Promoting Energy Efficiency in China: The Status Quo and Way Forward

Size: px
Start display at page:

Download "Promoting Energy Efficiency in China: The Status Quo and Way Forward"

Transcription

1 Promoting Energy Efficiency in China: The Status Quo and Way Forward Xianli Zhu Copenhagen Centre on Energy Efficiency Copenhagen, 14 June 2016 C2E2 and DIIS Joint Seminar: Improving EE in Emerging Asia

2 Outline About Copenhagen Centre on Energy Efficiency (C2E2) China Energy Status and Trends Energy efficiency policy framework in China Energy demand prospects and EE policy initiatives 2

3 Overview of C2E2 The Copenhagen Centre on Energy Efficiency (C2E2) is a research and advisory institution dedicated to accelerating the uptake of energy efficiency policies, programmes and actions globally. C2E2 serves as the Energy Efficiency Hub of the Sustainable Energy for All (SE4All) Initiative. The Centre's prime responsibility is to support SE4All's objective of doubling the global rate of energy efficiency improvement by Objectives: Accelerated adoption of energy efficiency policies, programmes and actions in countries. Progress towards achieving the SE4All objective of doubling the global rate of energy efficiency improvement by

4 Copenhagen Centre on Energy Efficiency Launched in September

5 Starting Point for SE4All Goals Universal access to modern energy services Doubling global rate of improvement of energy efficiency Doubling share of renewable energy in global energy mix Proxy indicator Percentage of population with electricity access Percentage of population with primary reliance on non solid fuels Rate of improvement in energy intensity Renewable energy share in TFEC The market for energy efficiency investments is very large estimated between USD billion in 2012 USD trillion in investment is required each year until

6 Selected C2E2 Publications 6

7 China's energy consumption continous growth Based on data in BP Statistical Review of World Energy data

8 Energy consumption in China versus other countries

9 Dramatic energy intensity declines since 1980 in China tce/10,000 RMB Source: China Statistical Yearbook 2015 China's GDP energy intensity in 2014 was 74% lower than the level in 1980 and 29% lower than the level in 2000.

10 Trends of EE improvement in China Rate of primary energy intensity improvement, CAGR (%) Level of primary energy intensity, (MJ/$2005 PPP) Cumulative energy savings (PJ) China ,319,738 Northern ,527 America Europe ,096 World ,275,646 Source: SE4All Global Tracking Framework, 2014 During , China consumed around 21% of the global energy, and contributes about 58% of the world energy saving

11 Major energy efficiency improvements in key energy intensive sectors since 1980 In 2013, the average energy use for producing major energy intensive products: Per kwh of electricity at coal fired power plants: down by 26.9% Per tonne of steel: down by 44.9% Per tonne of cement: down by 42.9% Per tonne of ethylene: down by 56.3% Resulting in 1.1 bn tce of energy saving in 2013 based on the 1980 energy efficiency level from coal fired power supply (540 MtCe), cement production (230 MtCe) and steel (420 MtCe)

12 China's energy consumption in 2014

13 Rising importance of energy conservation in Chinese energy strategies 1980s: laying equal stress to energy development and conservation, giving priority to energy conservation in the near Mid 1990s: simultaneously promoting energy conservation and development, giving priority to energy conservation After 2000: energy conservation the top priority in energy development strategy In 2006: resource efficiency was included as a fundamental national strategy, and energy efficiency targets were included as binding targets in the national Five year Plans The position of energy conservation in energy supply policy: equal stress simultaneously promoting Top priority Binding target for social and economic development

14 Energy efficiency policies and measures Energy Conservation Law enacted in 1997, amended in 2007 Supporting standards and regulations to the law Lgislation Mandatory EE labelling for some products EE assessment for gov. approval of fixed asset investment Enhancing law enforcement Command and control Binding EE improvement targets for local governments and included in chief governor performance assessement Forced closure of inefficient and polluting power plants, steel and iron plants, cement factors etc. Fiscal subsidies Economic incentives Tax reduction and exemption Differentiated electricity price Financing support

