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China’s Necessity and Policy Options of Developing Low-Carbon Economy ZHOU Rui, FAN Weiguo School of Economics, Shandong University of Technology, Zibo, Shandong, 255049 [email protected] Abstract: The sustainable development of humankind is the world's major issues of social concern, along with the carbon dioxide emissions continue to grow, Europe, the United States and other developed countries has led to the development of low-carbon economy. China, as a country which gives priority to low-end manufacturing, should also be actively in developing system policy, and occupies the commanding heights of low-carbon economy through changes in the way of economic development, the development of low-carbon technologies, strengthening international cooperation and other measures. Keywords: Low-Carbon Economy, Connotation, Necessity, Policy 1. Introduction Global Warming is a concern of the international community nowadays. World economy’s increasing request of oil, coal and natural gas has made the increasing carbon dioxide emissions, and greenhouse gas emissions and the resulting environmental and ecological issues will be further intensified. Facing global warming challenge, United Kingdom and other European countries promoted the development of “low-carbon economy”, as soon as Japan suggested the construction of low-carbon society, the world competed to develop low-carbon cities. On the one hand, our country has problems of energy tension, low average share of resources and serious environmental pollution, the development of low-carbon economy is conducive to the spread of modern energy services, renewable energy, and energy efficiency, improve energy structure and enhance energy security. On the other hand, the global climate warming causes our country to face the big international shift emissions pressure, development of low-carbon economy is a necessary required economic development model of “Reply to Climate Change in China”. Therefore, how to embark actually from our country, develop low-carbon economy, and gradually reduce the high carbon energy dependence, is the scientific development concept objective request, and is also the solution of urgent reality pressure and international responsibility. 1.1 Connotations of low-carbon economy Low-carbon economy can be understood in two aspects: First, the low-carbon economy refers to the low energy consumption, low emission, low-emission-based economic model, its essence is the energy efficiency and clean structure issues, and its core is energy technologies and emission reduction technology innovation, industrial structure and system innovation, and human survival and development of the concept of fundamental changes. Low-carbon economy has three aspects: first, low-carbon economy is relative to the unconstrained, carbon-based intensive energy production and energy consumption of high-carbon economy, development of low-carbon economy is the key to lowering energy consumption and carbon emissions (i.e. carbon intensity), control of CO2 emissions. Second, low-carbon economy is relative to the fossil-based energy model of economic development, the development of low-carbon economy lies in promoting economic growth and energy consumption caused by carbon emissions gradually hook. Third, the low-carbon economy is relative to the person for purposes of carbon fluxes, is to address human-caused carbon turnover increase in the Earth's ecosystem imbalance of humanity self-preservation, the development of low-carbon economy is 366 the key to change people's high-carbon propensity and live a low-carbon life. [1] Second, from the connotation, low-carbon economy includes low-carbon production, distribution, circulation and consumption these four links, Second, from the connotation, low-carbon economy includes low-carbon production, distribution, circulation and consumption these four links, the core of which is, on the basis of market mechanisms, policy innovation and system design, to improve energy conservation technologies, renewable energy and greenhouse gas mitigation technologies, to establish low-carbon energy systems and industrial structure, and to a achieve low-carbon production, circulation, distribution and consumption. [2] 1.2 Features of low-carbon economy Generally, the low-carbon economy has two essential features. First, low-carbon includes production, exchange, distribution and consumption throughout the entire process of social reproduction, the target points to minimize carbon dioxide and other greenhouse gas emissions until achieving zero emissions, and thus get the most out of ecological and economic benefits; Second, low-carbon simultaneously also includes energy use ecology of production, exchange, distribution and consumption and throughout the entire process of social reproduction, in order to form low-carbon energy, or even non-carbon energy national economic system, and guarantee the entire economic society's clean development. 