vigorously promote energy saving and emission reduction; accelerate the construction of ecological...
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Vigorously Promote Energy Saving and Emission Reduction; Vigorously Promote Energy Saving and Emission Reduction;
Accelerate the Construction of Ecological CivilizationAccelerate the Construction of Ecological Civilization
Lv Kan, Energy-Saving & Emission Reduction, Department of Lv Kan, Energy-Saving & Emission Reduction, Department of Department of Resource Conservation and Environmental ProtectionDepartment of Resource Conservation and Environmental Protection
March 2013March 2013
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I.I. Significance of Strengthening Energy Saving and Significance of Strengthening Energy Saving and Emission Reduction in New SituationEmission Reduction in New Situation
II. Effectiveness, Objectives and General Idea of Energy II. Effectiveness, Objectives and General Idea of Energy Saving and Emission ReductionSaving and Emission Reduction
III. Major Policy Initiatives for Energy Saving and Emission III. Major Policy Initiatives for Energy Saving and Emission ReductionReduction
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I. Significance of Strengthening Energy Saving and Emission I. Significance of Strengthening Energy Saving and Emission
Reduction in New SituationReduction in New Situation
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In more than 30 years since the reform and opening up policy was carried
out, China's economy has achieved a rapid growth, China’s comprehensive national
strength has significantly ascended, and Chinese people has significantly improved
living standards. To sum up, China has achieved remarkable results during the
period. However, because the extensive development mode has not been
fundamentally changed in China, uncoordinated, unbalanced, and unsustainable
issues have become increasingly prominent in China’s economic development.
Notably, the contradiction between economic development and resources and
environment has become increasingly acute.
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Per capita of primary resources in China vs. the world’s average
Per capita resources of oil and natural gas is only one fourteenth or so; and for
relatively rich coal resources, the ratio is only 67% of the world’s average.
● ● From Energy Security Perspective From Energy Security Perspective
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In 2011, the total energy consumption in China reached 3.48 billion tons of
standard coal, accounting for about 20% of world energy consumption, while
during the same period, the proportion of China’s GDP in the world’s total was
below 10%.
China's total energy consumption in the world’s
total in 2011
The Worl d Chi na
20%
China's GDP in the world’s total in 2011
The Worl d Chi na
10%
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Energy intensity per RMB10K by country(Tons of standard oil / USD10K, 2008)
4.63
1.62
0.90 0.85 0.801.03
1.86
0. 00
0. 50
1. 00
1. 50
2. 00
2. 50
3. 00
3. 50
4. 00
4. 50
5. 00
Chi na US France Germany UK Japan Worl dAverage
Note: GDP was converted in accordance with foreign exchange rates;
Source: British Petroleum (BP) and the World Bank
The GDP per unit of energy use in China was 4.5 times as much as that in Japan, 2.9
times that in US, and 2.5 times the world average.
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Due to the lack of sufficient supply at home, the dependence on energy imports in China has continued to increase. In 2011, the dependence on oil import reached 54.9%. Meanwhile, the natural gas and coal imports rose sharply, reaching 30 billion cubic meters and 180 million tons in 2011 respectively.
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●●From Resource Constraint PerspectiveFrom Resource Constraint Perspective
China's per capita possession of primary resources vs. the world’s average
China's per capita possession of resources was significantly lower
than the world average.
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China
Japan
UK
Germany
South Korea
0
10000
20000
30000
40000
Output rates of resources in 2010 for China and other countries (Unit: RMB/t)
The efficiency of resource use in China is not high. The total recovery of mineral
resources is only 30%, about 20% lower than that in developed countries; GDP of per capita
water consumption is only one third of the world’s average.
Inefficient use of resources in China results in the consumption of large quantities of
natural resources in its rapid economic growth.
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Proportions of China’s GDP and resources consumption in the world’s totals
Proportion of China’s primary resources consumption in the world
The Worl d Chi na
Less than 10%
Steel Iron Ore
LeadCement
45% 47%
53% 44%
Proportions of China’s GDP and resources consumption in the world’s totals in 2010
■ Mineral Resources
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▲ Two thirds of China’s 600-plus urban cities face water shortage at present ▲ The development and utilization of water resources in major rivers
approached or exceeded the carrying capacity of water resources. ▲ It is predicted that by 2030 the total amount of water use in Chian will
strive to control under 700 billion cubic meters, an increase of 100 billion cubic meters in the present amount (600 billion). Now, since the amount of water use in China has been close to the upper limit of the rational use of water, it is very difficult to further develop water resources.
