Low-Carbon Revolution in China a Case Study of Shanxi Province
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Zhzh ENVIRONMENT & NATURAL RESOURCES PROGRAM Low-Carbon Revolution in China A Case Study of Shanxi Province Dongsheng Wu PAPER MARCH 2017 Environment & Natural Resources Program Belfer Center for Science and International Affairs Harvard Kennedy School 79 JFK Street Cambridge, MA 02138 www.belfercenter.org/ENRP The authors of this paper invites use of this information for educational purposes, requiring only that the reproduced material clearly cite the full source: Wu, Dongsheng, “Low-Carbon Revolution in China: A Case Study of Shanxi Province.” Belfer Center for Science and International Affairs, Cambridge, Mass: Harvard University, March 2017. Statements and views expressed in this report are solely those of the authors and do not imply endorsement by Harvard University, the Harvard Kennedy School, or the Belfer Center for Science and International Affairs. Design & Layout by Andrew Facini Cover photo: A view of the Yuxi River and suburban towns near Yulin in Shanxi Province. © CNES/Astrium, Digitalglobe. Used with Permission. Copyright 2017, President and Fellows of Harvard College Printed in the United States of America ENVIRONMENT & NATURAL RESOURCES PROGRAM Low-Carbon Revolution in China A Case Study of Shanxi Province Dongsheng Wu PAPER MARCH 2017 The Environment and Natural Resources Program (ENRP) The Environment and Natural Resources Program at the Belfer Center for Science and International Affairs is at the center of the Harvard Kennedy School’s research and outreach on public policy that affects global environment quality and natural resource management. Its mandate is to conduct policy-relevant research at the regional, national, international, and global level, and through its outreach initiatives to make its products available to decision-makers, scholars, and interested citizens. More information can be found on ENRP’s website at www.belfercenter.org/enrp or from assistant director, Amanda Sardonis ([email protected]) at ENRP, Harvard Kennedy School, 79 JFK Street, Cambridge, MA 02138 USA. About the Author Dongsheng Wu is the first fellow in ENRP’s China Environmental Sustainability Fellows Program. As director of the Department of Climate Change at the Shanxi Provincial Development and Reform Commission, Wu is responsible for developing a greenhouse gas emissions policy for Shanxi, a region with the highest coal production and highest energy intensity in China. He is a senior economist with extensive experience in renewable energy and climate change. Wu’s research focuses on new ways to build up the renewable energy industry and promote low-carbon development in Shanxi Province and decrease emissions from coal. He is credited for his previous impact on improving local environmental policy. Preface Over the last three years, the Environment and Natural Resources Program (ENRP) at the Belfer Center for Science and International Affairs has hosted a number of senior Chinese practitioners from government as part of ENRP’s China Environmental Sustainability Fellowship Program, sponsored by the Energy Foundation China. In the course of their fellowship, they often focus on energy or environmental topics—or on other issues of great importance to China—and produce one or more papers, summarizing their insights and conclusions. These papers have value, not only in providing officials and scholars in both the United States and China with a greater understanding of the topics, but also providing perspectives on questions of importance that contribute to the ongoing policy debates in both countries. These are not traditional academic papers, but rather overviews of important issues written by practitioners who have on-the ground experience and knowledge and will be part of the policy making process in China. The Belfer Center feels privileged to host these fellows and to provide this forum for the products of their work at the Center. Henry Lee Director, Environment and Natural Resources Program Table of Contents Introduction .....................................................................................1 1. Shanxi Province......................................................................... 3 1.1. Factor Analysis on the high carbon emissions in Shanxi Province .................3 1.2. Rising carbon emissions with relatively fast economic growth ......................3 1.3. High carbon emission from the energy sector due to the dominance of coal in the energy mix .................................................................6 1.4. Concentrated carbon emissions due to a focus on heavy industry ...............9 2. The Practice of Low-Carbon Development in Shanxi ..........11 2.1. Top-level design for the low-carbon development ...........................................11 2.2. Setting up relevant mechanisms and management systems ........................11 2.3. Optimizing the industrial structure ................................................................. 12 2.4. Adjusting the energy mix ................................................................................. 12 2.5. Faster improvement of energy efficiency ........................................................ 13 2.6. Actively carrying out basic capacity building ................................................. 13 2.7. Moving forward with innovation in low-carbon technologies ........................ 14 3. The Difficulties and Challenges that Shanxi Faces along its Journey to Achieve Low-Carbon Development .... 15 3.1. Shanxi is constrained by its own socio-economic development ................... 15 3.2. Restraints imposed by the unique industrial structure with coal related industries taking a large proportion in the energy mix ..................... 16 3.3. The constraints imposed by a harsh natural environment and low awareness of low-carbon development .....................................................17 3.4. The lack of core impetus for low-carbon development.................................. 18 3.5. Lack of integration of administrative resources ............................................ 18 4. Shanxi’s Low-Carbon Development Outlook ....................... 19 4.1. Realize the strategic importance of low-carbon development ...................... 19 4.2. Drive institutional innovation through nine approaches ................................20 4.3. Controlling the expansion of carbon-intensive industries while reinvigorating low-carbon industries ...............................................................24 4.4. Make the best use of conventional energy while vigorously tapping new energy sources ............................................................................25 4.5. Intensified innovation for carbon capture, utilization, and sequestration .........25 4.6. Coordinated progress of energy conservation and emission reduction .........27 5. Conclusion ............................................................................... 27 A view of the Yuxi River and suburban towns near Yulin in Shanxi Province. © CNES/Astrium, Digitalglobe. Used with Permission. Introduction Climate change poses challenges to all of humankind. Scientific studies and statistical analyses have shown that the climate is changing at an alarming rate and that human activity is the main cause. Glaciers are melting faster than ever. Problems such as unbalanced distribution of water, biodiversity loss, and increasingly frequent disastrous weather conditions are threaten- ing social and economic development as well as human health. As a vast country with a huge population, insufficient natural resources (as measured on a per capita level), fragile eco-systems, and sophisticated climate patterns, China is vulnerable to the impacts of climate change on many fronts. These fronts include: national economic security, energy security, ecological security, food security, human health, and socioeco- nomic development. Low-carbon economic growth and actions to slow the rate of climate change are required for sustainable development and the protection of fragile ecosystems. They also bring significant opportunities for economic restructuring, growth mode transformation, and a new type of industrialization. Climate change is a challenge that can only be tackled through interna- tional cooperation. All of the 150 countries present at the Global Climate Summit in Rio de Janeiro in 1992 approved United Nations Framework Convention on Climate Change (UNFCCC), which was the first interna- tional convention to address the negative influence of global warming on the world’s economy by controlling the total amount of greenhouse gas emissions. It offered a basic framework under which countries could work together to tackle the climate issue. The COP 21, held near Paris-Le Bour- get in the northern suburbs of Paris between November 30th and December 12th of 2015, witnessed the signg of a legally binding Agreement, featuring innovative mechanisms for taking action, bottom-up approaches based on voluntary emission reductions, and expanded involvement by more nations. Developing countries, such as China, proposed specific measures for emission reduction, which were well received by the international com- munity. Each country is expected to adopt low-carbon actions to combat climate change based on fairness, capacity, and the principle of common, but differentiated responsibilities. Belfer Center for Science and International Affairs | Harvard Kennedy School 1 With the increasing global effort in curbing climate change, China has intensified its own efforts.