GAO Guangsheng Office of National Coordination Committee on Climate Change, National Development and Reform Commission o

1. Policies and Measures of China on Climate Change Mitigation under the Framework of Sustainable Development GAO Guangsheng Office of National Coordination Committee on Climate Change, National Development and Reform Commission of P.R. China Nov. 15, 2006 The 2nd Workshop of Dialogue on Long-term Cooperative Action

2. Introduction Climate change is one of the key concerns of the international community. Climate change, both as an environmental issue and development issue, falls in the category of development in the final analysis; Tackle the challenges of climate change in joint efforts through dialogue and cooperation has become the consensus of international community;

3. Introduction • Actively addressing climate change and enhancing sustainable development are not only the requirements of implementing the UNFCCC, but also the requirements of carrying out the scientific concept of development in China; • Advancing the sustainable development in full scale and effectively controlling GHG emissions are the key measures of China to carry out its basic national policies on resource-conserving and environmental protection and to ensure national security.

4. The National Circumstances of China • Huge temperature differences between seasons/days • China’s climate is characterized by the distinct continental monsoon climate. Comparing with North U.S. and the Western Europe, the temperature difference in most regions in China is greater than that in the regions of the same latitude. In order to maintain a comfortable indoor temperature, more energy is required.

5. The National Circumstances of China 2. Increasing amount of economic loss caused by climate disasters Economic Loss

6. The National Circumstances of China 3. Huge population & high employment pressure • By the end of 2005, the total population in Mainland China was 1.31 billion, accounting for 22% of the world total; • 43% of the total population live in cities/towns, 750 M people still live in villages; • Every year, 10 M new employment opportunities need to be created in cities/towns, and about 10 M people living in countryside move to cities/towns to find job. Total Population (100 million)

7. China World The National Circumstances of China Comparison of GDPs per Capita between China and the World average in 2004 4. Low level of economic development • The GDP per capita of China in 2005 was USD 1,714 (based on exchange rate of that year), only ¼ of the world average; • By the end of 2005, the annual per capita income of 23.65 million people living in villages was less than 683 RMB (USD 83).

8. The National Circumstances of China 5. Coal-dominated energy mix • The primary energy consumption in 2005 was about 1,563 million toe, among which 68.9% came from coal consumption; • In 2005, coal accounted for 27.8% of the world’s primary energy consumption.

9. The National Circumstances of China Comparison of per capitaenergy consumptions between China and the world average in 2004 6. Low per capita energy consumption • In 2005, the commercial energy consumption per capita was about 1.2 toe, equal to 2/3 of world average and ¼ of the OECD countries.

10. The National Circumstances of China 7.The CO2 emission per capita of China is lower than that of the world average • In 2004, the CO2 emission per capita of China from fossil fuel utilization was 3.65 tons, equal to 87% of the world average and 33% of the OECD countries.

11. Efforts of China to Mitigate Climate Change 1. Formulation and implementation of sustainable development strategy: • The Government of China issued the sustainable development strategy of China in 1994 - China Agenda 21; • In 1996, the idea of sustainable development was taken as an important guiding principle as well as a strategic goal for social and economic development; • In 2003, the Government of China formulated the Program of Action for Sustainable Development in China in the Early 21st Century.

12. Efforts of China to Mitigate Climate Change 2. Adoption of a series of policies/measures favorable to climate change mitigation: • In January 1998, the Energy Conservation Law of China entered into force; • In June 2003, the State Council issued the Decision on Promoting the Development of Forestry; • In February 2005, the National People’s Congress reviewed and approved the Renewable Energy Law; • In August 2006, the State Council issued the Decision on Strengthening Energy Conservation.