In the case of a lack of total water resources, extensive utilization of water resources, and serious water pollution, water shortage in China will become a common issue and it will see a serious water crisis in China unless effective measures are taken.
■ Water Resources
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The total area of arable land resources has approached 1.8 billion mu – the red
line level. Per capita arable land area has also approached the red line of supply
security of agricultural products. The issue of food security has become increasingly
prominent.
■ Arable Land Resources
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●●From Ecological Environment PerspectiveFrom Ecological Environment Perspective
Overall worsening of the ecological environment in China has not been fundamentally
reversed. In some regions, local ecological environment carrying capacity has approached the
limit. Water, air, and soil are seriously polluted. Pollutants caused by solid waste, vehicle
exhaust, and heavy metals, as well as persistent organic pollutants (POP) continues to
increase.
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▲ According to the monitoring of an authoritative department, by the end of
2009, the ratio of water with the standard inferior to Grade V in China’s seven
major river systems under national monitoring was 18.4%; the ratio of water with
the standard inferior to Grade V in key lakes (reservoirs) under national
monitoring was 34.6%, and the ratio of moderate and severe oxygen-rich water
represented 69.2%; water with Grade IV standard and the standard inferior to
Grade V in inshore waters accounted for 17.1%.
▲In the vast rual area, nearly 300 million rural residents fail to drink safe
drinking water, whereas about 59 million urban residents drink water, the quality
of whose source fails to reach testing standard.
■ Water Pollution
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▲ The annual average densities of sulfur dioxide and inhalable particles in the cities of key regions in 2010 were 0.039mg/m3 and 0.085mg/m3 respectively, 2-4 times that in developed countries in Europe and America.
▲ In Nov., 2011, the WHO announced the first air quality database. Among nearly 1,100 capital cities and cities with over 100,000 population in 91 countries and regions, the best-ranking city in China was Haikou, ranking the 830th, while Beijing ranked the 1053rd.
■ Air Pollution
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As we neglected the requirements on ecological protection during the
economic development process, many ecological systems have been too seriously
damaged, which is hard to be recovered. ▲ Nearly 80% of grasslands throughout China emerged different degree of
degradation ▲ Water and soil loss area accounted for 37% of the national’s total ▲ Desertificated land area represented 18% of the national’s total▲ Stony desertification area represented 1.3% of the national’s total
High consumption and high emission are the main reasons for environmental pollution and ecological damage. The environmental problems emerged in different stages during the industrialization process over 200 years in developed countries have intensively emerged in China in a concentrated manner.
■ Ecological Damage
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In recent years, the carbon emission intensity in China has been
reducing remarkably. However, as the total greenhouse gas emission
grows rapidly, so the emission quantity per capita has been increasing
constantly, now exceeding the world’s average. Meanwhile, China is also
one of the countries with the greatest influence of climate change, which
causes significant impact on agricultural production and ecological
environment.
■ Greenhouse Gas Emission
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● ● Green, circular, low-carbon development has become the Green, circular, low-carbon development has become the
international trend and the new filed for international international trend and the new filed for international
economic and technological competitionseconomic and technological competitions
America passed the American Recovery and Reinvestment Ac. The USD60
billion invested by the US government will be used to support the basic research
on smart power grids, energy improvement, renewable energies and hybrid
electric vehicles. Since the “Energy Independency” strategy was launched in 2006,
the dependence of oil on foreign imports decreased to 45% from 60% in 2005, and
the natural gas’ dependence dropped to 9% from 16% in 2007. Meanwhile, the
USA became the net exporter of refined oil product for the first time since 1949,
and its export of oil products in 2011 exceeded its import by 160 million barrels,
which indicates that US’s oil security situation has seen a marked change.
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● ● Green, circular, low-carbon development has become the Green, circular, low-carbon development has become the
international trend and the new filed for international economic international trend and the new filed for international economic
and technological competitionsand technological competitions
The United Kingdom passed the Climate Change Act and formulated the Low-carbon Transform Plan. Japanese government released Green Economy and Social Reform, aiming to support the low-carbon mobility in transportation, establish green financial system, and promote the development and popularization of renewable energy sources, etc..
