EEE Pattern

Policy questions to be addressed and
structures of IMACLIM-CHINA
Wang Yu
Institute of Energy, Environment and Economy
Tsinghua University
29 January 2015
• Updated energy and climate polices
• Policies questions to be addressed
• Structure of IMACLIM-CHINA
2
An updated energy and climate policies
Environment
pollution
Energy
security
Climate
change
Updated
policies
Industrial
structure
adjustment
Energy
conservation
& efficiency
Energy
structure
optimizing
Forest carbon
sink
increasing
China’s Economic Growth & Energy Consumption
1991~1995
1996~2000
2001~2005
2006~2010
2011~2013
GDP annual growth
11.9%
8.7%
9.9%
11.3%
8.2%
Energy consumption increase
5.9%
2.1%
10.3%
6.6%
4.9%
Decouple of energy consumption and economic
growth
1000
Energy consumption (1990=100)
900
GDP (1990=100)
800
700
600
500
400
300
200
100
2013
2011
2009
2007
2005
2003
2001
1999
1997
1995
1993
1991
0
Environmental pollution in China
Water resources
Land resources
Ecological
……
Air pollution!
PM2.5 concentration of 28th Nov, 2014
Climate change, pressure from international community
CO2 emission in China (million ton)
10000
8000
Energy structure
100%
26.7% of total
global CO2
emission
6000
90%
80%
70%
60%
50%
4000
40%
30%
2000
20%
10%
0%
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
0
Data source: IEA & China Statistic Yearbook 2014
• China is the biggest CO2 emitter of the world.
• Coal dominated energy system results in higher CO2 emission.
An update energy and climate policies
Environment
pollution
Energy
security
Climate
change
Updated
policies
Industrial
structure
adjustment
Energy
conservation
& efficiency
Energy
structure
optimizing
Forest carbon
sink
increasing
Industrial structure adjustment
Closedown
• Small mine
• Small coal-fired
power plants
• Backward production
capacity (19 sectors,
including steel, iron,
flat glass, cement,
coke…)
New industries
• Low carbon
technology innovation
• 106 million RMB
• 54 pilot projects
• New energy vehicles
• New energy
manufacturers
• Producer service
industry
 The share of industry increase 1% → 600 million ton of additional CO2 emission
 The share of service increase 1% → 300 million ton of CO2 mitigation
Energy conservation and efficiency improving
Management & evaluation
Objective responsibility system – provincial governments
Energy audit system – new projects in heavy energy consumption, building
 Energy intensity
decreased by 9%
Energy conservation projects
energy - saving technical renovation ——2.56 billion RMB in 2013; 5.6 million tce conservation
Energy performance contracting ——280 million RMB; 1.16 million tce
in 2013 compared
with 2010
 350 million tce
coal conservation
Energy standards
 840 million ton of
CO2 mitigation
48 energy conservation standards were issued in 2013
Promoting energy-saving technologies and products
State Key Energy-Efficient Technology Promotion Catalogues
Energy saving and low-carbon technologies to promote the achievements list released
Energy conservation and efficiency improving
Intensity target
• The energy
intensity of GDP
decrease 40~45%
in 2020 compared
with 2005 level
Absolute target (2020)
• Total primary
energy
consumption <4.8
billion tce
• Total coal
consumption <4.2
billion ton
• Annual growth
rate of energy
consumption <
3.5%
Energy structure optimizing
Coal consumption control
Targets by 2020:
 The share of coal in primary energy < 62%
 More than 60% of coal used for electricity generation
New
entries
Current
plants
• Scale: 600 or 1000 MW ultra supercritical coal combustion technologies
• Efficiency: coal consumption <300 gce/kWh
• Emission: smoke, SO2, NOX emission concentration less than 10, 35, 50
μg/m3 in eastern provinces
• Closedown backward efficiency turbines (<50 MW)
• Closedown turbines whose pollutants emission can’t meet environmental
standards
• Phase out 100 GW of backward efficient turbines by 2020
China-U.S. Joint Announcement on Climate Change
• China intends to achieve the peaking of CO2 emissions
around 2030 and to make best efforts to peak early
– The roadmap to achieving the peaking of CO2 emissions?
– The CO2 emissions level of peaking?
– The effects of transform from BAU to low carbon development
mode?
• China intends to increase the share of non-fossil fuels in
primary energy consumption to around 20% by 2030
– Renewable energy development potential and cost?
– Cost increase/decrease of the whole energy system?
– The contribution of non-fossil energy to CO2 mitigation?
and the Actual Capacity Growth of RE
Comparisons of Central Government Targets
Objectives – Industrial competitiveness
 Would the climate policy increase the industrial production cost?
Weaken the industrial competitiveness?
 Domestic context: carbon tax / ETS ……
 International context: global carbon market
 Which industry would suffer the most transition cost?
 GDP loss?
 Energy intensive industry?
 Industrial structure?
 Would that be a chance for China’s low-carbon development?
 Transition cost?
 Industrial structure optimization?
 Import and export trade?
Objectives – Distribution effect & Welfare effect
 How the climate policies would affect the residence’s welfare?
 Carbon tax / ETS ……
 Domestic context
 International context
 Which group of residence would be most heavily affected?
 Income levels
 Income gap
 Differentiated carbon tax
 Would the climate policy optimize energy consumption structure
through changing residence life style?
 Purchase choices
 Transportation modes
Thanks!