The Strategic Planning For Low-Carbon Development During China’s Twelfth Five-Year Plan

1. The Strategic Planning For Low-Carbon Development During China’s Twelfth Five-Year Plan National Development and Reform Commission Strategic Planning Division of Department for Addressing Climate Change Tian Chengchuan 2013.03.18

2. Content • The current situation for low-carbon development in China • The performance for China’s low-carbon development and ”Main objectives in the Twelfth Five-Year Plan” • Major tasks and policy orientation for China’s low-carbon development in the Twelfth Five-Year Plan

3. The current situation for low-carbon development in China

4. The current situation for low-carbon development in China • Due to the issue of climate change, now people begin to attach importance to low-carbon development • Since the industry revolution, fossil fuels were used greatly by human beings, which discharged a large number of greenhouse gases including carbon dioxide and methane etc, thus leading to a remarkable change in global climate characterized by climate warming.

5. The current situation for low-carbon development in China • The assessment report of Intergovernmental Panel on Climate Change (IPCC): global average surface temperature rise for nearly a century is 0.74°C, the temperature rise for next century may reach 1.1-6.4°C; • The global climate change is resulting in the frequent occurrence of extreme climatic calamity, acceleration for melting glaciers and snow cover, rise of sea level, distribution unbalance of water resources, and decline in biodiversity.

6. The situation for low-carbon development at home and abroad • The photo from NASA shows the area of sea ice in the Arctic Ocean on August 26,2012 (bright white part). The lowest record before that is 4.17 million square kilometers on Sep.18, 2007.The scope of yellow line in picture refers to the average lowest value from 1979 to 2010.

7. Situation for low-carbon development in China It is an indisputable fact that the climate is becoming warmer. • The average temperature range on earth’s surface during 1850～2005 • （relative to the average values during 1961～1990） • （Source:IPCC AR4，2007）

8. The current situation for low-carbon development in China In order to address the global climate change and find an efficient way to deal with the climate change, all participating countries, under the leadership of UN, had reached a series of achievements such as United Nations Framework Convention on Climate Change and Kyoto Protocol, Bali Roadmap,Copenhagen protocol, The Cancun agreements,Durban package results, and Doha climate passes etc successively through more than 20 years of hard negotiation.

9. The situation for low-carbon development at home and abroad The domestic situation With its poorer resource endowment of energy, fragile ecological environment, complicated climate conditions, our country is one of the countries which are the most susceptible to climate change. The extensive development way in China causes the approach to bottleneck constraint of energy & resource, environmental pollution and serious ecological destruction. The low-carbon development is also the intrinsic need and the strategic choice which complying with international development trend and fulfilling international obligations.

10. The situation for low-carbon development at home and abroad The domestic situation Per capita occupancy rate for oil, natural gas, coal is about 7%、7%、67% of world average level respectively. The energy consumption for unit GDP in China is higher, which resulting in the shortage of energy supply in China and part demands of energy needing to be imported from other countries. At present, our country is at a significant historical stage for industrialization, urbanization and agricultural modernization, the rigid demand of energy will still increase. Actively addressing climate change, promoting green low-carbon development is a realistic way to crack the bottleneck constraint of energy & resource and enhance the security level of energy.

11. GDP and Total Energy consumption Unit GDP energy consumption Total energy consumption

12. The situation for low-carbon development at home and abroad International situation On one hand, the international gaming around energy resource, climate change etc. is becoming increasingly fierce. Due to the larger total emissions of green gas, faster increasing speed (at present, the total emissions of China ranks first in the world), per capita emission also exceeds world average level, all of these make China has increasingly becomethe focus in international negotiations for climate change. The pressure requiring our country to undertake more obligations for reducing emission increases constantly.

13. The situation for low-carbon development at home and abroad International situation On the other hand, green and low-carbon development is becoming the new area for international science and technology and economic competition and also becoming the strategic choice of all countries for economic and social development. Since entering into the new century, a new wave oftechnological revolution characterized by green and low-carbon is just unfolding , the developed and developing countries are taking active measures to speed up development of green economy with core of new energy, new material and energy-saving and environmentally friendly industries. China is facing a new challenge in international competition.

14. The performance for China’s low-carbon development and ”Main objectives in the Twelfth Five-Year Plan”

15. The performance for China’s low-carbon development and ”Main objectives in the Twelfth Five-Year Plan” • China has gained the obvious effect in addressing the climate change by the joint efforts of government and various sections of society. • Service industry added value in 2012 accounts for 44% of GDP, up 4.7% comparing with that in 2005. • In the Eleventh Five-Year Plan, the energy consumption for unit GDP in china decreased by 19.1%, corresponding to save 0.63 billion tons of standard coals, equivalent to reducing 1.46 billion tons of CO2 emissions.

16. The performance for China’s low-carbon development and ”Main objectives in the Twelfth Five-Year Plan” • In 2011,the whole country formed energy-saving capability of 71 million tons of standard coals, equivalent to reducing 0.16 billion tons of CO2 emissions. The energy consumption for unit GDP in 2012 was down by 3.6% over the previous year.

