The international environmental organization Greenpeace has released a research report titled “Towards Carbon Neutrality: A Roadmap to Achieve 100% Renewable Energy in China’s Internet Technology Industry.” The report suggests that Chinese internet technology companies should take a leadership role in low-carbon transformation, set ambitious and visionary renewable energy targets, and achieve 100% renewable energy no later than 2050, with a target date set before 2030. Against the backdrop of the scaling development of renewable energy and market-oriented reforms in China’s electricity sector, internet technology companies urgently need to seize the opportunities for low-carbon development, actively procure renewable energy, and contribute to China’s carbon neutrality goals through concrete actions.
In the global context of addressing climate change, the carbon emissions growth of the internet technology industry has come under scrutiny. Carbon emissions from internet technology companies primarily result from electricity consumption, with data centers and cloud computing centers being major energy consumers. As China aims to peak carbon dioxide emissions before 2030 and achieve carbon neutrality by 2060, transitioning to 100% renewable energy has become an inevitable trend in the technology industry. The use of zero-emission renewable energy is one of the most crucial means for companies to move toward carbon neutrality. Ye Ruiqi, Director of the Greenpeace project, stated, “The decarbonization of data centers and cloud computing in China is a critical part of achieving carbon neutrality. China’s internet technology industry has strong potential for low-carbon transformation and should fully leverage the innovation potential of technology and industry models, actively transitioning to 100% renewable energy and becoming a leader in achieving China’s carbon peaking and neutrality goals.”
Three key factors have prompted China’s internet technology industry to reach a critical turning point in green transformation. First, the declining cost of renewable energy makes procuring renewable energy an important means of controlling long-term electricity costs and adopting a strategic approach for companies. Second, global investors increasingly focus on a company’s ability to address climate risks, with the comprehensive use of renewable energy being a crucial means for companies to reduce their carbon footprint and enhance their market competitiveness. Third, in the context of China’s transition toward carbon neutrality, proactively managing carbon emissions is a choice for companies to mitigate long-term policy risks.
Over the past decade, several international companies, including Google, Apple, and Facebook, have become leaders in the 100% renewable energy transformation. The report identifies 41 global technology companies that have already set long-term 100% renewable energy targets, with approximately 20% having already achieved this goal, about 50% planning to achieve it before 2030, and 44% reaching a renewable energy utilization of 60% or more in 2019.
Currently, only one Chinese internet technology company, Qinhuai Data Group, has set a goal to achieve 100% renewable energy by 2030. The report calls on Chinese companies to follow China’s government climate ambition and international business cases by setting their 100% renewable energy targets before 2030, to demonstrate their leadership role in low-carbon transformation, with the latest deadline being 2050.
Ye Ruiqi, Director of the Greenpeace project, stated, “Against the backdrop of China’s enhanced climate goals and ambitions, China’s renewable energy market is transitioning from its early stage to a development stage, with continuous cost reductions and diversified approaches to renewable energy procurement. Internet technology companies should seize the opportunity for low-carbon development and actively procure renewable energy.” The report provides specific recommendations for companies to set 100% renewable energy targets, including building internal consensus and communication mechanisms, establishing clear timelines and plans, transparently disclosing progress, and having company executives act as spokespersons. Finally, the report outlines four feasible ways to procure renewable energy in China, including market-based electricity trading, investing in distributed projects, investing in large-scale renewable energy projects, and purchasing green power certificates. Greenpeace suggests that internet technology companies adopt a combination of these methods to procure renewable energy based on their development needs and renewable energy target strategies.
