1. Progress on Energy Efficiency and Pollution. 2. EV Development in China. 3. China s approach to Green and Low Carbon
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1 GHG-TransPoRD 3 rd Workshop on R&D strategies, innovations, learning and cost of measures to reduce GHG emissions of transport China s Approach to Innovation in Transport Prof. WANG Yi Institute of Policy and Management, CAS December 14, 2010 Brussels
2 Contents t 1. Progress on Energy Efficiency and Pollution Reduction in China ( ) 2. EV Development in China 3. China s approach to Green and Low Carbon Development in Transport ( ) 2020)
3 Government Actions: new concepts of development and highly policy driven 2002: Develop a New Industrialization Pathway 2003: Scientific Outlook on Development: Balanced development; people-centered, comprehensive, coordinated, and sustainable development 2004: Resource-Efficient and Environment-Friendly Society (REEFS) and Circular Economy (CE) 2005: Harmonious Society including man and nature relationship, and innovation-oriented country 2009: Green economy and low carbon development 2010: Transformation of economic development pattern
4 Current Legislative Framework to Sustainability Environmental Impact Assessment Law (2002) Cleaner production promoting Law (2003) Renewable energy law (2006) State Council Circular on REEFS (2006) Industrial regulations, code, standard Energy Conservation Law (amended, 2007) Plan of Renewable Energy Development in Mid- and Long-Term (2007, revising now) Circular Economy Promotion Law (2008) Regulations on E-Waste Mgt (2009) Renewable energy law (amended, 2009) Energy Law (review by NPC, hopefully in 2010)
5 China s actions to address climate change National Climate Change Assessment Report (Dec, 2006; update 2010) National Climate Change Program (June, 2007) China s S & T Actions on Climate Change (June, 2007) White paper: China s Policies and Actions on Climate Change (Oct. 2008) Establish the National Leading Group on Climate Change, chaired by Premier WEN Jiabo Establish the Department of Climate Change under NDRC (2008) A new NPC Resolution on Climate Change (Aug. 27, 2009) National Energy Commission (2010, super coordinating body) 5
6 Targets of the 11 th Five-Year Plan ( ) Approach: comprehensive measures growth model transfer and structural adjustment Innovation orientation Main goals: energy efficiency and pollution reduction Mandatory targets in : per unit GDP energy consumption: 20% (15.61% achieved, ) Main pollutants discharge (SO 2, COD): 10% (13.14% 14% and 9.66% achieved respectively) Water use per unit industrial value-added : 30 % Forest coverage rate: 1.8 % annually
7 Energy intensity target distribution by province during Top-down approach A political commitment Central gov t supervision
8 Progress in Transport Sector Development of comprehensive transport Public transport promotion High speed rail Infrastructure construction Energy saving in transport Fuel economy standard system R & D & D Approach to sustainable auto industry development Energy saving vehicle and alternative fuel vehicle e New energy vehicle development National average fuel consumption (passenger vehicle) Source: CATARC
9 Bus Rapid Transit (BRT) Demo in China Source: CSEP, EF Xian Chengdu Chongqing Kunming Nanning Taiyuan Dalian Shenyang Beijing Jinan Tianjin Shijiazhuang Hangzhou Kunshan Shanghai Changzhou Suzhou Hefei Fuzhou xiamen Dongguan Shenzhen guangzhou
10 Contents t 1. Progress on Energy Efficiency and Pollution Reduction in China ( ) 2. EV Development in China 3. China s approach to Green and Low Carbon Development in Transport ( ) 2020)
11 EV R&D&D in China , 1995 EV research was listed in the National S & T Plan , National Key S & T Industry Development Program , Special plan on EV of the National 863 High Tech Program, 0.88 bn ( ) EV, HEV, FCEV (battery, e-engine, integration); ti R&D&D Car and passenger vehicle Combination of universities, academies and companies , National energy saving and new energy vehicle program (863), 1.1 bn ( ) EV, HEV, FCEV (battery, e-engine, basic tech); Alternative ti fuel vehicle included New model of development: R&D platform technology+policy+financing
12 Experience from EV Development in China Research/innovation in transition lab market single tech industrial chain product d t sale infrastructural t operation MOST multiple department involvement central government local governments + business Policy and standard driving Mass application
13 Local la Activities iti for Green Vehicles Region Period Plan Jilin Province Investment: 62 billion yuan Objective: to make Jilin China s largest and internationally competitive auto industry base - Complete 100 key projects by the end of By 2010, to produce more than 1.7 million vehicles annually, with sales revenue of 320 billion yuan and annual growth of 20% - Sales of auto parts to reach 90 million yuan - The export revenue of vehicles and parts to reach 5 billion yuan - Auto logistics and services to meet the development of auto industry and form the economies of scale Anhui Province Objective: - By 2010, the capacity of Anhui to reach 2 million vehicles annually, and auto parts sales to complete 20 billion yuan - By 2015, the capacity to reach 2.8 million vehicles, including 2 million passenger vehicles and 800,000 business vehicles, and auto parts sale to achieve 70 billion yuan - Prepare to form a cartel of auto makers in Auhui, consisted of Jianghuai Auto, Chery and CAMC, so as to enter national top 10 in competitiveness Beijing Municipality Objective: - During the period of the Eleventh Five-Year Plan, the annual growth rate of Beijing s auto industry to keep at 12%, while production value to reach 160 billion yuan by By 2010, to produce and sell 1.3 million vehicles - To form a industrial cluster joined by Hyundai, Benz-Daimler Chrysler and Futian Chongqing Municipality Mid-long term, 2010, 2020 Objective: - By 2010, to produce and sell 1.5 million vehicles, including 1.2 passenger vehicles, reaching 135 billion yuan in sales and 15% of nation s total - To elevate car s proportion in total sales to 70% - Long-term perspective is to produce and sell 2.6 million vehicles by 2020 and to reach sales revenue of 200 billion yuan - To establish an auto technology R&D system with core competence, in order to make products with self-owned intellectual property exceed 80% of total sales Shanghai Objective: to be the first in China to realize the industrialization of new energy vehicles and transformation of auto energy Municipality - To produce 2 million vehicles by To vigorously develop self-owned brands to make up 30% of total production and let them possess integrated development capability of whole cars and engines
