Download The World’s Low-carbon Economy Trend and China’s Rational Choice

The World’s Low-carbon Economy Trend and China’s Rational
Choice
LIU Mingyong1, 2
1. Shandong University of Technology, P.R.China, 255049
2. Northeast Normal University, P.R.China, 130024
[email protected]
Abstract: Currently, global warming has become the common problems around the world. Low-carbon
economy has become the economic model to reduce greenhouse gas emissions and deal with global
warming. As for the development of low-carbon economy, China should evaluate the domestic
economic development reality correctly and choose rational policies in conjunction with their economic
development stage. In the light of foreign advanced experiences, enhance the development of
low-carbon development to the national strategic level, response to greenhouse gas emissions of
international responsibilities and obligations, promote the concept of low carbon and low-carbon
lifestyle, and strive to create their own low-carbon economic development model.
Keywords: Low-carbon economy, Economic reality, Strategies
1.
Introduction
Recent years, in the global context of climate warming and resource and environment deterioration,
western countries vigorously promote “low-carbon revolution” with the core of energy-efficient and low
emissions. Low-carbon technologies and industries marked with low power consumption, low emission
and low pollution are becoming the new trend of global economic development and strategic action of
many countries.
2.
Low-carbon Economy is Becoming a Global Trend.
2.1 Low-carbon economy is rising worldwide.
In February 2003, the British government released the “Energy White Paper” (UK Energy White Paper,
2003), in which, the British first introduced the “low-carbon economy”(Low Carbon Economy) concept,
which attracted international attention. British government set up a clear goal for the low-carbon
economy: the 2010 reduction of carbon dioxide emissions by 20% on 1990 levels; to 2050, a low carbon
economy and society should be built. ①
Following the 2003 energy white paper, the British Government released “economics of climate change:
Stern Report” in October 2006, which did more authority quantitative assessment of the impact of global
climate change on economy.② “Stern Report” stated, at present, if the world put into the cost of GDP1%
annually, which may avoid loss of 5% ~20% GDP per year in the future, so it called the global
community to transform to a low carbon economy as soon as possible. In June 2007, the United
Kingdom announced a climate change bill, which clear committed, 26% ~ 32% reduction in greenhouse
gas emissions to 2020, and the long-term goal by 2050, greenhouse gas emissions by 60%.
In 2007, the United Nations Climate Change Conference developed a “Bali road map” for controlling
greenhouse gas emissions in 2012. At the same time, developed countries, mainly Europe and America
started to take a series of practical actions in the transition of low-carbon economy. A series of new
concepts, such as, “low-carbon economy”, “low-carbon development”, “low-carbon technologies”,
“low-carbon city” “low-carbon way of life” arise. Britain has launched a number of economic policies,
such as climate change levy, climate change agreements, emissions trading scheme, carbon trust funds
and promote low carbon economic development. Netherlands, Denmark, Norway, Sweden, Finland and
Italy also levy state tax fossil fuels on the combustion of carbon dioxide. Japan, Germany and Austria
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have also introduced energy tax and carbon tax systems. United States invested heavily in low carbon
technologies research and development. The implementation of “Energy Policy Act” provides legal
protection for the development of low-carbon economy.
2.2 Reducing carbon dioxide emissions has become the consensus to resolve global warming, and
carbon emissions have become the new measure of the economic development mode.
Scientific discovery: the over-reliance on fossil fuels is the causes of greenhouse gas (CO2) rapid rise,
with the development and utilization of fossil energy, a substantial increase of carbon emissions in the
Earth’s atmosphere greenhouse gas (CO2) concentration has undergone profound changes and which
began to affect natural ecosystems to human survival. In 1896, The Nobel Prize owner in Chemistry,
Cornelius forecast fossil fuel combustion will increase atmospheric concentration of carbon dioxide,
causing global warming. The latest research report shows that by 2050, control the increase of carbon
dioxide concentration in atmospheric twice the same as pre-industrial level can avoid the occurrence of
extreme weather phenomena and ensure economic and social sustainable development.③
The global climate change was concerned by the international community. From the “United Nations
Framework Convention on Climate Change” to “Kyoto Protocol”, from the “Kyoto Protocol” to the
“Bali roadmap”, the international community has been trying to solve global warming, while reducing
carbon dioxide emissions became global consensus to solve the issue. Ostensibly, the level of carbon
emissions is the reflection of level of energy use, but in essence, the level of carbon emissions is a new
measurement of human economic development mode.
3.
China Should Have a Correct View on Economic Development Reality in
Face of World Low-carbon Economy Trend.
Ostensibly, the low-carbon economy is the result of reducing greenhouse gas emissions. In essence,
low-carbon economy is the economic development mode, energy consumption mode, and a reform of
the way of life, which will change the modern industrial civilization which established on the basis of
the fossil fuel (energy).
3.1 There is a big gap between China’s current development situation and the requirements of low
carbon economy.