With the acceleration of industrialization by more and more developing countries, the demand for global energy sources will continue to grow significantly in the future, and global resource and environment issues will be more prominent.
We must comply with international trends to increase our efforts on energy conservation and emission reduction, accelerate the cultivation of such strategic emerging industries as energy conservation and environmental protection and new energy, so as to take the initiative in the new round of international competition.
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● ● Circular economy has become the main way of Circular economy has become the main way of
conserving resources, achieving sustainable supply of conserving resources, achieving sustainable supply of
resources, reducing environmental pollution, addressing resources, reducing environmental pollution, addressing
climate change issue, and making green development come climate change issue, and making green development come
true. true.
The first method is to take the emphasis on legislation. The second is to improve economic policy.
The third is to make mandatory requirements.
The fourth is to play the role of intermediaries.
The fifth is to improve resource productivity rate.
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Whether to find solutions to resource and environmental constraints, or to
improve the people's production and living conditions, or to alleviate China's
international pressure and grab the future’s international competition
commanding point, China must accelerate the transformation of economic
development, place energy efficiency and emission reduction as the important
starting point in promoting green, low-carbon development, further raise
awareness of the importance of energy saving and emission reduction and green,
low-carbon development, strengthen a sense of urgency and responsibility, and
promote China's economic and social development, comprehensively and
coordinatedly.
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II. II. Effectiveness, Objectives and General Effectiveness, Objectives and General Idea of Energy Saving and Emission Idea of Energy Saving and Emission ReductionReduction
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(1) Emission reduction and emission reduction achieved (1) Emission reduction and emission reduction achieved remarkable results in 11th Five-Year Plan periodremarkable results in 11th Five-Year Plan period
—— Reversing the upward trend of energy use intensity Reversing the upward trend of energy use intensity and emission of major pollutants in China’s accelerated and emission of major pollutants in China’s accelerated development stage of industrialization and urbanization. development stage of industrialization and urbanization.
Unit
Latter three years during the 10th Five-Year Plan
period (2003-2005)
During the "Eleventh Five-Year Plan" period (2006-2010)
Annual increase in energy consumption
100 million tons of
standard coal2.5 1.78
Energy consumption per unit of GDP % +9.84 -19.1
SO2 emissions % +32.33 -14.29
COD emissions % +3.46 -12.45
Intensity of energy consumption and pollutant emissions
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-- -- Promoting structural optimization and upgrading. Promoting structural optimization and upgrading.
Description2005(%)
2010(%)
Growth Rate
(Percent point
)
Power The proportion of generator sets with a
capacity of 300 MW and above in thermal power installed capacity
50 73 46
SteelThe proportion of large-scale blast furnace
with a volume of more than 1000 cubic meters
48 61 27
Building Materials
The proportion of the production of new dry process cement clinker
39 81 108
Structural changes in production capacity of the major industries
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—— Promoting technological progress. Promoting technological progress.
The CDQ technology penetration rate in 2010 in China’s steel industry was
increased to 80% from less than 30% in 2005; the penetration rate of low-
temperature waste heat recovery power generation technology in the cement
industry was increased to 55% from an initial start level in 2005; and the ratio of
ion-exchange membrane caustic soda in the soda industry was increased to 84%
from 29% in 2005.
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—— Significantly enhancing the ability to save energy and Significantly enhancing the ability to save energy and reduce emission. reduce emission.
Unit
11th Five-Year Plan period target
11th Five-Year Plan period completion
11th Five-Year Plan period target 11th
Five-Year Plan period completion
Ten key energy conservation projects energy-saving capacity
100 million tons of
standard coal
2.4 3.4
Newly increased daily urban sewage treatment capacity 10K tons 4500 6500
Desulphurization unit capacity
put into operation at coal-fired
power plants 100 million
kW3.55 5.78
Forming abilities to save energy and reduce emission in key projects in the
“Eleventh Five-Year” period
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—— Circular economy continued to grow. Circular economy continued to grow.
