Archived

An Australian economist has argued China has “hoodwinked” the world on net zero in what he acknowledges could be seen as a “controversial” take.

Leith Van Onselen, chief economist at the MB Fund and MB Super and co-founder of MacroBusiness, told 4BC host Mike Jeffreys that while Australia and other countries are making sacrifices for the good of the planet, the world’s biggest greenhouse gas emitter is not, and therefore “we’re basically shooting ourselves in the foot”.

“I’d argue China is the largest beneficiary of the West’s net zero policies,” Mr Van Onselen said on the radio show.

“It’s not abiding by the same rules and what we’re effectively doing is, while we’re reducing our carbon footprints through these sorts of policies and giving us expensive energy and shutting down manufacturing and becoming less diversified economies, China is simply expanding its carbon output and expanding its manufacturing sector at our expense.

“The world’s not getting cleaner. We’re just shifting the pollution away from us, to China, and it’s actually less regulated in China.”

…

He referred to a Reuters report from August that found China had boosted domestic coal production and imports to record highs.

It said production from China’s mines hit a seasonal record of 390 million tonnes in July 2024, up from 378 million in the same month a year earlier, and imports surged to a seasonal record of 296 million tonnes in the first seven months from 261 million tonnes in 2023.

Mr Van Onselen concluded: “I think we can all agree we’d like to have a cleaner planet but the whole idea of net zero is completely impossible or ridiculous if China is not involved.

“If we’re going to make sacrifices, China has to make sacrifices.”