CO2 Emissions by Sector, 2007

Top Ten Coal Consumers, 2009

Energy Consumption by Major End-Use Sector in China (1980-2007) and the U.S. (2007)

China’s energy use more than quadrupled from 1980 to 2007 (see Fig. 1), and continues to grow, due in part to the demands of urbanization (i.e. construction of new buildings and infrastructure), and in part to rising production of manufactured goods.i Although China has not yet reached the energy consumption level of the U.S, China nonetheless – due to a more polluting fuel mix – recently surpassed the U.S. in energy-related CO2 emissions.ii

WRI: Policies to Stimulate Private Sector R&D Investment

China utilizes an array of complementary policy measures to spur domestic R&D and innovation in clean technology. These measures include:

  • designing a national-level S&T strategy prioritizing clean energy;
  • establishing direct funding programs to support clean energy R&D;
  • capitalizing on public-private synergies to bring together multi-sector expertise;
  • pursuing a “going-out” policy of global engagement on clean energy development; and
  • incentivizing the involvement of the private sector in clean tech innovation.

WRI: Priority Fields for International Collaboration

In November 2007, the MOST and National Development and Reform Commission (NDRC) jointly launched the International Science and Technology Cooperation Program on New and Renewable Energy. The program’s goals are twofold: diversifying the sources of technology imports, and expediting technology transfer processes between China and other countries. The program has identified five priority technologies for international collaboration.

WRI: 863 Program's Energy Focus - 11th Five Year Plan

Also known as the State High-Tech Development Plan, the 863 Program was created to stimulate the development of advanced technologies in a wide range of fields in order to render China independent of financial obligations for foreign technologies. The program has changing focuses and priorities, depending on the needs of national economic development. During the 11th Five Year Plan, the 863 program set up 10 focus areas, including energy technologies. Within the energy category there are four technology priorities: hydrogen and fuel cell, energy efficiency, clean coal and renewable energy. A total of 1.12 billion yuan ($172 million) has been invested in these priorities, with hydrogen and efficiency technologies receiving the majority of funding.

WRI: Government Funded R&D in China

In the past five years government R&D appropriations have increased dramatically, from 70.3 billion yuan ($11 bil) in 2001 to 168.9 billion yuan ($26 bil) in 2006. As a result, the share of R&D in total government expenditure increased from 3.7% to 4.2% from 2001 - 2006 (MOST 2007). Among the various publicly-funded S&T programs, the 863 & 973 programs provide the most direct funding sources for clean technologies.

WRI: Examination and Reporting System for Energy Intensity of GDP

The procedure for reporting data for energy intensity of GDP is depicted in the figure:

  • First, the provincial government submits a self-assessment report to the State Council and the NDRC by the end of March, based on data from the energy accounting system.
  • Second, the NDRC and other related departments, such as the National Bureau of Statistics and the State-Owned Assets Supervision and Administration Commission (SASAC) verify and assess the implementation of energy conservation in the local government.

WRI: Reporting Mechanism for Energy Consumption in Residential Buildings

For residential buildings, the Ministry of Housing and Urban-Rural Development (MOHURD) established the “Energy consumption statistical reporting mechanism of residential buildings” in 2007 to provide a comprehensive picture of residential energy consumption. This mechanism has been implemented in 23 cities, such as Beijing, Shanghai, Chongqing and Harbin, and will be extended throughout the country.

Information in this reporting system is organized in three different accounting tables: a basic information table, an energy consumption table, and a centralized heating supply table. Provincial governments direct the collection of this data, and report these tables to the Provincial housing department, which submits the integrated tables to MOHURD. The figure illustrates how the reporting mechanism works.

WRI: Closure Programs in Key Sectors, 2004

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Closing small thermal power plants is part of the national energy saving and pollution reduction eff ort to meet the national target of 20 percent reduction in energy intensity by 2010. Th is program, which operates in parallel with plans to build larger, more efficient plants, is offi cially called “The Program of Large Substituting for Small.” In order to promote the robust development of China’s power industry, NDRC has required the closure of small-scale thermal power units with high energy consumption and poor pollution control, and delegated this task to provincial governments and the power and grid companies.

There are similar programs in other industrial sectors. Some major substitution and closure programs to phase out inefficient equipment in key sectors are listed in the table.