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Investments in the power sector are estimated at USD 6.4 trillion 2.1
under the 2 degree scenario, of which China will account for nearly
30 per cent. China’s economic growth is expected to remain strong
over the next decade, resulting in increased investment needs across
all sectors, but particularly in the power and transport sectors to meet
growing demand for electricity and higher vehicle penetration rates.
Table 1.7 briefly summarizes the incremental investment needed to
achieve the 2 degree objective in accordance with the study undertaken
by several institutes and organizations.
Table 1.7 Additional Investment for Achieving the 2 Degree Objective
Institutes World China
IEA, World Energy In order to achieve the 450 ppm N/A
Outlook 2011 scenario on a global scale, the
cumulative incremental investment
shall be USD 15.2 trillion over
2011–35
IEA, Energy In order to achieve the 450 ppm In order to achieve the BLUE scenario
Technology scenario (BLUE scenario), the (30% emission reduction in 2050
Perspectives 2010 additional investment needs compared with the level of 2007), a
to reach USD 46 trillion over total of USD 10.2 trillion is required
2010–50, among which USD 13 over 2010–50 for China (USD 7.1
trillion has to be over 2010–30, trillion for OECD and USD 5.8 trillion
and USD 33 trillion over 2030–50. for USA over the same period).
McKinsey, 2009 N/A In order to achieve its mitigation target,
the annual incremental investment shall
be USD 200–260 billion over 2010–30
(USD 4–5.2 trillion in total).
PECE, China Human N/A In order to achieve its mitigation target,
Development Report a total of USD 9.5–14.2 trillion is
(2009–2010) needed over 2010–50 (USD 24–35.5
billion on an annual basis).
It is therefore recommended that China and India take the following
actions to promote the invention, demonstration, and diffusion of
low carbon energy technologies through scaling up RD&D and
fostering innovation:
• Develop a coherent energy strategy, with clear priorities and
objectives for the short-, medium-, and long-term. This should
consider the entire innovation chain, in close consultation with
major stakeholders in the public and private sectors, and be
consistent with other related policy areas, such as science and
technology, education, economic development, and industry.
Chapter 1 Low Carbon Technology and Innovation Policy 61
under the 2 degree scenario, of which China will account for nearly
30 per cent. China’s economic growth is expected to remain strong
over the next decade, resulting in increased investment needs across
all sectors, but particularly in the power and transport sectors to meet
growing demand for electricity and higher vehicle penetration rates.
Table 1.7 briefly summarizes the incremental investment needed to
achieve the 2 degree objective in accordance with the study undertaken
by several institutes and organizations.
Table 1.7 Additional Investment for Achieving the 2 Degree Objective
Institutes World China
IEA, World Energy In order to achieve the 450 ppm N/A
Outlook 2011 scenario on a global scale, the
cumulative incremental investment
shall be USD 15.2 trillion over
2011–35
IEA, Energy In order to achieve the 450 ppm In order to achieve the BLUE scenario
Technology scenario (BLUE scenario), the (30% emission reduction in 2050
Perspectives 2010 additional investment needs compared with the level of 2007), a
to reach USD 46 trillion over total of USD 10.2 trillion is required
2010–50, among which USD 13 over 2010–50 for China (USD 7.1
trillion has to be over 2010–30, trillion for OECD and USD 5.8 trillion
and USD 33 trillion over 2030–50. for USA over the same period).
McKinsey, 2009 N/A In order to achieve its mitigation target,
the annual incremental investment shall
be USD 200–260 billion over 2010–30
(USD 4–5.2 trillion in total).
PECE, China Human N/A In order to achieve its mitigation target,
Development Report a total of USD 9.5–14.2 trillion is
(2009–2010) needed over 2010–50 (USD 24–35.5
billion on an annual basis).
It is therefore recommended that China and India take the following
actions to promote the invention, demonstration, and diffusion of
low carbon energy technologies through scaling up RD&D and
fostering innovation:
• Develop a coherent energy strategy, with clear priorities and
objectives for the short-, medium-, and long-term. This should
consider the entire innovation chain, in close consultation with
major stakeholders in the public and private sectors, and be
consistent with other related policy areas, such as science and
technology, education, economic development, and industry.
Chapter 1 Low Carbon Technology and Innovation Policy 61
