Climate Change Policy Response
– A Case of China
Global climate change and its
adverse effects are a common concern of mankind. Ever since the industrial
revolution, human activities, especially the massive consumption of energy and
resource by developed countries in the process of industrialisation, have
increased the atmospheric concentration of greenhouse gases, produced
conspicuous impacts on the natural ecosystems of the earth, and posed severe
challenges to the survival and development of human society (National Development and Reform Commission, 2008). The ultimate goal
of the United Nations Framework convention on Climate Change is “stabilization
of greenhouse gas concentrations in the atmosphere at a level that would
prevent dangerous anthropogenic interference with the climate system.” Such a
level should be achieved within a “time frame sufficient to allow ecosystems to
adapt naturally to climate change, to ensure that food production is not
threatened, and to enable economic development to proceed in a sustainable
manner.” The Kyoto Protocol, which entered into force in February 2005,
contains binding limits on greenhouse gas emissions on industrial countries
that agreed to reduce their emissions by an average of about 5% during 2008 –
2012 relative to the levels emitted in 1990 (House & Brovkin, 2005). The issues related
to climate change have received ever greater attention from the international
community. China, deeply aware of the complexity and extensive influence of
these issues and fully cognisant of the steps required to address the climate
change (National Development and Reform
Commission, 2009).
As a developing country with large population, a relatively low level of
economic development, a complex climate and fragile eco-environment, China is
vulnerable to the adverse effects of climate change, which has brought
substantial threats to the natural ecosystems as well as the economic and
social development of the country. These threats are particularly pressing in
the fields of agriculture and live-stock breeding, forestry, natural ecosystems
and water resources, and in coastal and eco-fragile zones (National Development and Reform Commission, 2008). China is now
considered as a key international player in regards to climate change because
(a) China has surpassed the US as the leading producer of CO2 and the amount of
production is growing steadily; (b) China’s status and influence in the G77
endow it with an advantageous position developing country with significant
influence in the United Nations (Ming-Teh & Liu, 2011). Demonstrating its
leadership amongst developing countries, China has taken formulated and
implemented a national plan for coping with climate change, and adopted a
series of policies and measures in this regard. China combines the handling of
climate change with its execution of its sustainable development strategy,
acceleration of building a resource-conserving and environmental-friendly
society and construction of a country of innovation. Overall China strives to
control and mitigate the emissions of greenhouse gases and continuously enhance
the capability of adapting itself to climate change. China actively
participates in the worldwide efforts to address climate change, earnestly
observes the United Nations Framework Convention on Climate Change and the
Kyoto Protocol, and plays a constructive role in International cooperation in
this regard (National Development and Reform Commission, 2008).
The issue of climate change poses
great challenges to the future of China. China is a home to around 1.3billion
people, accounting for 20 percent of the world’s total population (National Development and Reform Commission, 2008). Large and scattered
population creates employment pressure and continuously increasing urbanisation
process demands for more energy and resources. Unbalanced regional economic development has
created enormous income gap between rural and urban citizens. China has extreme
seasonal weather conditions, its summers are hot and winters are cold. China’s
ecological environment is considered to be fragile and faced with
desertification, severe soil corrosions and has small area of natural wetlands (National Development and Reform Commission, 2008).The country is also
vulnerable to rising sea level. China’s continuous domestic growth and ever
increasing export market contributes heavily to energy intensity. The country’s GHG emissions are growing
extensively and expected to rise until 2030 with little help from policies
adopted (Leggett, 2011). China has already surpassed the US in
2007 to be the world’s largest CO2 emitter due to the size of its population and
economy growth (Wen, 2009).
According to U.S. Energy Information
Administration China is the (U.S. EIA, 2012);
- biggest producer and consumer of coal in the
world
- electricity generation is dominated by fossil
fuel (particularly coal)
- world’s most populous and largest energy
consumer
- second-biggest consumer of oil followed by US,
and its major oil fields are at peak
Below chart provides energy
consumption by China as of 2009, demonstrating heavy reliance on coal in order
to generate energy.
Natural gas usage is at 4% and
set to increase enormously as China embarks on increasing gas imports through
LNG (Liquefied Natural Gas) and pipelines (U.S. EIA, 2012). The above chart and the consumption
patterns of fossil fuels are considered to be quite high putting China on the
radar to reduce its emissions. China’s ever increasing GHG emissions are mainly
due to growing energy intensive industrial activity for export market and development
of new infrastructure while relying on coal as their primary energy source (Leggett, 2011). China has been recognised as the “world’s factory” (Wen, 2009)
for manufacturing majority of the products for consumers all around the world. China
is producing enormous amount of products such as clothing, toys, household
items, computers, electronic equipment’s, accessories and much more. In this
process of manufacturing and meeting the worlds demand while growing its
economy, China is taking on the CO2 emissions for rest of the world. In order
to keep the prices low, negative externalities are not included in overall
price structure resulting in environmental degradation of its own country and
depleting resources. Chinese authority has also raised concerns over who to
blame for their CO2 emissions; to rest of the world who’s products are
manufactured in China and consumed in their own country or to China itself who
is producing to earn income (Wen, 2009)?
