A Lens on China’s Climate Actions: Progress on Domestic and International Transparency

Michael DavidsonChina Climate Fellow, Natural Resources Defense Council

November 5, 2010China Environment Forum

Outline

Integrating Domestic and Int’l MRV China’s Climate Commitments Target Responsibility System 12th Five-Year Plan International Transparency

Integrating Domestic & Int’l MRV

Preparation of National GHG Inventory

Implementation of Nationally Appropriate

Mitigation Actions

National

Communication

Domestic Activities

UNFCCC Processes

Implementation of Domestic MRV

Procedures

International Consultation and Analysis

Source: Clare Breidenich

Integrating Domestic & Int’l MRV

Preparation of National GHG Inventory

Implementation of Nationally Appropriate

Mitigation Actions

National

Communication

Domestic Activities

UNFCCC Processes

Implementation of Domestic MRV

Procedures

International Consultation and Analysis

Plans and Programs

Source: Teng Fei

China’s Climate CommitmentsEnergy Intensity Target: 20% reduction from 2005 levels by 2010 Status: 15.6% by end of 2009 Top-1000 Enterprises program:

Reduce energy demand by 100 million tce by 2010

Carbon Intensity Target: 40-45% reduction from 2005 levels by 2020 Inscribed in Copenhagen Accord

12th Five-Year Plan (2011-2015) Energy Intensity Target: 15-20% reduction likely Carbon Intensity Target New strategic industries: half in EE/RE Strengthen target responsibility system

International Pledges In the Copenhagen Accord, China agreed to major

actions on climate: Reduce carbon intensity by 40-45% from 2005 levels by

2020 Increase non-fossil energy usage to around 15% of

primary energy consumption by 2020 Increase forest coverage by 40 million hectares from

2005 levels by 2020See: nrdc.org/international/copenhagenaccords/

See: china.nrdc.org/library/NRDCTianjin-side-event-reports

Integrating Domestic & Int’l MRV (2)

Preparation of National GHG Inventory

Implementation of Nationally Appropriate

Mitigation Actions

National

Communication

Domestic Activities

UNFCCC Processes

Implementation of Domestic MRV

Procedures

International Consultation and Analysis

Target Responsibility System

11th Five-Year Plan Binding Targets (约束性指标 ) Emissions Reductions (10% of SO2, COD) Energy Intensity Reduction (~20%)

“Iron Hand” – May 2010: Wen Jiabao Overzealous localities: blackouts, curtailing

production Local DRCs: reward/punishment rules 12th FYP draft proposal

Target Responsibility System (2)Priority Targets with Veto:

Examination Index Examination Content Scores

Energy-saving Targets (40 scores)Reduction rate of energy consumption per 10,000 yuan GDP 40

Energy-saving Measures (60 scores)

Energy-saving organizational arrangements and leadership 2Allocation and implementation of energy-saving targets 3Adjustment and optimization of industrial structure 20Energy-saving investment and implementation of key projects 10Development and promotion of energy-saving technology 9Energy-saving management of key enterprises and sectors 8Implementation and improvement of relevant laws and rules 3Implementation of basic energy-saving work 5

Total Score 100

Source: “Implementation Plan of Evaluation System of Energy Consumption per Unit GDP,” November 17, 2007

Target Responsibility System (3)Scoring:

Source: “Implementation Plan of Evaluation System of Energy Consumption per Unit GDP,” November 17, 2007

Score Results95+ "Exceeded" (超额完成 )

80-94 "Completed" (完成 )

60-79"Basically Completed" (基本完成 )

0-59"Not Completed" (未完成 )

“Critical” Provinces

Source: www.sdpc.gov.cn/tztg/t20100910_370628.htm

Energy-saving targets as of

July 2010:

Liaoning

Jiangsu

Henan

Guangxi

GuizhouSha’anxi

Qinghai, Ningxia, Xinjiang

Verification Systems

Emissions Reductions Semi-annual MEP regional supervision centers - lead Mobilization meetings, oral reporting, document review, onsite

inspection Also: selected daily supervision

Energy Savings Energy Intensity Reductions: NBS-internal verification Energy-Saving Measures: NDRC-led inspection (MHURD,

MOT, SASAC, AQSIQ, SAWS, NBS…)

MHURD: Ministry of Housing and Urban-Rural DevelopmentMOT: Ministry of TransportationSASAC: State-owned Assets Supervision and Administration Commission

AQSIQ: General Administration of Quality Supervision, Inspection and QuarantineSAWS: State Administration of Work SafetyNBS: National Bureau of Statistics

International Transparency

China is acting because…

China is meeting ambitious domestic commitments and deserves credit

Increased information exchange strengthens the international system and builds confidence

China’s experiences with low-carbon development provide useful models for other developing countries

12th Five-Year Plan Proposal Energy and carbon intensity: binding targets Emphasis on:

Energy efficiency measures Energy-intensive industries Market mechanisms Strategic industries (3 0f 7 directly energy-related)

Strengthen data reporting and target responsibility system

Expected energy intensity target: 15-20%

Conclusions

China is… making significant commitments domestically to combat

climate change implementing a domestic MRV system to track progress willing to negotiate transparency on the int’l stage

A solution to the transparency/MRV/ICA/NatComms Gordian knot is within reach

Thank you! Contact:

Michael Davidson (mdavidson@nrdc.org) Barbara Finamore, China Program Director (bfinamore@nrdc.org) Jake Schmidt, International Climate Policy Director

(jschmidt@nrdc.org) Read our China blogs :

switchboard.nrdc.org/blogs/issues/greening_china/ See our new reports on China:

china.nrdc.org/library/NRDCTianjin-side-event-reports China-U.S. Energy Efficiency Alliance:

www.chinauseealliance.org

Additional Slides

China’s Efforts to Reduce Energy Use 11th Five-Year Plan

Reduce energy intensity by 20% between 2006 and 2010 (save 700 million tons of coal equivalent)

Top-1000 program to save 100 million tce by 2010 (263 mt CO2 reduction)

Government financial support: 7 billion RMB in 2007 (central/provincial)

Officials' political career prospects dependent in part on their energy-saving performance

China’s Efforts to Reduce Energy Use (2) Distribute 150 million energy efficient light bulbs

between 2008 and 2010 Shut down 71 GW of small inefficient coal power

plants between 2006 and mid-2010 Implement efficiency dispatch rules – dispatch

power plants based on coal consumption level Adopt energy labeling for refrigerator, air

condition, washing machine, water heater, induction cooker, fluorescent lamp, motor, copier, computer monitor, etc.