15 China's Energy Efficiency and CO2 emission reduction targets for the 12th Five year Plan Period ( ) GDP energy intensity redeuction: 16% GDP CO2 emission intensity: 17% Share of non fossil fuel in energy mix: increasing to 11.6% Main pollutant emission: Reduction in Chemical Oxygen Demand and SO2 emissions: 8% each Reduction in Ammonia and NOx emissions: 10% each

16 Decomposition of the national EE intensity reduction target target of 16% among provinces for % 17% 16% 15% 10% Tianjin Shanghai Jiangsu Zhejiang Guangdong Beijing Hebei Liaoning Shandong The targets are further decomposed to government at lower levels The local performance in achieving these targets are included in performance assessment for local governors Shanxi, Jilin, Heilongjiang, Anhui, Fujian, Jiangxi, Henan, Hubei, Hunan, Chongqing, Sichuan, Shannxi Inner Mongolia, Guangxi, Guizhou, Yunnan, Gansu, Ningxia Factors considered in target setting: local economic development levels, past EE improvement records, potential for EE improvement Hainan Tibet Qinghai Xinjiang

17 Success stories Subway in Beijing Till 2006, 2 subway lines, total length 54 km By Dec 2015, 18 subway lines, total length 554 km Currently 26 Chinese cities have rail based public transport, total length 3618 km (of which 73% underground) It is estimated that by 2020 over 50 cities will have rail transport, and total rail length more than 6000 km

18 High speed trains International definitions: min. 250km/hour China started research in high speed trains in 1990s Example: Zhengzhou Beijing: 700 km, 2.5 to 3 hours By 2015, it has built 20,000 km of hgihspeed railways, accounting for over half of the high speed railways in the world China plans to increase the length of its fast speed railway to 30,000 km by 2020 Target for High speed railway development by 2030

19 EE targets in the 13th Five year Plan and China's INDC Peaking of CO2 emissions GDP energy intensity reduction based on 2005 level Share of non fossil fuel in primary energy consumption % 40 45% 60 65% 11.2% 15% 20% CO2 emissions peaking around 2030, and trying for early peacking

20 Challenges Slowing down in GDP growth rate. In 2015, China's GDP grew by 6.9%, the slowest growth since 1990 Taget: by 2020, GDP and per capita rural and urban income shall double on the basis of 2010 level Overcapacity in iron and steel, coal mining, and other energy intensive sectors. Iron and steel production is around half the global total. Big price falls. China has set targets to reduce the overcapacity, which can lead to over 1.8 million jobs losses in iron, steel, and coal mining sectors alone. Resistence from labors

21 Challenges during the 13th Five year Plan ( ) The economic development mainly relies on resource input, lack of innovation, and some industries face severe overcapacity, continuous declines in business profit levels, and frequent big accidents in working place Tight resource constraints, continuing degradation in ecological environment; Economic gaps among different regions, rural areas and country side Shortage of basic public services, big income gaps, rapid aging of the population, and big challenges in eliminating poverty.

22 National Strategies for the period Energy efficiency rennovation for the coal fired power plants: EE targets for existing power plants: max. 310 g coal/kwh; new power plants: max. 300 g coal/kwh Discouraging wasteful energy use, and including EE in all areas and processes of social and economic development Economic structuring reducing the share of energy intensive sectors in economy Sustainable consumption and lifestyle Pollution control and curbing degradation of ecosystems, seeking green growth and sustainable development Seeking international energy cooperation

23 Key points China has made remarkable progress in energy efficiency improvement since 1980s The country's existing economic development pattern heavily relies in energy and other ressource input This has to change to peak the country's energy consumption and CO2 emissions The country has a set of effective policies for energy efficiency improvement It has set some moderately ambitiouse target for energy efficiency improvement by 2030 The country faces some big challenges in the transition toward more energy efficient and environmentally sustainable growth Denmark, EU, and other countries are supporting China's efforts for energy efficiency improvement Realising the SE4All targets of doubling global annual rate of energy efficiency improvement requires faster EE improvement faster in China, how to make this happen?

24 Thanks Xianli Zhu, UN City