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Integration of Climate Mitigation into Integration of Climate Mitigation into National policiesNational policies
A Framework for Analysis of China’s sA Framework for Analysis of China’s sustainable development policiesustainable development policies
Xiangyang WUXiangyang WUResearch Centre for Sustainable Development (RCSD)Research Centre for Sustainable Development (RCSD)
Chinese Academy of Social Sciences (CASS)Chinese Academy of Social Sciences (CASS)
Workshop on BASICBeijing, 18 February 2006
OutlineOutline
Introduction
The relevance of SD policies to CC mitigation
Understanding the impact: a framework for analysis
SD policies to CC mitigation
Case study: energy saving policies
Conclusions and suggestions
Introduction Introduction
China has no climate change policies, but has sustainable development policies and measures relevant to CC.
As China’s national strategy, sustainable development has been taken as the primary objective for policy making
China has been contributing to climate mitigation through improving energy efficiency, developing renewable energy, afforestation, family planning, poverty alleviation, etc.
SD Policies
Climate Policies
Policies Relevant to
CC
Non-CC policies
Policy areas: implications for Policy areas: implications for CC mitigationCC mitigation
Economy
policies
Environmental policies
Social policies
SD Policies
The relevance of policies to CC The relevance of policies to CC mitigationmitigation
Criteria: positive /negative impact on GHG emissions ?
Measurement: cost-effectiveness of reductions and potentials for mitigation CC mitigation: a co-benefit from SD policies Inadequate information for measurement
Framework of Policy Evaluation Framework of Policy Evaluation
Orientation of SD policies Its primary objective Its coverage? national, sectoral, or local? Its mechanism for implementation: incentive, comp
ulsory, voluntary, guidance?
Implementation: cost and its effect
Implication to GHG emissions, ↑↑ ,↓,↓ ?
Prospects for integration
Major SD Policies with direct Major SD Policies with direct relevance to CC mitigationrelevance to CC mitigation
Climate Change
Energy policiesEnvironmental/
ecological policies
Social policiesFamily
PlanningPoverty
Alleviation
Energy industry institutional reformOptimizing energy structure
Energy saving
Forest
Air pollution control
China’s energy policies (1)China’s energy policies (1)
Institutional reform in energy industry: market liberalization ↑ Price controlled by government dual price system (g
overnment + market) market price Examples
• Coal sector: 1987, govt price and market price; 2002, market price only.
• Power sector: 2002, institutional reform against monopoly, divided into generation enterprises and power grid enterprises. Separated govt. function and enterprises.
China’s energy policies (2)China’s energy policies (2)
Policies in optimizing energy structure: cleaner ↓ Renewable energy: (a) plan: the development plan of
new and renewable energy(1995), the 10th Five-year plan of … and 2000-2015 plan of … (b) the Renewable Energy Law(2005).
Shut down small thermal power units. Encourage CHP
Use new- and advanced-technology in thermal power plants
Renewable achievement Renewable achievement
Wind power:
Small hydro:
By 2004 , solar PV cell:60MW, solar heater: 65million m2,a share of 40% in the world.
Bio-methane in Rural areas: 11 million digesters, 5.5 billion m3 per year 。
1994: renewable energy 10.26 Mtce. 2000: 33.57Mtce.
150 1060
9520
20529
26760
32600
0
5000
10000
15000
20000
25000
30000
35000
1959 1979 1985 1998 2002 2003
inst
alle
d ca
paci
ty (
MW)
30
375
760
0
100
200
300
400
500
600
700
800
1994 2000 2004
inst
alle
d ca
paci
ty (
MW) Wind power
Small hydro
Energy saving policies: reduce ↓(case study)
Major SD Policies with direct Major SD Policies with direct relevance to CC mitigationrelevance to CC mitigation
Climate Change
Energy policiesEnvironmental /
Ecological policies
Social policiesFamily
PlanningPoverty
Alleviation
Energy industry institutional reformOptimizing energy structure
Energy saving
Forest
Air pollution control
Environmental / ecological Environmental / ecological policies (1)policies (1)
Air pollution control ↓↓ Polluter pays: introduced in 1982 Emission permit system (1994) Plan of Total Emission Control (1996) SO2 pollutions control zone & acidity control zone
(1998) Air Pollution Prevent and Control Law (2000): the pilot program of SO2 Emission Trading (2002) 10th Five-year Plan: 2005 SO2 emission reduce
20% on 2000. HOWEVER,
15. 9 14. 6 16. 1 15. 7 15. 617. 9 18. 9
5. 0 4. 0 3. 8 3. 8 3. 6 3. 7 3. 6
20. 918. 6 20. 0 19. 5 19. 3
21. 6 22. 5
0. 04. 08. 0
12. 016. 020. 024. 0
1998 1999 2000 2001 2002 2003 2004年
MtTotal SO2 emission
Industry SO2 emission
household SO2 emission
Why?