14 Innovation Model of EV Development Innovation model: diversifiedifi d Independent R&D It Inter l coop on R&D, best practice Overseas merging Joint venture Innovation platform and Industrial alliance among gg government, research institutions, auto makers, key component suppliers, etc. Innovation business model: including energy suppliers, grid operators, users, and other stakeholders
15 10 cities and 1000 vehicles Program 10 cities and 1000 vehicles pilot program by MOST, MOF, and NDRC for public use of energy saving and new energy vehicles ( ): 2011) has expanded from 13 to 20 cities now, 5 more will be involved Subsidy Policies to Boost the Promotion of purchasing New Energy Vehicles by private in China, 1 June 2010 pilot in 5 cities i now the highest subsidy at 50,000 yuan for PHEV and 60, yuan for BEV( (private purchasing)
16 10 cities and 1000 vehicles program 私人购车补贴试点城市 * Private buy subsidy cities Other 其他 十城千辆 program 城市 ** cities New cities added 拟新增 十城千辆 城市 * ** Problems: March technologies, infrastructure, cost, standard, etc.
17 Plan and Program Auto Industry Restructuring &Restoration Plan, by NDRC, 2009 Decision on developing new strategic industries, by the State Council, Sept., 2010 Industry development plan on energy saving and new energy vehicle ( ), under drafting, by MIIT, etc. New energy industry development plan, under drafting, by State Energy Agency Special plan on EV S&T development ( ), under drafting, by MOST
18 Policy Making R&D policy Subsidy and demo policy Consumption policy on energy saving vehicle Admittance and deployment policy of enterprise and product Technology regulation and emissions standard Local policies
19 Technology regulation and standard Fuel economy: standard system for passenger vehicle, lightduty commercial vehicle, agri-use vehicle, motor cycle 1 st phase ( ): 9.11 L/100km in 2002 for new passenger vehicle 2 nd phase ( ): 8.13 L/100km in rd phase ( ): phased targets for 2015 (6-6.5) though 2020 (4.5-5) recommended Emissions standard Guo-III (Euro III equivalent) implemented in July 2007 Guo-IV will be implemented in July 2011 by yplan EV technology standard in 2010 Plug-in Charging pile Battery
20 Key obstacles of EV development in China Consensus of technology roadmap Technology bottle-neck and commercialization Infrastructure Cost Consumer acceptance Policy and financing Technology and policy assessment needed
21 Contents t 1. Progress on Energy Efficiency and Pollution Reduction in China ( ) 2. EV Development in China 3. China s approach to Green and Low Carbon Development in Transport ( ) 2020)
22 Approach hi in the 12 th FYP ( ) 15) Approach Mainstream the Economic transformation Promote Green/Low Carbon development New strategic industries development Approach continued on energy efficiency and pollution reduction (energy intensity; SO 2 ) Mandatory targets increased Carbon intensity: 40-45% reduction in 2020 NOx : 10% cut Share of non-fossil fuel: 15% in 2020
23 Increment in the 12 th FYP ( ) 15) Control the total energy consumption rationally Introduce more economic incentives, such as, environmental taxes, establish carbon emissions and trade market gradually Vehicle and Vessel Taxation Law, under drafting Public transportation guidance, by the State Council, coming soon Priority and main orientation of energy saving and new energy vehicles: BEV and PHEV
24 Sustainable Transportation Development Urban development Urban function orientation TOD development Smart growth Transportation development Master plan for comprehensive transport Transport management and ITS Public transport first Incentive policies and urban different policy Green and low carbon vehicle Capacity development, such as monitoring, statistical and evaluation system
25 Technology innovation Integration EV with Smart Grid EV with ICT Product, infrastructure, and market Roadmap needed Tech assessment and foresight adaptive management Cooperation at multi-track March policies
26 Two ways for HEV Tech Development Source: Chen Qingquan, 2010
27 Energy technology roadmap to 2050 Source: Energy Science & Technology in China: a roadmap to 2050,Science Press/ Springer, 2009
28 Financing i Technology Innovation and Deployment
29 Conclusions China s experience for EVs development is based on itself conditions Top-down approach with fast speed development for mass application of new technology, fruitful but costly Economic incentives and market-based instruments will be introduced and seek for combination of top-down and bottom-up There are some dilemmas and uncertainties ti among different development and protection targets, mode shift, roadmap, tech prioritizing, mass application, institutional arrangements, etc. However, take concrete actions, learn by doing, and keep policy flexible are important t Among obstacles in China, technology bottle-neck and commercialization for EV development are more serious EV development is not enough to achieve sustainable urbanization in China. Rational urban planning, smart growth, coordinated & intelligent & integrated transport development, public transport first and march policies are necessary for a green and low carbon future
30 Thanks for your attention! i The GHG-TransPoRD 3 rd Workshop December 14-15, 15, 2010, Brussels
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