Regional allocation of CO2 emissions allowance over provinces in China by 2020

The mitigation efforts of China are increasingly important for meeting global climate target since the rapid economic growth of China has led to an increasing share in the world's total CO₂ emissions. This paper sets out to explore the approach for realizing China's national mitigation targets submitted to the UNFCCC as part of the Copenhagen Accord; that is, to reduce the intensity of CO₂ emissions per unit of GDP by 40–45% by 2020, as well as reducing the energy intensity and increasing the share of non-fossil fuel consumption, through regional allocation of emission allowance over China's provinces. Since the realization of China's mitigation target essentially represents a total amount emission allowance allocation problem, an improved zero sum gains data envelopment analysis optimization model, which could deal with the constant total amount resources allocation, is proposed in this study. By utilizing this model and based on several scenarios of China's economic growth, CO₂ emissions, and energy consumption, a new efficient emission allowance allocation scheme on provincial level for China by 2020 is proposed. The allocation results indicate that different provinces have to shoulder different mitigation burdens in terms of emission intensity reduction, energy intensity reduction, and share of non-fossil fuels increase.     

China’s pre-2020 CO2 emission reduction potential and its influence

China achieved the reduction of CO₂ intensity of GDP by 45% compared with 2005 at the end of 2017, realizing the commitment at 2009 Copenhagen Conference on emissions reduction 3 years ahead of time. In future implementation of the “13th Five-Year Plan (FYP),” with the decline of economic growth rate, decrease of energy consumption elasticity and optimization of energy structure, the CO₂ intensity of GDP will still have the potential for decreasing before 2020. By applying KAYA Formula decomposition, this paper makes the historical statistics of the GDP energy intensity decrease and CO₂ intensity of energy consumption since 2005, and simulates the decrease of CO₂ intensity of GDP in 2020 and its influences on achieving National Determined Contribution (NDC) target in 2030 with scenario analysis. The results show that China’s CO₂ intensity of GDP in 2020 is expected to fall by 52.9%–54.4% than the 2005 level, and will be 22.9%–25.4% lower than 2015. Therefore, it is likely to overfulfill the decrease of CO₂ intensity of GDP by 18% proposed in the 13th FYP period. Furthermore, the emission reduction potentiality before 2020 will be conducive to the earlier realization of NDC objectives in 2030. China’s CO₂ intensity of GDP in 2030 will fall by over 70% than that in 2005, and CO₂ emissions peak will appear before 2030 as early as possible. To accelerate the transition to a low-carbon economy, China needs to make better use of the carbon market, and guide the whole society with carbon price to reduce emissions effectively. At the same time, China should also study the synergy of policy package so as to achieve the target of emission reduction.     

Overview of current energy-efficiency policies in China

From 1970 to 2001, China was able to significantly limit energy demand growth through aggressive energy-efficiency programs. Energy use per unit of gross domestic product (GDP) declined by approximately 5% per year during this period. However, the period 2002–2005 saw energy use per unit of GDP increase an average of 3.8% per year. To stem this out-of-control growth in energy demand, in November 2005 the Chinese government enunciated a mandatory goal of 20% reduction of energy intensity between 2006 and 2010. The National People's Congress passed legislation identifying the National Reform and Development Commission as the lead agency to design and carry out programs in support of this goal. These policies and programs, created after almost a decade of decline of the energy-efficiency policy apparatus, have had considerable impact. Although initial efforts have not been sufficient to meet the annual declines required to reach the ambitious 20% energy intensity target, the latest reports indicate that China may now be on track to meet this goal. The paper provides an assessment of these policies and programs to begin to understand issues that will play a critical role in China's energy and economic future. Activities undertaken in China will have a significant influence on the global effort to reduce the growth, and later the absolute quantity, of greenhouse gas emissions.     

Past as Prologue? Understanding energy use in post-2002 China

From 2002 to 2009, China's energy use nearly doubled, making it the world's largest emitter of carbon dioxide more than a decade ahead of forecasts. Why did energy use in China rise so rapidly after 2002? Using index decomposition analysis, we find that the vast majority of growth in energy consumption in China over the 2000s was due to GDP growth, with a small but important amount due to structural change as a result of China's emergence as a net metals exporter. Changing prices and data anomalies make energy intensity and structural change appear to be more important drivers of energy consumption than they actually were; the infamous reversal in energy intensity in China from 2002 to 2004 may simply be an artifact of difficulties in accurately deflating value added. About half of the growth in energy consumption in China from 2002 to 2007 was driven by heavy industry. Using structural decomposition analysis, we find that growth in heavy industrial output was due primarily to growth in construction and equipment investment, with a small amount due to an increase in net metal exports. In tandem, these two findings suggest that the primary driver of energy consumption in China after 2002 was an acceleration of the country's investment-dominated model of GDP growth. Without rebalancing the economy toward consumption, there are limits to what improvements in energy conversion efficiency and end use energy efficiency can achieve in moderating growth in China's energy use.     

