China’s new five year plan will promise to reduce carbon intensity to 17% and energy intensity by 16% by 2015 making real carbon savings, according to a new report out today.
The report by The Climate Group, commissioned by the HSBC Climate Change Centre of Excellence, says the 12th Five Year Plan will start to curb carbon emissions and open up new investment opportunities in low-carbon technologies.
Over the next five years, China plans to introduce new regulatory measures including energy price reform, carbon trading pilots, energy labelling for consumer products and support for energy services companies (ESCOs).
The government also wants to see a four-fold growth in nuclear power (from 10 GW to 40 GW), 63 GW of new hydroelectric power, 48 GW of wind capacity and 5 GW of solar power. But coal generation will continue to provide 260 GW, although its share of China’s energy mix is predicted to fall from 72% to 63%.
Meanwhile, industrial energy efficiency measures will remain and the nation plans to target ‘aggressive growth’ in seven strategic areas including energy efficient products, renewable energy and new technologies like plug-in electric vehicles and LED lighting.
The five year plan was presented to the National People’s Congress in Beijing this weekend and has been approved by the Communist Party’s leaders.
“Green growth is now at the very heart of China’s national development strategy. These ambitious new policies will create the necessary certainty for the business community to ride a new wave of green investment,” says Changhua Wu of The Climate Group.
The report says the new five year plan promises that China is starting to ‘pull its weight’ on the international scene in terms of emissions reductions.
“It is hugely symbolic that China is putting green growth at the core of its national development plan and should be a wake-up call to Europe and North America policy-makers that a clean tech race is well under way,” says Mark Kenber, CEO of The Climate Group.
For further information:
China continues to lead the way in renewables investment (28-Feb)
Mitsubishi Electric and Shanghai Electric join forces on energy saving effort (28-Feb)
China’s new five-year plan pledges to curb emissions and energy use (22-Nov 2010)
07 March 2011