2. The Necessity of Developing Low-Carbon Economy in China 2.1 The background on which low-carbon economy is proposed Generally, on the formation and background of low-carbon economy concept, there are the following three aspects. First, the most direct and underlying reason of low-carbon economy proposal are to cope with climate change. Anthropogenic emissions of carbon dioxide and other greenhouse gases has caused global warming, in turn, it affected human survival and development of their own. Reduce the carbon intensity will be the protection of our common objective need of the Earth. Second, the developed countries have passed the development stage of using carbon-intensive energy sources as main driving forces. In other words, to maintain the existing level of welfare of developed countries, it is not necessary to rely on carbon-intensive energy sources, especially coal production and consumption. Empirical studies show that China's heavy chemical industry of energy intensity is three times more service industry. From the process of industrialization, the United Kingdom, the United States and other countries have achieved fully industrialized and urbanized historical task in the century, or we can say that, they have passed a massive consumption of coal, oil and other fossil energy development stage. During the latter part of the industrialization stage, these countries, main purpose of production is to meet the needs of people's lives, with the exception of car required consumption of petroleum products, food, housing, etc. can not rely on carbon-intensive energy production and consumption. Generally speaking, the industrialized economies of developed countries is the "high-carbon economy", which has high energy consumption and high carbon emissions as the main character, there is no country in the world can achieve industrialization depend on low-carbon energy sources. For the developing countries including China, to get rid of poverty and raise the living standards is still a historic task, and the first important matter. Therefore, the development of low-carbon economy is a huge challenge to developing countries. Third, the use up of coal, oil and other energy resources is an inherent request of developing low-carbon economy. From the world's energy reserves, the fossil energy can also be exploited for a long time. Shan Bao. Reading from Low-Carbon Economy. (11th 2009) (in Chinese) Li Sheng, Chen Xiaochun. Low-Carbon Economy: Connotation System and Policy Innovation. (10th 2009). (in Chinese) [1] [2] 367 Under the existing technical and economic level and mining, if coal can be used for many years, the oil can be used for many years; the hydrogen in the water is endless for future resources. For all this, we should also see that, the economic cost of using the fossil energy is getting higher and higher, the specification is getting stronger and stronger. Therefore, the key point of developed countries to deal with the climatic change is energy conservation, exploring and using renewable energy sources and electric automobile etc. technologies. Considering the energy resources sustainable use, the research and development of the third generation nuclear power technology, energy conservation technology, solar energy, wind energy and other renewable energy source development use technology, hydrogen energy technology, electric automobile and so on, have become the areas that developed countries expand investment in. 2.2 The necessity of developing low-carbon economy in China 2.2.1 China's strong dependence on energy resources. Although our energy structure continues to be optimized, but the primary energy is still the production of coal. There is more coal, less oil and few gas resources, determines that coal will remain the main primary energy in our future for quite some time. The coal belongs to the “high carbon” the energy, our country does not have the condition resources of inexpensive use of international “low-carbon” energy and the energy intensity product exports massively, and it also increased our country's Unit carbon intensity. Under the constraint of “The United Nations Framework Convention on Climate Change” and “The Kyoto Protocol”, carbon dioxide and other greenhouse gas emissions of development resources in international negotiations on climate change mitigation measures and decomposition in fact also in contention for emissions of this development. International energy products constantly raise the price, it gets more and more high, survival, risk-resistant ability is getting worse, and that would seriously affect the stability of our country's economic growth. 2.2.2 China's insufficiency on technical and research innovation capacity. China's insufficiency of technical and research and innovation capacity, is the reality we have to face, and also our greatest challenge in shifting from “high-carbon” economy to “low-carbon” economy. Although “The United Nations Framework Convention on Climate Change” and “The Kyoto Protocol” required the transfer of technology from developed countries to developing countries, but the implementation is not optimistic. Since the Reform and Opening Up, the implementation of the “market for technology” policy. However, automobile and other high technology content of the product markets were occupied by foreign companies, we did not get much of core technology and intellectual property rights. “Cash cannot buy the core technologies”, our country needs to develop the technologies independently and so on, this became mutual recognition between people of insight. The developed countries have not started long on these technologies, it is not a big gap between them and our country. In recent years, China's renewable energy exploitation industry is rapidly increasing. If China increases investment in this field, we can achieve it by leaps and bounds. 