A passing hour in the northern province of Kingdao, Shandong Province, China.
Chungio | Moment | Getty Images
The three major Asian economies will spend an estimated $ 12 trillion to achieve zero zero carbon emissions in the transport industry, according to the Bank of England.
About two-thirds of the Asia-Pacific emissions are from China and Japan and South Korea, and approximately one-third of the world’s emissions, the bank said.
Both Japan and South Korea have pledged to achieve zero carbon emissions by 2050, and China by 2060. Net zero emissions indicate more greenhouse gas emissions than are produced.
The estimated $ 12.4 trillion is “more than 90% of China’s gross domestic product by 2020,” said Robert Carnell, head of ING Asia-Pacific Research and author of the report.
It will cover the capacity of countries to supply new batteries, electric railways, hydrogen-powered trucks, sustainable aviation fuels and ammonia-burning ships, he said.
He said the $ 12.4 trillion price tag does not include infrastructure costs to replace existing vehicles, install charging points or store new fuels in the industry.
He said up to 30% of the total energy consumption comes from the transport systems of the three countries, adding that they should take immediate action to ensure that their goals are not achieved.
If China, Japan and South Korea start their energy transition process today and expand their efforts over the next 30-40 years, the cost of achieving net zero carbon emissions in transport will be met, the bank said.
China competition to zero-zero
China is the world’s largest producer of carbon dioxide and achieving net zero carbon emissions will cost the transport sector $ 11 trillion – or “1.8% of GDP by 2060,” the report said.
A.D. Citing China’s renewable energy forecast for 2020, ING estimates that passenger transport in China will more than double to 450 million by 2050 – by 220 million in 2018.
China has seen rapid growth in the electric vehicle space, and the ING predicts that if the country fully accepts battery-powered electric vehicles by 2060, the overall demand for passenger vehicles will be significantly reduced by 2050.
China’s marine industry needs more investment to get net zero carbon, according to Engi.
However, carbon neutrality cannot be achieved without the replacement of diesel and natural gas with green ammonia. It has the potential to generate an additional $ 3.7 billion and an additional 433 megawatts of electricity.
Carbon neutral goals of Japan and South Korea
Both Japan and South Korea have set their sights on 2050, and by that time they are aiming to achieve their carbon neutral goals.
According to ING forecast, it will cost Japan $ 1 trillion to switch to a net-zero plan for the transport system. This is “about 20% of Japan’s current GDP” – but when that figure spreads between now and 2050, it could fall to “0.6% of GDP” each year.
According to the report, Japan still has not made much progress in depleting its economy, as fossil fuels still account for more than two-thirds of the country’s primary energy supply. Positively, this means that “Japan has a lot of low yields to exploit in the transition process, providing the promise of rapid growth.”
ING estimates that South Korea’s gross domestic product (GDP) will be around 0.6% of the country’s gross domestic product (GDP) per year over the next 30 years.
It is important to remember that while all countries spend money on their transportation systems, it can be “very frustrating”, but “all of these costs are seen as GDP.”