The change in circular economy from idea to action, the continuous
improvement of the industrial system, and the continuous improvement of the
development level, have become the basic development path for some regions to
transform development modes. The demonstration programme of circular economy
has been advanced deeply. China has explored a development road of circular
economy, in line with China's national conditions, by developing demonstration
projects in key industries, areas, industrial parks and some provinces and cities and
summarizing 60 development modes of circular economy. As a result, the level of
comprehensive utilization of resources has significantly improved, a total of 70% of
the associated metal ores comprehensively developed, 20% of cement raw materials
made from solid waste, the comprehensive utilization rate of industrial solid waste
reached 69%, and the renewable resource recovery rate arrived at about 70%.
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—— Greatly improving energy efficiency. Greatly improving energy efficiency.
Unit 2005 20102010 Vs. 2005
Decrease %
Thermal power coal consumption
Grams of standard coal / kWh
370 333 37 -10
Energy consumption per ton steel
Kg of standard coal 688 605 83 -12.1
Ethylene comprehensive energy consumption
Kg of standard coal/t
999 886 113 -11.3
Comprehensive energy consumption of cement
Kg of standard coal/t
119 85 34 -28.6
Synthetic ammonia comprehensive energy consumption
Kg of standard coal/t
1636 1402 234 -14.3
Changes in energy consumption per unit of main products
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—— Improving environment quality. Improving environment quality.
When compared to that in 2005, the annual average sulfur dioxide density
of key environmental protection cities fell by 26.3% in 2010. The proportion of
surface water with the standard inferior to Grade V under national monitoring
was decreased to 20.8% from 27.4% in 2005, whereas the proportion of water of
China’s seven major river systems with the Grade III standard and above was
increased to 59.9% from 41% in 2005.
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—— Energy saving and environmental protection industry Energy saving and environmental protection industry is beginning to take shape. is beginning to take shape.
It is estimated that in 2010, China’s energy-saving environmental protection
industry output reached RMB2 trillion, with a total of 28 million employees.
Thanks to the increasingly expanded industrial scale, the rapid escalation of
technology and equipment, and the more abundancy in products, and the
significant increase in the level of service, the industry has initially formed a
relatively complete industrial system with a complete set of categories. At present,
there are 3,900 companies engaged in energy-saving services in China. They
realized an output of RMB125 billion.
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—— Accelerating low-carbon energy development. Accelerating low-carbon energy development.
China ranks No. 1 in terms of the scale of nuclear power under-progress constructions,
hydropower installed capacity, installed capacity of wind power, heat collecting area by solar
energy heaters, and the number of rural households using biogas. Non-fossil fuels has
accounted for 8.3% of primary energies. China has leapt to the forefront of the world in
renewable energy production capacity.
Unit 2005 2010
Installed capacity of nuclear power
10K kW 1082
Hydropower installed capacity
100M kW 1.1 2.16
Wind power installed capacity
10K kW 130 4700
PV installed capacity
10K kW 10 60
Non-fossil energy changes for 2005-2010
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—— Providing a strong support for maintaining stable and Providing a strong support for maintaining stable and rapid economic development. rapid economic development.
China's GDP and energy consumption
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—— Making a primary contribution in response to global Making a primary contribution in response to global climate change. climate change.
China's energy consumption dropped by 1.46 billion during its 11th Five-
Year Plan period, which was widely praised by the international community.
Meanwhile, it reflected the image of a responsible big country for China.
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Indicators Decrease (%)
GDP energy consumption per unit 16
Carbon dioxide emissions intensity 17
Chemical Oxygen Demand (COD) 8
Sulfur dioxide (SO2) 8
Ammonia (NH3-N) 10
Nitrogen oxides (NOx) 10
Industrial added value of water consumption per unit
30
(2) Targets and goal of (2) Targets and goal of energy saving and emission energy saving and emission reduction in the 12th Five Year periodreduction in the 12th Five Year period
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(3) General Idea of energy saving and emission (3) General Idea of energy saving and emission reduction during 12th Five Year periodreduction during 12th Five Year period
Three mechanisms: The first mechanism is to insist on the combination of reducing the intensity of energy consumption, reducing emissions of major pollutants, and reasonably controlling the total energy consumption so as to form a method in which economic development will be accelerated and promote the scientific development of “reverse coercion mechanism”. The second is to insist on the combination of strengthening responsibility, improving the legal system, improving policies, and strengthening supervision and regulation, and establish and improve the incentive and restraint mechanisms. The third is to form a government-led, market-driven working mechanism of promoting energy saving and emission reduction with enterprises as the main body and all the society as its participants.
