Challenges and Opportunities -Climate Change and Energy work

in Guangdong

David Lusher

Deputy Consul GeneralBCG Guangzhou

Britcham Climate Change Event, 10th July 2008, Guangzhou

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Overview

Policy context set by UK government UK-China collaboration at national level BCG Guangzhou objectives How can we deliver our objectives Challenges vs. Opportunities in Guangdong Projects we’ve completed Projects we hope to deliver Project proposals we would like to explore Our new Climate Change & Energy Section

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Policy context IPCC 4th report

“Climate change is happening, it is very likely caused by human

activities, and addressing climate change is an urgent task.”

Prime Minister Gordon Brown’s statement

“The climate change crisis is the product of many generations, but overcoming it must be the great project of this generation. And it will involve not just Europe and America but the entire community

of nations”.

Stern Review

“The economic cost of doing nothing to tackle climate change could be as much as 20% of a country's GDP.”

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Policy context

Foreign and Commonwealth Office’s strategy in China

Support China in achieving energy efficiency objectives and in exploring the opportunities for an even greater acceleration to a low carbon economy:

•Post 2012 framework

•Carbon capture and storage

•Economics of climate change

•EU-China trade and investment framework

•Impacts and adaptation

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UK-China collaboration at national level

• MoUs to establish UK-China Climate Change Working Group and UK-China Energy Group

(The MoU on UK-China Climate Change Working Group can be found athttp://www.defra.gov.uk/environment/climatechange/internat/devcountry/pdf/china-memorandum.pdf)

• Joint Agreement on Science and Technology

• Joint Declaration on Climate Change

• UK-China business collaboration (UKTI)

(Details of UKTIˇs work in China are at www.uktradeinvest.gov.uk)

• Department for International Development work on adaptation and on a shift to low carbon

(Details of DFID’s work in China are at www.dfid.gov.uk)

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BCG Guangzhou objectives

Contribute to Guangdong’s ambition to lead China’s reform and development through exploiting the advantages that a high growth low carbon economy can bring.

Party Secretary Mr. Wang Yang’s ambition

Guangdong’s interests

UK government's climate change strategy in China

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How can we do this? Raising awareness about Climate Change: spreading the word to a

range of audiences in Guangdong (e.g. officials, academics, students, business people)

Underpin scientific evidence: Use latest science to demonstrate climate change impacts

Identify barriers to progress: Work with local partners to identify barriers to implementing a low carbon economy

Technology transfer: low-carbon renewable and energy-efficient technologies, Carbon Capture and Storage - working with UKTI

Influencing local industries: Undertake capacity building activities and projects for local industry to help them understanding the climate security issues and de-carbonising the supply chain.

Government lobbying: Work with provincial government to move towards a low carbon high growth economy - to place Guangdong in a strong position to lead China’s reform and development.

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Challenges in Guangdong

No provincial-level programme or action plan for climate change yet.

Level of awareness of climate change and the impact it will have on the region is generally low.

Carbon Capture and Storage not yet regarded by local government as important technology to tackle climate change.

Emission reduction is regarded as cutting SO2 emissions not CO2 emissions.

Provincial/sectoral CO2 reduction targets likely to require national-level approval. No indication that Guangdong is willing or able to set targets at present

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Opportunities in Guangdong

China’s largest provincial consumer of energy. Serious about energy efficiency target (16%) and diversifying its energy

mix. Climate change awareness has increased. The media understand the issues and want to write about climate change. Strong academic base for Carbon Capture and Storage, marine climate

modelling, geological aspects of climate change, energy efficiency and renewable energy.

Provincial Government supports Clean Development Mechanism projects. Scope for basic advocacy and capacity building on energy efficiency,

carbon capture and storage, as well as CDM.

The Clean Development Mechanism (CDM) is an arrangement under the Kyoto Protocol allowing industrialised countries with a greenhouse gas reduction commitment (called Annex 1 countries) to invest in projects that reduce emissions in developing countries as an alternative to more expensive emission reductions in their own countries.

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Projects completed in 2007

Sending a delegation from Guangdong’s Development & Reform Commission (DRC) to an international climate change conference in Hong Kong (May 2007)

Sending a delegation from Guangdong’s DRC to a Wilton Park Conference on Climate Security & Energy (July 2007)

MBA training for senior government officials in Guangxi (November 2007)

Climate Change Film Day (December 2007)

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Projects completed in 2008

Organised a China Institute of Reform & Development seminar on climate change adaptation (January 2008)

Raising awareness about climate change and CDM in the financial sector (January 2008)

Climate change documentary seminar in Shenzhen & Guangzhou (March 2008)

International Energy Agency roadshow on World Energy Outlook (March 2008)

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Projects we hope to deliver

Series of film events with local Universities, Science associations and research institutes (April 2008 - March 2009)

Series of courses to train executives to manage carbon in the supply chain (June - October 2008)

Industrial design competition on low carbon products (November 2008)

City-to city seminar between Guangzhou and Birmingham on low carbon development (January 2009)

Feasibility study for Zhuhai to apply to be the first Low Carbon Economic Zone in China (tbc)

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Project proposals we would really like to explore

Awareness raising activities - to improve general knowledge about climate change and its economic impacts.

Strengthening the evidence base which supports climate change and energy efficiency decision making.

Capacity building activities within Government and industry. Mobilising political and academic support to promote strong and early action on climate change and energy efficiency.

Any other projects that will deliver long-term impacts and stimulate real change.

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Funds we manage which support climate change projects:

Strategic Program Fund (SPF) (http://www.fco.gov.uk/en/about-the-fco/what-we-do/funding-programmes/strat-progr-fund/)

Climate Change Public Diplomacy Pilot Programme (PD Pilot)

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Our new Climate Change & Energy Section

A dynamic new team - 2 from UK and 4 locally employed officers

Part of the FCO’s Climate Change China Network established in 2007

Will work closely with our UKTI, Science & Innovation, and Public Diplomacy sections

Will also work closely with local government, institutes, NGOs and business

Covers Guangdong, Guangxi, Fujian, Hainan and Hunan with a focus on Guangdong in the first three years

Contact: Adee Zai, Climate Change Project OfficerTel: 020-83143030 or adee.zai@fco.gov.uk

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Thank you for listening!

Any questions?