13. Efforts of China to Mitigate Climate Change 3. Improve energy efficiency and energy conservation • Energy use per 10K RMB Yuan GDP decreased from 1.88 toe in 1990 to 1 toe in 2005 (2000 price) at the rate of 4.1% per annum. toe/10,000 RMB

14. Efforts of China to Mitigate Climate Change • In 15 years, the accumulated energy saving adds up to 560Mtoe, equal to 1.8bt CO2 emission reductions. Comparison of CO2 per unit GDP of China and the world

15. Efforts of China to Mitigate Climate Change 4. Develop low carbon energy and renewable energy, improve energy structure： • The percentage of coal in primary energy consumption dropped from 76.2% in 1990 to 68.9% in 2005; • By 2005, RE utilization reached 116M toe (incl. large hydro), accounting for 7.5% of total consumption, equal to 380Mt CO2 emission reductions.

16. Efforts of China to Mitigate Climate Change 4. Develop low carbon energy and renewable energy, improve energy structure： • By 2005, hydropower installed capacity reached 117GW, accounting for 23% of the total; • Household biogas over 17 M, annual biogas production 6.5bm3; • Biomass power generation capacity 2GW; • Grid connected wind power capacity 1.26GW; • PV capacity 70MW, solar heater collector 85Mm2; • Renewable CDM projects account for 90% of the total approved CDM projects.

17. Efforts of China to Mitigate Climate Change 5. Carry out forestation and increase forest coverage • Forestation 54Mh, storage 1.5bm3, ranking No. 1 in the world; • Forest coverage from 13.92% in early 1990s to 18.21% in 2005; • Estimated net sink 3 billion CO2 between 1980 and 2005.

18. Policies and Measures on Climate Change Mitigation in China 1. Principles: • Addressing climate change within the framework of sustainable development; • Equal importance of mitigation and adaptation; • Integration of climate policy into other relevant policies; • Reliance on technological progress and innovation; • Common but differentiated responsibilities; • Active participation and broad cooperation.

19. Policies and Measures on Climate Change Mitigation in China 2. General objective: • Considerable GHG emission reduction; • Enhancement of adaptation capacity; • New progress on scientific research on climate change; • Considerable improvement of public awareness; • Further institution development.

20. Policies and Measures on Climate Change Mitigation in China 3. Main targets of sustainable development in China for the 11th Five-Year Plan period • Energy intensity drop by around 20%; • Total population: 1.36 billion; • Total cultivated land: 120Mh; • Total main pollutants emission drop by 10%; • Forest coverage: 20%.

21. Policies and Measures on Climate Change Mitigation in China 4. Promote 10 key energy conservation projects • Renovation of coal-fired industrial boilers; • District CHP; • Waste heat and pressure utilization; • Oil conservation and switching; • Motor system conservation; • Energy system optimization • Building energy conservation; • Green-lighting; • Energy conservation in government agencies; • Energy saving monitoring and technical service. Estimated energy saving: 170Mtoe, equal to 550 Mt CO2 reduction.

22. Policies and Measures on Climate Change Mitigation in China 5. Develop hydropower together with ecological protection • Hydropower is a key measure towards a low carbon energy structure; • Together with environmental protection and migration, develop and use hydropower resources in a rational manner; • Accelerate the development of hydropower and small hydro based on local conditions. Estimated CO2 reduction 560Mt by the end of 2010.

23. Policies and Measures on Climate Change Mitigation in China 6. Promote nuclear power • Nuclear energy is a key element in national energy strategy; • Guideline: self-sufficient, international cooperation, technology introduction, domestic built; • Common technology route and adoption of advanced technologies; • Achievement of domestic development and production of large scale unit. Estimated GHG emission reduction: 60Mt CO2 by 2010.

24. Policies and Measures on Climate Change Mitigation in China 7. Optimize thermal power development • Develop 600+MW supercritical (ultra-supercritical) units; • Start the IGCC power station project; • Develop natural gas power generation; • Acceleration of the elimination of small coal-fired power generators; • Strengthen power grid construction. Estimated GHG emission reduction: 110 Mt CO2 by 2010.

