Book Description

China has ambitious goals for economic development, and mustfind ways to power the achievement of those goals that are bothenvironmentally and socially sustainable. Integration into the globaleconomy presents opportunities for technological improvement and accessto energy resources. China also has options for innovative policies andmeasures that could significantly alter the way energy is acquired andused. These opportunities andoptions, along with long-term social, demographic, and economic trends, will shape China s future energysystem, and consequently its contribution to emissions of greenhousegases, particularly carbon dioxide (CO2). In this study, entitled China sSustainable Energy Future: Scenarios of Energy and Carbon Emissions, theEnergy Research Institute (ERI), an independent analytic organizationunder China's Na tional Development and Reform Commission (NDRC), soughtto explore in detail how China could achieve the goals of the TenthFive-Year Plan and its longer term aims through a sustainable developmentstrategy. China's ability to forge a sustainable energy path has globalconsequences. China's annual emissions of greenhouse gases comprisenearly half of those from developing countries, and 12 percent of globalemissions. Most of China's greenhouse gas emissions are in the form ofCO2, 87 percent of which came from energy use in 2000. In that year, China's carbon emissions from energy use and cement production were 760million metric tons (Mt-C), second only to the 1,500 Mt-C emitted by theUS (CDIAC, 2003). As China's energy consumption continues to increase, greenhouse gas emissions are expected to inevitably increase into thefuture. However, the rate at which energy consumption and emissions willincrease can vary significantly depending on whether sustainabledevelopment is recognized as an important policy goal. If the ChineseGovernment chooses to adopt measures to enhance energy efficiency andimprove the overall structure of energy supply, it is possible thatfuture economic growth may be supported by a relatively lower increase inenergy consumption. Over the past 20 years, energy intensity in China hasbeen reduced partly through technological and structural changes; currentannual emissions may be as much as 600 Mt-C lower than they would havebeen without intensity improvements. China must take into account itsunique circumstances in considering how to achieve a sustainabledevelopment path. This study considers the feasibility of such anachievement, while remaining open to exploring avenues of sustainabledevelopment that may be very different from existing models. Threescenarios were prepared to assist the Chinese Government to explore theissues, options and uncertainties that it confronts in shaping asustainable development path compatible with China's uniquecircumstances. The Promoting Sustainability scenario offers a systematicand complete interpretation of the social and economic goals proposed inthe Tenth Five-Year Plan. The possibility that environmentalsustainability would receive low priority is covered in the OrdinaryEffort scenario. Aggressive pursuit of sustainable development measuresalong with rapid economic expansion is featured in the Green Growthscenario. The scenarios differ in the degree to which a common set ofenergy supply and efficiency policies are implemented. In cons ultationwith technology and policy experts domestically and abroad, ERI developedstrategic scenarios and quantified them using an energy accounting model. The scenarios consider, in unprecedented detail, changes in energy demandstructure and technology, as well as energy supply, from 1998 to 2020. The scenarios in this study are an important step in estimating realistictargets for energy efficiency and energy supply development that are inline with a sustainable development strategy. The scenarios also helpanalyze and explore ways in which China might slow growth in greenhousegas emissions. The key results have important policy implications:Depending on how demand for energy services is met, China could quadrupleits gross domestic product between 1998 and 2020 with energy use risingby 70 percent to 130 percent (Figure 1). Continual progress in improvingthe efficiency and structure of industry is crucial to maintainingeconomic growth with minimal growth in energy use. In some industries, output may grow with no rise in energy use at all. Swelling ranks ofmotor vehicles will deepen China's dependence on imported oil up to 320Mt per year by 2020 an amount that global markets can easily supply. Tomoderate growth in transportation energy use, the strong promotion ofconvenient public transport will be needed in addition to tighter fuelefficiency standards and advanced vehicles. Fuel switching, efficientappliances, better heating and cooling systems, and improved buildingenvelope technologies will be needed in the fast-growing buildingssector. By 2020, China will still b.