Mitigating Climate Change -- From Commitments to Action Plans Yuhong Zhao, Faculty of Law The Chinese University of Hong Kong I.China and the Global Climate Regime II.National Climate Policy and Action Plans III.Clean Renewable Energy IV.Carbon Trade Pilot Schemes

I. China and Global Climate Regime  Rio (1992), UNFCCC and Kyoto Protocol  CBDR  Annex I parties: quantified emissions targets;  Non Annex I parties: communicate mitigation actions  Copenhagen Conference (2009)  China’s commitment: 40-45% reduction in carbon intensity (CO 2 emission per unit of GDP) by 2020 compared to 2005  Cancun Agreement (2010)  Green Climate Fund  Technology Mechanism

I. China and Global Climate Regime  Durban Conference (2011)  Decide to adopt a universal legal agreement on CC ASAP, no later than 2015, in force 2020;  China: willing to be bound after 2020 subject to conditions of funding & technology.  Doha Conference (2012)  Kyoto Protocol 2 nd Commitment Period ( )  Post 2020 regime: Durban Platform  China (BASIC four): CBDR

II. National Climate Policy and Action Plans  National Five-Year Socio-Economic Development Plans (FYP)  11 th FYP ( )  12 th FYP ( )  Climate Change Policy and Plans  China’s National Programme on CC (NDRC, 2007)  China’s Response to CC: Policies and Actions (State Council, 2008), annual reports  Work Plan on Energy Conservation and Emission Reduction in the 12 th FYP Period (State Council, 2011)  Work Plan on the Control of GHG Emissions in the 12 th FYP Period (State Council, 2011)  Climate Change Law?

II. National Climate Policy and Action Plans 11 th Five-Year Plan ( )  Binding targets:  Reduce energy consumption per unit GDP by 20% from the 2005 level; and  Reduce major pollutants (SO 2 & COD) by 10% from the 2005 level.  Outcomes:  Energy efficiency: 19.1%  SO 2 : 14.29%  COD: 12.45%

End of 2010: “power off” campaigns

II. National Climate Policy and Action Plans 12 th Five-Year Plan ( ) Binding targets:  Non-fossil fuel in primary energy consumption: 11.4% (2010: 8%; 2020: 15%);  Energy consumption per unit GDP: reduce by 16%;  CO 2 emission per unit GDP: reduce by 17%.  Forest coverage: increase to 21.66% (2010: 20.36%)  Forest stock volume: increase 0.6 billion m 3 to 14.3 billion m 3 (2010: 13.7 billion m 3 )

II. National Climate Policy and Action Plans 12 th Five-Year Plan ( ) Part VI, Chap.21, Sec.1 Control of GHG emissions  Substantial cut of intensity of energy consumption & carbon intensity;  Reasonable control of total energy consumption;  Low-carbon technology: industry, buildings, transport & agriculture;  Low-carbon products: standards, labelling & certification;  Carbon emission trade.

III. Clean Renewable Energy 12 th FYP ( )  Non-fossil fuel in primary energy consumption: 11.4% (2010: 8%; 2020: 15%); 12 th FYP on Energy Development (2013)  Double control of energy consumption  Total consumption in 2015: 4 billion tons coal (equivalent) (2010: 3.25 billion, annual growth 4.3%)  Energy efficiency in 2015: cut by 16% of 2010 level  Energy mix in 2015:  Coal: 65%  Natural gas: 7.5%  Non-fossil fuel: 11.4%

Primary energy world consumption Million tonnes oil equivalent BP Statistical Review of World Energy 2012 © BP 2012

Primary Energy Consumption (2012) Based on data of BP Statistical Review of World Energy 2012 WorldChina (2015) Oil33.1%17.7% Natural Gas23.9%4.7% (7.5%) Coal29.9%68.5% (65%) Nuclear Energy4.5%0.8% Hydro-electricity6.7%7.1% (11.4%) Renewables2.4%1.2%

IV. Carbon Trading Pilot Schemes NDRC Notice to Set Up Carbon Trading Pilot Schemes (2011)  5 cities: Beijing, Tianjin, Shanghai, Chongqing, Shenzhen;  2 provinces: Hubei, Guangdong Implementation Plans:  2012: Beijing, Shanghai, Guangdong;  2013: Tianjin, Hubei, Shenzhen; Operation:  Shenzhen: 18 June 2013

IV. Carbon Trading Pilot Schemes Shenzhen Pilot Scheme:  Reasonable control of total energy consumption;  Abate carbon intensity;  Achieve total emission control of GHGs;  Controlled units: key emission enterprises & units;  Allocation: target of total emission control, state industrial policy, actual emissions etc;  3 rd party audit: annual carbon emission report;  Penalty: fine (3 times of the market price) on carbon emissions in excess of permits;  Open market: other units & individuals

IV. Carbon Trading Pilot Schemes Shenzhen Pilot Scheme:  Controlled units: 635 enterprises & public buildings (38% of total carbon emissions of the city);  Total allowances/permits: 100 million tonnes CO 2 e for ;  Next stage: transport (bus & taxi);  1 st trading day (18 June 2013)  8 deals  Total volume: 21,112 tonnes of carbon;  Price: yuan/tonne

IV. Carbon Trading Pilot Schemes Shanghai Pilot Scheme:  Industrial sources: emission over 20,000 tonnes CO 2 e/year in 2010 or 2011 (steel, petrochemical, non-ferrous metal, power generation, building materials, textile, paper, rubber etc);  Non-industrial sources: emission over 10,000 tonnes CO 2 e/year in 2010 or 2011 (aviation, port, airport, railway, commercial, hotel, financial etc);  Allocation: free for ; auction in due course;  3 rd party audit: annual emission report;  Safety valve: gov’t retains/releases permits to control excessive price volatility;

Conclusion Post-2020?  International Energy Agency, Redrawing the Energy-Climate Map (2013): China’s CO 2 emissions growth of 300 Mt in 2012, smallest in a decade;  Domestic studies: carbon emission peak in 2025?  National carbon trading market: 13 th FYP ( )  Carbon tax  Sino-US agreement to cut HFCs (2013): phase out production & consumption of HFCs

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