25. Policies and Measures on Climate Change Mitigation in China 8. Vigorously promote coal-bed methane utilization • Coal-bed methane investigation, development and utilization should be adopted as important instruments to expedite the structural optimization of coal industry, reduce coal mining accidents, improve resources utilization efficiency and prevent environmental pollution. • Exempt or partly exempt coal bed methane projects from utilization fees for prospecting and mining rights; • Adopt preferential tax policies for coal bed methane projects; • Encourage coal bed methane CDM projects. Estimated GHG emission reductions: 210 Mt CO2 by 2010.

26. Policies and Measures on Climate Change Mitigation in China 9. Promote the development of bio-energy • Vigorously promote biomass energy development and utilization with key focus on biomass power generation, marsh gas, biomass briquette and biomass liquid fuel; • Formulate economic policies and measures in favor of bio-ethanol and other biomass fuels. Estimated GHG emission reduction: 30 Mt CO2 by 2010.

27. Policies and Measures on Climate Change Mitigation in China 10. Actively support the development and utilization of wind, solar, geothermal and tidal energy Together with the development and construction of large scale wind power plants, to: • Actively develop photovoltaic and solar heating utilization; • Actively promote the development and utilization of geothermal and tidal energy. Estimated GHG emission reductions: 70 Mt CO2 by 2010.

28. Policies and Measures on Climate Change Mitigation in China 11. Attach importance to the control of GHG emissions from agriculture sector Through the promotion of semi-dry rice cultivation technology, scientific irrigation, research and development of technologies, to: • Breed fine ruminant varieties; • Improve management practices for intensive livestock operations; • Further promote straw treatment technology; • Enhance/refine the technologies for household-type biogas digesters; and • Control the growth rate of methane emissions.

29. Policies and Measures on Climate Change Mitigation in China 12. Strengthen carbon sinks • Through the continuous implementation of policies and measures and the Priority Programs of Ecological Conservation such as the conservation of natural forest resources, converting cultivated land back to forest or grassland, etc. to achieve a forest coverage rate of 20% and an increase in carbon sink by about 50 Mt CO2 compared with that in 2005 by the end of 2010.

30. China’s Needs for International Cooperation on Climate Change 1. Effective implementation of Article 4.7 of the UNFCCC is key to improve the developing countries’ capacity to mitigate climate change • Article 4.7 stipulates that “The extent to which developing country Parties will effectively implement their commitments under the Convention will depend on the effective implementation by developed country Parties of their commitments under the Convention related to financial resources and transfer of technology and will take fully into account that economic and social development and poverty eradication are the first and overriding priorities of the developing country Parties.”

31. China’s Needs for International Cooperation on Climate Change 2. Concrete and effective international cooperation is a must to realize the aforementioned objectives and tasks: • The main objectives of China’s 11th five-year plan presented under the framework of sustainable development are very ambitious and arduous; • To realize these objectives, not only China’s own efforts, but also the support from international society on finance and advanced technologies are required.

32. China’s Needs for International Cooperation on Climate Change 3. Major needs for mitigation technologies • Advanced energy and manufacturing technologies; • Environmental protection and comprehensive utilization of resources technologies; • Highly efficient transportation technologies; • New material technologies; • New building material technologies.

33. China’s Needs for International Cooperation on Climate Change 4. Major needs for capacity building • Basic studies/research on climate change, analysis of mitigation policies, IT construction, CDM project management, etc.; • Development of statistics system that meets the requirements of GHG inventory preparation; • Necessary field measurement data to determine emission factors; • QA/QC of GHG inventories; • GHG emissions projection; • Development of national GHG inventory database.

34. Conclusion • In order to effectively respond to climate change, China, through active dialogues, effective and concrete cooperation with the international community and relevant countries, is willing to make new contributions to the protection of the global climate system while achieving economic development; • We appeal to developed country Parties to fulfill their commitments on providing financial and technological support to developing country Parties to enhance the developing country Parties’ capacity in responding to climate change in accordance with the Convention.

35. Thanks！