Enhancing U.S.-China Cooperation:

Energy Solutions, Environmental

Governance and Low-Carbon Development

2010 Washington Forum on China

Michael Davidson, China Climate FellowNatural Resources Defense CouncilNovember 4, 2010

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About the Natural Resources Defense Council (NRDC) 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

Overview

China’s Commitments Highlights of U.S.-China Cooperation

CERC on Building EfficiencyRenewable Energy PoliciesLow-Carbon Development (sub-national)Environmental Governance: NGO partnerships

China’s CommitmentsEnergy Intensity Target: 20% reduction from 2005 levels by 2010 Status: 15.6% by end of 2009 Top-1000 Enterprises program:

Reduce energy demand by 100 million tce by 2010

Carbon Intensity Target: 40-45% reduction from 2005 levels by 2020 Inscribed in Copenhagen Accord

12th Five-Year Plan (2011-2015) Energy Intensity Target: 15-20% reduction likely Carbon Intensity Target New strategic industries: half in EE/RE Strengthen target responsibility system

Energy Intensity Target: 20% reduction from 2005 levels by 2010 Status: 15.6% by end of 2009 Top-1000 Enterprises program:

Reduce energy demand by 100 million tce by 2010

Carbon Intensity Target: 40-45% reduction from 2005 levels by 2020 Inscribed in Copenhagen Accord

12th Five-Year Plan (2011-2015) Energy Intensity Target: 15-20% reduction likely Carbon Intensity Target New strategic industries: half in EE/RE Strengthen target responsibility system

GHG Reduction Potentials - 2030

Energy Efficiency

2.4 Gt CO2

Clean Energy

2.4 Gt CO2

China’s Green Revolution, 2009

Cost-benefit estimates of CO2 abatement (RMB/tCO2)

461

Buildings

41

Transportation

-133

Agriculture

-236

Industry

-287

Power

Every tonne of CO2 abated yields a net benefit of 461 RMB

Can require large capital expenditures or result in low or negative ROI

Positivecontribution to"Profit & Loss"

statement

Negativecontribution to"Profit & Loss"statement

Every tonne of CO2 abated has a net cost of 287 RMB

From Gray to Green: Buildings

Source: From Gray to Green, NRDC (2009)

Building Efficiency Highlights Agenda 21 Building (completed

2004)

Current standards: 50% reduction for new buildings

Energy retrofit target: 150 mil m2 cold-climate residential by 2010

Under development: energy rating and labeling for residential and commercial

If meet 11th FYP’s targets: 540 MtCO2 reduction*

Agenda 21 Building (completed 2004)

Current standards: 50% reduction for new buildings

Energy retrofit target: 150 mil m2 cold-climate residential by 2010

Under development: energy rating and labeling for residential and commercial

If meet 11th FYP’s targets: 540 MtCO2 reduction*

*Source: NRDC calculations based on LBNL, “Assessment of China’s Energy-Saving and Emission-Reduction Accomplishments and Opportunities During the 11th Five Year Plan” (2010).

Shanghai Building Energy Label

US-China CERC: Building Efficiency $50+ mil in joint U.S.-China

public-private funds 5-year project LBNL-led U.S. Consortium: (NRDC is a U.S. partner) Chinese consortium:

Ministry of Housing and Urban-Rural Development - lead Industrial/cost share partners

Technology R&D: materials, lighting, insulation… Analysis: markets, benchmarking, energy use/behavior Case studies: low-energy buildings

$50+ mil in joint U.S.-China public-private funds

5-year project LBNL-led U.S. Consortium: (NRDC is a U.S. partner) Chinese consortium:

Ministry of Housing and Urban-Rural Development - lead Industrial/cost share partners

Technology R&D: materials, lighting, insulation… Analysis: markets, benchmarking, energy use/behavior Case studies: low-energy buildings

NRDC Priorities for Improving Building Efficiency in China1. Implement building labels at local levels for both

commercial and residential buildings, existing and new, starting from government buildings.

2. Strengthen existing building codes, establish a revision cycle to make sure the codes continue, and strengthen enforcement and implementation.

3. Provide performance-based incentives and tax rebates to encourage new buildings go beyond building codes.

4. Provide feasible financing mechanisms for building retrofits, including integration of building EE into demand-side management (DSM) programs. 

Renewable Energy Policies 2009 Amendments to Renewable Energy

Law: Mandatory connection / purchase policy Renewable Energy Fund Central-local coordination

Lessons from the U.S.: Renewables quota system:

Nevada, New Jersey: examples of RE type-dependent quotas and “multipliers”

Technical standards for interconnection: Low-voltage ride through (LVRT) capability Power factor control Remote supervision/data collection All required by wind power in the U.S.

