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1 Accelerating Clean Coal Technology Diffusion in China – ten draft recommendations from an IEA study Brian Ricketts, Energy Analyst – Coal, IEA “Working Together to Respond to Climate Change” UNFCCC Annex I Expert Group Seminar, 5-6 May 2008 1. Market-based, energy and resource pricing must be used as the primary means of balancing supply and demand in China, so that resources are exploited, transported and used efficiently and effectively, including those that are imported and exported. Datang Group Xiaoyu SOCM © OECD/IEA 2008 1 © OECD/IEA 2008 2 2. Greater accountability and transparency that allows reliable delegation to lower levels of Chinese government are prerequisites to the proper functioning of existing environmental laws and hence the successful deployment of clean coal technologies. Leaders from Shanxi Coal Bureau 3. Environmental charges on coal mining must be directly linked to levels of pollution (i.e. “polluter pays principle”) and not simply applied to augment government revenues. Shan Xi Geng Yang Mei Jiao Hua Gong Gu Fen You Xian Gong Si coke works, 2 Mtpa © OECD/IEA 2008 3 4. Make market-based mechanisms, such as international carbon trading, central to China’s CO 2 abatement strategy and clean coal technology development for domestic and international markets. © OECD/IEA 2008 4 5. Help to establish and apply minimum international performance standards for coal- fired plants to promote the wider deployment of clean coal technologies, both in China and elsewhere. Datang Tong Mei power plant, 4 x 50 MWe CHP © OECD/IEA 2008 5 6. China should adopt well-proven technologies, management practices and policies that deliver immediate and sustainable improvements along the entire coal supply chain, from mine to end user. Yima gasification plant, Henan, 2.6 mcm/day © OECD/IEA 2008 6

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Page 1: Accelerating Clean Coal Technology Diffusion in China ...resource pricing must be used as the primary means of balancing ... domestic and international ... Help to establish and apply

1

Accelerating Clean Coal Technology Diffusion in China– ten draft recommendations from an IEA study

Brian Ricketts, Energy Analyst – Coal, IEA

“Working Together to Respond to Climate Change”UNFCCC Annex I Expert Group Seminar, 5-6 May 2008

1. Market-based, energy and resource pricing must be used as the primary means of balancing supply and demand in China, so that resources are exploited, transported and used efficiently and effectively, including those that are imported and exported.

Datang Group Xiaoyu SOCM

© OECD/IEA 2008 1 © OECD/IEA 2008 2

2. Greater accountability and transparency that allows reliable delegation to lower levels of Chinese government are prerequisites to the proper functioning of existing environmental laws and hence the successful deployment of clean coal technologies.

Leaders from Shanxi Coal Bureau

3. Environmental charges on coal mining must be directly linked to levels of pollution (i.e. “polluter pays principle”) and not simply applied to augment government revenues.

Shan Xi Geng Yang Mei Jiao Hua GongGu Fen You Xian Gong Si coke works, 2 Mtpa

© OECD/IEA 2008 3

4. Make market-based mechanisms, such as international carbon trading, central to China’s CO2

abatement strategy and clean coal technology development for domestic and international markets.

© OECD/IEA 2008 4

5. Help to establish and apply minimum international performance standards for coal-fired plants to promote the wider deployment of clean coal technologies, both in China and elsewhere.

Datang Tong Mei power plant, 4 x 50 MWe CHP© OECD/IEA 2008 5

6. China should adopt well-proven technologies, management practices and policies that deliver immediate and sustainable improvements along the entire coal supply chain, from mine to end user.

Yima gasification plant, Henan, 2.6 mcm/day© OECD/IEA 2008 6

Page 2: Accelerating Clean Coal Technology Diffusion in China ...resource pricing must be used as the primary means of balancing ... domestic and international ... Help to establish and apply

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Tong Mei Datang Tashan coal mine, 15 Mtpa, 4 x 50MWe + 2 x 600 MWe© OECD/IEA 2008 7

Datang Group Xiaoyu SOCM

8. Train and empower coal mine workers to take responsibility for their own safety, complementing the role of a properly resourced mines inspectorate.

© OECD/IEA 2008 8

9. International and national partnerships, supported by governments, industry and academia, can stimulate the development of new technologies prior to their commercialisation.

Xishan Coal Electricity Tunlan coal mine (6 Mtpa), and Gujiao power plant (600 MWe – planned to reach 3,000 MWe)

© OECD/IEA 2008 9

10. Encourage Joint Ventures and Foreign Direct Investments in the energy sector to promote technology transfer, both into and out of China.

China (Taiyuan) International Coal & Energy New Industry Expo. 16-18 Sep 2007

© OECD/IEA 2008 10