The question is more political and related to globalisation but it has a
valuable point to consider. Greater collaborative view would be required for the
entire world to work together and support China and provide transitioning to
low carbon economy while meeting the world’s demand. However the consequences
of growth has contributed to various
domestic issues of deforestation, contamination in local river system, soil erosions
and other climate change related issues. See below graph which demonstrates
China’s ever increasing GHG emissions projected up until 2035.
Figure 2 source:
(U.S. Energy
Information Administration, 2011)
The issue of global climate
change, its impact and the role of China has been well recognised by the
President Hu Jintao at the UN Climate Change Summit and in his speech he
mentioned that “In the years ahead, China
will further integrate actions on climate change into its economic and social
development plan and take the following measures” (National
Development and Reform Commission, 2009):
- intensify effort to conserve energy and improve
energy efficiency
- cut CO2 emissions per unit of GDP by 2020 from
the 2005 level
- increase use of non-fossil fuels by 15% in
primary energy consumption by 2020 through renewable and nuclear energy
- increase forest carbon sink through covering
40million hectares and forest stock volume by 1.3billion cubic meters by 2020
from 2005 levels
- promote green, low-carbon and circular economy
and enhance R&D
The above commitments are quite
promising and likely to deliver positive results if actioned accordingly and
are transferred to actual policy designs.
China’s 11th 5-Year
plan emphasised on improving GHG and energy intensity between 2006 and 2010,
and as per the government of china they have already reduced the energy by 20%
to produce GDP during the same period (Leggett, 2011). China has taken strong steps in
mitigating climate change issue since its 11th 5-Year plan and has
continued to the next steps with 12th 5-Year Plan. According to its
11th 5-Year plan, China has moved forward in achieving significant
outcome in controlling GHG emissions through various policy measures as below (National Development and Reform Commission, 2011);
1.
Improving Industrial Structure
Traditional energy intensive
industries have been the focus in this area. Automobiles, iron and steel
industries guidelines are revised and restructured with suggested solutions on
sound future development. Market entry requirements are more stringent for new
firms that are energy intensive. Enforced export duties on coal, nonferrous
metals, chemical fertilizers, steel billets and other high energy or resource
intensive products. Export tax rebate policies are adjusted. Energy intensity
was remarkably reduced in major industries and coal consumption for primary
energy reduced by 10% (from 370 to 333 g/kwh). Developed policies focused on
new and emerging industries that are innovative and clean. Service industries
were accelerated with added value to its GDP from 40.3 to 43%.
2.
Energy Conservation
China has set targets in energy
conservation and set-up monitoring and evaluation measures for 31 regional
governments and 1000 key organisations. Strict rules have been enforced to meet
these targets. China has promoted energy conservation in 10 key projects;
upgrading of kilns and industrial boiler, heat and power generation,
conservation of energy in electromechanical system, residual heat and pressure
utilisation and implemented audit and management programs for the same. Energy
conservation and use renewable energy in existing and new building structure
and transportation sector was highly promoted. Energy saving technology and
products are being promoted in industrial, government and public sector through
government subsidies. During the same period market share of energy efficient
illumination products and air-conditioned reached up to 67% and 70%
respectively. Developed and promoted circular economy where the central
government funded remanufacturing project for automobile industry with the
capacity of 250,000 pieces. Enforced electricity pricing penalties and taxes on
high energy consumable and refined petroleum products.
3.
Development of low-carbon energy
Natural gas and other clean
energy resources are being developed at an accelerating rate compared with
other fossil fuel sources. Financial subsidies, grid connected power generation
and other subsidies are being allocated to reduce energy intensity. Natural gas
production has increased from 49.3 to 94.8 billion cu m from 2005 to 2010
comparable to 170million tons of CO2. Proactively developing and utilising
non-fossil energy such as hydropower, nuclear and other low-carbon energy
sources supported by policy guidance. Improved pricing policy for energy
generated through forestry and agriculture biomass and provided financial
support to develop further similar projects.
4.