China is undergoing the rapid development stage of industrialization and urbanization, which leads to
high consumption and high emissions. Energy demand and greenhouse gas emissions will continue to
grow because of the slow adjustment of economic structure and the long-term extensive economic
development model.
Meanwhile, China is still in a lower place of the global division of labor, a considerable portion of the
export goods are resource-intensive goods of high energy consumption and high pollution. And China
also undertook a significant part of the transfer of heavy industry from developed countries. China
became “the world’s manufacturing base” and directly or indirectly exported a lot of energy and
generated emissions. International Energy Agency (IEA) estimated that in 2004, export commodities
contained carbon dioxide emissions of 16 million tons, accounting for 34% of total emissions in China.④
3.2 In the situation that international community attaches great importance to the low-carbon
economy, China also has great potential advantage in the reduction of emission.
China’s current energy intensity and energy efficiency is significantly lower. So there is greater scope
for energy saving through the ways of restructuring, technological innovation and management
improvement. Moreover, China’s emission reduction cost is relatively low. From the international point,
the cost of the provisions in United Nations Framework Convention on Climate Change is more than 30
U.S. dollars per ton of emission reduction, while China about 15 dollars. China’s large energy demand,
many projects in line with emission reduction and economies of scale are conducive to international
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carbon emissions trade and attractable for international capital of emission reduction projects to enter. At
present, China Clean Development Mechanism (CDM) project has reached 36.37 million tons, which is
the largest volume of national CDM carbon trading. ⑤
3.3 Low-carbon economy in China has achieved great results.
As the world’s largest developing country, China is a major low carbon economy practitioner. At present,
China has established the way to develop “low-carbon economy” in response to a series of global
climate change efforts. As a developing country, China need not carry mandatory emission reduction
obligations, but China still initiate a series of energy-saving measures to reduce emissions. In the past 15
years, the reduction of the carbon dioxide and other greenhouse gas emissions of one unit of GDP is
4.9% annually, while the United States, Germany 1.7% and 2.7%. In accordance with our government’s
“Eleventh Five-Year Plan”, the energy consumption of one unit GDP reduces by 20% in 5 years, saving
620 million tons of standard coal, equivalent to 1.5 billion tons less carbon dioxide emissions, which is
the greatest reduction program of low carbon emissions worldwide.
On August 27, 2009, China’s National People’s Congress voted “Low-carbon revolution” in the core of
Energy efficiency and low emissions, which is the first time for the highest state organ to make the
resolution of global climate change. Resolution put forward a series of specific measures to climate
change, including the development of green economy, low-carbon economy and so on.
4.
China Should Have Its Own Clear Understanding and A Rational Strategy
Selection in the Development of Low-carbon Economy.
Western developed countries are vigorously promoting the “low-carbon revolution”, which is in the core
of high efficiency and low emissions and focusing on the development of “low-carbon technologies”.
The global industries, energy, technologies, trade and other policies are facing a major adjustment. In
this situation, China’s economy faces the obvious pressures and challenges. But for the development of
low-carbon economy, China should have its own rational choice on strategies.
4.1 China’s low-carbon economy will be a long-term and systematic project, which should be
gradual and form its own development mode.
From actual situation, China needs to move to low- carbon economy and is also working to transition to
low carbon economy. However, the low-carbon development is not immediate, but a process. As a
developing economy, it is hard and long to get rid of coal energy. China’s resource endowment and
development stage determine that it is absolutely not low-carbon in the short term, not a lower level of
carbon emission as the least developed countries, and also not as well as developed countries, those
reduce greenhouse gas emissions immediately.
Productivity improvement is the basis to realize a win-win strategy, that is to say, low-carbon and
economic growth. At present and a long period of time, our fossil fuels, especially coal accounts for a
monopoly situation in total energy consumption, which can not be changed. High-carbon fossil fuels are
consistent with current urbanization, industrialization and development needs, and finance development
for high-cost carbon-free energy sources. In such case, the large use of fossil fuels, the most important is
to increase energy efficiency. Without development, capital and technology, there will be no low-carbon
economy.
Different from developed countries, China’s low-carbon economy is not a post-industrial low-carbon
development, but to explore a low-carbon development model in the process of industrialization. This
requires us to learn from the successful experience of foreign countries and develop economy at the cost
of any expense in the process of economic development. China’s low-carbon economy will have
contents that foreign countries didn’t experience, so we need to continuously explore and innovate. For
example, the United Kingdom, Japan and other countries treat transport, commercial and public building
and residential energy consumption as the three priority areas of a low carbon economy, but industrial
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structure upgrading and industry energy reducing should become an integral low-carbon economy part
of China’s low-carbon economy development.
4.2 China’s low-carbon economic development should adhere to the fundamental interests of sate,
response to international obligations and responsibilities of China’s greenhouse gas emissions
correctly.