The energy situation and its sustainable development strategy in China

The paper briefly summarizes China’s energy situation and sustainable development strategy as they were by 2009. The energy consumption in 2009 is reported to be 3.1 billion tons standard coal equivalent, 1/7 of the world total, 6.3% higher than in the year 2008, and its share of world CO₂ emissions increased rapidly to 20.3% in 2006. These trends are most likely to continue with China’s plan to accomplish its social and economy development goals. To address these problems and also respond to increasing world pressure for reduction of greenhouse gas emissions, the Chinese government plans and has legislated promotion of energy conservation, efficiency, renewable energy technologies and use, and reduction of energy-related environmental impacts to reduce energy intensity by 20% during the 2006-2010 period, and to reduce the CO₂ emission/GDP ratio by 40-45% by 2020 relative to 2005. China is facing severe energy-related challenges that conflict resources shortages with the planned rapid economic development, energy use with the related environmental pollution, and new technology with the old production/consumption patterns. It is recognized that energy development must, however, follow a sustainable path to coordinate economy growth, social development, and environmental protection.     

Analysis of the energy intensity of Kazakhstan: from data compilation to decomposition analysis

There are large gaps in energy consumption data and consequently in the estimates of CO₂ emissions from fuel combustion in Kazakhstan. This study provides the first comprehensive review of energy consumption trends in Kazakhstan, discusses several important discrepancies in energy statistics and presents an improved versions of Energy Balances, developed using additional data. The results indicate that Kazakhstan’s energy intensity of gross domestic product (GDP) declined by 30% from 1.14 to 0.8 toe/thousand 2005USD between 2000 and 2014. To understand factors influencing this decline, the change in energy intensity of GDP was decomposed using the Logarithmic Mean Divisia Index I method. The upstream sector (mainly oil and gas) played the most important role in the observed GDP energy intensity change. Although the share of this sector in total GDP increased, causing an increase in energy intensity due to inter-sectoral structural effects, the consequences were counteracted by a twofold decline in the sector’s energy intensity, resulting in a net decrease. On the contrary, the power and heat, transport and household sectors saw an increase in energy intensity between 2000 and 2014. The results clearly demonstrate that there is an urgent need for policies and measures to be put in place in the power and heat, household and transport sectors, to support renewable energy development, increase buildings’ energy efficiencies, replace inefficient stoves and improve heating systems and encourage changes in public transportation systems. Furthermore, improving energy statistics and setting appropriate sectoral energy intensity reduction targets are crucial for achieving real efficiency improvements in the economy.     

1999～2009年世界煤炭消费量变化分析及启示

分析近10年煤炭消费量的变化,对认识在经济困难背景下不同国家能源构成的走向会有重要启发。国际油价从20世纪末开始攀升,这种影响在1999～2005年间并未使GDP增速明显下降,但还是迫使某些竞争力较弱和/或高耗能企业采用煤炭替代成本较高的石油,经济发展程度较低的国家以煤代油的倾向更明显,煤炭消费年均增长率高达7.60%,使得世界煤炭消费年均增长率比一次能源高出1.7个百分点,而亚太地区竟高出2.31个百分点。油价的持续大幅攀升在2005～2007年间仍未能使GDP增长率下降,但却迫使全球都增加了对煤炭的需求,导致煤炭消费量年均增长率略有上升,与一次能源年均增长率之差增至2.1个百分点。金融危机爆发后,全球GDP增长明显下降,2007～2009年全球一次能源年均增长率为0.18%,煤炭消费年均增长率为1.47%。但新兴市场经济体GDP增速普遍高于OECD国家,同时煤炭消费年均增长率达到6.82%。其中中国和印度在经济较快发展的同时,2007～2009年煤炭消费年均增长率也分别达到8.14%和8.11%。韩国由于高耗能基础工业仍占据重要地位,也加大了煤炭的消费量。中、印、韩等国更多地使用煤炭是在经济困难时保障经济较快发展而被迫采取的重要措施,是正确的能源对策。     

China's 2020 carbon intensity target: Consistency,implementations, and policy implications

