China's National Energy Commission recently implemented a number of measures that are sure to send a rift through the global economy.
While the country has primarily relied on domestic organizations to support its power needs, the nation may weigh the pros and cons of outsourcing to enterprises developing solar, wind and other alternative resources. Pollution continues to plague China's skies and waters, causing numerous public health and climate concerns.
According to Bloomberg, China's central government is refocusing its procurement process to reduce emissions caused by transportation. The country recently passed a mandate that will require 30 percent of public sector automobiles to be fueled by alternative power. Plug-in hybrids, fuel-cell and electric cars all fall under the nation's definition of "new-energy vehicles."
The news source noted that the move was made in order to combat consumers' unenthusiastic adoption of the policy. Many people residing in China see new-energy vehicles as expensive and unreliable. On the other hand, those working at the nation's capital see investment in electric cars as a way for the country to become a global leader.
"This is a laudable aspiration," Barclays Plc's Hong Kong-based analyst Yang Song told Bloomberg. "Government purchases are not growing as fast as private consumption. So just to rely on the government purchase would be a challenge."
The thing is, even with the procurement of new-energy vehicles, the majority of those cars will be powered by electricity derived from coal or some other fossil fuel. Apparently, Beijing has responded to this conundrum with a positive step forward.
The Associated Press reported that Beijing's Municipal Environmental Protection Bureau recently announced that it intends to prohibit the use of coal in the Chinese capital by the end of 2020. The source cited Xinhua News Agency, which noted the resource accounted for 22 percent of the fine particles within the city's air.
Although the measure is conducive to combating climate change, coal-fired electricity is anticipated to skyrocket in China over the next several years. This realization has put an incredible amount of pressure on the Chinese government to install mandates that would drastically reverse this negative trend.
In September 2013, all coal-fired power plants located around the vicinities of Beijing, Shanghai and Guangzhou were ordered to shut down. However, this means China will need to prioritize its strategic sourcing to include the acquisition of wind turbines and solar panels capable of supplementing that lost power.