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EASTERN ACADEMIC FORUM The Study on the Development of Low-Carbon Economy in China GUO Songzhen Henan Institute of Engineering, P.R.China, 450007 [email protected] Abstract: With the increasement of the conflict between the resources environment, population growth and ecomomy growth, it is especially important for us to develop the low-carbon economy based on low energy consumption, low pollution and low emission. From the aspects of global climate change, sustainable development of Chinese economy, carbon tariff and industrial structures, this paper analyzes the necessity of developing low carbon economy and puts forward the covering countermeasures so as to promote the healthy development of low carbon economy in China. Keywords: Low carbon economy, Sustainable development of economy, Climate refugees, Renewable energy source 1 Introduction Due to the global population growth, global economic growth and the aggravation of environmental pollution, the concentration of carbon dioxide in the atmosphere has been increasing sharply which leads to the problem of global warming. Global warming is not only a health threat to us humans, but also can seriously destroy the bio-diversity and the survival an developing environment which we depend on so much. Under the background of global warming, developing the low-carbon economy has become the focus of the world. Low-carbon economy is an economic pattern characterized by low energy consumption, low emission and less polluting, which aims to reduce carbon dioxide emission by calling upon people to try to reduce “carbon” emission both in life and in production. Generally speaking, it is in fact a green economy characterized by higher energy efficiency and a clearner energy structure. Meanwhile, having mastered the core low-carbon technology, some developed countries have successively proposed the strategies of developing low-carbon economy. To some extent, the core low-carbon technology has become the key factor to win in the industry competition, technology competition and economic growth competition. In order to relieve the pressure of reducing emissions and realize the sustainable development of Chinese economy, we should develop the low-carbon economy positively. 2 The Necessity of Developing a Low-carbon Economy in China 2.1 The basic approach to tackle the global climate change Recently, the green-house effect caused by carbon emissions leads to the global warming. And the desertification as well as the rising sea levels have been doing great harm to our living environment. According to The Guardian, there will be 150 million climate refugees to flee their homes by 2050 in the world. And the island countries such as Tuvalu, Maldives and so on will have to sink into the sea and disappear from the world forever. According to the latest research conducted by the Cold and Arid Region Environment and Engineering Institution, in recent 50 years, the average tempertures of west China has risen to 0.2 every ten years, which made 82% of the glaciers in melting state [1] and made the extreme weather events increase dramatically. To some extent, the things melted are not only the glaciers,but also the future of all human beings. The United Nations’ Intergovernmental Panel on Climate Change declared that 80% of the Himalayan glaciers could disappear in less than 30 years [2], which may cause serious water shortage in Asia. Undoubtedly, the global warmng changed the environment and the change of our environment will influence the whole world. Therefor, we should ℃ 220 EASTERN ACADEMIC FORUM develop low-carbon economy positively for the sake of improving our living environment and saving our earth. 2.2 The inherent requirement of achieving sustainable development of economy in China Sustainable development is a pattern of resource use that aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for future generations. Due to the difference of resource gift, there are large demands for the fossil fuels such coal and oil. And the consumption of coal occupies 2/3 of all the primary energy. Being a kind of non-renewable high carbon energy, coal will cause serious air pollution. In addition, owing to the restriction of equipment, technology, energy and the management, the amount of GDP in China is higher than that of other industrial countries and its energy efficiency is only 1/4 of other industrial countries[3]. Therefore, we should take advantage of this opportunity to enlarge the investment in both the technological innovation and the development and utilization of the important secondary energy and the renewable energy such as wind energy, solar energy, water energy, biomass energy, geothermal energy, and ocean energy and so on. Only by doing this, can we reduce green-house gas emissions and achieve the sustainable development of China economy. 