Thursday, September 18, 2025

Green GDP in China - State of the Art in the 2020s

Green GDP in China - State of the Art in the 2020s

China's economic losses due to environmental pollution in the 2020s remain significant, with air and water pollution being particularly serious problems. This is equivalent to about 2.5% of China's GDP. These losses include health hazards, ecosystem destruction, and impacts on agricultural production.

Air Pollution
PM2.5 concentrations remain high in major cities in northern China, including Beijing, Tianjin, and Hebei Province; in 2020, the annual average PM2.5 concentration in Beijing was 35 μg/m³, well above the World Health Organization (WHO) standard of 5 μg/m³. In addition, the average national health losses due to air pollution amounted to about 1.4 trillion yuan (about 22 trillion yen). This includes treatment costs for respiratory diseases and labor losses.

Water Pollution
Water pollution throughout China is also severe, particularly affecting the Yangtze and Yellow River basins. In the Yangtze River Basin, 210 million tons of wastewater will be discharged into rivers in 2020 due to industrial and urban wastewater, which is causing eutrophication and a decline in aquatic life. Nationwide, economic losses due to water pollution amounted to about 700 billion yuan (about 11 trillion yen), affecting fisheries, agriculture, and the availability of drinking water.

Soil Pollution
Soil pollution is another major challenge, especially in Henan, Hunan, and Guangxi provinces, where heavy metal contamination is particularly severe. according to a 2021 survey, about 16.1% of China's cultivated land is contaminated with some form of heavy metal, mainly cadmium, lead, and arsenic. Losses to agricultural production due to soil contamination are estimated to be approximately RMB 200 billion, with a significant impact on food security.

Corporate Responses
China Petrochemical Group (Sinopec) aims to reduce carbon dioxide emissions by operating a hydrogen production project with an annual capacity of 1 million tons by 2023. In addition, China National Petroleum Corporation (CNPC) is expanding its natural gas supply and investing in renewable energy, with plans to invest 10 trillion yuan (about 150 trillion yen) over the next five years. Through these measures, CNPC aims to achieve peak CO2 emissions by 2025.

Technology and Government Initiatives
China is using AI and big data technologies to enhance real-time environmental monitoring. The "Wind Cloud" series of environmental monitoring satellites managed by the National Satellite Meteorological Center are being used to monitor air and water pollutants, enabling more accurate calculation of green GDP. In addition, while the variation in regulations among local governments has been an issue, the goal is to achieve both sustainable economic growth and environmental protection through consistent tightening of regulations and the introduction of penalties.

[146-2006-09-20

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