China's Air Pollution: Government's Failure To Act

China's government has implemented various measures to tackle air pollution, a significant issue that has caused a public health crisis and an annual economic loss due to pollution-induced crop failure. However, despite their efforts, the country still faces challenges in reducing air pollution to acceptable levels. The Chinese government's struggle to effectively address this complex problem can be attributed to various factors, including the scale of the country's economic growth, the reliance on fossil fuels, and the need for substantial green financing to implement solutions. The government's actions, including the introduction of the Air Pollution Action Plan, investments in cleaner technologies, and collaboration with global organizations, demonstrate their commitment to improving air quality. Nevertheless, the distance to achieving their goals remains vast, indicating a failure to fully succeed in combating air pollution thus far.

Lack of regulation of coal-fired power stations

China's rapid economic growth has been fuelled by coal, which has historically been poorly regulated. In 2023, China was responsible for 95% of new coal power construction globally, with 70.2GW of new projects started that year. This is nearly quadruple the number of new coal power stations started in 2019.

In 2024, China began building 94.5GW of new coal-fired capacity, the highest level of construction in the past 10 years. This is in addition to 3.3GW of suspended projects that were resumed. This surge in new coal-fired power plants is driven by investment from the coal-mining sector.

While the Chinese government has a target of bringing 80GW of new coal-fired generation capacity online in 2024, there has been a slowdown in the permitting of future plants. Only 9GW worth of power plants received permits in the first half of 2024, an 83% reduction compared to the first half of 2023.

Despite government pledges to "strictly" control the use of coal, the rapid construction of new coal-fired power plants undermines China's clean energy progress and ability to transition away from fossil fuels. This is particularly concerning given that China is the world's biggest emitter of carbon dioxide, responsible for more than a quarter of global emissions.

To address air pollution, the Chinese government has introduced various measures and regulations. For example, the Air Pollution Action Plan released in 2013 helped China make significant improvements in its air quality between 2013 and 2017, reducing PM2.5 levels by 33% in Beijing. More recently, in 2020, Beijing outlined another ambitious plan to reduce the number of heavy pollution days by 25% from 2015 levels.

While China has made progress in reducing air pollution, there is still a long way to go. The government's commitment to bringing more coal-fired power plants online in the coming years solidifies coal's place as a major source of electricity and hinders efforts to improve air quality.

Poor air quality monitoring and data availability

China's air pollution data has historically been hard to come by and incomplete, with reliable data only becoming available in 2009 when the US started measuring certain pollutants at their embassy in Beijing. Since then, China has become more open about its air quality data, with Beijing even publishing weekly air quality reports.

Beijing's air quality issues are well-documented, with the city's PM2.5 concentration failing to meet national ambient air quality standards and far exceeding the levels recommended by the World Health Organization. The city has launched several urgent measures to tackle air pollution, including laws, enforcement mechanisms, systematic planning, strict local standards, and high levels of public engagement. These measures have targeted all sources of pollution, from coal combustion to construction to household fuel burning, with a particular focus on the transport sector.

While China has made significant progress in reducing air pollution, it still has a long way to go. The country has invested heavily in cleaner power, transport, and urban living, and has become a leader in electric mobility, with 99% of the world's electric buses. China has also made efforts to reduce its coal consumption and increase the use of clean and renewable energy, with the government putting in place a comprehensive program to tackle air pollution.

However, achieving the government's goals requires substantial green financing, which has been supported by the World Bank and other financial institutions. China's past economic growth has been heavily reliant on fossil fuels, and decoupling economic growth from pollution has become a key focus in developing ecological civilization in the country.

Insufficient green financing for clean energy

China's green finance market is already among the largest in the world, but it needs to expand further for the country's carbon peak and neutrality goals to be met on time. The People's Bank of China estimates that achieving these goals requires an average annual investment of 3.75–7.5 trillion RMB between 2020 and 2060. As government lending alone is insufficient to meet these targets, the green financial system must be further developed to direct the flow of funds towards eco-friendly technological innovation initiatives.

Green financing plays a crucial role in supporting environmentally sustainable projects aimed at reducing China's reliance on fossil fuels. It has helped accelerate the transformation of China's energy industry by promoting an increase in the share of renewable energy sources such as wind power, solar energy, hydropower, and nuclear power. China has become a leader in electric mobility, with 99% of the world's 385,000 electric buses, and this number is expected to increase to 600,000 by 2025.

