Policies in China:
China: 10th Five Year Plan
The 10th Five-Year Plan continues to elaborate goals for the sustainable economic and social development of China. Energy related objectives focus on the development of clean-burning, substitution and efficient technologies. It elaborates certain means, including clean fuels demonstration projects, implementing energy efficiency standards and a labeling/identification system, formulating efficiency incentives, and introducing ‘Energy Conservation Publicity Week’
Date Implemented: 2001-2005
Status: In Force; Framework Policy
Funding Information:
Targets: Beijing plans to reduce China’s total emissions by 10%. By 2005, the energy consumption of 10,000 yuan GDP shall be reduced to 2.2 tons of standard coal (according to the fixed price in 1990).
References: US Department of State, http://www.state.gov/r/pa/ei/bgn/18902.htm
Executive Summary of the National Communication to the UNFCCC
http://www.chinacp.com/eng/cppolicystrategy/10th5energy.htm
China: Brightness Program
Decentralized electrification of rural areas through renewables
Date Implemented: 1996-1999
Targets: Wind and solar equipment is to be installed to provide 100W of electricity per capita to eight million people, as part of the Central Government Poverty Alleviation Meeting.
References: http://www.nrel.gov/docs/fy04osti/35787.pdf
China: 11th Five-Year Plan
The programming period is divided into the Eleventh Five Year Plan period running to 2010 and the period from 2010 to 2020. The energy conservation objectives and the focus of development by 2010 are essentially planned, whereas the objectives stated for 2020 are proposed. In its "alternative oil strategy," which is part of the Five-Year Plan, Beijing has called for a doubling in renewable energy generation to 15% of the country’s needs by 2020, including major increases in wind power and biomass.
Date Implemented: 2005
Status: In Force; Framework Policy
References: http://www.china.org.cn/english/features/guideline/156529.htm
http://www.gov.cn/english/special/115y_index.htm
China: 3 self policies
The 3-selfs scheme is the main component of the government’s rural electrification with small hydro power program. "Self construction," "self-management," and "self consumption" promote self reliance within rural populations.
Status: In Force; Framework Policy
References: China New Energy: Policy and Plan
http://www.newenergy.org.cn/english/policy/
China: Air Cleaning Program – Clean Automobile Action
To promote clean automobiles
Milestones: By the end of 2003, 16 demonstration sites for clean automobiles had been set up
References: Executive Summary of the National Communication to the UNFCCC
China: Asian Pacific Partnership on Clean Development and Climate
APP partners Australia, Canada, China, India, Japan, Republic of Korea, and the United States have agreed to work together and with private sector partners to meet goals for energy security, national air pollution reduction, and climate change in ways that promote sustainable economic growth and poverty reduction. The Asia-Pacific Partnership on Clean Development and Climate is an innovative new effort to accelerate the development and deployment of clean energy technologies. The APP has a number of projects in member countries designed to implement or improve new technologies, better policies, and mutual cooperation. In addition to renewable energy, the APP focuses on manufacturing sectors like steel and cement.
Date Implemented: 2006
Status: Framework Agreement
References: http://www.asiapacificpartnership.org/default.htm
China: Beijing pollution reduction measures
Beijing municipal government mandated that city vehicles convert to liquefied petroleum gas and natural gas. By 2002, Beijing had the largest fleet of natural gas buses in the world - a total of 1,630 vehicles. Subway and light rail systems in Beijing also are being expanded.
Date Implemented: 1999
Status: In Force; Mandatory
References: EIA Country Analysis Brief: China, http://www.eia.doe.gov/
http://www.iges.or.jp/APEIS/RISPO/inventory/db/pdf/0014.pdf
China: Brightness Program
The Brightness Program includes the Township and Village Electrification Programs and is designed to bring electricity to rural areas and help alleviate poverty. China is focusing its efforts in the western provinces including Inner Mongolia, Tibet, Qunghai, Gansu, and Xinjiang. The Township Electrification Program targets 1065 towns to be provided with either solar or small scale hydro power.
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Date Implemented: 1998
Status: In Force; Mandatory
Funding Information: Government spent 50 million US$ from 2001-2005. Other costs expected to be covered by users and government grants. Assistance from Germany and Holland.
Target: to provide electricity to 8 million people initially, and later 23 million people by 2010 using renewable energy and eventually provide 100 watts per person.
References:NREL; http://www.nrel.gov/docs/fy04osti/35790.pdf
http://cdm.ccchina.gov.cn/english/UpFile/File10.DOCChina: Cleaner Production Promotion Law
Requires local governments to develop and implement cleaner production plans and periodically release pamphlets and guidebooks with instructions. Encourages research and development of cleaner technologies and processes and the dissemination of information and awareness about clean prodcution through educational programs and television/media outlets. Formulates tax incentives and otherwise supports the research and development of clean technologies. Requires technological upgrades and certain standards in building, construction and production. Established demonstration programs for pollution remediation in ten major Chinese cities, and designated several river valleys as priority areas.