China has pledged to reduce its CO₂ emissions per unit of GDP by 40–45% by 2020 as of 2005 level. This research examines China's 2020 carbon intensity target and its interdependence with the overarching national economic and social development goals. The results show that, with annual GDP growth rate at 7% during the 12th Five-Year-Plan (FYP) period and 6% during the 13th FYP period, the 45% CO₂ intensity reduction target implies annual CO₂ emissions of 8600 million tonnes by 2020, close to 8400 million tonnes, the UNFCCC 450 ppm scenario for China. However, achieving only the 40% reduction target will lead to 9380 million tonnes CO₂ emissions in 2020 which largely surpass the UNFCCC 450 ppm scenario. We conclude that China's 45% CO₂ intensity reduction target is not only within international expectations but also self-consistent with its overall economic and social development strategy. Then primary energy and power planning for implementing the 45% carbon intensity reduction target is proposed. Related investment requirements are also estimated. To achieve the target, China needs to restructure the economic structure for significant improvements in energy conservation.     

Challenges of rapid economic growth in China: Reconciling sustainable energy use,environmental stewardship and social development

China aims at quadrupling per-capita GDP by 2020 compared to the year 2000. Without any energy and environmental policy measures, this tremendous economic growth would be associated with a quadrupling of primary energy consumption up to 6.3 billion tons of standard coal equivalents (sce) and energy-related CO₂-emissions of 13.9 billion tons Against this background, this paper is to set China's need to implement its sustainable development strategy into the quantitative context of the countries economic development and subsequent economic growth-related environmental problems. China is urgently searching for a way to ease the negative implications of economic growth and has committed itself to achieve a level of 3.0 billion ton sce primary energy consumption in 2020. As a consequence, the macro-economic energy intensity has to be reduced by 53% by 2020. A reduction of 53% by 2020 would lead to an energy intensity level 30% points below the year-2000 level of developed countries. As for natural resources, the expected economic growth will lead to an increase of crude oil net-imports up to 455 million ton sce in 2020 and 650 million ton sce in 2030. As for regional income distribution, economic growth helped to decrease existing inequities.     

Why did the energy intensity fall in China's industrial sector in the 1990s? The relative importance of structural change and intensity change

There have been a variety of studies investigating the relative importance of structural change and real intensity change to the change in China's energy consumption in the 1980s. However, no detailed analysis to date has been done to examine whether or not the increased energy efficiency trend in the 1980s still prevailed in the 1990s. This article has filled this gap by investigating the change in energy consumption in China's industrial sector in the 1990s, based on the data sets of value added and end-use energy consumption for the 29 industrial subsectors and using the newly proposed decomposition method of giving no residual. Our results clearly show that the overwhelming contributor to the decline in industrial energy use in the 1990s was the decline in real energy intensity, indicating that the trend of real energy intensity declines in the 1980s at the 2-digit level was still maintained in the 1990s. This conclusion still holds even if we lower the growth rate dramatically in line with the belief that the growth rate of China's GDP may be overestimated.     

国家采取多项综合措施确保“十一五”节能减排任务完成

中国人口众多,正处于工业化和城镇化快速发展时期,能源消费仍处于增长阶段。目前,中国的人均能源消费量只有美国的1/5。"十一五"以来,中国以较低的能源消费增长支撑了国民经济较快发展,"十一五"前四年,中国万元GDP能耗由1.276t标准煤下降到1.077t标准煤,年均下降4.15%。2010年是"十一五"规划最后一年,为完成"十一五"期间实现全国单位GDP能耗下降20%的节能减排目标,国务院各部委纷纷出台相应的措施,采取法律、行政、经济等多种手段,力争确保这一目标的顺利实现。未来5～10年,国家将进一步加大产业调整力度,大力发展新能源,逐步减少传统能源在能源需求中的比重,预计"十二五"期间,中国的煤炭在能源结构中的比重将由目前的70%下降到63%,中国风电、太阳能等可再生能源利用规模将达到1.1×108t标准煤;在2020年之前国家将投入5万亿元用于新兴能源产业建设;同时,国家还将重点推广257项新技术,支持新能源发展。     

China's energy and emissions outlook to 2050: Perspectives from bottom-up energy end-use model

Although China became the world's largest CO₂ emitter in 2007, the country has also taken serious actions to reduce its energy and carbon intensity. This study uses the bottom-up LBNL China End-Use Energy Model to assess the role of energy efficiency policies in transitioning China to a lower emission trajectory and meeting its 2020 intensity reduction goals. Two scenarios – Continued Improvement and Accelerated Improvement – were developed to assess the impact of actions already taken by the Chinese government as well as planned and potential actions, and to evaluate the potential for China to reduce energy demand and emissions. This scenario analysis presents an important modeling approach based in the diffusion of end-use technologies and physical drivers of energy demand and thereby help illuminate China's complex and dynamic drivers of energy consumption and implications of energy efficiency policies. The findings suggest that China's CO₂ emissions will not likely continue growing throughout this century because of saturation effects in appliances, residential and commercial floor area, roadways, fertilizer use; and population peak around 2030 with slowing urban population growth. The scenarios also underscore the significant role that policy-driven efficiency improvements will play in meeting 2020 carbon mitigation goals along with a decarbonized power supply.     

