Ch7: How China Defeated Pollution!
An illustration of Shanghai, as a green city free of pollution woes of any kind.

Ch7: How China Defeated Pollution!

Imagine choking on air so thick it feels like swallowing cotton.

For decades, this was the unfortunate reality for millions in China, where dense smog became a symbol of the country's breakneck industrial growth.

  • It was so bad, that 62 of the world’s 100 most polluted cities in 2017 were Chinese, with India accounting for about 22. But guess what?
  • The winds of change are blowing, and China's ambitious fight for clean air is rewriting the narrative, line by line, number by number.
  • Such that, as of date, just 17 of the world’s 100 most polluted cities are Chinese, while there are 67 Indian cities on the list.

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Today we're delving into China's battle against pollution and its pioneering strides towards environmental sustainability.

Let's journey through China's green transformation!

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The Wake-Up Call: Late 1990s - 2010s

An illustration of Beijing, deeply gripped by pollution amidst the 2008 Olympics.

Starting in the 1990s, China's rapid industrialization, infrastructure-building binge and massive urbanisation led to severe environmental consequences, making it one of the most polluted countries.

  • The situation had gotten so bad that as of the 2008 Beijing Olympics, China had to take on some drastic steps to save its face.
  • It temporarily curbed industrial activities and imposed mobility restrictions on the residents to improve air quality.

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Strategic Shifts: 2010-2020

An illustration of a Chinese city stuck deep in the grip of a tight smog.

And as the situation kept worsening, Chinese authorities finally took some decision calls.

  • That is what led to the Air Pollution Action Plan of 2013, which marked a serious commitment to combating smog, which has gone on to deliver great dividends since.
  • Such was the impact, that by 2017, China had already become the world’s largest investor in renewable energy, surpassing the US and Europe.
  • But, as we know, at that time 62 of the world’s 100 most polluted cities were still Chinese. Thus, the impact was yet to be seen.

And thus China doubled down on its efforts. And then tripled down.

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What did this mean?

An illustration of Chinese Communist Party (CCP) leaders coming together and planning a strategy to solve the menace of pollution.

Big investments into four major areas as a holistic end-to-end solution to air pollution woes.

  1. Building up the electric vehicles (buses, cars, scooters & bikes) supply and demand in the country
  2. Solar and wind energy capacity build-up, as well as the scaling of the whole supply chains which power them
  3. To support the electric vehicles push, and deal with the reliability and predictability issues, China also invested massively into different kinds of battery technologies and again went on to cover the whole supply chain by acquiring lithium, nickel and cobalt mines world over
  4. Initiating an unprecedented revamp of the state-owned power grid to support the transportation and distribution of the renewable energy generated in solar and wind farms far away from the cities and industries which use them. This is being led by the State Grid Corporation of China, the world's largest electricity utility. Imagine,?a company with nearly $300 billion in annual revenue (Forbes,?2023) and over 2 million employees,?all focused on cleaning up the grid!

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Result?

  • Compared to just 4% in 2013, over 35% of China's energy comes from renewables, with significant growth in solar and wind energy.
  • Plus, China today is home to the world’s biggest manufacturers of wind turbines, solar panels, cells, batteries, electric buses, and electric cars.

(In the remaining days of the week, we shall dive deeper into each of them one by one, in-depth, every morning at 7.30am)

Outcome?

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From Grime to Green.

An illustration of a greenified Chinese city with clean air.

  • As per China’s Ministry of Ecology and Environment, PM2.5, the fine particulate matter that once blanketed Chinese cities, has plummeted in major urban centres like Beijing and Shanghai by over 50% since 2013.
  • That's equivalent to clearing the air pollution of New York City six times over! China has truly shown, that it’s possible.

And nations like India need to look up to China here and say that we are going to do this too.

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Challenges and Opportunities

  • Air pollution remains a concern in smaller cities and rural areas of China, with uneven progress across the country.
  • The fight for clean air is a marathon,?not a sprint,?and requires sustained effort in every corner.
  • And when doing this, balancing economic growth with environmental protection is a delicate dance that is going to be key.
  • China needs to ensure its industries remain competitive while transitioning to greener solutions.?It's like riding a bicycle made of wind turbines – finding the perfect balance to keep moving forward

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Conclusion

From a choked cough to a deep breath of fresh air, China's fight for clean air is a story of grit, innovation and unwavering ambition.

  • While challenges remain, every number shows that China has come a long way.
  • And, the present state is that of a nation determined to leave behind its smoggy past and embrace a greener future.
  • So, the next time you hear about China, remember, the story isn't just about factories and skyscrapers. It's about a country rewriting its narrative, one puff of clean air at a time.

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Subscribe and stay tuned for more updates in this fascinating saga of studying China’s rise!

See you tomorrow morning 7.30 am with another edition.

Best,

Jayant Mundhra

Rakesh Yadav

Equity Research Intern | Real Estate - Listed Equity | Toastmaster

8 个月

quite interesting and insightful.

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Abhinav Kumar

Associate Director, Business Development, Steriscience| Ex Biocon Biologics| Ex Jubilant| Ex IQVIA| FMS Delhi| BIT Mesra

10 个月

Impressive??

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Sajith Mathew

Helping SMBs SCALE through digital strategies | Deloitte | NIT Calicut

11 个月

A good read Jayant! We definitely can take some insights from this Chinese model.

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Ankur Agarwala

Political Astrologer - Predicted Trump win; Biden dropping out; Hurricane Helene; Storm Trami; Kishida fall; Japan, India, France, UK, Turkey, S. Korea, S. Africa elections; Brazil plane crash; etc.

11 个月

Actually, you do not mention the single most important factor in combating this immense pollution. At a significant cost to industry, but which also helped China solve to some extent the problem of overcapacity, it closed a lot of factories, which for example were close to rivers, and forced many to relocate. Of course, the renewable energy push has helped, but China still continues to build a lot of coal power plants, which it needs to, given the immense production capacity that renewables alone cannot support. It is also investing in battery energy storage systems (BESSs), which enable the grid to be balanced as renewables can't generate power 24x7, plus innovating in newer BESS chemistries, such as vanadium flow batteries or iron-air batteries. But the single biggest contributor to bringing down pollution was the tough decision--tough both economically and politically--to move factories away from more eco-sensitive areas. And of course, when these factories were dismantled and relocated, they were often rebuilt with environmental and energy efficiency considerations. And many factories were just closed down.

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Nikhil Tanna

Research Analyst @ FINCORP | Financial Modelling and Valuation, Investment Analyst, Corporate Finance, M&A

11 个月

Quite Insightful, India is rapidly growing. Indian authorities must consider the story of China. Thanks Jayant Mundhra Piyush Goyal Bhupender Yadav Narendra Modi

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