Date Implemented: 2002
Status: In Force; Mandatory
References: EIA Country Analysis Brief: China http://www.eia.doe.gov/
http://www.chinacp.com/eng/cppolicystrategy/cp_law2002.html
China: Consumption tax
Beijing is retooling its tax structure to incentivize the consumption of smaller, more efficient and less polluting cars. Under the current structure, there are 3 categories for engine size, while the new structure will likely have five. Buyers of low or zero-emission vehicles will be exempted from taxes while those who purchase bigger cars will pay higher taxes. (Current avg vehicle tax: 3-8 per cent levied on auto producers. New tax on bigger cars could be as high as 15-20 per cent.)
Date Implemented: 2006
Status: Planned; Mandatory
Targets: growth of clean vehicle market/industry
References: China Daily News stories: Wu Chong: "Buyers of big cars will pay more tax" 11/25/05; Fu Jing "Buyers of small cars to enjoy big tax breaks" 11/9/05
China: Conversion of Exhaust Heat and Pressure
Within the 11th Five Year Period (2006 - 2010), the Chinese government has mandated the efficient use of exhaust, pressure and heat from mining and industrial processes. Iron and steel enterprises will
- apply coke dry quenching (CDQ) and power generation through the pressure difference in blast furnace, renovate all blast furnace gas power generation and implement converter gas recovery to save 2.66 million tons of standard coal;
- install each year 30 sets of medium-and-low-temperature exhaust-heat power generation equipment in concrete production lines with a daily yield of 2,000 tons;
- exploit ground coalbed gas (CBG), extracting and draining gas in ground mined-out areas, discarded mines and below the grand surface, to realize an annual gas application of one billion cubic meters, equivalent to saving 1.35 million tons of standard coal.
Date Implemented: 2006
Status: In Force; Mandatory
References: http://www.iea.org/Textbase/pm/?mode=pm&id=2518&action=detail
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China: Design Standards
The technical design standards for efficiency, implemented by the Chinese government, include primarily, Grading of Insulation of the Outside Windows of Buildings and Its Testing Method, Design Standards for Energy Conservation in Civil buildings, for Lighting in Civil Buildings, for Thermal Engineering in Civil Buildings, for Energy Conservation in Thermal Engineering and Air Ventilation in Tourist Hotel Buildings, for Energy Conservation in the Residential Buildings in Areas Unusually Hot in Summer and Cold in Winter, and for Renovation of Existing Residential Buildings
Date Implemented: tested on a limited basis beginning in 1994; implemented in 1996 revised in 2005-2006
Status: In Force; Mandatory
Milestones: The first standards required that all new buildings cut energy costs by 50 percent. However, by the end of 2000, only 5 percent of all new construction had met the standards. The revised standards call for increased enforcement of the standards, and by 2010, more than one-third of new buildings will be required to cut energy consumption by up to 50 percent. By 2020, all the new buildings will be expected to reduce energy use by 65 percent.
References: Executive Summary of the National Communication to the UNFCCC
http://www.china.org.cn/english/2005/Mar/121609.htm
China: Efficiency Upgrade for Appliance Production and Public Lighting
Aiming to reduce electricity consumption by 29 billion kilowatt-hours over the 11th Five-Year Period, China has mandated the promotion of high-efficiency lighting systems and three-primary-color phosphorous in public facilities, hotels, shopping centers, office buildings, and sports venues; and the renovation of production and assembly lines of high-efficiency electronic appliances. In 2004, lighting required 13% of China’s total power. As stated by the National Development and Reform Commission, 70 to 80% of power can be saved by replacing ordinary incandescent lamps with high-efficiency energy-saving fluorescent lamps and 20 to 30 percent can be saved by replacing traditional electromagnetic ballasts with electronic ballasts. In traffic lights, 90 percent of power used can be saved by replacing incandescent lamps with light emitting diodes (LEDs).
Date Implemented: 2006
Status: In Force; Mandatory
Targets: Conservation of 29 billion kilowatt-hours by 2010
References: International Energy Agency
http://www.iea.org/Textbase/pm/?mode=pm&id=2523&action=detail
China: Electric Power Law
This law emphasizes government support of small hydropower systems, solar energy, wind, geothermal, biomass, and other renewable energy resources for rural electrification.
Date Implemented: 1995
Status: Framework Policy
References: Energy and Power in China: Domestic Regulation and Foreign Policy, The Foreign Policy Centre, http://fpc.org.uk/fsblob/448.pdf
China: Electricity Generates Electricity
Profits from existing small hydorpower stations and grids has to be used to build more SHP. The government also set up a VAT of 6% of tax preference for SHP stations.
Status: Mandatory
References: http://www.waterpowermagazine.com/storyprint.asp?sc=2024707
China: Electricity price increase
China’s top pricing and tax decision-making group has developed a pricing system for electricity generated by renewable energy. The plan requires raising the tarrif - the set price at which generators of electricity can sell their power to grid companies. The rate increase will vary by region depending on the level of economic development. The customer will be paying the additional cost of producing RE.