17. The performance for China’s low-carbon development and ”Main objectives in the Twelfth Five-Year Plan” • Speed up developing clean energy and new energy industries: hydropower installed capacity in 2010 was 2000 GW, comparing with 1100 GW in 2005; the wind-power installed capacity in 2010 was 40 GW, comparing with 1.3 GW in 2005 and photovoltaic power generation installed capacity reached 0.6 gw in 2010, comparing with less than 0.1 GW in 2005. Up to now, the indicators for hydropower installed capacity, wind-power installed capacity, collecting area for solar heaters and number of users for rural biogas all rank first in the world.

18. The performance for China’s low-carbon development and ”Main objectives in the Twelfth Five-Year Plan” • Artificial afforestation area was 62 million hectares, the forest coverage rate had reached 20.36% comparing with 18.2% in 2005.

19. The performance for China’s low-carbon development and ”Main objectives in the Twelfth Five-Year Plan” • The outline for planning of the “Twelfth Five-Year” takes the green and low-carbon development as an important direction for Chinese development. • The energy consumption of unit GDP and co2 emission will be reduced by 16% and 17% comparing with that in 2010 respectively during the “Twelfth Five-Year” ； • The ratio of non-fossil energy among primary energy consumption shall reach 11.4%,forest storage shall increase by 600 million cubic meters and the forest coverage reach 21.66%. Reasonably control the total energy consumption.

20. The performance for China’s low-carbon development and ”Main objectives in the Twelfth Five-Year Plan” • Promoting low-carbon in new period shall stick to the basic requirements for “Three overall-planning”: • Overall planning two general situations at home and at abroad; • Overall planning two major tasks for mitigation and adaption; • Overall planning two aspects for production and consumption .

21. The performance for China’s low-carbon development and ”Main objectives in the Twelfth Five-Year Plan” • In order to promote low-carbon development, we should accelerate the realization of "three transformations”: • In terms of policy design, realize a transformation from “each administers in his own way” to focus on top-level design and policy coordination; • In terms of governing manner,realize a transformation from managing minor details to pay more attention to controlling total quantity and structural optimization; • In terms of development means, realize a transformation from elements input and administration domination to pay more attention to technical innovation and playing the fundamental function of market.

22. Major tasks and policy orientation for China’s low-carbon development in the Twelfth Five-Year Plan

23. Major tasks and policy orientation for China’s low-carbon development in the Twelfth Five-Year Plan Green and low-carbon development is the only way for China in new period to construct the ecological civilization, promote sustainable development and also a realistic choice for realizing win-wins in economic development, social progress and environmental protection. In order to promote the green and low-carbon development in the new period, the traditional extensive development thinking and mode should be changed.

24. Major tasks and policy orientation for China’s low-carbon development in the Twelfth Five-Year Plan I. Strengthen top-level design for low-carbon development • Develop a roadmap for low-carbon development in China Accelerate the development ofmacroscopic strategy for low-carbon development, define the China’s middle and long term strategic targets for low-carbon development, tasks in all stages, realization ways, policy system and safeguard measures etc. • Formulate and issue National planning for dealing with climate change Carry out overall deployment for China to address the climate change before 2020. • speed up the legislation process for addressing climate change.

25. Major tasks and policy orientation for China’s low-carbon development in the Twelfth Five-Year Plan II.Stick to the road of new industrialization • Accelerate the development of services and strategic emerging industries, create gradually a industries system characterized by lower carbon emission • Adjust and optimize traditional industries Restrain the excessive growth of high-energy-consumption and high-emission industries, continue to eliminate the backward production capacity • Perfect the development patterns of all industries Optimize the industries layout according to main body function zones, adopt the industry cluster, industry park as the main forms for industries development, push on developing the low-carbon, recycling and ecological industries parks.

26. Major tasks and policy orientation for China’s low-carbon development in the Twelfth Five-Year Plan III. Stick to low-carbon urbanization • Scientific layoutof city and town system • Optimize the space layout, overall plan the industry layout in cities, • function divisions of city, road systems, energy system, municipal • construction; integrate the low-carbon concept into the city traffic • planning and land utilization planning etc. • The economical and intensive utilization of resources • Implement controlling total land utilization, two way regulation for • supply and demand and differentiation management. Develop green • buildings. Strictly manage and regulate water resources. • Push on building green and low-carbon infrastructure.

27. Major tasks and policy orientation for China’s low-carbon development in the Twelfth Five-Year Plan IV. Reasonable control for total energy consumption and carbon emissions • Establish the system for controlling total energy consumption Define the control targets of total energy consumption for the 12th five year, combine the reduction of energy consumption intensity with reasonable control of total energy consumption, form a kind of reversed transmission mechanism for transforming economic development mode, adjusting structure and improving energy efficiency. • Optimize energy structure Strengthen clean production and utilization of coal, push on the development and utilization of non-traditional oil-gas resources, speed up developing non-fossil energies.

