China's "Two New" Policy Drives Renewable Energy and Recycling with $137 Billion Investment by 2027

China is advancing its "Two New" policy, allocating approximately $137 billion to boost renewable energy adoption and recycling by 2027. The initiative includes $41 billion in special treasury bonds for consumer trade-ins and $96 billion for infrastructure, including roads and railways. Subsidies support consumers upgrading to electric vehicles (EVs), with rebates up to $2,730 for EVs and plug-in hybrids. The policy also targets a 25% increase in equipment investment across key sectors and aims to double the recycling rate of scrapped cars by 2027. In 2024, the policy saved 28 million tonnes of standard coal and reduced CO2 emissions by 73 million tonnes. The expansion includes subsidies for digital products and extends to more petrol cars registered from 2012-14. The policy supports recycling by allowing qualified recyclers to use purchasing invoices for tax claims, incentivizing them to meet the 2027 goals.