Date Implemented: 2006
Status: Planned; Mandatory
References: China Daily News story: Wang Ying "New pricing system for green electricity" 11/17/05
China: End-Use Energy Efficiency Programme (EUEEP)
EUEEP is part of a 12-year government plan to dramatically improve the efficiency of China’s major energy users: commercial and residential buildings, heavy industries such as iron, steel, cement, and petrochemicals. The EUEEP is designed to support develop and implement a comprehensive system of policies and regulations for energy conservation. These will range from technological innovations to creation and revision of design codes to the development of training materials and energy conservation guidelines for architects, engineers, and industrial managers to improve the efficiency of industrial equipment such as electric motors and boilers, household, appliances such as refrigerators and washing machines, as well as office automation equipment . The UNDP and the GEF, in partnership with government agencies, research institutes, bilateral donor countries, non-governmental organizations, and enterprises, will also help introduce and test new technologies, methodologies, and market-based mechanisms and tools.
Date Implemented: 2005
Status:Planned; Voluntary
Funding Information: Phase I: UNDP Inputs: GEF US$17,000,000; Donor Inputs: Private Sector US$32,000,000; Government Inputs: US$31,350,000
References: http://www.undp.org.cn/modules.php?op=modload&name=News&file=article&cat...
China: Energy Conservation in Buildings
Within its 11th Five-Year Period, China plans to reduce residential and public buildings’ energy consumption by 50%, saving 50 million tons of standard coal. The federal plan for energy conservation in buildings formally mandates:
- the quick technical reform of heat-supply systems nation-wide;
- renewed efforts to promoting building energy efficiency technology and related products; and
- renovation of existing buildings in the nation’s cold northern regions, with particular focus on hotels.
Date Implemented: 2006
Status: In Force; Mandatory
References: International Energy Agency
http://www.iea.org/Textbase/pm/?mode=pm&id=2522&action=detail
China: Energy Conservation in Government
To improve the energy efficiency of government institutions during the 11th Five-Year Period, China required several reforms of government operation:
- During reconstruction of government buildings - including heating, air-conditioning and lighting systems - 20 percent of the total construction area must meet the national building energy efficiency standard.
- Government procurement must promote high-efficiency products and publish their list.
- Government vehicle purchases must focus on low-oil-consuming vehicles.
With these mandates, the Chinese state aims to save energy by 10% per unit construction area and per capita, relative to 2002.
Date Implemented: 2006
Status: In Force; Mandatory
Targets: Energy conservation of 10% per unit construction area and per capita, relative to 2002
References: International Energy Agency
http://www.iea.org/Textbase/pm/?mode=pm&id=2524&action=detail
China: Energy Conservation Law
Broadly, this law covers the promotion of energy conservation and efficiency, and of productivity in industry. The law seeks to promote energy conservation activities throughout society, increase the economic benefits from energy efficiency measures, protect the environment, ensure economic and social development, and meet the needs of households. The law codifies China’s approach to promoting energy efficiency under a more market-oriented economic system. The law states that the government should encourage energy efficiency, as well as the development and use of new and renewable energy, formulate energy conservation policy, compile energy conservation plans, and incorporate them into the economic and social development plans of the nation, develop policies and plans that ensure rational energy utilization, and coordinate those plans with environmental protection and economic growth, stimulate and support technology R&D and scientific research in energy conservation as well as application and dissemination, and strengthen educational activities and propaganda in energy conservation. Formulation of specific rules and methods is left to planning and implementing organizations of the central and local governments. Under the implementation process for the Energy Conservation Law, the SETC published a list of energy-intensive equipment that was to be taken out of service, including small fossil fuel fired power plants, obsolete transportation equipment, and vehicles in urban areas over 15 years old. The SETC also issued guidance on the investment of central government funds and on the level of energy efficiency to be achieved by plants of specific size. Also, the Policy Outline for Energy Conserving Technologies laid out a set of specific technical goals, e.g., abolition of certain types of equipment and adoption of particular technologies for specific sectors and for products, such as boilers and electric motors.
Date Implemented: 1998
Status: In Force; Framework policy
References: Compendium on Energy Conservation Legislation, UN, http://www.unescap.org/esd/energy/publications/compend/ceccpart1chapter1... EIA China’s Environmental Issues,
Energy Institutions and Policies: Historical Evolution and Current Challenges, Energy Technology Innovation Project, Belfer Center for Science and International Affairs, John F. Kennedy School of Government, Harvard University (2001)
China: Energy cooperation with Russia
Chinese president Hu Jintau and Russian President Vladimir Putin agreed to deepen energy cooperation. Russian Gazprom will build necessary pipelines to supply gas to China. This cooperation will benefit China by providing increased access to energy supplies. As well, any effort to consume fossil fuels other than coal will benefit the environment.
Date Implemented: 2006
Status: Planned; Mandatory
Funding Information: Pipelines will cost ~$10 billion
Targets: gas pipelines linking to both west and east China - first deliveries estimated around 2011. Eventual supply: 60-80 billion cubic meters of gas/yr
References: Reuters news story March21, 2006 "Russia and China promise energy cooperation" by Tom Miles
China: Energy Efficient Products for Government Procurement - Publication of Official Listing
The Ministry of Finance and the National Development and Reform Commission published a formal list of energy efficient products for public procurement. Certified by a Chinese certification organization, the list of products will be issued as the List of Energy Efficient Products for Government Procurement, or simply the Energy Efficiency List.
