NRDC~Greening China through International Cooperation and Improved Transparency


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NRDC~Greening China through International Cooperation and Improved Transparency

  1. 1. Greening China: Opportunities for international cooperation and improved transparency<br />Michael davidson<br />Natural resources defense council<br />April 2011<br />
  2. 2. About the Natural Resources Defense Council<br />NRDC’s purpose is to safeguard the Earth: its people, its plants and animals and the natural systems on which all life depends. <br />We use law, science and the support of 1.3 million members and online activists to protect the planet's wildlife and wild places and to ensure a safe and healthy environment for all living things.<br />We have 5 offices in the U.S. and an office in Beijing, China<br />
  3. 3. Accelerating the Greening of China<br />15 years on the ground in China<br />Works with Chinese actors in government, academia, non-governmental organizations, and corporations<br />NRDC was the first international environmental organization to establishclean energy and green building programs in China.<br />Focus areas:<br />Industrial energy efficiency <br />Green buildings<br />Sustainable Cities<br />Renewable Energy Policy<br />Environmental laws, transparency, governance<br />Greening multinational corporations supply chain <br />
  4. 4. Overview<br />China’s Environmental Challenges<br />China Takes on Climate<br />Transparency in Implementation<br />U.S.-China Cooperation<br />
  5. 5. China’s Energy and Environment Challenge<br />
  6. 6. China’s Challenges<br />The world’s largest…<br />Energy consumer: 3.25 billion metric tons of coal-eq in 2010<br />GHG emitter: over 7 billion metric tons of CO2 / year<br />Coal user: mined 3.2 billion metric tons in 2009; 650 GW of power capacity in 2010<br /><ul><li>COAL continues to dominate energy mix, ~ 70%
  7. 7. External costs of coal ~ 7% of GDP1</li></ul>True Cost of Coal, Greenpeace,<br />
  8. 8. China’s Challenges (2)<br />Industrial growth<br />Source: LBNL, 2010, see: <br />
  9. 9. China’s Challenges (3)<br />Urbanization and <br /> motorization<br />Credit: EPA<br />
  10. 10. Bad Air: a times series<br />Tianjin conference center<br />
  11. 11. China Takes on Climate: China’s OpportunityClean Energy RaceThe Next Five Years<br />
  12. 12. “Is there any hope, if most nations delude themselves with greenwash, of stopping rule by fossil fuel interests? Yes. China is the best hope.” – Jim Hansen, South China Morning Post, Nov 2, 2010<br />
  13. 13. China’s Opportunity<br />2.4 Gt CO2<br />2.4 Gt CO2<br />Source: China’s Green Revolution, McKinsey and Co., 2009<br />
  14. 14. The Clean Energy Race<br />New investments (2004-2010)<br />CHINA<br />U.S.<br />Source: Bloomberg New Energy Finance<br />
  15. 15. The Clean Energy Race (2)<br />CHINA<br />U.S.<br />Source: Bloomberg New Energy Finance<br />
  16. 16. China’s Leading Indicators in Green Development<br />Wind: Leads in total wind energy capacity; 3 of the top 10 wind companies <br />Solar: 6 of the top 10 solar companies<br />Smart growth: 13pilot low-carbon cities and provinces<br />Smart grid: Largest smart grid investor in the world<br />Transportation: Raising efficiency standards, increase fleet of hybrid/electric cars<br />
  17. 17. The Last Thirty Years<br />Energy Intensity (1978-2015)<br />Source: IEA CO2 Highlights, 2009; The Climate Group<br />
  18. 18. And The Next Five Years…<br />Climate Change and New Energy are strategic priorities<br />$760 billion in new energy investment by 2020<br />12th Five Year Plan (2011-2015)<br />Reduce energy intensity, carbon intensity<br />Increase share of renewables in energy mix<br />Develop new strategic industries in clean energy and environmental protection<br />Develop market mechanisms: environmental/carbon tax and cap-and-trade pilots<br />National Climate Change Law and National Energy Law<br />
  19. 19. Climate Negotiations<br />In the Copenhagen Accord, China agreed to major actions on climate:<br />Reduce carbon intensity by 40-45% from 2005 levels by 2020<br />Increase non-fossil energy usage to around 15% of primary energy consumption by 2020<br />Increase forest coverage by 40 million hectares from 2005 levels by 2020<br />In Cancun, China helped advance proposals on:<br />technology transfer<br />climate financing<br />transparency of developed and developing country commitments and actions<br />reducing deforestation<br />