Four ways: The first way is to optimize the industrial structure. The second is to promote technological progress. The third is to strengthen construction measures. The fourth is to strengthen management guide.
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III. Major Policy Methods for Energy Saving III. Major Policy Methods for Energy Saving
and Emission Reductionand Emission Reduction
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To establish the scientific and standard goal responsibility appraisement and examination system is the important basis and system guarantee for realizing energy saving and emission reduction goal. It can only truly give play to its “guidance” role when the “responsibility system” is practically implemented.
During the “Eleventh Five-year Plan” period, the “Scheme and Method for Statistics Monitoring and Assessment Implementation of Energy Conservation and Emission Reduction” was approved by the State Council. It requires all departments to make statistics and monitoring on various energy and pollutant indexes, and to examine the completion of the goal on energy consumption and main pollutants emission reduction by all local governments and key enterprises.
During the “Twelfth Five-year Plan” period, through the comprehensive consideration on such factors as economic development level, industrial structure, energy conservation potential, environment capacity and national industrial layout, the national energy saving and emission reduction goal has been disintegrated to all areas and key enterprises. The next step is to reinforce goal responsibility assessment and examination and enhance the application of examination result.
(1) (1) Strengthen objectives and responsibilities. Strengthen objectives and responsibilities.
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▲ Be resolute to restrain excessively rapid growth of high energy consumption and high emission industries;
▲ Accelerate the elimination of backward capacity;
▲ Accelerate the utilization of high-tech and advanced applicable technologies to rebuild and improve traditional industries;
▲ Regulate energy consumption structure;
▲ Improve the ratios of service industry and strategic emerging industry in national economy
(2)Optimize the industrial structure.(2)Optimize the industrial structure.
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▲ Implement four key energy conservation projects including transformation of energy conservation, people benefit energy conservation products, modeling of industrialization of energy conservation technology, and promotion of contract energy management;
▲ Implement four key pollutant emission reduction projects including construction of urban domestic sewage and supporting pipe network facilities, prevention and treatment of the water pollution in major rivers, desulfuration and denitrification, and heavy metal pollution prevention and treatment;
▲ Implement seven key circular economy projects including comprehensive utilization of resources, modeling of waste and old commodities recycling system, “urban mineral products” demonstration base, industrialization of reproduction, recycling of plate wastes, reconstruction of recycling of industrial park area, demonstration and promotion of resource comprehensive utilization technology.
During the “Twelfth Five-year Plan” period, the investment in energy saving and emission reduction key projects will exceed RMB2 trillion, and the market ratio of efficient energy conservation technologies and equipments will be increased from less than 5% at present to 30% in the future, forming the energy conservation capacity of 300 million tons of standard coals and increasing daily urban sewage treatment capacity of 42 million tons.
(3)(3) Implement key projects Implement key projects
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▲ Rationally control the total energy consumption
▲ Comprehensively enhance energy consumption management
▲ Organize and carry out energy conservation and low-carbon
actions among one million enterprises
▲ Implement green and energy conservation buildings campaign
▲ Accelerate the founding of comprehensive transportation system
▲ Govern the source pollution for agricultural industry
▲ Organize the founding activities of saving-style public institutions
(4) (4) Strengthen energy conservation management Strengthen energy conservation management
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▲ Enhance planning guidance ▲ Implement “ten to hundred to thousand” demonstration campaign ▲ Promote reconstruction of recycling system in park areas ▲ Carry out national “urban mineral products” demonstration base construction ▲ Stably promote plate wastes recycling and harmless treatment ▲ Carry out “change for the reutilization products with old products” promotion activities for motor parts ▲ Carry out pilot project for resource output rate statistics ▲ Promote national recycling economy education demonstration base founding activities ▲ Promote comprehensive utilization of resources ▲ Make comprehensive use of crop stalks
(5) (5) Vigorously develop the circular economy Vigorously develop the circular economy
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▲ Carry out low carbon pilot projects in five provinces (Guangdong, Hubei, Liaoning, Shaanxi and Yunnan), and eight cities (Tianjin, Chongqing, Hangzhou, Xiamen, Shenzhen, Guiyang, Nanchang and Baoding). And properly enlarge pilot projects in national low-carbon provinces and low-carbon cities based on the summarized experiences.