The Energy Efficiency List: Refrigerators, Room Air Conditioners, Double Capped Fluorescents for General Service Lighting, Self-ballasted Fluorescents for General Service Lighting, Televisions, Computers, Printers, Toilets and Faucets.
When procuring products from a category appearing on the Energy Efficiency List, federal, state and municipal agents must give priority to the energy efficient products on the Energy Efficiency List. In government procurement activities, the procurement officer must make explicit the assessment standards for product energy efficiency requirements, conditions for product qualification, and priority of energy efficiency procurement in all tender documents (including negotiation documents and price request documents).
Date Implemented: 2006
Status: In Force; Mandatory
References: International Energy Agency
http://www.iea.org/Textbase/pm/?mode=pm&id=2515&action=detail
China: Energy Label
Household refrigerators and room air conditionings without this label were forbidden to be sold in Chinese market after March, 1st, 2005.
Date Implemented: 2005
Status: In Force; Mandatory
References: http://mail.mtprog.com/CDLayout/Day222.06.06/1400-1545/ID7Minghong_final.pdf
China: Enhanced Efficiency Monitoring and Auditing: Development of Efficiency Centers
Within the 11th Five-Year Period, China aims to boost the capability of provincial efficiency monitoring centers of provinces and principal energy-consuming industries. Such support appears as renovation of monitoring equipment, personnel training and promotion of contractual energy management.
Liable under federal law, the centers of monitoring and auditing must develop and provide package services of efficiency diagnosis, design, financing, renovation, operation and management, for enterprises, government institutions and schools.
Date Implemented: 2006
Status: In Force; Multi-sectoral Framework Policy
References: International Energy Agency
http://www.iea.org/Textbase/pm/?mode=pm&id=2525&action=detail
China: Environmental Protection Law
Establishes framework for protecting the environment, including setting standards, assessing (and limiting) environmental impact, fines for pollution, and bans on polluting technologies/facilities.
Date Implemented: 1989
Status: In Force; Framework Policy, Mandatory
References: Environmental Protection Law of the People’s Republic of China
http://www.china.org.cn/english/environment/34356.htm
China: Gasoline price increase
In may of 2006, Beijing enacted the largest ever one-off increase in the fixed/mandated price of gasoline in China. Overnight the price increased 12 cents to approximately $2.40/gallon.
Date Implemented: May 2006
Status: In Force; Mandatory
References: news article by Richard McGregor in Beijing May 24, 2006
China: Government notice to encourage environmentally-friendly, low-emission cars
This notice encouraged the use of environmentally-friendly, low-emission cars and called on manufacturers to invest more in development and production of environmentally-friendly and low-emission engines and automobiles, such as small cars, diesel-powered vehicles and those using new fuel sources. The notice urged government departments to use tax breaks and preferential oil-pricing policies to encourage consumers to buy such cars and advocated lower parking charges for small vehicles. It also demanded government departments remove all limitations on the use of small cars in the transportation and taxi sectors.
Date Implemented: 2006
Status: In Force; Voluntary
References: http://www.china.org.cn/english/environment/154117.htm
China: Green Insurance System
China is beginning a trial phase of requiring insurance for companies that produce or use high- risk chemical products. Companies that have been prone to accidents recently will be targeted. This measure is intended to help victims of polluting industries receive timely and appropriate compensation. The insurance would prevent companies from going bankrupt after a serious environmental accident, but still give them incentive to lower their insurance costs by increasing their safety standards.
Date Implemented: 2008 trial period. Full scale implementation by 2015
Status: In Force; Trial period
References: http://english.gov.cn/2008-02/18/content_892569.htm
China: Green Lighting Program
The program involves promoting the development and market penetration of efficient and clean lighting sources, including low interest loans for the lighting industry, education campaigns, and pilot/demonstration projects.
Date Implemented: 1996
Status: Ended; Voluntary
Targets: The short-term objective was to increase the stock of efficient lighting products by 300 million by 2000.
References: Executive Summary of the National Communication to the UNFCCC;
http://www.aceee.org/pubs/i991.htm
China: IFC’s China Utility-Based Energy Efficiency Finance program
CHUEE supports marketing, development and equipment financing services to energy users in the commercial, industrial, institutional and multi-family residential sectors to implement energy efficiency projects in China. CHUEE brings together financial institutions, utility companies, and suppliers of energy efficiency equipment. The program is expected to promote energy efficiency, reduce pollution and greenhouse gas emissions, and expand lending to small and medium enterprises in China.
Date Implemented: 2006
Status: In Force; Voluntary
Funding Information: Among the first steps: IFC agreed to grant $1 million to Xinao Gas and to provide Industrial Bank with risk-sharing coverage of $25 million. The risk-sharing coverage will help Industrial Bank establish a loan portfolio of $58 million in energy efficiency equipment loans to small and midsize energy users in China. CHUEE is supported by grant funding from the Global Environmental Facility and Finland’s Ministry of Trade and Industry, and operates under the IFC Private Enterprise Partnership for China.