CO2 emission from China's energy sector and strategy for its control

This paper identifies the main features of CO₂ emission from fossil energy combustion in China. Then it estimates China's future energy requirements and projects its CO₂ emission from 2010 to 2020 based on the scenario analysis approach. China's rate of carbon productivity growth is estimated to be 5.4% in the period 2005–2020, while the CO₂ intensity of GDP will reduce by about 50% but CO₂ emission in 2020 will still be about 40% higher than prevailing in 2005 because of rapid growth of GDP. This estimation is based on the assumption that China will implement a sustainable development strategy in consideration of climate change issues. The main objectives of the strategy are to implement an “energy conservation first” strategy, to develop renewable energy and advanced nuclear technology actively, to readjust the country's economic structure, and to formulate and legislate laws and regulations, and to build institutions for energy conservation and development of renewable energy. It concludes that international measures to mitigate CO₂ emission will limit world fossil fuel consumption. China is not placed to replicate the modernization model adopted by developed countries and has to coordinate economic development and carbon dioxide emission control while still in the process of industrialization and modernization. China has to evolve a low carbon industrialization model. This is the key to the success of sustainable development initiatives in China.     

Scenario for growth of electricity in India

India's GDP has been growing quite fast in recent past and it is forecast that it would continue to do so in the coming several decades. To realize the growth in GDP, it is necessary that corresponding growth in demand of primary energy as well as electricity is estimated and plans are made to meet the demand. Our estimate indicates that even after recognizing that energy intensity of GDP would continue to decline as in the past, the total electricity generation by the middle of the century would be an order of magnitude higher than the generation in the fiscal year 2002–2003. This calls for developing a strategy for growth of electricity generation based on a careful examination of all issues related to sustainability particularly abundance of available energy resources, diversity of sources of energy supply and technologies, security of supplies and self-sufficiency. This paper presents a scenario for growth of electricity in India. To meet the projected demand, the paper presents a strategy, which incorporates, wherever available, recommendations of various organs of the Government of India. It is observed that in order to limit cumulative energy import during the next 50 years to about 30%, the nuclear contribution towards electricity generation has to increase from the present 3% to about a quarter of the total. For the nuclear power to play this role, the programme of the Department of Atomic Energy to augment nuclear installed capacity to 20 GWe by 2020 based on a mix of Pressurized Heavy Water Reactors (PHWRs), Light Water Reactors (LWRs) and Fast Breeder Reactors (FBRs) should be completed and the R&D necessary to set up U–Pu metal-based FBRs of short doubling time and associated fuel reprocessing technologies should also be completed in the next 15 years.     

Assessment of China's climate commitment and non-fossil energy plan towards 2020 using hybrid AIM/CGE model

China made a commitment in Copenhagen to reduce its carbon dioxide emissions per unit of GDP from 40% to 45% compared with the 2005 level by 2020, and is determined to vigorously develop non-fossil fuels. This study analyzes the effects and impacts of policies that could help to achieve China's Copenhagen commitments with a hybrid static CGE model in which the electricity sector is disaggregated into 12 generation technologies. Four scenarios are developed, including the reference scenario A, the reference scenario B and two carbon constraint scenarios. The results show that carbon intensity in terms of GDP will fall by 30.97% between 2005 and 2020 in the reference scenario A, and will be reduced further by 7.97% if China's targeted non-fossil energy development plans can be achieved in the reference scenario B. However, the rest of the 40–45% target must be realized by other measures such as carbon constraint. It is also observed that due to carbon intensity constraints, GDP loss would be from 0.032% to 0.24% compared to the reference scenario B, and CO₂ emission reductions are due mainly to decreases in coal consumption in the electricity sector and manufacturing sector.     

