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Time is running out to act on climate change. But rather than climate action being a drain on our economy, our China report shows it will significantly boost GDP and accelerate phenomenal growth.
With decarbonization acting as a new economic engine, China plays a key role in providing the skills, technology and innovation for this global transformation.
By moving now with bold action, we can not only avoid the worst impacts of climate change, but also create prosperous long-term economic growth for China and the world.
But we only do this if we do it together and we do it now – we are at a turning point.
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Report insight
APAC
Report highlights
Economic imperative—our turning point
The cost of action and inaction
The cost of doing nothing is economically devastating
RMB180 trillion lost from China’s economy by 2070.
The economic cost of unchecked climate change in China is equivalent to the economic damage from a significant earthquake occurring more than 150 times between now and 2070.
Source: Deloitte Economics Institute.
We have a narrow window of time to change the future. Decisions need to be made in the next decade to combat the worst impact and accelerate economic growth.
Acting on climate change is the new economic engine
RMB116 trillion added to China’s economy by 2070.
A gain of nearly RMB11 trillion experienced in 2070 alone — equivalent to adding three times the current economy of Shanghai to China.
The opportunity and impacts
China faces a critical and consequential choice
China has much to lose from inaction
Unchecked climate change will impact over 90% of China’s current economic output threatening decades of hard-won growth in China. The five most affected industries are services, manufacturing, retail and tourism, construction, and transport.
Source: Deloitte Economics Institute.
China has much to gain from action
Rapid decarbonization could enable China to change its fuel mix to 50% hydrogen by 2070. China can pioneer the critical technologies needed to reduce global emissions and could be exporting decarbonization by 2070.
Source: Deloitte Economics Institute.
Time to act—accelerating to zero
Four phases will shape our economic and climatic future
- From 2021 to 2025—Bold climate plays: Decisions begin to impact decarbonization with immediate gains in the new energy, construction and services sectors.
- From 2025 to 2040—Coordinated change: Essential technologies for decarbonizing the electricity and transportation sectors would be established and export of low-emission technologies and energy would become a new pillar of the Chinese economy.
- From 2040 to 2055—Turning point: China’s strong foundation and early mover advantage gives it an edge in clean energy export markets.
- 2055 onwards—A low-emission future: China’s economy is near net zero emissions and operates in a world that keeps global warming to around 1.5°C. China is now ‘exporting decarbonization,’ to the world.
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Dive into the data
Contact us
Climate & Sustainability Director
Risk Advisory Director
Deloitte China