nrdc~greening china through international cooperation and improved transparency
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MICHAEL DAVIDSONNATURAL RESOURCES DEFENSE COUNCIL
APRIL 2011
Greening China: Opportunities for international
cooperation and improved transparency
About the Natural Resources Defense Council
NRDC’s purpose is to safeguard the Earth: its people, its plants and animals and the natural systems on which all life depends. We use law, science and the support of 1.3 million members
and online activists to protect the planet's wildlife and wild places and to ensure a safe and healthy environment for all living things.
We have 5 offices in the U.S. and an office in Beijing, China
Accelerating the Greening of China
15 years on the ground in ChinaWorks with Chinese actors in government, academia,
non-governmental organizations, and corporationsNRDC was the first international environmental
organization to establish clean energy and green building programs in China.
Focus areas: Industrial energy efficiency Green buildings Sustainable Cities Renewable Energy Policy Environmental laws, transparency, governance Greening multinational corporations supply chain
Overview
China’s Environmental Challenges
China Takes on Climate
Transparency in Implementation
U.S.-China Cooperation
China’s Energy and Environment Challenge
China’s Challenges
The world’s largest… Energy consumer: 3.25 billion metric tons of
coal-eq in 2010 GHG emitter: over 7 billion metric tons of CO2 /
year Coal user: mined 3.2 billion metric tons in 2009;
650 GW of power capacity in 2010COAL continues to dominate
energy mix, ~ 70% External costs of coal ~ 7% of
GDP1
1. True Cost of Coal, Greenpeace, www.greenpeace.org/eastasia/news/coal-crisis
China’s Challenges (2)
Industrial growth
Source: LBNL, 2010, see: china.lbl.gov/publications/the-ace-study
China’s Challenges (3)
Urbanization and
motorizationCredit: EPA
Bad Air: a times seriesTianjin conference center
China Takes on Climate: China’s OpportunityClean Energy RaceThe Next Five Years
“Is there any hope, if most nations delude themselves with greenwash,
of stopping rule by fossil fuel interests? Yes. China is the best hope.” – Jim Hansen, South China Morning
Post, Nov 2, 2010
China’s Opportunity
Source: China’s Green Revolution, McKinsey and Co., 2009
2.4 Gt CO2
2.4 Gt CO2
The Clean Energy Race
New investments (2004-2010)
CHINA
U.S.
Source: Bloomberg New Energy Finance
The Clean Energy Race (2)
CHINA
U.S.
Source: Bloomberg New Energy Finance
2001 2002 2003 2004 2005 2006 2007 2008 2009 20100
2000
4000
6000
8000
10000
12000
14000
16000
18000
0%
20%
40%
60%
80%
100%
120%
140%
Newly added wind capacity, 2001-2010
U.S. New Capacity China New Capacity
U.S. Growth Rate China Growth Rate
Meg
awatt
s
Source: Global Wind Energy Council, Bloomberg New Energy Finance
China’s Leading Indicators in Green Development
Wind: Leads in total wind energy capacity; 3 of the top 10 wind companies
Solar: 6 of the top 10 solar companiesSmart growth: 13 pilot low-carbon cities and
provincesSmart grid: Largest smart grid investor in the
worldTransportation: Raising efficiency standards,
increase fleet of hybrid/electric cars
Energy Intensity (1978-2015)
Source: IEA CO2 Highlights, 2009; The Climate Group
The Last Thirty Years
And The Next Five Years…
Climate Change and New Energy are strategic priorities$760 billion in new energy investment by 2020
12th Five Year Plan (2011-2015) Reduce energy intensity, carbon intensity Increase share of renewables in energy mix Develop new strategic industries in clean energy
and environmental protection Develop market mechanisms: environmental/carbon
tax and cap-and-trade pilots National Climate Change Law and National Energy
Law
Climate Negotiations
In the Copenhagen Accord, China agreed to major actions on climate: Reduce carbon intensity by 40-45% from 2005 levels by 2020 Increase non-fossil energy usage to around 15% of primary
energy consumption by 2020 Increase forest coverage by 40 million hectares from 2005
levels by 2020
In Cancun, China helped advance proposals on: technology transfer climate financing transparency of developed and developing country
commitments and actions reducing deforestation
Climate Negotiations (2)
Specifically, the Cancun Agreements… Require developed countries to enhance monitoring, reporting and
verification (MRV) of emissions and financial assistance Require developing countries to submit national inventories of actions
and emissions every two years Establish international consultation and analysis (ICA) of these
actions, creating a formal dialogue to discuss these reports
Which China agreed to, because… China is meeting ambitious domestic commitments and
deserves credit Increased information exchange strengthens the
international system and builds confidence China’s experiences with low-carbon development provide
useful models for other developing countries
Transparency in Implementation:
Benefits to EnforcementTarget Responsibility System
International
China’s Environmental Enforcement
Environmental legal system: criticized for weak enforcement and vague laws
Target responsibility system: detailed, law-like guidelines; potential incentives to falsify data
Benefits of transparency in the U.S.: Empower media and public as environmental
watchdogs Toxics release inventories engage consumers, banks,
corporations Freedom of Information Act (FOIA) requests have
uncovered countless violations
How well are existing laws enforced?
