3. Developing Low-Carbon Energy

Accelerating the development of natural gas and other clean resources. The government is vigorously developing natural gas, encouraging the development and utilization of coal-bed methane, shale gas and other unconventional oil and gas resources, and has enacted a number of policies in this regard, such as financial subsidies, preferential taxation, connecting generated power to grid and electricity price subsidies. China has formulated and implemented an overall plan of management and utilization of coal mine methane, and is forcefully pushing forward the clean utilization of coal, guiding and encouraging the utilization of coal mine methane and the development of ground coal-bed methane. Natural gas production increased from 49.3 billion cubic meters in 2005 to 94.8 billion cubic meters in 2010, an average annual increase of 14 percent. In that period, China’s natural gas consumption accounted for 4.3 percent of its total energy consumption, and the extraction of coal-bed methane reached 30.55 billion cubic meters, with the amount utilized reaching 11.45 billion cubic meters, equivalent to a reduction of 170 million tons of carbon dioxide emissions.

Proactively developing and utilizing non-fossil energy. China has enhanced the development and utilization of hydropower, nuclear energy and other low-carbon energy sources through policy guidance and fund input. By the end of 2010, China’s installed hydropower capacity had reached 213 million kw, doubling the figure for 2005; and installed nuclear power capacity had reached 10.82 million kw, with another 30.97 million kw under construction. China supports the development of wind power, solar power, geothermal, biomass energy and other new types of renewable energy. It has improved the pricing policy for on-grid power generated by wind, and launched the “Golden Sun Demonstration Project” to promote the franchise bidding for large-scale photovoltaic power stations. It has improved the pricing policy for power generated by agricultural and forestry biomass energy, increased financial support for the development of biomass energy and enhanced methane development in rural areas. China’s installed wind power capacity grew from 1.26 million kw in 2005 to 31.07 million kw in 2010, and installed photovoltaic power capacity increased from less than 100,000 kw in 2005 to 600,000 kw; the number of solar water heaters in use reached 168 million square meters; and installed biomass energy capacity was about 5 million kw. With an annual utilization of methane of about 14 billion cubic meters, the total number of methane users in China reached 40 million households; utilized ethanol bio-fuel was 1.8 million tons; and the contribution made by all types of biomass energy totaled 15 million tons of standard coal.

4. Controlling Non-Energy-Related Greenhouse Gas Emission

The government has enhanced control over greenhouse gas emission in industrial and agricultural production, waste disposal and other fields. China has applied the raw material substitution technology such as replacing limestone with carbide slag in the cement clinker production process, applied the technique of producing cement with blast furnace slag and fly ash as added mixed materials, applied secondary- and tertiary-stage treatment to address the discharge of nitrous oxide during the nitric acid production process, applied catalytic decomposition and thermal oxidative decomposition to address the discharge of nitrous oxide during the adipic acid production process, and thermal oxidative decomposition to capture and remove HFC-23. China has quickened transformation in the mode of animal husbandry production, and reduced the emission of methane and nitrous oxide in cropland, and poultry and livestock farming. The government has launched the soil organic matter advancement subsidy project, and promoted returning straw to farmland, green manure growing, adding organic fertilizer and other technologies to an accumulated total area of about 30 million mu (a Chinese unit of area equal to 1/15 of a hectare). The government has improved urban waste disposal standards, adopted a household garbage charging system, promoted advanced waste incineration technology, and formulated incentive policies for landfill gas recovery. China also carries out research and demonstration for carbon capture, utilization and sequestration technologies. Statistics showed that by the end of 2010 China’s nitrous oxide emission in industrial production generally remained at the level of 2005, and the growth of methane emission was basically brought under control.

5. Increasing Carbon Sink

Increasing forest carbon sink. China is continuously carrying out ecological protection projects, such as the key shelterbelt construction project in northwest, northeast and north China and along the Yangtze River, and projects to return farmland to forest, natural forest protection project, the program to control sandstorms in the Beijing and Tianjin area. It has carried out a pilot afforestation project with an aim to expand carbon sinks, enhanced sustainable forest management, and increased the forest stock volume. The central finance has raised the standard for afforestation investment subsidy from 100 yuan to 200 yuan per mu, and established the China Green Carbon Fund. Currently, China’s man-made forest reserve has reached 62 million hectares; its national forest coverage has reached 195 million hectares, with the forest coverage rate rising from 18.21 percent in 2005 to 20.36 percent in 2010, with a forest stock volume of 13.721 billion cubic meters. China’s total carbon storage in forest vegetation has reached 7.811 billion tons.

Improving farmland and grassland carbon sinks. China is implementing the systems to promote grass-livestock balance, prohibiting or temporarily banning pasturing in certain areas, and regionally rotating pasturing, so as to control the livestock-carrying capacity of pastures and curb pasture degeneration. It is expanding the project of returning grazing land to grassland, strengthening the construction of man-made forage meadows and irrigated pastures, enhancing the prevention and control of grassland natural disasters, and increasing the grassland coverage rate and grassland carbon sinks. By 2010, protective farming technology had been applied to an area of 64.75 million mu; the no-tillage mechanical seeding area had reached 167 million mu; and mechanically-crushed straw had been returned to farmland in a total area of 428 million mu.

6. Promoting Low-Carbon Development in Localities

Promoting low-carbon pilot projects in selected provinces and cities. In 2010, China launched a national “low-carbon province and low-carbon city” experimental project. The first batch of selected localities included five provinces, namely, Guangdong, Hubei, Liaoning, Shaanxi and Yunnan, and eight cities, namely, Tianjin, Chongqing, Hangzhou, Xiamen, Shenzhen, Guiyang, Nanchang and Baoding. Currently, all the pilot provinces and cities have established leading work teams, formulated implementation schemes, and promulgated their respective goals for carbon intensity reduction in the 12th Five-Year Plan period and 2020. They have also vigorously promoted the transformation of the local economic development mode, took major actions to advance the construction of key low-carbon development projects, and vigorously developed low-carbon industries to promote green and low-carbon development.

Actively drawing on low-carbon development experience. To build a “culture-enriched, technology-empowered and environment-friendly Beijing,” Beijing, the capital city of China, has accelerated the development of the green, low-carbon and circular economy, vigorously developed strategic newly emerging industries and modern service industries, quickened the low-carbon transformation of existing buildings and transport systems, and advocated low-carbon consumption and a low-carbon lifestyle. Shanghai has speeded up the pace of optimizing its energy structure, launched low-carbon development pilot projects in Hongqiao CBD and Chongming Island, implemented the concept of low-carbon development in the design, construction and operation of the Shanghai World Expo Park, and carried out “voluntary emission reduction activities to achieve a low-carbon World Expo.” Jiangsu Province has selected four cities, 10 industrial parks and 10 enterprises for pilot experiments in developing a low-carbon economy.