Agenda
Challenges
The total reserves of coal at year-end 2008 accounted 13.9 percent, which ranks China third after United States and Russia. Reaching 42.6% of world consumption, China is the biggest coal producer followed by United States (17%). China ranks third for its subbituminous coal and lignite reserves, with recoverable reserves totaling 114.5 billion tons.
Political
Chinese climate change policy is at the centre of the international effort to reach global agreement, because it is the world’s largest source of greenhouse-gas emissions, because it is by far the largest prospective source of emissions growth over the next two decades, and because economic and strategic competition between China and the United States is important in the policy dynamics of both countries.
China has the second largest power industry in the world with 379 GW of generating capacity in 2002. About two-thirds of its generating capacity and three-quarters of its generation are fuelled by coal. Most of the economy’s remaining electricity comes from hydropower.
Status
History
China became a significant force in international energy markets in the late 1970s and early 1980s, with nearly 40.4 million tons of oil equivalent exported in 1985. Before 1973 China’s oil and coal exports were relatively small. In large part this reflected a policy of self-sufficiency which was characteristic of China’s economic strategy at that time. The years following the first oil shock saw a change in China’s oil export policy and by 1985 the very high annual increases in volumes exported made China the leading oil exporter of East Asia.
Growth
China has the second largest power industry in the world with 379 GW of generating capacity in 2002. About two-thirds of its generating capacity and three-quarters of its generation are fuelled by coal. Most of the economy’s remaining electricity comes from hydropower.
China’s generating mix is quite different from that in the world as a whole. About three-eighths of the world’s electricity is generated from coal, about half the share that is generated from coal in China. Gas and nuclear power each generate about one-sixth of the world’s electricity, far more than in China. In both China and the world as a whole, however, hydropower accounts for about one-sixth of the total electricity that is generated.
Targets
China has embarked on ambitious and transformational domestic climate change action, through targets on energy efficiency (20% reduction in energy consumption per unit of GDP between 2005 and 2010), renewables (16% of the energy mix by 2020) and afforestation (20% coverage by 2010).
Nuclear power plants will play a growing but modest role, despite their capital intensity and long construction times, due to their inclusion in national plans. By 2020, 28 new plants are to be added to 9 in service, so that nuclear capacity expands from 7 GW to 32 GW, coming to generate 4 percent of the economy’s electricity.
Institutional Structure
National Development and Reform Commission (NDRC)
Main functions of the NDRC are:
a. Promote the strategy of sustainable development
b. Undertake comprehensive coordination of energy saving and emission reduction.
c. Organize the formulation and coordinate the implementation of plans and policy measures for recycling economy, national energy and resource conservation and comprehensive utilization.
d. Participate in the formulation of plans for ecological improvement and environmental protection; to coordinate the solution of major issues concerning ecological building, energy and resource conservation and comprehensive utilization
e. Coordinate relevant work concerning environment-friendly industries and clean production promotion.
National Energy Commission
The main tasks of the Commission include:
a. Research and produce national directives, policies, and regulations on energy
b. Make long-term and annual plans on energy
C. Conduct scientific research, experiment, and development on new energy
d. Organize research and promote new technology on energy conservation.
Budget
Current
As of 2011, the appropriation for spending on resource exploration, electricity, and information is 74.486 billion yuan, down 10%. This reduction is largely because of less spending on capital construction. This figure consists of 41.088 billion yuan of central government spending and 33.398 billion yuan in transfer payments to local governments. China has appropriated 38.1 billion yuan for the construction of infrastructure for resource exploration, electricity, and information.
History
Spending on environmental protection came to 144.31 billion yuan, 102.1% of the budgeted figure and an increase of 25.3%. This amount consists of 6.94& billion yuan in central government spending and 137.362 billion yuan in transfer payments to local governments. A total of 85.125 billion yuan was spent on conserving energy and reducing emissions.
Key Policies
Recent Legislation
China’s most important emissions reduction measures have been regulatory, with the authorities seeking to implement multiple environmental, energy security and other objectives by closing some and constraining other emissions-intensive plants and industries. There has also been substantial fiscal support to accelerate the deployment of a wide range of low-emissions technologies in energy and transport.
GCCR
In August 2010, China’s National Development and Reform Commission (NDRC) launched a national low-carbon province and low-carbon city experimental project. The eight cities and five provinces covered by the project will develop emissions reduction plans and explore options to use market mechanisms to achieve abatement goals (People’s Daily Online 2010). The emissions intensity targets have been devolved down to provincial levels, and from there to local governments.
GCCR
Nuclear power plants will play a growing but modest role, despite their capital intensity and long construction times, due to their inclusion in national plans.
APEC
The 12th FYP includes a new carbon intensity target of 17 percent (a reduction in carbon emissions per unit of GDP from 2010 levels by 2015). Whether this target was included because the Chinese government is vitally concerned about global warming is debatable. More likely, the target reflects the government’s recognition of the strategic value of developing a low-carbon economy, with its high-value jobs and strategic location in any 21st century economy.
Analysts have noted that China is gaining, even surpassing, the United States in several low-carbon industries, such as electric vehicles, wind turbines and solar panels, and the 12th FYP includes preferential policies to further these sectors’ development.
APCO
Miscellaneous
Further Information
By 2005, China’s oil reserves are to have a storage capacity equal to 35 days of imports, of which 14 days of reserves would be managed directly by the government and 21 days would be managed by state-owned enterprises.
By 2010, the economy’s oil stockpiles should equal 50 days of imports, of which 22 days will be managed by the government and 28 days by public companies.
By 2020, it is anticipated that the strategic oil supply stockpiles will reach the IEA standard of 90 days, with a total capacity of 40 to 50 million tons.
Transition to Globalisation
China Far Outpaces U.S. in Cleaner Coal Fired Plants
China’s frenetic construction of coal-fired power plants has raised worries around the world about the effect on climate change. China now uses more coal than the United States, Europe and Japan combined. But China has emerged in the past two years as the world’s leading builder of more efficient, less polluting coal power plants, mastering the technology and driving down the cost.
Globalisation > Economy > Energy > Sources > Non-Renewable > Coal
Transition to Political Tools
China Surpasses US As World's Top Energy Consumer
International Energy Agency said China's energy consumption has more than doubled in less than a decade.
Political Tools > National > China > Dom. Policies > Economy > Energy
Transition to Political Actors
NGO's Energy Forum Underway in Beijing
This articles announces "the start of JUCCCE,the Joint US-China Cooperation on Clean Energy, China Energy Forum in Beijing, which gathers 300 delegates from around the world in sectors ranging from government to industry to NGOs.
Political Actors > Civil society > NGOs > Energy