2.3 The necessary means to cope with carbon tariffs In order to protect the interests of the EU countries, the former French President, Jacques Chirac, proposed to impose carbon tariffs on imports from developing countries which do not adopt the Kyoto Protocol. And some developed countries has begun to set limits on greenhouse gas emissions for domestic enterprises, which must pay for the amount of emissions exceeding the limits. Undoubtedly, the carbon tarrifs will play an positive role in protecting the environment, but on the other hand, it will become a new kind of green trade barrier which leads to trade protectionism under the guise of environmental care. Although China and other developing countries absolutely opposed the imposition of carbon tariffs,stating that carbon tariffs would violate the rules of the WTO and the spirit of the Kyoto Protocol, on June 26, the U.S. Clean Energy and Security Act, passed by the House of representative, which allows the U.S. President, starting in 2020, to impose a tariff on imports of carbon-intensive goods, such as steel, cement, glass and paper, from countries that have not taken steps to reduce their own carbon emissions. Since 2010, the EU has been making its carbon tariff plans. If it becomes true, the goods made in China will be imposed 26% tariff which can make the exports of China reduce by 21% [4]. Therefore, in order to cope with the carbon tafiff and ensure the healthy developmeng of international trade in China, we should take effective measures to develop the low-cabon economy. 2.4 The motivation and target to optimize the industrial structure During the period of rapid economic growth, the electric power industry, the steel industry, the nonferrous metal industry, the building materials industry, the petroleum and chemical industry and the chemical industry are the pillar industries in China. According to statistics, the growths of the first industry, the second industry and the third industry in China respectively account for 10.2%, 46.8% and 43.0% of the overall GDP in 2010. And the growth of light industry accounts for 13.6% and the heavy industry accounts for 16.5% [5]. Our energy structure is dominated by coal, accounting for 70% of total energy. Being constrained by the energy structure, industrial structure and the core technology, the energy consumption of the six industries accounts for 70% of the total energy consumed. Therefore, high-carbon is still the characteristic of the mode of our economic development, which definitely imposes tremendous pressure on China to reduce emissions. Although China are experiencing a remarkable economic expansion, China’s existing mode of ecomomic development is still not sustainable because of its high-carbon emissions. Current growth rates in energy consumption in our industry will make china be increasingly dependent on coal as well as other high-carbon energies, which will become an obstacle to China’s sustainable development. Therefore, the first thing for us to do is to optimize the industrial structure and change the existing mode of economic development so as to 221 EASTERN ACADEMIC FORUM develop China’s low-carbon economy sucessfully. 3 The Measures to Develop a Low-carbon Economy The goal of developing a low-carbon economy is to cut the energy consumption per unit of GDP and to achieve the sustainable development and the modernization construction in China. And by 2050, China will achieve its strategic goal of separating the carbon emissions from the economic development. Therefore, we should take effective measures to develop a low-carbon economy so as to improve our living environment, boost our international competitiveness and relieve the international pressure we are facing. 3.1 Optimizing the industrial structure and improving the energy efficiency During the course of industrialization, optimizing the industrial structure and improving the energy efficiency is the most efficient way to reduce the carbon emissions. Therefore, we should speed up the development of the carbon-free alternatives as well as the renovation, upgrade to the high-carbon industry in China. Firstly, we should accelerate the research and development of the core technology involving low-carbon and carbon fixation. Meanwhile, under the support of the relevant technical standards, incentive policy and tax system, we should try our best to promote the low carbonization and realize the increasement of energy efficiency. Secondly, we should explore the developing pattern of low-carbon economy and perfect the attestation work concerning “Low-carbon Industry in China” and “Low- carbon Products”. At the same time, we should encourage the development of low-carbon industry. Thirdly, for the purpose of saving energy and reducing emissions, we should speed up eliminating the backward production capacity and introduce advanced experience and technologies on energy management from developed countries. For example, with the help of Rockwell Automation, Yangzi petrochemical company Ltd. can save energy for 10 million KWH per month and save $74,000 per year. Fourthly, we should develop the third industry and the carbon industry so as to increase forest carbon sink. Forest is the most efficient terrestrial ecosystem which can absorb, fix and store carbon dioxide. So in order to achieve the goal that the forest coverage rate will reach 23% by 2020, we should strictly observe theforest cutting quota system to ensure the sustainable development of forest resources. And on the other hand, we should start the public ecological forest construction and the urban and rural greening projects. 