Energy efficiency in India: Assessing the policy regimes and their impacts

In the recent years, India has emerged as one of the fast growing economies of the world necessitating equally rapid increase in modern energy consumption. With an imminent global climate change threat, India will have difficulties in continuing with this rising energy use levels towards achieving high economic growth. It will have to follow an energy-efficient pathway in attaining this goal. In this context, an attempt is made to present India's achievements on the energy efficiency front by tracing the evolution of policies and their impacts. The results indicate that India has made substantial progress in improving energy efficiency which is evident from the reductions achieved in energy intensities of GDP to the tune of 88% during 1980–2007. Similar reductions have been observed both with respect to overall Indian economy and the major sectors of the economy. In terms of energy intensity of GDP, India occupies a relatively high position of nine among the top 30 energy consuming countries of the world.     

Assessment of China's energy-saving and emission-reduction accomplishments and opportunities during the 11th Five Year Plan

From 1980 to 2002, China experienced a 5% average annual reduction in energy consumption per unit of gross domestic product (GDP). With a dramatic reversal of this historic relationship, energy intensity increased 5% per year during 2002–2005. China's 11th Five Year Plan (FYP) set a target of reducing energy intensity by 20% by 2010. This paper assesses selected policies and programs that China has instituted to fulfill the national goal, finding that China made substantial progress and many of the energy-efficiency programs appear to be on track to meet – or in some cases exceed – their energy-saving targets. Most of the Ten Key Projects, the Top-1000 Program, and the Small Plant Closure Program will meet or surpass the 11th FYP savings goals. China's appliance standards and labeling program has become very robust. China has greatly enhanced its enforcement of new building energy standards but energy-efficiency programs for buildings retrofits, as well as the goal of adjusting China's economic structure, are failing. It is important to maintain and strengthen the existing energy-saving policies and programs that are successful while revising programs or adding new policy mechanisms to improve the programs that are not on track to achieve the stated goals.     

我国节能减排形势和面临的严峻挑战

我国近几年节能减排取得巨大成就,与2005年比较,2009年全国单位GDP能耗降低15.56%;"十一五"前4年节能率为4.14%,节能量达到56511×104t标煤;环境污染物增长率和单位GDP污染物产生量明显下降。但节能减排形势依然严峻,目前完成"十一五"能源强度降低20%左右的目标任务十分艰巨。同时,能源资源相对短缺、节能压力巨大、能源开发利用效率不高、环境污染严重、节能管理体制改革明显滞后等问题依然存在。其原因主要是经济增长过快、产业结构调整十分艰难、节能降耗步履维艰、能源结构调整进展较慢、能源消费量增长迅速等。为了保持资源和环境的可持续发展,必须控制能源需求总量的增长,优化能源结构,2020年能源消费总量不应超过42×108t标煤,特别要抑制煤炭生产量和消费量的快速增长。同时今后10年经济增长速度最好保持在7%～8%之间。改变经济增长模式的重点在于转变发展方式,要由生产型大国向消费型大国转型、由投资主导型转向消费主导型,到2020年第三产业的比重应达到50%左右。要加大节能力度,提高能源利用效率,"十二五"和"十三五"期间,单位GDP能耗应分别下降20%。另外,应积极发展各种非化石能源,深化能源体制改革,进一步加强国际合作。     

Decomposing road freight energy use in the United Kingdom

Applying the techniques of decomposition analysis we estimate the relative contribution of ten variables (termed ‘key ratios’) plus GDP to the change in UK road freight energy use over the period 1989–2004 inclusive. The results are best interpreted as an estimate of the percentage growth in energy consumption that would have resulted from the change in the relevant factor (e.g. length of haul) had the other factors remained unchanged. The results demonstrate that the main factor contributing to the decoupling of UK road freight energy consumption from GDP was the decline in the value of domestically manufactured goods relative to GDP. Over the period 1989–2004 this largely offset the effect of increases in GDP on road freight energy consumption. While the decline in domestic manufacturing was to some extent displaced by increases in imports, the net effect of these supply factors, together with shifts in the commodity mix, has been to reduce UK road freight energy consumption by 30.1%. The net effect on global carbon dioxide (CO₂) emissions is likely to be somewhat less beneficial, since many freight movements associated with the manufacture of imported goods have simply been displaced to other countries.     

The simple analytics of greenhouse gas emission intensity reduction targets

The Bush Administration followed its March 2001 withdrawal from the Kyoto Protocol by a February 14, 2002 proposal for unilateral action to reduce the intensity of US greenhouse gas emissions, with intensity defined as emissions per unit of GDP. The idea is to focus on the rate of decline of the emissions intensity of the economy, rather than the total amount of emissions (though the two are obviously related). In this paper we examine the characteristics of a goal of a rate of decline in intensity. We present a simple model and show that in order to stabilize greenhouse gas concentrations, the rate of decline in intensity must equal the rate of growth of GDP. Additionally, we show that cost uncertainty can be reduced through the use of intensity reduction targets.