Environmental / ecological Environmental / ecological policies (2)policies (2)
Forestry ↓ The Forest Law (1979, revised in 1998) barren land and mountainous areas: long term leas
e for private investment allowed Land use change: sloping farmland to forest (startin
g from 2000, in 17 provinces) No disturbance for natural re-generation policy: 30.
2 m ha Tree planting: by 2000 , 46.67m ha
Major SD Policies with direct Major SD Policies with direct relevance to CC mitigationrelevance to CC mitigation
Climate Change
Energy policiesEnvironmental /
Ecological policies
Energy industry institutional reformOptimizing energy structure
Energy saving
Forest
Air pollution control
Family Planning
Poverty Alleviation
Social policies
Social policiesSocial policies
Poverty alleviation policies : combined with rural energy development and ecological protection ↓
1985-2000, 3 rounds of the programs for building rural preliminary electrification counties through small hydro development.
Alleviation poverty through giving science and technology, education to … 2500 million 2.9 million
Family planning policy ↓ Family planning: 1970s, “late, wide interval, less“ , 1980s,
”only one ”. prediction: the peak will be 1.465 billion in 2030, will not
exceed 1.5 billion. Avoidance of births: 300 million.
Case studyCase study: energy saving : energy saving policies evaluationpolicies evaluation
primary objective: reduce energy consumption, improve energy efficiency
CC implication: mitigation
Policies introduced: Energy Saving Law (1997) management rules for main energy-consume
enterprises (1999) energy saving product certificate
IncentivesIncentives
Grants and subsidies: Direct investment and low interest loans. key energy saving projects Energy technologies R&D, demonstration and deployment
Energy related funds: set up by government, local authorities and power companies
State owned investment company: CECIC sep up by government in 1998
ESCo: since 1997, 60 ESCo has established to implement over 500 projects, invest 1.4 billion and achieve 1.75 Mtce energy saving.
Deposit refund: to encourage deployment of energy saving construction materials
Energy saving products list: encourage its deployment by governmental procurement
Ambitious Targets in the 11th Ambitious Targets in the 11th Five-year Plan (2006-2010)Five-year Plan (2006-2010)
National goals: to reduce energy intensity 20%, to control GHGs emissions
“Energy Conservation Plan” : specific targets: set up for main energy intensive products, ene
rgy consuming equipment and energy management 3 Priority areas : industry, transport, buildings of business an
d residents 10 Key energy saving projects 10 Supportive policies and measures, emphasizing necessity to
introduce market-based incentives and new initiatives and enhancing energy management to large energy user
Achievement: Energy Intensity Achievement: Energy Intensity decreaseddecreased
2.892.79
2.572.4
2.26 2.18 2.111.92
1.711.6
1.51 1.47 1.45 1.5 1.58 ?
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5Equivalent to 700 Mtce of Energy saving, 1050 Mt SO2 and 440 MtC emission
s reduction
GDP is Calculated with comparable price in 2000;
Problems on energy saving Problems on energy saving policiespolicies
Weak implementation: rules were not obeyed strictly.
Insufficient incentives
energy saving policies were not harmonized.
Conclusions and suggestionsConclusions and suggestions
China’s SD policies (energy, environmental / ecological and social policies) lead to positive contribution to CC mitigation
Policy-coordination is necessary to address CC
Integrating CC into SD framework
Next stepNext step
Typical cases with cost and benefit analysis on several key policies Policy making cost, implemental cost, supervising
cost, etc. Benefit: refer mostly to GHG emission,
environmental, ecological and social aspects.
Comparative analysis among different policies
How to highlight CC initiatives in SD framework