3.2 Developing and utilizing the renewable energy China is a large country in the world for its renewable energy. Renewable energy refers to non-fossil energy of wind energy, solar energy, water energy, biomass energy, geothermal energy, and ocean energy, etc. So reasonably develop and utilize the renewable energy is an effective way to develop the low-carbon economy and to achieve the sustainable development in China. Therefore, we should increase R&D investment on the new energy and strengthen the development and utilization of the new energy and renewable energy so as to push the establishment and development of the renewable energy market. In order to promote the development and utilization of renewable energy, improve the energy structure, diversify energy supplies, safeguard energy security, protect the environment and realize the sustainable development of the economy and society, the Renewable Energy Law of People’s Republic of China was put in practice on January 1st, 2006. And according to this law, Chinese government will list the development of utilization of renewable energy as the preferential area for energy development and can promote the construction and development of the renewable energy market. Meanwhile, Chinese government should encourages economic entities of all ownerships to participate in the development and utilization of renewable energy and protect legal rights and interests of the developers and users of renewable energy on the basis of law. In addition, the relevant energy authorities should prepare and promulgate development guidance catalogs for renewable energy industries. Furthermore, a special fund should be set up for the renewable energy so as to cut the relevant cost and avoid some 222 EASTERN ACADEMIC FORUM risks. While at the stage of commercialization, the financial institutions may grant tax benefits or offer preferential loan with financial interest subsidy to renewable energy development and utilization projects. 3.3 Expanding cooperation for low-carbon economy It should be noticed that the climate change is not only an environmental problem but also a political problem which is vital to the whole world. Since there is a lot of room for cooperation on economic development and climate change and energy issues, developing low-carbon economy calls for more cooperation among countries. In fact, it is our duty to tackle the threats of climate change. Therefore, both the developed countries and the developing countries should have more multilateral and regional cooperation. Since most of the developed countries have a lot of advanced technology and experience in developing low-carbon economy, they are now the leaders in low-carbon technology, energy saving research, environmental protection legislation, etc. Therefore, the developed countries should share these technology and experience with the developing countries and help them solve the practical problems in the process of low-carbon economy development. And on the other hand, as one of the largest developing countries, China should take the opportunity to launch a series of technological and fiscal support policies to promote the use of non-fossil, renewable energies including wind, solar, biomass, geothermal and nuclear power, aiming to increase its proportion of renewable energy consumption to 15% by 2020. 3.4 Advocating low-carbon lifestyle Following the Copenhagen Conference, China set a target of cutting the nation’s carbon intensity by 45 percent by 2020 compared with the level of 2005, which bring a great challenge for the government and people of China. In fact, climate change is not only a concern of the government official, but also an issue that involves everybody. Therefore, saving energy is every citizen’s responsibility. Now more and more people have been aware of climate change and environmental issues and are willing to live a low-carbon life.The so called low-carbon life means reducing carbon dioxide emissions at every opportunity, it is essentially a lifestyle characterized by low energy, low consumption and low cost. The low-carbon life can help us live a healthy life and can make the environment more beautiful. Meanwhile, it can cut our daily spending greatly and relieve the pressure on the earth accordingly. In order to ensure the successful development of low-carbon economy, we should strengthen the propagandism about low-carbon economy and low-carbon life, popularize the covering knowledge of life and set up the concept of low-carbon life, healthy life and green life in the society so as to improve people’s awareness of environmental protection. In addition, the government can launch a series of environmental campaigns to advocate the whole society to use energy-saving products such as energy-efficient light bulbs and solar water heaters to replace traditional products so as to reduce the emissions in our life. 4 Conclusion The sustainable development of low-carbon economy presents China an opportunity to realize the transformation of economic growth mode, promotion of economic restructuring and the development of the international trade. Developing low-carbon economy is not only the demand of China to achieve its own sustainable development, but also the contribution made by China to the global efforts to fight climate change. Therefore, we should try our best to develop low-carbon economy to push the development of the global green economy. References [1]. Zhang Ke. Drought Crisis: The Guest to Iceberg. CBN.2010: C02. (in Chinese) [2]. Li Jifeng. Climate Refugees Forced to Flee away Homes. Shangdu Weekly. 2009. (in Chinese) 223 EASTERN ACADEMIC FORUM [3]. Wang Haiping. Developed Countries’s Dependence on the Market to Fulfill the Agreement. 21cbh. 2010:024. (in Chinese) [4]. Huang Yinglai, Huang Yingchuan. The EU to Impose Carbon Tariffs Products Made in China to be the First. Nanfang Daily. 2010:A09. (in Chinese) [5]. Statistical Communiqué of the People's Republic of China on the 2010 National Economic and Social Development. National Bureau of Statistics of China.2011. 224