中国可持续发展 -反内卷与脱碳China Sustainability-Anti-Involution and Decarbonisation

Summary of Key Points from the Conference Call Industry and Company Involved - Industry: Sustainability and Decarbonisation in China - Company: Morgan Stanley Asia Limited Core Insights and Arguments 1. Anti-Involution Campaign: China's "anti-involution" campaign is a significant focus for investors, aiming to address price wars and overcapacity in key sectors crucial to decarbonisation goals [2][7][9] 2. Decarbonisation Impact: The anti-involution drive is expected to influence decarbonisation progress both within China and globally, particularly in "hard-to-abate" sectors such as cement, steel, and aluminium [2][10] 3. Investor Interest: There is a renewed investor interest in sustainability fund flows and energy transition themes in China, with an uptick in inflows into sustainability funds observed in Q1 2025 [3][9] 4. Policy Signals: Recent policy signals from China indicate a focus on tackling overcapacity, with discussions on various sectors including solar, materials, and new energy vehicles (NEVs) [8][10] 5. Global Decarbonisation: China's clean energy exports, including solar panels and electric vehicles, are projected to significantly reduce global CO2 emissions, with an estimated reduction of 220 million tonnes in 2024 alone [12] 6. Competition Dynamics: The current intense competition in China's cleantech sectors has kept decarbonisation costs low for other countries; however, a reduction in competition could lead to increased costs for these technologies abroad [13] Other Important but Potentially Overlooked Content 1. Capacity Reduction Focus: The focus on reducing old and dirty capacity in hard-to-abate sectors is a recurring theme, with the government actively checking for overproduction in coal and other sectors [10][12] 2. Trade Reliance: Many countries still rely on Chinese products for their decarbonisation efforts, which could face headwinds from trade tensions [12] 3. Renewable Energy Standards: New solar capacity built between 2022-2024 has already adopted new emission reduction standards, indicating progress in the sector [11] 4. Long-term Investment Story: China's decarbonisation remains a long-term secular investment story, with consistent emphasis on its relevance since 2020 [9] This summary encapsulates the critical insights from the conference call, highlighting the implications of China's anti-involution campaign on sustainability and decarbonisation efforts.