2.2.3 Carbon emission becomes new trade barrier, In the global economic recession caused by financial crisis, the carbon emissions are becoming the new green barriers in developed countries, and becoming a new weapon in the trade war to suppress the advantages and limitations of the Chinese exports. Moreover, the carbon emissions will become an important international strategic resources. China's place is in the low end in the industrial chain in the international industrial division, resource and energy-intensive exports accounted for a larger scale, which will be provided at the local strategy for the future development of the space industry. Finally, as a result of the carbon emissions of greenhouse gases, environmental contamination caused serious consequences, which hindered the development of our national economy. 3. The Policy Measures of the Development of Low-Carbon Economy in Some Developed Countries 368 To meet the implementation of “The Kyoto Protocol” and other international treaty provisions on climate change, the developed countries took the lead in the development of low-carbon economy, and have achieved certain results. Emphasis on economic development, while at the same time contributing to discharge low-carbon economy, and recognizing the rights and interests of the developing countries, while at the same time for both developed and developing countries through further economic and social changes in the pattern of development. [3] 3.1 Britain's policy measures in developing low-carbon economy UK is one of the earlier countries started to explore on low-carbon economy , in a more systematic and comprehensive climate change response policies, the policy is a comprehensive, systematic and comprehensive features of the legislation, from a macro to the enterprise, among the various measures. The UK is the most positive advocates and practitioners on controlling world's climate change, and also the pioneer in this field. “The Kyoto Protocol”, the goal of which stipulated for European Union is the greenhouse gas withdrawal reduces row of 8% to 2012 in 1990 foundation, “reduces the displacement according to the European Union interior to share the agreement”, Britain's goal was in the level reduces row of 12.5% to 2012 in 1990. But Britain formulates the domestic target is, to make every effort to reduce in 2010 the carbon dioxide row of 20%, to reduce row of 60% to 2050, and achieve the low-carbon economic development. To promote low-carbon economy through incentives, is a distinctive way of the UK's climate policy . British carbon economic practice of energy and environmental policy development and the transition to a low carbon economy is of great significance. First, climate change tax (CCL) system. Climate change tax, i.e. energy use tax system is a core part of UK's overall strategy on climate change. Climate change tax was enforced from 1 April 2001, in view of the different varieties of the rate of different energy, the taxation object also has a detailed and specific requirements. Government climate change tax revenue primarily through three channels: first, returned to the enterprise is all climate change levy is a tax paid to the employees of the enterprises of the national insurance lower 0. 3 percentage points; second is through “strengthening investment subsidies” project encourages enterprises to invest in energy-saving and environmentally friendly techniques and equipment; and third, for the establishment of carbon fund industry and public sector energy efficiency Consulting offers free, on-site survey and design recommendations, and for small and medium-sized enterprises in promoting energy efficiency. Second, the Carbon Fund. Carbon Fund is the investment by the United Kingdom Government, by enterprises to operate as an independent company, which was founded in 2001. The main sources of carbon Fund is climate change tax, from the 2004/2005 onwards, the two new sources, landfill tax and from the UK Department of trade and industry of small amounts of money. 3.2 Germany's policy measures in developing low-carbon economy The main implementation of climate protection in Germany's high-tech strategy. In August 2006, Germany has launched the first cover all policy areas of “The High-tech Strategy for Germany” with a view to continuie to strengthen the innovation strength to Germany in the future of the tech market ranked in the world. “High-tech strategy for Germany”, since the start of scientific and economic circles for industrial research and development gave birth to future technologies raise 30 billion euros of private capital, to Germany's technological innovation provides tremendous financial support. In order to achieve the climate protection goals, from 1977 until now, the German Federal Government has introduced five energy research projects, the latest issue of plan from 2005 to improve energy efficiency and renewable energy development, and adoption of “high-tech strategy for Germany” provides fund support. [3] Guo Yin, Wang Minjie. Present Situations and Trends of International Low-Carbon Economy Developmeng. (11th 2009) (in Chinese) 369 4. The Problems We Met in Developing Low-Carbon Economy There are the following problems we met in developing low-carbon economy. 4.1 Our country is on the stage of rapid request of energy demand China's industrialization, urbanization, modernization, is on the stage of rapid request of energy demand, the development of high-carbon characteristics highlight the unavoidable emissions, sustainable development and has become one of the greatest constraints. Our resources condition determines the energy structure of coal-based, large thermal power station construction on environmental threats to the inestimable. 