2009 Amendments to Renewable Energy Law: Mandatory connection / purchase policy Renewable Energy Fund Central-local coordination

Lessons from the U.S.: Renewables quota system:

Nevada, New Jersey: examples of RE type-dependent quotas and “multipliers”

Technical standards for interconnection: Low-voltage ride through (LVRT) capability Power factor control Remote supervision/data collection All required by wind power in the U.S.

See: china.nrdc.org/files/china_nrdc_org/NRDC - China Renewable Energy Legal Framework.pdf

Low-Carbon Development China is building 12 “clean energy economic zones”

Converting old industrial facilities Leaders in clean energy & EE deployment

…potential for sub-national cooperation:California-Jiangsu model is leading the way Exchanges for over 20 years 2009: MOU on energy and environment (first-ever

sub-national climate agreement)

Suzhou Industrial Park (est. 1994) Eco Science Hub: Low-Carbon Demonstration (2010)

GHG accounting / development guide Green buildings Low-carbon community practices

China is building 12 “clean energy economic zones” Converting old industrial facilities Leaders in clean energy & EE deployment

…potential for sub-national cooperation:California-Jiangsu model is leading the way Exchanges for over 20 years 2009: MOU on energy and environment (first-ever

sub-national climate agreement)

Suzhou Industrial Park (est. 1994) Eco Science Hub: Low-Carbon Demonstration (2010)

GHG accounting / development guide Green buildings Low-carbon community practices

Environmental GovernancePartnership with Institute of Public and Environmental Affairs (IPE)

Pollution Information Transparency Index (PITI) 2008: open environmental

information measures take effect Rated 113 cities on

disclosure performance Best practices:

user-friendly detailed emissions data lists of enterprise violations prompt response to public information requests

Benefits of transparency (U.S. experience): Empower media and public as environmental watchdogs Toxics release inventories engage consumers, banks, corporations Freedom of Information Act (FOIA) requests have uncovered countless

violations

Partnership with Institute of Public and Environmental Affairs (IPE)

Pollution Information Transparency Index (PITI) 2008: open environmental

information measures take effect Rated 113 cities on

disclosure performance Best practices:

user-friendly detailed emissions data lists of enterprise violations prompt response to public information requests

Benefits of transparency (U.S. experience): Empower media and public as environmental watchdogs Toxics release inventories engage consumers, banks, corporations Freedom of Information Act (FOIA) requests have uncovered countless

violations

See: china.nrdc.org/library/PITI-EN

Amending China’s Air Law Begun with 2008 MEP workshop RAP-Energy Foundation-NRDC Lessons from U.S. Clean Air Act and other

international experience Key areas:

Ambient Air Quality Standards State Implementation Plans Permitting programs Information transparency Enforcement

MEP also examining EPA’s GHG regulation

Kicking off project on permitting with China Research Academy of Environmental Sciences (CRAES)

Amending China’s Air Law Begun with 2008 MEP workshop RAP-Energy Foundation-NRDC Lessons from U.S. Clean Air Act and other

international experience Key areas:

Ambient Air Quality Standards State Implementation Plans Permitting programs Information transparency Enforcement

MEP also examining EPA’s GHG regulation

Kicking off project on permitting with China Research Academy of Environmental Sciences (CRAES)

Environmental Governance (2)

See: china.nrdc.org/AirLawAmendment

Take Home Points

Vast potential for U.S.-China cooperation

on climate and energy across…multiple levels of governmentNGOs, private sector as wellall fields – renewables, energy efficiency,

smart growth, governance…

Thank you! Contact:

Michael Davidson (mdavidson@nrdc.org) Barbara Finamore, China Program Director

(bfinamore@nrdc.org) Read our China blogs :

switchboard.nrdc.org/blogs/issues/greening_china/ See our new reports on China:

http://china.nrdc.org/library/NRDCTianjin-side-event-reports China-U.S. Energy Efficiency Alliance:

www.chinauseealliance.org/

Additional Slides

China’s Efforts to Reduce Energy Use 11th Five-Year Plan

Reduce energy intensity by 20% between 2006 and 2010 (save 700 million tons of coal equivalent)

Top-1000 program to save 100 million tce by 2010 (263 mt CO2 reduction)

Government financial support: 7 billion RMB in 2007 (central/provincial)

Officials' political career prospects dependent in part on their energy-saving performance

China’s Efforts to Reduce Energy Use (2) Distribute 150 million energy efficient light bulbs

between 2008 and 2010 Shut down 71 GW of small inefficient coal power

plants between 2006 and mid-2010 Implement efficiency dispatch rules – dispatch

power plants based on coal consumption level Adopt energy labeling for refrigerator, air

condition, washing machine, water heater, induction cooker, fluorescent lamp, motor, copier, computer monitor, etc.