28. Major tasks and policy orientation for China’s low-carbon development in the Twelfth Five-Year Plan IV. Reasonable control for total energy consumption and carbon emissions • Improve efficiency and save the energy Strictly control launching new projects of high-energy-consumption industries and industries with excess capacity, raise the industry admittance threshold; implement key projects for saving energy, benefiting mass projects by saving energy products etc • Increase Forest Carbon Sinks Vigorously Advance forest planting, continue to implement the ecological building projects such as key protective forest and “return the grain plots to forestry” etc. speed up the construction of city forest ecological shelters . Conduct the pilot work for planting forest with carbon sinks. • Strengthen guidance to demand

29. Major tasks and policy orientation for China’s low-carbon development in the Twelfth Five-Year Plan V.Implement pilot projects for low-carbon • Push on piloting works for low-carbon provinces and cities Actively explore low-carbon and green development modes, create in China inventively the policy systems and institutions and mechanisms which facilitate the low-carbon development. The carbon intensity in 2020 shall be reduced by 45% comparing with that in 2005, becoming the national pilot area for low-carbon development.

30. Major tasks and policy orientation for China’s low-carbon development in the Twelfth Five-Year Plan V. Implement pilot projects for low-carbon • Launch pilots for low-carbon park (zone), commercial and community Optimize industry chains of industry parks and modes of production organization; create supporting system for supply and utilization for low-carbon energy in parks, low-carbon logistics and low-carbon buildings; strengthen ecological construction in parks; actively explore the new modes for managing low-carbon industry parks. Combine the construction of security houses with development of commercial houses in city, to conduct the piloting work of low-carbon community. • Implement pilot projects for reducing carbon

31. Major tasks and policy orientation for China’s low-carbon development in the Twelfth Five-Year Plan VI.Utilize market mechanism to promote low-carbon development • Perfect economy policy • Speed up price reform process for energy resources, implement the • step prices for living electricity and water, perfect the charging system • for disposing household garbage. • Research and formulate the criterion for low-carbon emission • Explore and establish a system for identification and certification for • low-carbon products, research and establish greenhouse gas emission • criterions for different industries, create and perfect the statistic and • accounting system for greenhouse gas emission. • Set up a trading market for carbon emissions

32. Major tasks and policy orientation for China’s low-carbon development in the Twelfth Five-Year Plan VI. Utilize market mechanism to promote low-carbon development • Set up a trading market for carbon emissions Set up a trading mechanism which participants reduce the emissions voluntarily; strengthen qualification auditing for trading institutions and the third party examination and approval organizations; increase professional institutions, cultivate professional talents, and strengthen capacity construction. Establish gradually a uniform registration system, trading platform and supervision and management system in whole country. Strengthen supporting system building for carbon emission trading, publish accounting and reporting guideline of greenhouse gas for key industries and key enterprises, explore and set up reporting and licensing system for carbon emission of enterprises.

33. Major tasks and policy orientation for China’s low-carbon development in the Twelfth Five-Year Plan VII. Perfect regional strategy pattern • Districts for urbanization Optimize development areas and establish strict control targets for greenhouse gas emission, realize total-quantity control of greenhouse gas emission, if possible, some cities shall reach peak value of greenhouse gas emission. Grant larger incremental space for greenhouse gas emission emission for accommodating more economy and population scale to key development zones; stick to the new industrialization way for lower energy-consumption, lower emissions and higher added-value.

34. Major tasks and policy orientation for China’s low-carbon development in the Twelfth Five-Year Plan VII. Perfect regional strategy pattern • Main production regions for farm produces Set up strict emission targets for controlling greenhouse gas, control greenhouse gas emission in agriculture and rural areas; expand renewable energy which is produced by methane and biomass energy etc, encourage and guide appropriate concentration of population. • Key ecological function areas Strictly control the growth of greenhouse gas emission in key ecological function areas with limitation to develop. Develop low-carbon industries with unique features suited to local conditions, taking protection and recovering environment as the primary task. For areas which are forbidden to develop, implement compulsory protection according to laws and related plans.

35. Major tasks and policy orientation for China’s low-carbon development in the Twelfth Five-Year Plan VIII. Strengthen capacity building • Strengthen legislation Construction for addressing climate change; • Establish the working system such as uniform statistic and accounting regime for greenhouse gas emission, responsibility system and assessment system for greenhouse gas emission etc; • Increase financial input, set up special funds for addressing climate change; • Strengthen the construction of science & technology supporting system for addressing climate change; • Perfect system for personnel training; • Conduct extensively knowledge publicizing and popularization for addressing climate change.

36. Major tasks and policy orientation for China’s low-carbon development in the Twelfth Five-Year Plan XI. Conduct international cooperation • Participate in multilateral, bilateral exchanges and strategic dialogues for dealing with climate change in an all-round and effective way, actively take part in formulating all kinds of international rules, push on establishing international mechanisms for addressing global climate change fairly & reasonably and scientifically & efficiently, creating favorable external development environment; • Expand international cooperation channel for addressing climate change, set up mechanisms for funding, technical transfer and talents introduction etc., create the platform for international cooperation; • Deepen the cooperation with developing countries through “South-South cooperation”.

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