References: http://www.ifc.org/ifcext/chuee.nsf
China: Import Duties
The Chinese government has lowered import duties to directly promote the development of renewable energy technologies. The average import duty now stands at 23%, but renewable energy technologies enjoy special low rates: 3% for components of wind power plants, 6% for wind turbines, and 12% for photovoltaics (PV) systems.
Status: In Force
References: Executive Summary of the National Communication to the UNFCCC; Reform of China’s Energy Institutions and Policies: Historical Evolution and Current Challenges, Energy Technology Innovation Project, Belfer Center for Science and International Affairs, John F. Kennedy School of Government, Harvard University (2001)
China: Law of the Highway
A fuel-based taxation system intended to save energy, reduce pollution, and promote automobile technology development.
Date Implemented: 1998
Status: Mandatory
References: Reform of China’s Energy Institutions and Policies: Historical Evolution and Current Challenges, Energy Technology Innovation Project, Belfer Center for Science and International Affairs, John F. Kennedy School of Government, Harvard University (2001)
China: Law on the Prevention and Control of Air Pollution/Air Pollution Control Law
This law requires enterprises to use energy-efficient, low-polluting clean production technologies, and asks the economic management authorities (SDPC and SETC) to promulgate lists of equipment to be retired. It requires sorting and washing of high-sulfur and high-ash coal, which would lead to marketing of coal that could be used more efficiently in end use equipment. As a result of this legislation and the more forceful implementation of environmental regulations, many small, inefficient and heavily polluting plants shut down and mines were closed. This has led to greater opportunity for efficient higher quality mines and plants to open.
Date Implemented: 2000; revised 2002
Status: In Force; Mandatory
References: EIA Country Analysis Brief: China http://www.eia.doe.gov/
http://www.iea.org/textbase/pm/?mode=weo&id=3282&action=detail
Reform of China’s Energy Institutions and Policies: Historical Evolution and Current Challenges, Energy Technology Innovation Project, Belfer Center for Science and International Affairs, John F. Kennedy School of Government, Harvard University (2001),
China: Low interest loans
The Chinese government has issued low interest loans and interest subsidies for power plants using renewable technolgies to reduce the cost.
Date Implemented: since 1987
Status: In Force
References: Executive Summary of the National Communication to the UNFCCC; Reform of China’s Energy Institutions and Policies: Historical Evolution and Current Challenges, Energy Technology Innovation Project, Belfer Center for Science and International Affairs, John F. Kennedy School of Government, Harvard University (2001),
China: Market Transformation Programme - Partnership with the UK
Chinese and UK governments aim to harmonise and converge product performance specifications at a global level, fostering the development of efficient products at a lower cost. In theory, the project will enable the Chinese government to develop a more informed approach to product policy. The Market Transformation Programme focuses on the efficiency of appliances, including domestic set-top boxes, Compact Fluorescent Lamps (CFLs), refrigerators, colour TVs, rice cookers, washing machines, microwave ovens and room air conditioners. Market transformation strategies seek to achieve significant and lasting improvements in the efficiency of electrical products. The project, mandated by China’s NDRC, works in partnership with two Chinese government organisations: CNIS (China National Institute of Standardization), responsible for setting minimum standards and initiating the development of test methodologies and CECP (China Standard Certification Center), who develops, manages and enforces product certification. Project Tasks/ Research: Based on currently available information sources, the project develops end-use stock models of consumption, to enable scenarios to be run, and to prepare prioritise policy action plans to reduce the energy consumption of products in China.
Date Implemented: 2006
Status: In Force; Voluntary
References: International Energy Agency
http://www.iea.org/Textbase/pm/?mode=pm&id=2526&action=detail
China: Medium and Long Term Energy Conservation Plan
Plan of Energy Conservation aims to push the whole society towards energy conservation and energy intensity reduction, to remove energy bottlenecks, to build an energy saving society, and to promote sustainable social and economic development. In this plan, detailed energy conservation targets were set up. Key actions and comprehensive policy measures were put forward such as the Ten key projects for Energy Conservation. The programming period is divided into the Eleventh Five Year Plan period running to 2010 and the period from 2010 to 2020. The energy conservation objectives and the focus of development by 2010 are essentially planned, whereas the objectives stated for 2020 are proposed.
Specifically: Guidelines for Rural Hydropower plan to increase its installed hydropower capacity by 15 million kilowatts to supply electricity for 10 million rural residents from 2006 to 2010 by constructing 400 hydropower driven counties; Guidelines for Transport plan six railways for passenger transportation, including one between Beijing and Shanghai and five inter-city railways, 14 expressway by 2010; Plan for Energy Conservation aims to reduce energy consumption per capita by 20% in 2010, compared to 2005.
Date Implemented: 2004
Status: In Force; Framework policy
References: http://www.beconchina.org/energy_saving.htm
China: Medium and Long-Term Energy Development Plan Outline (2004-2020)
The Plan has specific targets for power generation from renewable sources. The target for 2010 (60 GW) will represent about 10 percent of China’s total installed power generation capacity. The equivalent figure for 2020 (Target: 121 GW) is about 12 percent. China will also pay considerable attention to the development of RE heat sources and to liquid biofuels, etc. Overall, China’s use of renewable energy is expected to increase to 20,000 PJ/year by 2020 - 17 percent of the country’s projected total energy consumption.
