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China’s policies and measures to address climate change Xiaohua ZHANG National Centre for Climate Change Strategy and International Cooperation 21 May 2013 Beijing China Outline National circumstance Key target Policies and measures for mitigation Policies and measures for adaptation Institutional arrangement and mechanism International cooperation National circumstance Population: 1.341 billion (2010) Economy: 1978-2012 around 10% GDP growth rate GDP per capita: 5432 USD (2012) Poverty: 11.80%/157 million (2009) Energy consumption: Total 36.2 tce (2012) , coal accounts for 70% National Circumstance CO2 Emission 11% in 1990 -> 25% in 2011, emission per capita 7 tCO2 9000 China 8000 US India 7000 CO2 Emission(Unit:Mt) Russia 6000 Japan 5000 Germany Korea 4000 Canada 3000 SaudiAra b UK 2000 Indonesia 1000 20.0 Australia, 19.0 USA, 18.0 Canada, 16.4 15.0 Russia, 12.1 10.0 Germany, 9.8 Japan, 9.5 5.0 China, 5.2 Mexico 2007 2004 2001 1998 1995 1992 1989 1986 1983 1980 1977 1974 1971 1968 1965 1962 1959 1956 0.0 1953 South Africa Brazil 1950 1850 1855 1860 1865 1870 1875 1880 1885 1890 1895 1900 1905 1910 1915 1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 0 -1000 各国历年人均CO2排放(单位:吨CO2/人) 25.0 Key targets GDP carbon intensity reduction of 40-45% by 2020 compared to 2005 level Gt CO2 12.0 10.0 8.0 IEA reference scenario WEO 2008 40% reduction of carbon intensity 45% reduction of carbon intensity 6.0 4.0 2.0 2000 2005 2010 2015 2020 Policies and measures for mitigation Overview Optimizing Industrial Structure Energy Conservation Developing Low-carbon Energy Controlling Non-energy-related Greenhouse Gas Emission Promoting Low-carbon Development in Localities Overview The 11th Five-Year Plan period 2006-2010 Reducing its GDP energy intensity by 20 percent compared to the 2005, and a 19.06 percent reduction achieved, equivalent to a 630 Mtce emission reduction of 1.46 Gt CO2. The 12th Five-Year Plan period 2011-2015 GDP energy intensity: reduction of 16% GDP carbon intensity: reduction of 17% Non fossil fuels: 8.6% (2010) ->11.4% Optimizing Industrial Structure Reforming and upgrading traditional industries Formulated and released plans for restructuring and rejuvenating ten major industries, revised the “Guideline Catalogue for Industrial Restructuring” Raised the market entry threshold for high-energy-consuming industries, conducted energy conservation evaluation and examination of fixed asset investment projects Adjusted export tax rebate policies and restrained the export of high-energyconsuming, high-emission and high-resource-consuming products Accelerate the pace of eliminating backward production capacity Action Phase out of small thermal power generating units(<50MW) Phase out iron productivity Phase out steel productivity Phase out cement productivity Phase out coke productivity Effect 80 GW 31.92 Mt 28.46 Mt 155 Mt 20 Mt Optimizing Industrial Structure II Billion Yuan, 2005 price Fostering and strengthening strategic and newly emerging industries 1,400 1,200 Issued the “Decision on Accelerating the Fostering and Development of Strategic and Newly Emerging Industries” Accelerated the pace of building a national innovation system Initiated a venture capital investment program in newly emerging industries, established 20 venture capital investment funds around 1 billion USD for energy and environment 4.2 4.5 % 4.6 4.8 4.7 4.5 4.0 1,000 3.5 800 3.0 600 400 784 940 1,096 1,249 1,346 2.5 2.0 1.5 1.0 200 0.5 0 0.0 2005 2006 2007 2008 2009 Value added of High-tech industry Share of GDP 9 5.0 Optimizing Industrial Structure III Accelerating the development of the service industry From 2005 to 2010, the added value of China's service sector increased 11.9 percent per year on average, with an average annual growth rate of 0.7 of a percentage point higher than that of GDP, and with its proportion in GDP rising from 40.5 percent to 43.1 percent. 10 Primary industry 12.1% 10.1% Secondary industry 47.4% 46.8% Teritary industry 40.5% 43.1% 2005 2010 Energy Conservation I Enhancing target responsibility assessment China has resolved and assigned responsibilities to fulfill set targets in energy conservation, and established a statistical monitoring and evaluation system to regularly evaluate the completion of energy conservation targets and the implementation of energy conservation measures by 31 provincial governments and 1,000 key enterprises. In 2010, China launched special supervision over energy conservation and emission reduction in 18 key regions. 