China Should Develop Low-Carbon Economy
Year:2009 ISSUE:27
COLUMN:POLICY, ECONOMY & FINANCE
Click:203    DateTime:Sep.24,2009
China Should Develop Low-Carbon Economy      

Low-carbon economy is proposed mainly to address the climate change issue. Artificial emissions of carbon dioxide and other greenhouse gases have caused global warming, which in turn affects the survival and development of human beings. Reducing the carbon dioxide emissions has become a common objective needed to protect the earth.
    Studies have shown that the energy consumption of China's heavy industry is over three times that of the service sector. In history, no country in the world has relied on low-carbon energy to achieve its industrialization. For developing countries including China, eliminating poverty and improving their people's standard of living are still their top two priorities. Developing low-carbon economy is a huge challenge for developing countries, so some people do not support developing low-carbon economy in China now.
   But the consumption of fossil fuels is also getting increasingly more costly and needs more advanced technologies.
   An expert at the Research Center for Economic Development of China's State Council argues that China should develop low-carbon economy as soon as possible. He lists three reasons in his report:
    a) China should make use of advanced concepts to guide its economic development and cannot take the traditional development route of "Treatment after Pollution."
    b) China proposed to change its mode of growth in the "Ninth Five-year Plan (2001-2005)" but did not achieve the desired results, partly because of the lack of appropriate performance metrics, particularly due to the lack of supervision of the implementation of these policies.
   c) Because of China's current conditions, the development of low-carbon economy is both urgent and important for the following reasons:

First, although China continues to optimize its energy supply structure, two thirds of its primary energy needs are still met with coal - about 80% of its electricity comes from coal-fired plants. China has abundant coal, little petroleum and inadequate natural gas. So coal will remain the major primary energy source in China for a long period. Coal is a high-carbon source of energy. Under the constraints of the "United Nations Framework Convention on Climate Change" and the "Kyoto Protocol," China will have difficulty guaranteeing its supply of various resources and right to emit carbon dioxide at the current rate.

Second, carbon dioxide and other greenhouse gases generated by human activities come mainly from the production and consumption of coal and petroleum and partly from cement production. Fossil fuels, steel and cement are essential material inputs to industrialization and urbanization. China is in a stage of rapid industrialization and urbanization. Its large-scale infrastructure construction needs enormous quantities of steel, cement and electric power. The huge demand in these high-carbon industries cannot rely on the international supply. Therefore, reducing carbon dioxide emissions has become a necessary requirement for China to improve its industrial competitiveness and address climate changes.

Third, China's enterprises in various sectors have different technical levels, most with a poor capability for research, development and innovation. This is the biggest challenge for China to move swiftly from a high-carbon economy to a low-carbon economy. Although the United Nations Framework Convention on Climate Change and the Kyoto Protocol require developed countries to license their low-carbon technologies to developing countries, the full implementation of these protocols is not likely. Since 1979, China has begun to try to "exchange market for technology." Now, China's market has already been opened, but the country has few know-how technologies and intellectual property rights. Experience tells China's leaders that know-how and state-of-the-art technologies cannot simply be bought, but key technologies must be developed domestically. The development of low-carbon energy technology and the carbon dioxide capture and storage technology has been incorporated into the government's scientific and technological support program. Developed countries only recently launched the development of these technologies, so China does not lag far behind in these fields.

In short, in view of its energy resource limitations, its current development stage, its industrial structure, its technological level and the possible international pressures to reduce emissions, China should develop low-carbon economy as soon as possible.
    This expert suggests the following focal points developing low-carbon economy now in China.

1)  Make an overall plan

First, give the low-carbon economy priority in the national economic and social development plan, and make an overall plan and deploy resources. Second, add low-carbon technology research and development into the national science and technology planning and related projects. Third, make specific plans, and start collecting relevant statistics and define metrics of progress for the low-carbon economy. Four, make low-carbon development plans for key industries.  

2)  Develop low-carbon industries

Enhance the entry thresholds of high-carbon industries. Develop high-tech industries and modern service industries. Use advanced and new technologies to transform traditional industries, such as steel making and cement making.

3)  Develop the recycling economy

Develop the recycling economy and promote recycling and efficient utilization of resources and energy. Continue to promote saving energy and reducing emissions. Control the excessive growth of high-energy-consuming and high-emission sectors. Speed up the elimination of obsolete production capacity.
     Substantially reduce the use of fertilizers and pesticides, reduce environmental pollution caused by burning wastes from cities and airports, and accelerate the promotion and popularization of solar energy and biogas technology.

4)  Support the development of new and renewable energy sources

China should increase investment and policy support for the development and utilization of various forms of new and renewable energy including solar, wind, geothermal and biomass, and rely on technological advances to reduce their utilization costs and make use of renewable energy in numerous ways.
     
5)  Emphasize R&D in low-carbon technology

According to the principle of technical and economic feasibility, put forward a development roadmap for China's low-carbon technologies, promote the research, development and popularization of energy-efficient and low-carbon technologies, and gradually establish a diversified, low-carbon technology system, including energy conservation and efficient energy utilization, clean coal and clean energy, new and renewable energy sources, and natural carbon sinks.

6)  Apply the low-carbon concept in planning and construction

Build low-carbon cities and infrastructure. Promote the use of solar energy and use energy-efficient heating and cooling systems. Effectively reduce carbon emissions in daily lives. Pay attention to the development of low-carbon transport. Develop hybrid fuel vehicles, electric vehicles and other new energy vehicles. Make use of clean energy like diesel and hydrogen fuel to reduce the impact of transport on the environment.

7)  Define effective policies

Do feasibility studies of a law that addresses climate change. In the revision process of relevant laws and regulatio