Date Implemented: 2004
Status: In Force; Framework Policy
References: www.nautilus.org/aesnet/2005/JUL0605/PRC_LEAP.ppt
China: National Climate Change Program
In June, 2007 China released its National Climate Change Program outlining the challenges that China is facing in dealing with climate change. It outlines steps that China has taken towards sustainable development and plans that China will enact in the future to address climate change. Strategies include increasing R&D, improving energy efficiency and building construction, developing renewable and nuclear energy, increasing forest cover, improving industrial policy and agriculture, and improving institutions and policies.
Date Implemented: 2007
Status: Framework Policy
Targets: reduce energy intensity by 20% by 2010,
increase forest coverage rate to 20%,
stabilize rate of Nitrous Oxide emissions to 2005 levels,
by 2010 10% of energy to be supplied by renewables
References: http://en.ndrc.gov.cn/
China: National Energy Strategy
Continued improvement in energy efficiency at the same rate as the past 20 years. Rapidly expand the use and supply of Natural Gas. Decrease the reliance on Coal to less then 60% of total energy use by 2020. Increase the use of clean coal technologies for power generation. Introduce coal liquefaction for transport fuels. Substantially increase reliance on hydropower. China aims to have 200 to 230GW of hydroelectricity by 2020. Install up to 40GW of nuclear power capacity by 2020. The NESP’s target for renewable energy is an additional 90 to 100GW of capacity by 2020, including 60 to 70GW of small scale hydropower, 20GW of wind power, 1GW of biomass-fired electricity, and small increases in solar, geothermal, ocean and tidal energy. Accelerated development and large scale deployment of combined heat and power (CHP, or cogeneration).
Date Implemented: 2005
Status: In Force; Framework Policy
References: http://www.iea.org/textbase/pm/?mode=weo&id=3300&action=detail
China: Ninth Five-Year Plan
Under the 9th Five-Year Plan, China initiated several national programs including the Brightness Program, Integrated and Comprehensive Rural Electrification, Energy Efficient Lighting, and the Riding Wind Program.
Date Implemented: 1996-2000
Status: Ended; Framework Policy
References: Reform of China’s Energy Institutions and Policies: Historical Evolution and Current Challenges, Energy Technology Innovation Project, Belfer Center for Science and International Affairs, John F. Kennedy School of Government, Harvard University (2001),
China: Parallel Operation Regulations for Wind Power Generation
This legislation requires power grids to allow interconnection and parallel operations of wind farms, and states that power grids must buy all the electricity generated by wind farms at a price that covers production costs.
Date Implemented: 1996
Status: Mandatory
References: Reform of China’s Energy Institutions and Policies: Historical Evolution and Current Challenges, Energy Technology Innovation Project, Belfer Center for Science and International Affairs, John F. Kennedy School of Government, Harvard University (2001)
China: Pricing Reforms
The government removed the heavy subsidies that had been keeping energy prices low and providing a disincentive for the development of increased efficiency. A two-tiered (or multiple) price structure was introduced for coal and petroleum prices, allowing for quantities beyond production quotas to be sold at higher prices.
Date Implemented: 1980s: ‘81 (oil), ‘82/’84 (coal); ‘87 (natural gas), ‘85 (electricity); 1990s for coal, oil
Status: Mandatory
References: Reform of China’s Energy Institutions and Policies: Historical Evolution and Current Challenges, Energy Technology Innovation Project, Belfer Center for Science and International Affairs, John F. Kennedy School of Government, Harvard University (2001),
China: Program of Action for Sustainable Development
This program is a follow-up of the White Paper on China’s Population, Environment, and Development in the 21st Century. It acknowledges progress made in the last decade including economic and social developments and capacity building, and also upcoming challenges. To deal with these challenges, the program suggests improving research and investement in sustainable development, improving legislation and supporting institutions, and strenghten international cooperation.
Priorities include:
-Economic development: industrial restructuring, regional and small-town development, and economic globalization
-Social Development: population management, health care, social security, and disaster management
-Resource Allocation: water, foerests/grasslands/coastlines, land use, and energy efficiency
-Ecological conservation: monitoring and evaluation, nature preserves/conservation zones, anti- desertification, soil conservation, and agriculture
-Pollution Control: air, water, waste, and traffic
Date Implemented: 2007
Status: Framework Policy
References: http://en.ndrc.gov.cn/
China: Program on New and Renewable Energy Development in China (1996-2010)
This program provides tax incentives and low interest loans for new and renewable energy projects.
Date Implemented: 1996-2010
Status: In Force; Mandatory
Targets: 13.4 million hectares of fuel wood plantation, 4 billion cubic meters
of biogas supply to 12.35 million households, 117GWh electricity from
small hydro, 4.67 mtce of solar energy, 1000-1100MW of wind power
capacity and 50 MW of tidal power capacity
References: China New Energy: Policy and Plan
http://www.newenergy.org.cn/english/policy/
China: National Medium-and Long-Term (2006-2020) Program Outline for Scientific and Technological Development
Designated "energy" as the No. 1 area that "needs urgent S&T support". The document mapped out a host of government-supported plans covering key fields of study, cutting-edge technologies, big special programs, as well as basic research.
