China is very well-known for its massive industrial sector and for the large amounts of pollution associated with activity on that scale. In order to combat the damage its industry is doing to the environment, earlier today China stated that it will be gradually switching to more wind-powered energy.
China will reportedly implement the power generated by wind turbines to cover heating. Many of the areas in the vast country experience very cold winters and China has so far relied on fossil fuels to produce heat. According to the National Energy Administration, the country will focus on building more wind farms and try to rely on wind power for heating alone from 2019.
In order to stimulate local governments to keep up with China’s new environmentally-friendly energy goals, they will be compensated for the wind farm infrastructure and associated costs in the form of government subsidies and tax breaks.
It is unclear yet exactly how much of an impact this would have on the commodity markets. China is the world’s largest importer of fuel, so we would likely see a drop in demand.