Pollution Information Transparency Index (PITI) 2008: open environmental information measures take effect Rated 113 cities on disclosure performance Improvements in 2010: 82 0f 113 (73% of Chinese
cities) All-star city of best practices (95.3 pts) shows
transparency is possible: detailed emissions data lists of enterprise violations prompt response to public information requests
What’s in a target?
11th Five-Year Plan, 20% Energy Intensity Target:Policies established to improve industrial, power
sector, building, transportation efficiencyWen Jiabao, May 2010: Will use “iron hand” to meet
targetOverzealous local leaders: blackouts, curtailing
productionExamination Index Examination Content ScoresEnergy-saving Targets (40 scores) Reduction rate of energy consumption per 10,000 yuan GDP 40
Energy-saving Measures (60 scores)
Energy-saving organizational arrangements and leadership 2Allocation and implementation of energy-saving targets 3Adjustment and optimization of industrial structure 20Energy-saving investment and implementation of key projects 10Development and promotion of energy-saving technology 9Energy-saving management of key enterprises and sectors 8Implementation and improvement of relevant laws and rules 3Implementation of basic energy-saving work 5
Total Score 100
Source: “Implementation Plan of Evaluation System of Energy Consumption per Unit GDP,” November 17, 2007
Why Does This Matter Int’ly?
Source: Clare Breidenich
Preparation of National GHG Inventory
Implementation of Nationally Appropriate
Mitigation Actions
National
Communication
Domestic Activities
UNFCCC Processes
Implementation of Domestic MRV
Procedures
International Consultation and Analysis
U.S.-China Cooperation
Jim Hansen again…
“China cannot stabilize Earth’s climate alone. If, as I hope, they conclude that a rising carbon fee is in their interest, the
question will become: can they find a sufficient number…who will abandon
greenwash and participate in effective policy?”
U.S.-China Clean Energy Cooperation
Pres. Obama visits China, Nov 2009 Agreement to establish Clean Energy Research Centers
(CERC) Action plans on energy efficiency, renewable energy,
electric vehicles… Energy Cooperation Program (AmCham-led)
Pres. Hu visits U.S., Jan 2011 $ billions in U.S.-China clean energy business
ventures EV, smart growth demonstration projects CERC work plans finalized
Building Efficiency CERC
Complement two other CERCs – EV, advanced coal$50+ mil in joint U.S.-China public-private fundsIndustry cost share partners
Technology R&D: materials, lighting, insulation…Monitoring/SimulationAnalysis: markets, benchmarking, energy use/behavior
Complementary Challenges & Opportunities
ChinaTechnical hurdles (25% of wind not connected, lower
capacity factors)China’s “IP of scale”Key link in global supply chain
U.S.Deployment gap: in 2010, U.S. trails China by even
greater margin (e.g., in new wind, 5GW to 17GW)World leader in venture capital (20 times UK
spending)Wealth of experience with legal frameworks
Looking Ahead
China and U.S. racing ahead together by…
Strengthening China-U.S. energy and environment partnerships, including CERCs; implement MOUs
Taking concrete steps at home to reduce emissions
Actively participating in international response to global warming
Thank You! 谢谢!
Contact: Michael Davidson (mdavidson<at>nrdc.org) switchboard.nrdc.org/blogs/mdavidson/
Read all our China blogs: switchboard.nrdc.org/blogs/issues/
greening_china/
Extra Slides
12th Five Year Plan (2011-2015)
Strategic Emerging Industries: energy-saving and environmental protection technology, new energy, biotech, high-end equipment manufacturing, new materials and new-energy cars
Targets:
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