Date Implemented: 2006
Status: In Force; Framework Policy
References: http://news.xinhuanet.com/english/2006-09/12/content_5082321.htm
China: Provisional Regulations on the Administration of Energy Resource Savings
National energy conservation, promotion of productivity in industry
Date Implemented: 1986
References: Compendium on Energy Conservation Legislation, UN, http://www.unescap.org/esd/energy/publications/compend/ceccpart1chapter1...
http://www.energyefficiencyasia.org/docs/Energy%20Efficiency%20Policy%20Review.pdf
China: Raising taxes for pollutant discharge
The level of charges for exploitation of mineral resources and the
emission of pollutants will be raised to promote conservation and
protect the environment. The government will adjust taxation policies concerning coal resources to promote orderly exploitation and improve the rate of recovery.
Date Implemented: to be implemented in 2007
Status: Mandatory
References: http://www.china.org.cn/english/environment/200529.htm
China: Regulations on Electricity Regulation
Sets out the organizational framework for electricity regulatory institutions, the duties of regulators, regulatory measures, the code of conduct for regulatory institutions and their staff as well as their due legal responsibilities.
Date Implemented: 2005
References: Energy and Power in China: Domestic Regulation and Foreign Policy, The Foreign Policy Centre, http://fpc.org.uk/fsblob/448.pdf
China: Regulations on Electricity Supervision and Control
Together with the Regulations on Electricity Regulation, this scheme seeks to create a competitive domestic market for energy. The State Electricy Regulatory Commission (SERC) is to supervise and regulate the electricy price and issue electric power permits to businesses.
Date Implemented: 2005
References:Energy and Power in China: Domestic Regulation and Foreign Policy, The Foreign Policy Centre, http://fpc.org.uk/fsblob/448.pdf
China: Renewable Energy Law
The law designates renewable technologies as the prefered area for energy development and research. It requires power grid operators to purchase resources from registered renewable energy producers. The law also offers financial incentives, such as a national fund to foster renewable energy development, and discounted lending and tax preferences for renewable energy projects. It also includes a renewable portfolio standard. It sets up the guidlines for assisting the renewable energy industries, setting technical standards for renewable energy electric power, technologyand products, incorporating knowledge about renewable technologies into educational curricula, encouraging construction of renewable power generation facilities, efficient buildings, and for rural electrification. Finally, it provides economic incentives: setting up a rural energy development fund to support R&D, construction, surveys and equipment production, authorizing the provision of preferential loans with subsidized interest, and tax benefits.
Date Implemented: 2006
Status: In Force; Mandatory
Targets: Aims to increase the usage of solar and wind power in China’s total energy consumption to 10% in the next 5 years (from 1%). Further targets to be determined and released to public. This law will increase small hydro-power capacity from 31,000 megawatts to 70,000 to 80,000 megawatts by 2020. Wind power capacity is expected to increase to 20,000 megawatts from 560 megawatts, and biomass from 2,000 megawatts to 20,000 megawatts.
References: China Passes Renewable Energy Law http://www.renewableenergyaccess.com/rea/news/story?id=23531; Renewable Energy Law - People’s Republic of China;
Renewable Energy and Energy Efficiency Partnership (REEEP) http://www.renewableenergyaccess.com/assets/download/ChinaRELaw_05.doc http://fpc.org.uk/fsblob/448.pdf
China: Ride the Wind
Rural electrification through renewables (wind)
Status: Voluntary
Targets: The goal is to reduce production costs and increase the localization percentage of wind turbines from 40% to 70% by the end of the Tenth Five-Year Plan period.
References: http://www.nrel.gov/docs/fy04osti/35787.pdf
China: Sixth Five-Year Plan for Economic and Social Development
This Five-Year Plan included massive investment for energy conservation, with funds equal to about 10 percent of energy supply investment into energy conservation projects. The major policies included: restructuring energy-intensive industries; reducing the direct burning of oil; increasing equipment and process efficiency with technology and eliminating the most inefficient equipment and production processes; issuing energy-consumption standards for energy-intensive products; using a system of rewards and penalties to encourage energy-conservation activities; providing low-interest loans for some energy conservation projects; and supporting research and development in energy-conservation technologies.
Date Implemented:1981-1985
Status: Still in Force; Mandatory
References: Executive Summary of the National Communication to the UNFCCC
China: Strategic Plan for Industrial Efficiency
Within the 11th Five-Year Period, China’s strategic plan for energy efficient industrial processes involves equipment renovation and the design and implementation of process optimization and management measures. Targetting the metallurgical industry, petrochemical industry, and chemical industry, the Chinese state aims to improve energy efficiency and industrial competitiveness to "the highest level or close to the world’s front-runners."
Date Implemented: 2006
Status: In Force; Voluntary
References: International Energy Agency: http://www.iea.org/Textbase/pm/?mode=pm&id=2521&action=detail
China: Sunlight Program
To upgrade the country’s manufacturing capacity of polycrystalline and other advanced silicon technologies; to establish large scale PV and PV/hybrid village power demonstration systems, home-PV projects for remote areas; and to initiate grid-connected PV projects.