  20. 20. Climate Negotiations (2)<br />Specifically, the Cancun Agreements…<br />Require developed countries to enhance monitoring, reporting and verification (MRV) of emissions and financial assistance<br />Require developing countries to submit national inventories of actions and emissions every two years<br />Establish international consultation and analysis (ICA) of these actions, creating a formal dialogue to discuss these reports<br />Which China agreed to, because…<br />China is meeting ambitious domestic commitments and deserves credit<br />Increased information exchange strengthens the international system and builds confidence<br />China’s experiences with low-carbon development provide useful models for other developing countries<br />
  21. 21. Transparency in Implementation:Benefits to EnforcementTarget Responsibility SystemInternational<br />
  22. 22. China’s Environmental Enforcement<br />Environmental legal system: criticized for weak enforcement and vague laws<br />Target responsibility system: detailed, law-like guidelines; potential incentives to falsify data<br />Benefits of transparency in the U.S.: <br />Empower media and public as environmental watchdogs<br />Toxics release inventories engage consumers, banks, corporations<br />Freedom of Information Act (FOIA) requests have uncovered countless violations <br />
  23. 23. How well are existing laws enforced?<br />Pollution Information Transparency Index (PITI)<br />2008: open environmental information measures take effect<br />Rated 113 cities on disclosure performance<br />Improvements in 2010: 82 0f 113 (73% of Chinese cities) <br />All-star city of best practices (95.3 pts) shows transparency is possible:<br />detailed emissions data<br />lists of enterprise violations<br />prompt response to public information requests <br />
  24. 24. What’s in a target?<br />11th Five-Year Plan, 20% Energy Intensity Target:<br />Policies established to improve industrial, power sector, building, transportation efficiency<br />WenJiabao, May 2010: Will use “iron hand” to meet target<br />Overzealous local leaders: blackouts, curtailing production<br />Source: “Implementation Plan of Evaluation System of Energy Consumption per Unit GDP,” November 17, 2007 <br />
  25. 25. Why Does This Matter Int’ly?<br />Implementation of Nationally Appropriate Mitigation Actions<br />Preparation of National GHG Inventory<br />Implementation of Domestic MRV Procedures<br /> Domestic Activities<br />National<br />Communication<br />UNFCCC Processes<br />International Consultation and Analysis<br />Source: Clare Breidenich<br />
  26. 26. U.S.-China Cooperation<br />
  27. 27. Jim Hansen again…“China cannot stabilize Earth’s climate alone. If, as I hope, they conclude that a rising carbon fee is in their interest, the question will become: can they find a sufficient number…who will abandon greenwash and participate in effective policy?”<br />
  28. 28. U.S.-China Clean Energy Cooperation<br />Pres. Obama visits China, Nov 2009<br />Agreement to establish Clean Energy Research Centers (CERC)<br />Action plans on energy efficiency, renewable energy, electric vehicles…<br />Energy Cooperation Program (AmCham-led)<br />Pres. Hu visits U.S., Jan 2011<br />$ billions in U.S.-China clean energy business <br /> ventures<br />EV, smart growth demonstration projects<br />CERC work plans finalized<br />
  29. 29. Building Efficiency CERC<br />Complement two other CERCs – EV, advanced coal<br />$50+ mil in joint U.S.-China public-private funds<br />Industry cost share partners<br />Technology R&D: materials, lighting, insulation…<br />Monitoring/Simulation<br />Analysis: markets, benchmarking, energy use/behavior<br />
  30. 30. ComplementaryChallenges & Opportunities<br />China<br />Technical hurdles (25% of wind not connected, lower capacity factors)<br />China’s “IP of scale”<br />Key link in global supply chain<br />U.S.<br />Deployment gap: in 2010, U.S. trails China by even greater margin (e.g., in new wind, 5GW to 17GW)<br />World leader in venture capital (20 times UK spending)<br />Wealth of experience with legal frameworks<br />
  31. 31. Looking Ahead<br />China and U.S. racing ahead together by…<br />Strengthening China-U.S. energy and environment partnerships, including CERCs; implement MOUs<br />Taking concrete steps at home to reduce emissions<br />Actively participating in international response to global warming<br />
  32. 32. Thank You! 谢谢!<br />Contact:<br />Michael Davidson (mdavidson<at><br /><br />Read all our China blogs:<br /><br />
  33. 33. Extra Slides<br />
  34. 34. 12th Five Year Plan (2011-2015)<br />Strategic Emerging Industries: energy-saving and environmental protection technology, new energy, biotech, high-end equipment manufacturing, new materials and new-energy cars<br />Targets:<br />