Controlling GHG emissions from other sources
(non-energy)
China has done extremely well in
this area through substitution technology policy where waste can be utilised in
lieu of other raw material such as adding fly ash in producing cement. In many
other agricultural and industrial products it has controlled various GHG
emissions. The government also introduced soil organic matter advancement
subsidy project to turn straw into farmland, green compost growing and added
organic fertilisers. Overall improved urban waste disposing technology and
designed policy on recovery of landfill gases. By 2010 methane emissions were
brought under control and nitrous oxide emissions from industrial production
was kept at 2005 level.
5.
Growing carbon sink
Thanks to environmental
protection projects such as “shelterbelt construction project” in northeast,
northwest and north china and along the Yangtze River that have contributed
tremendously to act as a carbon sink. Enhanced forest stock volume and improved
sustainable forest management practices. Established china green carbon fund
and raised standard for afforestation investment subsidy from RMB 100 to 200
per mu. Overall forest coverage area has
increased from 18.21% to 20.36% for the period of 2005-10 resulting in
increasing carbon storage capacity.
6.
Promoting low-carbon pilot projects in selective
regions
In 2010, China announced national
“low-carbon province and low-carbon city” pilot project. Five provinces and
eight cities have been selected as part of this project. This area will receive
greater focus in their 12th 5-Year plan and will be supported with
new knowledge and technologies to transform them from energy intensity to
low-carbon or green economies while reducing overall GHG emissions.
Apart from the above 6 points,
China has embarked upon increasing its participation in international
organisation in last few years. China feels that it has a sense of
responsibility in fighting with climate change and therefore has constructively
and proactively participated in various international dialogues on reducing GHG
emissions, CO2 emissions and driving the change from energy intensity to
low-carbon economy. China participated and contributed to 2007 Bali Road Map,
2009 Copenhagen Climate Change Conference and 2010 Cancun Conference.
Outcome from China’s 11th
5-Year plan clearly demonstrates that China has understood its role at
international level and the pressure to reduce GHG emissions and implement
pollution abatement policies and also to cooperate with other countries through
UN conferences. China is faced with critical situation where the country is
faced with many issues such as geographical, political, population, economic
growth and rising emission levels. Many analysts predicts that based on its
current policies, growing economy and recorded GHG emissions China will
continue to increase GHG emissions at-least until 2030 (Leggett,
2011).
In 2010, as per China’s policy to reduce its energy intensity by 20% was short
of few percentage and was achieved at 19.1%, however critics say that towards
2010 many energy managers met this goal by either stoping or slowing down their
production rather than implementing effective procedure on energy efficiency (Leggett,
2011).
It is also important to consider statement made in China’s white paper on
addressing climate change (National Development and Reform Commission, 2008);
(Quote)
“As a developing country, China still has a
long way to go in its industrialization, urbanization and modernization. To
advance further toward its development objectives, China will strive for
rational growth of energy demand, which is the basic precondition for the
progress of all developing countries. However, its coal-dominated energy mix
cannot be substantially changed in the near future, thus making the control of
greenhouse gas emissions rather difficult”.
The words are quite strong and
provide a clear message to the world that China has yet to grow similar to
those of developed world therefore making it difficult for the country to
achieve its GHG emissions target. However there is a quite promising and
optimistic view on their 12th 5-Year plan which demonstrates that
China has committed to achieving its target on lowering greenhouse gas
emissions. In 2009, China has committed to reduce its GHG emissions per-unit
GDP by 40-45% by 2020 compared with its 2005 level (National Development and Reform Commission, 2011) through various
important measures and through stricter enforcement of legal and strategic
systems.
In their 12th 5-Year
plan China has gone even further to reduce its GHG emissions by 16% and provide
platform for long term safe transition of its economy from carbon intensive to
low-carbon economy (Leggett, 2011). In their 12th 5-Year plan,
China proposes below actions for the period of 2011 to 2015 with the objective
to achieve GDP growth of 7% and promoting “inclusive
growth” – lowering GDP, equal distribution of benefits, protecting the
environment and removing social inequality (Wang S. , 2012). See below highlights from China’s 12th
5-Year plan (Wang S. , 2012):
- increase investment in environmental protection
up to around RMB 3 trillion over the 5 year period (majority of this will be
directed to the reduction of pollution control aiming to cut by 8 to 10 percent
and to decrease sulphur dioxide, chemical-oxygen demand, nitrogen oxide and
ammonia nitrogen by 1.5 percent per year for the same period)
- increase hydropower in the southwest, nuclear
power development and high-speed rail network in order to meet energy intensity
targets.
- increase forest area to 21.66% and stock by 600
million cubic meters while keeping minimum grain-production to 540million
tonnes and reserve farmland to 1.2 million square kilometres.
- development of 7 “strategic emerging
industries”; biotechnology, new materials, next-generation IT, new energy and
high-end equipment manufacturing, energy conservation and environmental
protection and clean energy vehicles.
