China's Efforts to Address Climate Change US-China Green Development Symposium Sun Guoshun (Chinese Embassy) June 10, 2011 at World Bank

1. Legislative Measures 2002 /2007 Law on Energy Conservation 2002 Law on the Promotion of Clean Production 2002 Law on the Prevention of Air Pollution 2002 Law on Forest 2003 Law on Environment Impact Assessment 2005 Law on Renewable Energy 2009 Resolution on Climate Change

2. Administrative Measures Formulate regulations to implement relevant laws. Set up a National Climate Change Leading Group chaired by Premier Wen Jiabao. Set short-term energy intensity goal in the 11th Five-Year Plan (20% below 2005 level by 2010). Set mid-term carbon intensity goal in 2009 (40%- 45% below 2005 by 2020). Shut down small and inefficient coal power plants, steel and iron plants, cement plants, aluminium plants, coke plants, etc. Make local leaders accountable for the goal.

2-1. Meeting of the NCCLG

2-1. Phase out inefficient capacity in China

3. Economic Measures Adjust economic structure (increase light and tertiary industry). Adjust energy structure (increase non-fossil fuel in the energy mix). Increase investment on energy efficiency and renewable energy (stimulus package). Provide incentives to develop renewable energy.

4. Major Achievements Economic structure has improved slightly (The ratio of three industries in 2005 was 12.1%, 47.4% and This ratio changed to 10.2%, 46.8% and 43% in 2010) Energy efficiency has been improved and more renewable energy has been developed. In 2010 renewable energy has reached 300 million tons coal equivalent, accounting for 9.6% in the total energy mix. From , China has shut down inefficient coal power plants with a capacity of 72 million kilowatts. Energy intensity per unit GDP has droped 19.1% on the 2005 level in 2010.

4-1. High tech output Billion Yuan, 2005 High tech output

4-2. Phase out backward production capacity total Iron Steel Cement Small coal plants total Million tons

4-3. Newly added wind capacity in the 11 th -Five-Year-Plan Period Million kilowatts

4-4. China’s non fossil energy in 2009 hydro Total 242 million tons coal -e Hydro Nuclear Wind Photovoltaic Biomass Ethanol

5. Future Objectives short-term goal (energy intensity cuts 16%, carbon intensity cuts 17%, non-fossil fuel reaches 11.4%, forest coverage increases 12.5 million hectares) in the 12th Five Year Plan ( ) mid-term goal (carbon intensity cuts 40%-45% over 2005 level, non-fossil fuel reaches 15%, forest coverage increases 40 million hectares over 2005 level) by 2020.

6. Drivers of China's Action Energy security--China's per capita energy reserve is below world average--It is necessary to diversify energy resources, to improve energy efficiency and to conserve energy. Environment and climate change concern--Air and water pollution, land degradation, flood and drought, loss of biodiversity, etc. Growth of energy need--With development, more energy is needed for production, commerce, heating, cooling, lightening, transportation, etc.

6-1. Impact of climate change

7. China's Energy Intensity Trends 15 National Bureau of Statistics, China Statistical Abstract, various years; NBS media reports 2010; LBNL China Energy Group analysis : Average Annual Decline of 5% per year : Average Annual Increase of 2% per year (energy growth outpaced economic growth) Beginning in 2006 the upward trend was reversed 11 th FYP Target: Reduce energy intensity by 20% from NDRC reporting a 19.06% decline from , just falling short of target

8. China's Difficulties China has 1.3 billion population. Total emission is big, but per capita emission is small and emission history is short. China is a developing country. Many people are still living under UN poverty line and yet without access to energy. Poverty reduction and eradication is a daunting task. China is in the process of economic development and urbanization. Energy is much needed to support China’s growth. China's energy endowment is coal which is more carbon intensive than gasoline and natural gas.

9. International Cooperation China: –supports the UNFCCC to address climate change. –insists the CBDR principle. –encourages international cooperation to address climate change. –urges the US and other developed countries to take the lead in reducing GHG emissions. –looks forward to progress in Durban, South Africa.

10. US GHG Emission Status US emission in 1990 is 6.2 billion tons CO2. US emission in 2008 is 7.1 billion tons (Sources: EIA). The UNFCCC requires the US to return to 1990 emission level (6.2 bt) in However, US emission in 2000 is 7 bt. The Kyoto Protocol requires the U.S to reduce 7% of its emission on 1990 level (6.2 bt) from , i.e bt. In reality, US emission in 2008 is 7.1 bt.

11. A Comparison of China and US Emissions Now China's annual emission is a little bit bigger than that of the US, but China’ s population (1.3 billion) is more than FOUR times of that of the U.S (0.3 billion). So US per capita emission is more than four times of that of China. China started development from1950s while US development path started from 1770s. So US emission history is nearly 200 years longer than that of China. Up to 2005, China's cumulative emission is 90 billion tons which accounted for 8% of the world total cumulative emissions, while that of the US is 280 billion tons and accounted for 30% of the world total cumulative emissions (IEA, 2007, p. 201). So US cumulative emission is three times of that of China.

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