To facilitate the flow of resources into clean and low-carbon energy innovation, policymakers can employ strategies such as green bonds and sustainable infrastructure financing to attract investors, policymakers, and scholars. China has successfully created a range of green financing instruments, including green loans, bonds, and equity funds, to channel capital market funds into green projects. Each project has distinct funding needs, risks, and conditions.

Despite China's progress in developing its green finance framework, there is still a significant gap in investment required to achieve its carbon peak and neutrality goals. This gap presents an opportunity for international institutions and other developed countries to crowd in and support China's transition to clean energy. China's Belt and Road Initiative, which includes significant investment in green energy, has been criticised by the US as advancing its political agenda abroad. However, with the US pulling back from climate financing, China has a clear path to dominate the region in green technology and clean energy infrastructure.

High demand for transport and private car ownership

China's rapid economic growth has been accompanied by a surge in demand for transportation and an increase in private car ownership, contributing to the country's air pollution challenges. As the country's economy expanded, particularly in the 1990s, the number of vehicles on the roads skyrocketed, with Beijing alone reaching the one million mark. This trend was driven by the increasing affordability of private vehicles and the growing population, resulting in a significant rise in pollution gases such as carbon monoxide, sulphur dioxide, and particulate matter.

The transport sector has been identified as a significant contributor to air pollution in China, with vehicles releasing harmful pollutants such as nitrogen oxides, which react with volatile organic compounds to form ground-level ozone, a highly irritating and toxic gas. To address this issue, cities like Shanghai, Shenzhen, and Guangzhou have taken initiatives to restrict the number of cars on the road and introduce all-electric bus fleets. Additionally, Beijing implemented temporary measures during the 2008 Olympic Games, including a city-wide lottery system for license plates for new fossil fuel-burning car purchases and alternating days for private cars to enter the city based on their registration plate numbers.

However, these measures alone may not be sufficient to address the high demand for transportation and private car ownership. As China continues to develop and urbanize, the need for efficient and accessible transportation will only increase. This presents a challenge for the government in balancing economic growth and environmental protection. Encouraging the use of public transportation, investing in infrastructure for electric vehicles, and promoting sustainable urban planning can be potential strategies to tackle this issue.

Moreover, the cultural and social aspects of private car ownership cannot be overlooked. For many Chinese citizens, owning a car is a symbol of status and personal freedom. This shift in societal values has influenced the demand for private vehicles, and addressing these underlying factors will be crucial in reducing the reliance on private cars. Additionally, the convenience and comfort associated with private transportation, especially in regions with limited public transportation options, contribute to the high demand for private car ownership.

To effectively tackle the challenges posed by high demand for transportation and private car ownership, a multifaceted approach is necessary. This includes continued investment in cleaner technologies and renewable energy sources, as China has already demonstrated with its leadership in electric transit. Additionally, policies that incentivize the use of public transportation, such as affordable and reliable mass transit systems, can help reduce the reliance on private vehicles. Educating the public about the environmental and health impacts of air pollution, as well as promoting sustainable alternatives, can foster a cultural shift towards more environmentally conscious transportation choices.

Political and economic barriers to change

China's economic growth has historically relied on fossil fuels, particularly coal, which has caused serious air pollution issues. While the country has made significant strides in reducing air pollution in recent years, it has faced political and economic barriers to change.

One political barrier is the need for coordination between various levels of government and industries. China's central and local governments, as well as different industries, have had to work together to address air pollution effectively. This coordination is challenging due to the country's size and the varied sources of pollution, which include coal-fired power plants, construction, household fuel burning, and transportation.

Another political barrier is public acceptance of mitigation measures. Some of the measures implemented by the government, such as banning barbecues and restricting car usage, have been unpopular among the public. While there is a general recognition of the severity of the air pollution problem, balancing the need for pollution reduction with the public's lifestyle choices has been challenging.

The high economic cost of transitioning to cleaner technologies and energy sources is an important economic barrier. Investing in cleaner power, transportation, and urban living requires significant financial resources, and China has had to secure funding through green financing initiatives and international loans. While these investments are crucial for improving air quality, they also carry a financial burden that affects both the government and citizens.

Additionally, the time required for effective change is an economic barrier. As seen in the historical experiences of other countries, such as the UK during its industrial revolution, transitioning to cleaner practices can take a considerable amount of time. Balancing the urgency of addressing air pollution with the time needed for implementing sustainable solutions involves economic trade-offs and opportunities.

Overall, China's efforts to tackle air pollution have been influenced by political and economic factors that impact the pace and effectiveness of change. While the country has demonstrated a strong commitment to improving air quality, overcoming these barriers requires continued dedication, innovation, and collaboration across various sectors and levels of society.

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