First, as the largest developing countries, China accounts for one fifth the world’s population, which
industrialization, urbanization and modernization process hasn’t achieved. In half of the 21st century,
economic development is the most important. Large-scale infrastructure, industrialization, urbanization,
and improvement of people’s lives are the inevitable trend of social and economic development, which
will make a huge demand for energy. Therefore, as a developing country, we are still in a particular
stage of development and should not afford too many international obligations to reduce emissions. As a
developing country, low-carbon should be relative and not be a binding factor in the development,
which should be different from the developed countries.
Second, as a developing country, China’s largest constraint from the “high-carbon” to “low carbon”
economy is the overall scientific and technological backwardness, inadequate of low-carbon technology
development and reserves. China is technology inadequate in current energy production and utilization,
industrial production and other areas. Technological development capability and key equipment
manufacturing are poor, industrial systems are weak. Although the “United Nations Framework
Convention on Climate Change” formulates developed countries are incumbent to transfer technology to
developing countries, the reality is different. In many cases, China have to buy technologies through
international market, which has become an international constraint on emissions, obviously also a heavy
financial burden.
But in the process of world promoting climate change, China still set the global responsible image of
Environmental Affairs. UN Climate Change Conference held in December 2009 in Copenhagen,
although as a developing country, China is not covered by mandatory emissions reduction program, who
announced the objective of Chinese government is “by 2020 carbon emissions reduction by 40 %-45%
compared to 2005”, which clearly shows the commitment to cooperate with the international social
responsibility.
4.3 China’s low-carbon economy should be enhanced to the level of national development
strategies, and low-carbon economic development should be the key elements of sustainable
development.
For a long time, China’s economy mainly relies on heavy use of energy resources. The cost of this
process is enormous, and the lesson is profound. The development of low-carbon economy will be a
huge challenge to the traditional economic development model undoubtedly, but equally no doubt that
the development of low-carbon economy provides a rare opportunity to achieve the fundamental
transform of economy mode.
As a large developing country, China must speed up industrialization, urbanization and modernization
process, and take gradual path in line with trend of the domestic and world development. Put emphasis
on low-carbon economy transformation and treat low-carbon development model as national
development strategies. From the long-term and global perspective, deploy the development of low
carbon economy and create conditions for transition to a low carbon economy in the adjustment of
industrial structure, regional distribution, technological advances and infrastructure building.
We should actively participate in international exchanges and cooperate on low-carbon energy and
introduce advanced foreign concepts, technologies and capital. Promote production and consumption
patterns change through the adoption of new international cooperation model, institutional innovation,
advanced technologies. At the same time, actively establish policies on low-carbon development
mechanism, and support the low-carbon technology innovation and application. Actively participate in
the international negotiations on climate change and low carbon regulations, and strive for reasonable
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development space; Enhance international image of responsible power through agreements on voluntary
emissions reduction actions in accordance with national conditions and its actual capabilities.
In addition, since industrial revolution, economic and social development relied heavily on fossil energy
technologies. In the post-industrial period, many chemical industries and high-carbon technologies
constantly transferred from developed countries to developing countries through international trade. If
China continues to follow the conventional technologies to develop high-carbon industries which could
be “locked” by carbon-intensive industry facilities when commit to obligations or restrictions of
quantitative reduction of greenhouse gas emissions. Therefore, in the modernization process, China need
plan and budget early to avoid carbon industry and consumption lock.
4.4 For the whole society, pay attention to the concept of change, advocate low-carbon awareness
and low-carbon lifestyle.
Low-carbon economy requires the support of a whole concept of low-carbon society. The whole
community should understand what is low carbon economy, why should develop a low carbon economy,
and how to develop low-carbon economy in order to promote the changes of the concept on production,
lifestyle and consumption.
At manufacturing level, encourage enterprises gradually transform production model from high-carbon
pattern to low-carbon. Introduce low carbon business concept to minimize the carbon emissions of
production. Establish clean production mechanisms for environment protection and form low-carbon
consciousness. On social consumption level, vigorously promote moderate fair and green consumption,
restrict blind, excessive environmental protection consumption. Norm and reduce the supplies and use
of disposable products. Develop green services through social consumption pattern change. Promote
low-carbon technologies development and application in the field of production.
Low-carbon consumption is the guidance and impetus to low-carbon development. If consumers choose
low-carbon products, technology innovation, company production, storage and transport will work for
the direction of low carbon in order to improve competitiveness. Appropriate changes in consumer
behavior can reduce carbon emissions, such as the adoption of sustainable transport, low carbon travel,
which obviously reduce energy consumption and carbon emissions. Low carbon consumption is not
only an idea, but also a social responsibility which all members of society should have. As a developing
and a responsible country, China has the responsibility to take measures to prevent global warming.
5.
Conclusion
Low-carbon economy development is the inevitable choice for China to achieve peaceful and
sustainable development. In a sense, the exploration on low carbon economy from theory and practice
sense is the exploration of the possibility of future development of our country. Low-carbon
development is not only the fundamental way to face global climate change, but also the inherent
demand of sustainable development of China.
References
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[2]. ② (UK)N. Stern. The Economics of Climate Change: The Stern Energy[R], Cambridge: Cambridge
University Press, 2007, 122-132.
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