4.2 Backward in industrial producing technology The main body of China's economy is the secondary industry, which determines the energy consumption of the main sectors of the industry, while industrial production technology backward exacerbated China's economic characteristics of high-carbon. 4.3 Lack of technology innovation system As a developing country, China's economic transition to a low-carbon from high-carbon by the biggest constraint is the overall technological backwardness, technical research and development capacity is limited, if rely on imported technologies to commercial channels, we need a huge amount of money invested. Developed countries to adopt energy efficiency, low emissions as the core of the development of low carbon revolution, investing in low carbon technologies, and industry, energy, technology, trade policy is a major adjustment, and production before the commanding heights of preemption, and our technical and financial constraints, the elaboration of international rules on cannot have more right to speak. However, the development of low-carbon economy is to achieve sustainable development, the transformation of the economic development model in a rare opportunity. 5. Our Country’s Methods and Policy Options in Achieving Low-Carbon Economy 5.1 Convert of economic development model Achievement of low-carbon development first requires to adjust the economy, their requirements and accelerate change in China's economic development, industrialization strategy overall requirements are basically the same. 1. From the pursuit of speed of development, to emphasize the development of quality change from dependence on exports and industry to promote economic, based on domestic demand and secondary and tertiary industries, and pull together. China's greenhouse gas emissions in the 20% ~ 30% were foreign demand stimulation of dependency of the current emission calculation method based on the principle of the country in the international climate negotiations are facing great pressure. In addition, the development of China's service sector is obviously not only substantially lower than developed countries, but also significantly lower than the average for developing countries. The economic structure of the return of rationalization will benefit from the change from high-carbon to low-carbon. 2. From the main reliance on material input, to rely on scientific and technological progress, improve the quality of labor, management changes and create the same economic results, are physical products (especially energy-consuming products) of mass production, and the more developed countries was product design, marketing services, financial services, education, industry, and even cultural entertainment, the production of material goods. The latter units of the added value of greenhouse gas emissions. 3. From the industrialization of the incremental development by leaps and bounds, transformed from industrialized countries to a certain extent can reduce industrialization process of greenhouse gas 370 emissions, but the premise is better able to absorb the predecessors in industry, science and technology, management, and other aspects of the creation of advanced results. Our country must adhere to Central's new industrial road, for a number of areas. 5.2 Exploring low-carbon technologies The value low-carbon technology's research development and the technological strength are feasible according to the technology, the economical reasonable principle, the research proposed that our country low-carbon development's technical road map, promotes the high energy efficiency low-carbon emissions technical research and development and the promoted application, establishes the energy conservation and the energy efficiency, the cleaner coal and the clean energy, the new and renewable sources of energy as well as the natural carbon gradually collects and so on multiplex low-carbon technology systems to speed up to the coal-burning highly effective power technology, catches and seals the high performance electric power to save, the ultra highly effective heat pump, technical research and development and so on hydrogen production, transportation and memory, form the technological strength, provides the powerful support for low-carbon reforming and the growth way transformation. Development of low-carbon economy is the key to low-carbon technology innovation capacity determines our country can achieve low-carbon economy, including energy-saving and efficient use of clean coal, oil and gas resources and coaled methane exploration and development, renewable energy and new energy, carbon dioxide captures and storages areas to develop effective control of greenhouse gas emissions, new technology, electric power, transportation, building, metallurgy, chemical, petrochemical and automotive sectors. Experts estimate that only save carbon dioxide capture technology that allows human emission reduction actions to reduce 30% of the cost. The replacement of fuel, efficient use of energy, increases the utilization of renewable energy, carbon dioxide capture and integration measures can effectively reduce emissions of greenhouse gases. The developed countries have the mature low-carbon technology, our country must through the international consultation and the cooperation mechanism, and the promotion developed country to our country's technical transfer, the enhancement low-carbon technology international introduction, the digestion and two innovations. Our country should participate in the international energy technology market and the carbon trading market positively, promotes the sustainable development through each kind of incentive mechanism, and for low-carbon technology, low-carbon product export formulation incentive mechanism. 