- Beijing will use two-thirds of its budget to
invest into “improving people’s
livelihood” and aiming to keep population under 1.39billions while
improving life span by at-least one year.
- building or renovating around 36 million
apartments for those with lower income threshold and creating pension scheme
for those who live on rural areas.
These are some of the strong
targets and commitments that can be seen as part of the government’s policies
to reduce its GHG emissions and contribute globally to fight with the issues of
climate change, land degradation, social equality, alleviate poverty and
improve energy intensity from fossil fuels. However there is a long way to go
before this can be achieved at a level required. The graph by U.S. EIA under
figure 2 demonstrates that China will continue to use its cheaper fuel (coal)
to generate electricity well beyond 2030 and will exceed all other countries in
the same line. The research indicates that China will have to act faster and
implement changes to reach its peak level around 2020 and follow the decline in
emissions sooner rather than later (Wang & Watson, 2009). According to the
report (Leggett, 2011) even if China achieves its 12th
5-Year targets, the GHG emissions will continue to rise and there are also
rising concerns around the frequency and transparency and quality of emission
reports produced by the government.
To deliver greater impact and
changes of their 12th 5-Year plan, the Premier of the State Council
Mr Wen Jiabao expressed below objectives that are required to achieve the set
goal in regards to climate change (Jiabao, 2011);
- strengthen and consolidate the position of
agriculture as the foundation of the economy
- accelerate strategic economic restructure
(growth driven by innovation focusing away from fossil fuel and energy
intensity)
- strong implementation of strategy of
strengthening the country through science and education and through human
resource development
- focusing on social development and well-being of
our people
- strongly enhance cultural development
- improvement on our work of opening to the
outside world (strong interaction and openness with others)
The above highlighted points from
the speech will help the government of China to deliver its promise as
mentioned in their 12th 5-Year plan. The last point on opening to
the world and being more clear on their reporting’s will also help the UN and
other nations to understand China’s strategies, actions and implementation
policies to reduce its GHG emissions.
China with its large population
and ever growing economy is on the radar with its increasing emission levels.
Environmental policies are in place since 1980s however they are either not
followed due to lack of enforcement or not fully implemented where necessary.
The overall CO2 level grew along with the economy since late 1990. In 2007,
China surpassed USA in becoming largest greenhouse gas emitting country. China
itself is at risk as a result of climate change events. The country’s
temperature has risen in line with those of others due to global warming. China
experienced over 21 winters from 1986 to 2007 (National Development and Reform Commission, 2008). The research
indicates that climate change will further bring extreme weather events in
China requiring protective measures. China has a fragile and complex ecology
compared to other countries in same latitudes. The area of natural wetland is
also comparatively small. China is exposed to sea level rise due to its
18,000km long coastline (National Development and Reform
Commission, 2008).
With large population and in the midst of developing and development surely the
country has a long way to go to develop itself in order to provide better life
to its citizens. Country is still in process of increasing its urbanisation,
modernisation and industrialisation. Coal being the major source of energy and
cheaply available makes it hard to forbid. According to sources (figure 2)
China will utilise coal as a main source of energy means abatement of
greenhouse gases will be even more difficult. Government policies will require
strong enforcement and commitment to wider community around the world to divert
its energy sources from fossil fuel to alternative and renewable energy
sources.
China and other countries with
low incomes in 1992 were given exemption from UNFCCC followed by Kyoto Protocol
on quantifying GHG reduction obligations, based on the principle of “common but differentiated responsibilities”
as per the convention (Leggett, 2011). However the goal to reduce GHG
emissions cannot be achieved alone by those developed countries where China has
its emissions at very high level. Since then in 2009 Copenhagen agreement were
achieved and those who pledged would take some measures to reduce GHG targets
and implement mitigation policies. On the other hand China as accepted its role
in combating with climate change issue (National Development and Reform Commission, 2011) and accordingly
delivered great results in its 11th 5-Year plan and have developed
some strong strategies for its 12th 5-Year plan. China understands
that climate change would have inevitable effect on its economy and therefore
it is in the best interest of China to work on those issues and deliver
effective policies.
China recognises its role at
international level in response to climate change and more transparent
policies, measures and reports therefore making it one of the objectives to
ensure greater transparency achieved and reports are provided to international
community on its work.
China will have to deliver its
promise as mentioned in its 12th 5-Year plan and demonstrate to the
world its commitments in order to gain the trust and share common interest with
international community. Legislation and policies needs to be strengthened and
enforced to make it effective and responsible. Greater and accelerated
investment on sustainable development would provide better result for the
entire country and the international community.
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