▲ Issue “Temporal Method for the Management on Greenhouse Gases Voluntary Emission Reduction Trading” as soon as possible, and establish project-oriented voluntary emission reduction trading mechanism; carry out carbon emission trading pilot projects in Beijing, Tianjin, Shanghai, Shenzhen, Chongqing and Guangdong province and Hubei province to promote energy saving and emission reduction marketization system.
▲ Carry out pilot projects for low-carbon industrial parks, low-carbon communities and low-carbon business. Greatly promote national low-carbon actions.
(6) (6) Carry out the pilots of low-carbon provinces and cities, Carry out the pilots of low-carbon provinces and cities, and carbon emissions tradingand carbon emissions trading
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▲ Increase requirements for market access, and accelerate the formulation of compulsive national standards for such aspects as energy consumption limits of key industrial units, product energy efficiency, building energy efficiency and pollutant emission.
▲ Promote technical progress. Accelerate the R&D of general and key technologies for energy conservation and emission reduction; increase demonstration of industrialization of energy saving and emission reduction technologies and accelerate technological promotion and application.
▲ Develop energy conservation and environmental protection industry. It is expected that the energy conservation and environmental protection industry’s added value will account for around 2% of GDP by 2015, with a gross output of RMB4.5 trillion, and above 15% of annual average increase in production value.
(7) (7) Accelerate the development, promotion, and Accelerate the development, promotion, and application of energy saving technologies. application of energy saving technologies.
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▲ Price and charge policies: Deepen the reform of the price of resource products, push forward tiered pricing for household electricity and comprehensively promote heat charge based on supply quantity. Enhance the implementation of differentiated electricity pricing and punitive electricity pricing. Strictly implement desulfuration electricity pricing and study to formulate coal-fired power plants smoke denitration electricity pricing policy. Perfect sewage treatment charging policy and reform garbage disposal charging method
▲ Fiscal policies: Enhance the support on key energy saving and emission reduction projects and capacity construction by the investments within central government budget and special funds for energy saving and emission reduction of central finance; practically implement the special fund for the development of recycling economy; perfect such supporting mechanisms as “substitute subsidies with rewards”, “promote governance with rewards” and adopting fiscal subsidy method to promote efficient energy conservation products; deepen the guidance role of fiscal funds; state owned capital management budget supports enterprises to implement energy saving and emission reduction projects; all levels of governments should increase the input in energy conservation and emission reduction; and accelerate the establishment of ecological compensation mechanism.
(8) (8) Improve economic policies Improve economic policies
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▲ Tax policy: implement the preferential policies supported by the State such as energy saving and emission reduction income tax and value-added tax; promote resource tax reform; collect environmental protection tax on the tax items with heavy prevention and treatment targets and mature technical standards; push forward the implementation and perfect resource comprehensive utilization tax polity; and regulate the taxation policy for restraining the export of “two high” products.
▲ Financial policy: Enhance the loan support on energy saving and emission reduction projects by diversified financial institutions, encourage financial institutions to innovate new credit management modes which fit the features of energy saving and emission reduction projects; promote environment pollution responsibility insurance and establish bank green rate system.
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▲ Establish “Leader” standard system
▲ Strengthen the implementation and monitoring of energy efficiency label and energy conservation and environmental protection products certification
▲ Promote contract energy management
▲ Promote emission trading
(9) (9) Implement the market-oriented mechanism Implement the market-oriented mechanism
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▲ Establish energy saving and emission reduction statistics, monitoring and examination system
▲ Establish sound “Three in One” energy conservation management system, including energy conservation management, supervision and service
▲ Promote key energy consumption units to be equipped with measuring devices according to the requirements
▲ Enhance law-enforcement and supervision on energy saving and emission reduction
(10) (10) Strengthen the basic work and capacity building Strengthen the basic work and capacity building
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▲ Extensively and profoundly carry out national energy conservation and emission reduction actions, do a great job on 10 energy conservation and emission reduction specific projects including family community, youth, enterprises, schools, military camps, rural areas, government institutions, science and technology, popularization of science and media.
▲ Organize such themed propaganda activities as National Energy Conservation Week, World Environment Day, etc.
▲ Vigorously advocate civilized, saving, green and low-carbon production methods, consumption modes and living habits, and create good social atmosphere.
(11) (11) Carry out energy saving emission reduction actions Carry out energy saving emission reduction actions across China across China
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Thank you!Thank you!