Climate Champion China Ramping Up Government Funding for Fossil Fuel

China always hoped that they will be able to feed on a bubble in the Western world that required subsidies for purchasing new wind and solar energy generation units. As usual, they mass-produced and swamped the market. But only delivering the cheapest units was not enough. They drove prices down artificially in order to put renewables on steroids in the west getting them hooked in the process. This was interpreted as solar and wind become cheaper when in fact it was only China rigging the market. Now, the drawbacks such as grid instability become apparent plus NIMBY starts to bite. New Western RE goes down, China tries to pimp its own market in order to prevent massive write-downs and that wrecks state finances. Now, the weight of the wrecked finances heavier than the threat of a write-down. Don’t feed a monster that will devour you.

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