Date Implemented: until 2010
Status: In force
References: China New Energy: Policy and Plan
http://www.newenergy.org.cn/english/policy/
China: Targets for Renewable Energy
China’s energy mix will be made up of 16% renewable energy by 2020, including specific goals for each sector.
Status: In Force;
Targets:
-install 5GW wind power by 2010 and 30GW wind power by 2020
-300MW installed capacity of solar power by 2010 and 1,800MW by 2020
-biomass plants with installed capacity of 5,500MW by 2010 and 30,000MW by 2020. For methane, the targets are 19,000 million m3 and 44,000 million m3 , respectively.
-hydro power is to reach 180GW by 2010 and 300GW by 2020
References: http://www.energyblueprint.info/330.0.html
China: Tax incentives
The Chinese government provides tax incentives to promote the development of renewable energy technologies. The standard VAT is 17%. However, VAT for biogas is only 13%, and VAT for wind is 8.5% and for small hydro-projects is only 6%.
Status: In Force
References: Executive Summary of the National Communication to the UNFCCC; Reform of China’s Energy Institutions and Policies: Historical Evolution and Current Challenges, Energy Technology Innovation Project, Belfer Center for Science and International Affairs, John F. Kennedy School of Government, Harvard University (2001),
China: Tax on high-sulfur coals
In an effort to scale down coal consumption and to spur switching to cleaner burning fuels, Beijing has introduced a tax on high-sulfur coals. Other efforts include establishing 40 "coal-free zones" in an attempt to phase out coal from the city center, and formulating plans to construct natural gas pipelines.
Status: In Force; Mandatory
References: EIA Country Analysis Brief: China, http://www.eia.doe.gov/
China: Taxation incentive policy for High Energy-Efficiency products
NDRC and the State Administration of Taxation (SAT) will jointly issue the taxation incentive policy for High Energy-Efficiency products.
Date Implemented: 2007
Status: Planned; Voluntary
References: http://www.efficientlighting.net/doc/20070105(5).pdf
China: The Mandatory Comparative labeling program
The label first used for household refrigerators and room air conditioners
Date Implemented: 2005
Status: In Force; Mandatory
References: http://www.efficientlighting.net/doc/20070105(5).pdf
China: Top-1000 Enterprises Energy Conservation Action in China
1008 top energy consumption enterprises in China were involved. The requirements for 1008 enterprises (including energy audit and Energy Conservation plan) have been identified, and incentives will be applied to these enterprises in order to improve their energy efficiency. Based on the plan, the Energy Conservation target is saving 100 million tce by 2010. According to the action plan of the program, the top-1,000 enterprises shall: establish energy conservation organization, formulate energy efficiency goals, establish an energy utilization reporting system, conduct energy auditing, formulate an energy conservation plan, invest in energy efficiency improving, adopt energy conservation incentives, and conduct training.
Date Implemented: until 2010
Status: In Force; Voluntary
Targets: Within five years (2010), the total energy saving shall reach 0.1 billion tce.
References: http://ies.lbl.gov/iespubs/2007aceee.pdf
China: Township Electrification Program
The Township Electrification Program gave one million rural people in one thousand townships (or about 250,000 households) access to electricity with energy from solar PV, small hydro and a small amount of wind generation. The next phase of the program is the village electrification phase, aiming to electrify 20,000 villages during the period 2005-2010.
Date Implemented: 2001, installation completed 2003
Status: Ended; Government Initiative
Milestones: 1066 townships electrified
References: Township Electrification Program, NREL; http://www.nrel.gov/docs/fy04osti/35788.pdf
China: Trade of pollutant discharge rights
The government will experiment with trading of pollutant discharge rights in the power industry and in east China’s Taihu Lake area, and raising taxes for pollutant discharge.
Date Implemented: to be implemented in 2007
Status: Voluntary
References: http://www.china.org.cn/english/environment/200529.htm
China: U.S.-China Biomass MOU
In December 2007, China’s National Development and Reform Comission (NDRC) signed a Memorandum of Understanding (MOU) with the US Deptartments of Energy and Agriculture to increase cooperation on biofuels. The two countries agreed to collaborate on developing the scientific, technical, and policy aspects of the development, production and use of biofuels. The plan is set to work to create a unified assessment standard, share strategic studies and technical information on promoting development, and include the exchange of scientific and technical information including conversion processes and cellulosic ethanol technology.
Date Implemented: 2007
Status: In Force
References: US Embassy, Beijing; http://beijing.usembassy-china.org.cn/121407sed.html
USDA; http://www.usda.gov/wps/portal/!ut/p/s.70A/70_1OB?contentidonly=true&contentid=2007/12/0370.xml
China: White Paper on China’s Population, Environment and Development in the 21st Century- Program of Action for Sustainable Development
Provides general platform/guidelines for China’s social and economic development. Elaborates goals and objectives. Advocates a new, sustainable pattern of low consumption, low pollution and high efficiency to achieve well-balanced growth.
Date Implemented: 2003
Status: In Force; Framework Policy
References: Executive Summary of the National Communication to the UNFCCC; http://www.acca21.org.cn/ca21pa.html