5.3 Making low-carbon policies Development of low carbon policies, the formation of low-carbon development of long-acting mechanisms to address climate change legislation feasibility study in the relevant statute revision process, increase climate change related articles, and gradually established a climate change regulatory system. The development low-carbon economy supports our country to establish the carbon emissions statistics to monitor and to manage the system, gradually setup area greenhouse gas emission standard and inspection system; The research formulation drive low-carbon economic development's special operational policy measures, set up development low-carbon economy the special fund; The research establishment advancement low-carbon economic development's mechanism and the laws and regulations safeguard system, at the right moment formulates the low-carbon economy promotion law; The establishment scientific innovation mechanism, supports the technology development, the industrial production demonstration and the achievement transformation; The improvement enterprise participates in the environment, enhances public to realize and to strengthen the international cooperation and so on. China should be targeted at different levels of development and regional features, select a number of provinces, autonomous regions and municipalities, according to the low carbon economic development in the different contents and objectives of the pilot work experience to exploration of low carbon economic development path. Low-carbon economy will also need to incorporate into national economic and social development and planning; in particular with a view to the development of low-carbon economy will be incorporated into the development planning and focus on industrial development plan 371 to establish a low-carbon economic development in the area model and the industrial mode. 5.4 Strengthening international cooperation Strengthening of international cooperation, research and development form a low-carbon technologies in the international negotiations on climate change, it is necessary to uphold the principle and the use of the international community has reached the spirit of the Convention and files, on sustainable development, common but differentiated responsibility, we must adhere to the principles and the attitude to actively concession, but not radical, action should take the initiative and not blind faith, policies to be flexible and keep pace with the times. Our country should advocate that developed countries must mandatory emission reduction, the cost of developing a voluntary emissions reduction must be excessive emissions in the history of the industrialized countries undertake to establish responsible developing country image. Developed to developing countries, greenhouse gas emission reductions of capital and technology. Through the climatic change international cooperation's new mechanism, the introduction, the digestion, the absorption advanced suitable low-carbon technology participates in the formulation profession energy efficiency and the carbon intensity international standard, the range pole, causes our country key industry, the key field low-carbon technology, the equipment and the product achieves international advanced and even the advanced standard. 6. Conclusion As the largest developing country in the world, our country is faced with emission reduction obligations and to fulfill the right to development, the development of the dual mandate, and has become a low carbon economy in the future the only way to achieve sustainable development, and developed a low-carbon economy as we walk the road of low carbon development provides a valuable experience. In the future, our country should continue to increase its energy conservation and emission reduction working in national legal and policy-level support to encourage relevant local laws and regulations of the formulation and implementation; as soon as possible on the development of renewable energy business subsidy policies, on renewable sources of energy to develop reasonable price, so that the use of clean energy business profitable in order to advance energy savings, optimizing energy structure; accelerating the pace of industrial restructuring, strongly supporting the modern service industry, such as the development of low-carbon industries, with a view to be in the new round of low carbon technology revolution, the commanding heights of the occupation. References [1]. Zhang Lu. Brought by Global Low-Carbon Time. (8th 2009). (in Chinese) [2]. Bai Quan. Characters, Directions and Key Points of Our Country’s Low-Carbon Development. (8th 2009). (in Chinese) [3]. Shi Qiao. Low-Carbon Economy: the Inner Force that Leads Growth and Transformation. (2nd 2009). (in Chinese) [4]. Li Sheng, Chen Xiaochun. Low-Carbon Economy: Connotation System and Policy Innovation. (10th 2009). (in Chinese) [5]. Zhou Hongchun. China’s Policy in Low-Carbon Economy. (10th 2009). (in Chinese) [6]. Guo Yin, Wang Minjie. Present Situations and Trends of International Low-Carbon Economy Developmeng. (11th 2009) (in Chinese) [7]. Wang Wenjun. Britain's Policies on Climate Change and Its Implications. (9th 2009) (in Chinese) [8]. Shan Bao. Reading from Low-Carbon Economy. (11th 2009) (in Chinese) 372