Mitigating Climate Change-- From Commitments to Action Plans

Yuhong Zhao, Faculty of LawThe Chinese University of Hong KongChina and the Global Climate RegimeNational Climate Policy and Action PlansClean Renewable EnergyCarbon Trade Pilot Schemes

I. China and Global Climate RegimeRio (1992), UNFCCC and Kyoto ProtocolCBDRAnnex I parties: quantified emissions targets;Non Annex I parties: communicate mitigation actionsCopenhagen Conference (2009)Chinas commitment: 40-45% reduction in carbon intensity (CO2 emission per unit of GDP) by 2020 compared to 2005Cancun Agreement (2010)Green Climate FundTechnology Mechanism

I. China and Global Climate RegimeDurban Conference (2011)Decide to adopt a universal legal agreement on CC ASAP, no later than 2015, in force 2020;China: willing to be bound after 2020 subject to conditions of funding & technology. Doha Conference (2012)Kyoto Protocol 2nd Commitment Period (2013-2020)Post 2020 regime: Durban PlatformChina (BASIC four): CBDR

II. National Climate Policy and Action PlansNational Five-Year Socio-Economic Development Plans (FYP)11th FYP (2006-10)12th FYP (2011-15)Climate Change Policy and PlansChinas National Programme on CC (NDRC, 2007)Chinas Response to CC: Policies and Actions (State Council, 2008), annual reportsWork Plan on Energy Conservation and Emission Reduction in the 12th FYP Period (State Council, 2011) Work Plan on the Control of GHG Emissions in the 12th FYP Period (State Council, 2011)Climate Change Law?

II. National Climate Policy and Action Plans11th Five-Year Plan (2006-2010)Binding targets:Reduce energy consumption per unit GDP by 20% from the 2005 level; andReduce major pollutants (SO2 & COD) by 10% from the 2005 level.Outcomes:Energy efficiency: 19.1%SO2: 14.29%COD: 12.45%

End of 2010: power off campaigns

II. National Climate Policy and Action Plans12th Five-Year Plan (2011-2015)Binding targets:Non-fossil fuel in primary energy consumption: 11.4% (2010: 8%; 2020: 15%);Energy consumption per unit GDP: reduce by 16%;CO2 emission per unit GDP: reduce by 17%.Forest coverage: increase to 21.66% (2010: 20.36%)Forest stock volume: increase 0.6 billion m3 to 14.3 billion m3 (2010: 13.7 billion m3)

II. National Climate Policy and Action Plans12th Five-Year Plan (2011-2015)Part VI, Chap.21, Sec.1 Control of GHG emissionsSubstantial cut of intensity of energy consumption & carbon intensity;Reasonable control of total energy consumption;Low-carbon technology: industry, buildings, transport & agriculture;Low-carbon products: standards, labelling & certification;Carbon emission trade.

III. Clean Renewable Energy12th FYP (2011-15)Non-fossil fuel in primary energy consumption: 11.4% (2010: 8%; 2020: 15%);12th FYP on Energy Development (2013)Double control of energy consumptionTotal consumption in 2015: 4 billion tons coal (equivalent) (2010: 3.25 billion, annual growth 4.3%)Energy efficiency in 2015: cut by 16% of 2010 levelEnergy mix in 2015:Coal: 65%Natural gas: 7.5%Non-fossil fuel: 11.4%

Primary energy world consumptionMillion tonnes oil equivalentBP Statistical Review of World Energy 2012 BP 2012

Primary Energy Consumption (2012)Based on data of BP Statistical Review of World Energy 2012

WorldChina (2015)Oil33.1%17.7%Natural Gas23.9%4.7% (7.5%)Coal29.9%68.5% (65%) Nuclear Energy4.5%0.8%Hydro-electricity6.7%7.1% (11.4%)Renewables2.4%1.2%

IV. Carbon Trading Pilot SchemesNDRC Notice to Set Up Carbon Trading Pilot Schemes (2011)5 cities: Beijing, Tianjin, Shanghai, Chongqing, Shenzhen;2 provinces: Hubei, GuangdongImplementation Plans:2012: Beijing, Shanghai, Guangdong;2013: Tianjin, Hubei, Shenzhen;Operation:Shenzhen: 18 June 2013

IV. Carbon Trading Pilot SchemesShenzhen Pilot Scheme:Reasonable control of total energy consumption;Abate carbon intensity;Achieve total emission control of GHGs;Controlled units: key emission enterprises & units;Allocation: target of total emission control, state industrial policy, actual emissions etc;3rd party audit: annual carbon emission report;Penalty: fine (3 times of the market price) on carbon emissions in excess of permits;Open market: other units & individuals

IV. Carbon Trading Pilot SchemesShenzhen Pilot Scheme:Controlled units: 635 enterprises & public buildings (38% of total carbon emissions of the city);Total allowances/permits: 100 million tonnes CO2e for 2013-15;Next stage: transport (bus & taxi);1st trading day (18 June 2013)8 dealsTotal volume: 21,112 tonnes of carbon;Price: 28-32 yuan/tonne

IV. Carbon Trading Pilot SchemesShanghai Pilot Scheme: Industrial sources: emission over 20,000 tonnes CO2e/year in 2010 or 2011 (steel, petrochemical, non-ferrous metal, power generation, building materials, textile, paper, rubber etc); Non-industrial sources: emission over 10,000 tonnes CO2e/year in 2010 or 2011 (aviation, port, airport, railway, commercial, hotel, financial etc); Allocation: free for 2013-15; auction in due course;3rd party audit: annual emission report;Safety valve: govt retains/releases permits to control excessive price volatility;

ConclusionPost-2020?International Energy Agency, Redrawing the Energy-Climate Map (2013): Chinas CO2 emissions growth of 300 Mt in 2012, smallest in a decade;Domestic studies: carbon emission peak in 2025?National carbon trading market: 13th FYP (2016-2020)Carbon taxSino-US agreement to cut HFCs (2013): phase out production & consumption of HFCs

Thank you!