap for first-time commercial buyers is chasing the highest yield on offer. While yield is an important consideration, it shouldn’t be the only one. A high yield can sometimes signal a risky investment, one with a poor location, limited tenant demand, or low capital growth prospects.

Instead, smart investors focus on balance. A net yield of six to seven per cent in a strong, established area with reliable tenants and good fundamentals is often a far better outcome than a nine per cent yield in a declining market.

Yield is only part of the story. A good commercial investment is one where the income is sustainable, the asset has growth potential, and the risk is well-managed.

The risks of starting with retail or office

Retail and office properties can be suitable for experienced investors, but they’re often more complex and carry higher risk, especially for those just starting out. Retail in particular has faced significant changes in recent years, with e-commerce altering the way consumers shop.

Unless the property is in a high-traffic, local strip with essential services like medical, food or personal care, vacancy risk can be high. Office space is still adapting to the post-COVID shift towards remote work, and in many cases, demand has softened. If you’re entering the commercial market for the first time, it’s better to stick to simple, functional industrial assets in proven locations.

Where to look, and why

For first-time investors, some of the best opportunities can be found in outer-metro industrial precincts or larger regional centres.

Suburbs in places like Geelong, Logan, Toowoomba or Altona North offer a compelling combination of affordability, strong tenant demand and relatively low vacancy risk.

These areas often have diverse local economies that don’t rely on a single industry and offer entry points between $600,000 and $1 million, a sweet spot where competition from institutional investors is limited and owner-occupiers are still active.

What a good entry deal looks like

Imagine purchasing an industrial shed for $750,000 with a tenant in place and a current net yield of 6.5 per cent. The lease has about 18 months left, and you know the current rent is around $10,000 below market.

Once the lease expires, you can renegotiate or re-lease at the correct rate, increasing the income and, by extension, the value of the asset.

That’s a textbook example of a good commercial entry point. The property is tenanted, it generates income from day one, and it has a clear path to growing your equity within 12 to 24 months.

Abdullah Nouh is the founder of Mecca Property Group, a boutique buyer’s agency in Melbourne helping Australians build wealth through strategic property investment.

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