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Workshop on BASIC Beijing, 1 8 February 2006. Integration of Climate Mitigation into National policies A Framework for Analysis of China’s sustainable development policies. Xiangyang WU Research Centre for Sustainable Development (RCSD) Chinese Academy of Social Sciences (CASS). Outline.

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slide1

Workshop on BASIC

Beijing, 18 February 2006

Integration of Climate Mitigation into National policiesA Framework for Analysis of China’s sustainable development policies

Xiangyang WU

Research Centre for Sustainable Development (RCSD)

Chinese Academy of Social Sciences (CASS)

outline
Outline
  • 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.
policy areas implications for cc mitigation

SD Policies

Non-CC policies

Policies Relevant to CC

Climate Policies

Policy areas: implications for CC mitigation

Social policies

Economy policies

SD Policies

Environmental policies

the relevance of policies to cc mitigation
The relevance of policies to CC mitigation
  • 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, compulsory, voluntary, guidance?
  • Implementation: cost and its effect
  • Implication to GHG emissions, ↑,↓?
  • Prospects for integration
major sd policies with direct relevance to cc mitigation

Energy policies

Environmental/ecological policies

Air pollution control

Energy industry institutional reform

Forest

Optimizing energy structure

Social policies

Family Planning

Energy saving

Poverty Alleviation

Major SD Policies with direct relevance to CC mitigation

Climate Change

china s energy policies 1
China’s energy policies (1)
  • Institutional reform in energy industry: market liberalization ↑
    • Price controlled by government  dual price system (government + 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.

Wind power

Small hydro

major sd policies with direct relevance to cc mitigation12

Energy policies

Air pollution control

Energy industry institutional reform

Forest

Optimizing energy structure

Social policies

Family Planning

Energy saving

Poverty Alleviation

Major SD Policies with direct relevance to CC mitigation

Environmental / Ecological policies

Climate Change

environmental ecological policies 1
Environmental / ecological 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,
slide14

Total SO2 emission

Industry SO2 emission

household SO2 emission

  • Why?
environmental ecological policies 2
Environmental / ecological policies (2)
  • Forestry ↓
    • The Forest Law (1979, revised in 1998)
    • barren land and mountainous areas: long term lease for private investment allowed
    • Land use change: sloping farmland to forest (starting 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 relevance to cc mitigation16

Energy policies

Air pollution control

Energy industry institutional reform

Forest

Optimizing energy structure

Social policies

Family Planning

Energy saving

Poverty Alleviation

Major SD Policies with direct relevance to CC mitigation

Environmental / Ecological policies

Climate Change

social policies
Social 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 study energy saving policies evaluation
Case study: energy saving policies 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
incentives
Incentives
  • 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 five year plan 2006 2010
Ambitious Targets in the 11th 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, energy consuming equipment and energy management
    • 3 Priority areas : industry, transport, buildings of business and 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 decreased
Achievement: Energy Intensity decreased

Equivalent to 700 Mtce of Energy saving, 1050 MtSO2 and 440 MtC emissions reduction

GDP is Calculated with comparable price in 2000;

problems on energy saving policies
Problems on energy saving policies
  • Weak implementation: rules were not obeyed strictly.
  • Insufficient incentives
  • energy saving policies were not harmonized.
conclusions and suggestions
Conclusions 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 step
Next 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