11 Energy Conservation II Promoting energy conservation in key fields 10 key energy conservation projects Top 1000 enterprises programme Enhanced energy conservation management of key energy-consuming enterprises, Promoted energy audit and energy efficiency benchmarking activities 12 Energy Conservation III Promoting energysaving technology and products Released a total of 115 state key energy-efficient technology promotion catalogues in three batches Energy-efficient products for the benefit of the people, 360 million high-efficiency lighting products, 30 million highefficiency air conditioners and one million energy-efficient motor vehicles 13 2000 2006 2007 2008 2009 Iron and Steel Share of CDQ /% 6 40 45 50 >70 Share of TRT/% 50 95 96 98.6 100 Aluminum Share of Large pre52 82 83 86 90 baked anode/% Chemical industry Share of Ion exchange membrane in caustic 24.9 30.6 37.5 50 54.7 soda production/% Building materials Share of The new dry 12 50 55 62.8 72.5 process production /% Share of New wall 28 46 48 50 52 materials /% Energy Conservation III China 2000 2005 2007 2008 2009 International advanced level Coal consumption per thermal power generation (gce/kWh) 363 343 332 322 320 298 Coal consumption per thermal power supply (gce/kWh) 392 370 356 345 340 310 Comparable energy consumption of steel (Kgce/ton) 784 732 718 709 697 610 15418 14575 14488 14323 14171 14100 1227 780 610 549 509 500 181 167 158 151 139 118 25 22 17 16.6 16.5 15 118 114 110 108 106 73 1125 1073 1026 1010 976 629 Electricity consumption of electrolytic aluminum (kWh/ton) Integrated energy consumption of copper smelting (Kilograms of coal equivalent/ton) Integrated energy consumption of cement (Kilograms of coal equivalent/ton) Integrated energy consumption of flat glass (Kilograms of coal equivalent/Weight Box) Integrated energy consumption of crude oil processing (Kilograms of coal equivalent/ton) Integrated energy consumption of ethylene (Kilograms of coal equivalent/ton) 14 Data source: Wang Qingyi, energy data 2010 Energy Conservation IV Developing a circular economy National "city mine" demonstration bases. During the Eleventh Five-Year Plan period, China comprehensively utilized about one billion tons of fly ash, 1.1 billion tons of coal slag, and 500 million tons of metallurgical slag. The central government funded the industrialization of remanufacturing projects. By the end of 2010, China had formed a remanufacturing capacity of automobile engines, gearboxes, steering engines and electric generators, totaling 250,000 pieces (sets). 15 Energy Conservation V Promoting energy conservation market mechanism Pushing forward energy management through contract management, power demand side management, voluntary energy conservation agreements and other market mechanisms. In 2010, China issued the “Opinions on Accelerating the Implementation of Contract Energy Management and Promoting the Development of the Energy Conservation Service Industry” From 2005 to 2010, the number of energy conservation service companies increased from 80 to over 800, the number of employees in this sector increased from 16,000 to 180,000, the industry scale was enlarged from RMB4.7 billion-worth to RMB84 billion-worth, and the annual energy-saving capacity rose from some 600,000 to more than 13 million tons of standard coal. 16 Energy Conservation VI Improving related standards Improved the energy-efficient design standards for residential buildings in three climate zones and public buildings; Issued 27 mandatory national standards for energy consumption quotas of high energy-consuming products and 19 mandatory national energy efficiency standards for major terminal energy-using products; Formulated 15 national standards for the discharge of major pollutants; Put into effect 71 environmental labeling standards; and Released an energy efficiency labeling product catalogue. 17 Energy Conservation VII Incentive policies Quickened the reform of the energy pricing mechanism, reformed the taxes and fees of refined petroleum products, adopted a differential electricity pricing policy for high-energy-consuming industries, imposed electricity pricing penalties on products with super-high energy consumption, and promoted the metered charging of heat supply by actual consumption of each household. During the Eleventh Five-Year Plan period, the central treasury invested an accumulative total of RMB225 billion, forming an energy conservation capacity of 340 million tons of standard coal. Tax incentives, e.g. preferential taxation policies to promote the comprehensive utilization of resources, and the import of energyefficient and low-carbon products. 18 Developing Low-carbon Energy Item Applications 2005 2010 2015 Power generation (GW) 117 216 260 Small hydropower (GW) 38 - - Power generation (GW) 6.9 10.8 40 Wind power Power generation (GW) 1.26 31.07 100 70 800 2100 0.8 1.68 4 1514.4 - - Solar oven (10,000 units) 68.6 - - Power generation (MW) 2000 5500 13000 Biomass ethanol(10,000 tonne) 102 180 400 5 50 100 6.7 8.5 11.4 Hydro power Nuclear PV Power generation (MW) Solar thermal utilization (100 Solar energy million m2) Solar house(10,000 m2) Biomass energy Biodiesel(10,000 tonne) Methane 100 million cu.m Non-fossil fuel energy accounting for the total 19 energy consumption(%) Controlling Non-energy-related Greenhouse Gas Emission The government has enhanced control over greenhouse gas emission in industrial and agricultural production, waste disposal and other fields. Statistics showed that by the end of 2010 China's nitrous oxide emission in industrial production generally remained at the level of 2005, and the growth of methane emission was basically brought under control. 