Chinas Energy and Climate Policies

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Chinas Energy and Climate Policies
Kejun JIANG Kjiang_at_eri.org.cn Energy Research
Institute, China
ERI, China
ERI, China
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Energy Policies Before 2003

• National Laws and Planning
• Energy Conservation Law, 1997
• Five Year Energy Planning, every five year
• Long-term Energy Planning, 1996
• Renewable Energy Development Framework, 1996
• Electricity Law, 1995
• Coal Law, 1996

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Energy Policies Before 2003

• Energy Standard/regulation
• Energy Efficiency Standard for many industry
  products
• Subsidy for wind power, 0.7yuan/kWh
• Limitation of small size energy plants/energy
  intensive production factory

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Energy Policies Before 2003

• Energy Reforming
• Energy Price changing from government price to
  market price, nearly finished now(by 2006)
• Power generation sector (separate from government
  control to be business activities, separate
  distribution and generation)
• Oil and Natural Gas industry established three
  big oil company, no more government agency (Oil
  Ministry)

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Energy Policies After 2003

• Energy issue is becoming crucial concerning of
  government, because
• Sustainable development is an important voice in
  recent years circular economy is widely accepted
• Widely spread energy shortage power shortage in
  24 provinces in 2004 Gasoline shortage in Guang
  Dong province in 2005
• Environment target was not reached in 10th Five
  Yeay Plan, energy is key driving force
• Accident in coal mine is widely known by public,
  and major concerning of government on improving
  life and working standard of rural employees
• Energy price increase is getting much more
  attention on energy

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Energy Policies After 2003

• National laws and plan
• Long- and Medium-term Energy Conservation Plan,
  with much more concrete content, 2004
• Renewable energy law renewable energy target by
  2020, 2005
• 11th Five Year Energy Plan National energy
  intensity target(20 energy intensity reduction
  in 2010 compared with that in 2005)

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Energy Policies After 2003

• Standard and regulation
• Vehicle fuel efficiency standard
• Strictly implementation of building energy
  standard in many provinces and cities
• Implementation of energy label of electric
  appliances
• Release control on coal price for all users
• Higher consumption tax for larger engine vehicles

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Energy Policies After 2003

• Administration
• Establish energy leading group
• and office for the leading group was formed,
  similar size with energy bureau, to take over
  energy strategy and policy in China

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Sustainable Development and Energy Policies
Renewable energy law renewable energy target by
2020 Wind 30GW Solar Power PV 1.8GW Solar
heater 300million m2 Biomass
Power 30GW Biomass Diesel 2Mt Biomass
10Mt Biomass solid fuel50million ton Small
Hydro 80GW
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Energy Policies After 2003

• Whats going on
• Draft Energy Law
• Revise Energy Conservation Law
• Draft Oil and Natural Gas Law
• Renewable energy development plan up to 2020
• Implement fuel tax
• Second vehicle fuel efficiency standard
• Renewable energy promotion policies
• Energy reporting by government officials
• Energy monitoring for 1000 large energy users
• More than 500 energy conservation projects, in
  11th five year plan

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Ten Programs for Energy Efficiency in the plan
(NDRC 2004)
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Chinas National Climate Change Programme

• Status Quo of Climate Change in China and Efforts
  to Deal With Climate Change
• Impacts and Challenges of Climate Change on China
• Guidelines, principles and objectives of China to
  respond to climate change
• Chinas policies and measures to address climate
  change
• Chinas Position on Key Climate Change Issues and
  Need for International Cooperation

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Framework of Integrated Policy Model for China
(IPAC)
Environment industry Pollutant emission Medium/lon
g-term analysis
Energy demand and supply Price/investment Economic
impact Medium/long-term analysis
IPAC-SGM
IPAC-AIM/MATERIAL
Energy demand and supply Full range
emission Price, resource, technology Medium-long
term analysis Economic impact
Energy demand and supply Price/investment Medium/l
ong-term analysis
IPAC-Emission
IPAC-TIMER
IPAC/Tech(Power/Transport) IPAC/SE, IPAC/EAlarm
Short term forecast/ energy early warning
Technology development Environment
impact Technology policy
Medium/short term analysis Technology
assessment Detailed technology flow
IPAC-AIM/tech
IPAC/AIM-Local
IPAC/Gains-Asia
Region analysis Medium/short analysis Energy
demand and supply Technology policy
AIM-air
IPAC-health
Climate Model
ERI, China
ERI, China
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Identify efficiency promised technologies fully
used by 2020
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Technology options for alternative scenario
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Policy Options for alternative transport scenario
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??????? ??????? Modeling analysis result
Energy tax scenario
??????GDP??? Effect of energy tax on GDP of
China
0.5
0.4
, Loss Rate
0.3

0.2
???
0.1
0.0
2000
2005
2010
2015
2020
2025
2030
??, Year
??????????? Effect of energy tax on energy
demand
18
16
14
, Reduction Rate
12
10
8
6

4
2
???
0
2000
2005
2010
2015
2020
2025
2030
??,Year
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Technology and Climate Change

• There are already a large amount of new
  technologies available to be implemented in
  China. Policies such as fiscal polices including
  energy tax should be adopted at early time
• New advanced technologies is crucial for future
  low carbon society, such as advanced power
  generation system, transport system, higher
  efficiency electric appliance, building
• More investment is urgently needed now for
  technology RD. International collaboration is
  expected to work on this
• Investment on new technology will benefit on
  economy development
• Chinese government is making full effort to
  reduce energy demand increase in China as
  national strategy. If the strategy could be
  implemented, there will be strong support for low
  carbon society in 2050