20 Increasing Carbon Sink Increasing forest carbon sink. China is continuously carrying out ecological protection projects and projects to return farmland to forest, natural forest protection project, the program to control sandstorms in the Beijing and Tianjin area. Currently, China's man-made forest reserve has reached 62 million ha; its national forest coverage has reached 195 million ha, with the forest coverage rate rising from 18.21 percent in 2005 to 20.36 percent in 2010, with a forest stock volume of 13.721 billion cu m. China's total carbon storage in forest vegetation has reached 7.811 billion tons. Improving farmland and grassland carbon sinks. 2011-2015: Increase of forest area: 12.5 million ha; Increase of stock volume: 600 million m3; Coverage rate:21.66% by 2015 21 Policies and measures for adaptation Agriculture: reinforcing agricultural infrastructure, changing means of agriculture production, strengthening the research and production of varieties with resistance, constructing pilot projects of water saving, importing the ability of disaster prevention, etc. Forestry:enhanced protection of natural forest, constructions of wildlife nature reserve and wetland protection program, restoration and reconstruction of ecosystem function of vulnerable ecological areas, implementations of major forestry ecological construction projects, etc. 22 Policies and measures for adaptation Water: improving policies and regulations, strengthening water resource management and south-to- north water diversion project, water resource allocation, technological development of comprehensive water saving and seawater utilization, pollutant carrying capacity in waters, etc. Coastal zone: coastal and island observation stations and network, develops the risk assessment to marine environment, improves the early warning and forecasting and emergency response mechanism of extreme marine disasters, implementation of marine reserves and marine ecological revetment projects, etc. 23 Promoting Low-carbon Development in Localities Promoting low-carbon pilot projects in selected provinces and cities In 2010, China launched a national "low-carbon province and lowcarbon city" experimental project. The first batch of selected localities included five provinces, namely, Guangdong, Hubei, Liaoning, Shaanxi and Yunnan, and eight cities, namely, Tianjin, Chongqing, Hangzhou, Xiamen, Shenzhen, Guiyang, Nanchang and Baoding. Carbon trading pilot scheme The pilot schemes are expected to commence from 2013, across the major cities of Beijing, Tianjin, Chongqing and Shanghai, as well as the industrial regions of Shenzhen, Hubei and Guangdong. 24 Low-carbon Pilot Projects Low-carbon Pilot Projects in Provinces and Cities: Pilot Programs for Carbon Emissions Trading: • 1st batch: 5 Provinces and 8 Cities 2nd batch: more cities and provinces involved (more than 20) Conducting carbon emission trading pilot programs (5 Cities and 2 Provinces) Establishing a voluntary emission trading system in 2012 Low-carbon Pilot Programs in Relevant Areas: Trials of low-carbon industry park, communities and commerce Trials of low-carbon products Low-carbon transport systems pilot city Green and low-carbon pilot and demonstration projects in key small towns Institutional arrangement and mechanism 国家应对气候变化领导小组 National Leading Group to Address Climate Change 外交部 MFA 国家发改委 NDRC 科技部 MOST 工信部 MIIT 财政部 MOF 国土资源部 MLR 环保部 MEP 住建部 MHURD 交通部 MOT 水利部 MWR 农业部 MOA 商务部 MOC 卫生部 MOH 国家统计局 NBS 国家林业 局 SFA 中科院 CAS 中国气象 局 CMA 国家能源局 NEA 中国民航 局 CAAC 国家海洋 局 SOA 领导小组办公室:国家发改委 Leading Group Office: NDRC 技术支持:国家气候变化战略研究和国际合作中心 Technical Support: NCSC 地方应对气候变化领导小组 Local Leading Group to Address Climate Change 《中国应对气候变化 国家方案》 China’s National Climate Change Programme 由地方发展改革委、财政厅 (局)、气象局等组成 Composed by local DRC, Bureau of Finance, Bureau of Meteorological Administration, etc. 《温室气体自愿减排 交易管理暂行办法》 Provisional Measures for the Administration of Voluntary Greenhouse Gases Emission Reduction Trading 《重庆市温室气体控制 规划纲要》 The Outline of the Plan for Greenhouse Gases Control of Chongqing Municipality 《应对气候变化林业 行动计划》 Action Plan of the Forestry Industry for Addressing Climate Change International Cooperation Multilateral Cooperation Bilateral Cooperation GEF, WB, ADB,etc US, EU, etc. South South Cooperation MoU on Providing Foreign Aid to Address Climate Change promising to donate energy-saving and lowcarbon products Training seminar: 300 officials from 81 countries 13 international seminars focusing climate friendly technologies THANK YOU! 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