Thread by @YanQinyq

🚨 Latest high-level guidance on China climate policy

At the Politburo group study session on 24 Jan, 🇨🇳president Xi stressed 'Deeply analyzing the situation and tasks in pushing forward Carbon peak and neutrality work'

Xinhua:
news.cn/politics/leade…

Xinhua:
Xi stresses solid implementation of decisions, arrangements on carbon peaking, neutrality
english.news.cn/20220125/da588…

Xi:
'Push forward Dual Carbon is an urgent need to solve the outstanding problems of resource and environmental constraints and achieve sustainable development.'

'achieving Dual Carbon is a broad and profound change that will not be realized easily'

Focus on 4 pairs of relations:

1. Development vs Emission reduction:
- reduce emission is neither 'reduce productivity', nor 'zero emission'
- reduce carbon while ensuring energy security, industry/supply chain/food security, and normal life for people

2. Whole vs Partial

-ensure coordinated national measures (whole country as one chess board)
-consider regional resources and industry distribution, develop regional plan for industry transition/dual carbon, 'avoid uniform steps and one-size-fits-all'

3. Long-term vs Short-term goals

-based on the present, solve specific problems one step at a time, and accumulate small victories to become big ones
-we should also look at the long term, overcome the idea of quick success and eagerness to achieve

-control the rhythm and strength of carbon reduction, and be practical, progressive and sustainable.

(to me, this point really specifies the preferred steps and tempo of carbon reduction policy...... 'Carbon neutral can not be achieved overnight')

4. Government vs the Market

-adhere to the two-handed approach, promote a better combination of a proactive government and an effective market
-establish a sound incentive and constraints mechanism for "dual carbon" work

The Politburo study session briefing then discussed principles and 6 aspects:
1. Strengthen integrated approach and coordination
2. Push energy revolution
3. Industry optimization and upgrading
4. Accelerate the green and low-carbon technology revolution

🇨🇳 Politburo study session 24 Jan:

5. Improve green/low carbon policy framework
Enhance carbon pricing scheme, strengthen linkage /coordination bt emissions trading, energy use rights & power trading #OCTT

6. Actively participate global climate governance

Finally:

-The indicators related to the "dual carbon" work will be incorporated into the comprehensive evaluation system of economic and social development of each region
-increasing the assessment's weight
-strengthening the constraints of indicators

My quick take:

-Top leadership highlighted again the importance of 'dual carbon', and push the implementation of carbon peak action plan /detailed roadmap

-On the other hand, it emphasized the proper tempo/speed in carbon reduction, 'avoid campaign-style'

(since I am an energy and carbon analyst, I am specifically interested in the section on Energy Revolution)

-Based on China's energy resource endowment (...so coal as the basis)
-Establish before breaking old

'the gradual withdrawal of traditional energy must be built on the basis of a safe and reliable alternative to new energy '

...said at last December's Central Economic Work Conference

Increase efforts to plan and build new energy supply and integration (power) system that:
-based on large scale wind/solar base which is supported by clean and efficient coal power in its vicinity
-with stable and safe UHV lines as carriers

👆In my view, the above description underpins power sector policy in the near term:

massive renewables buildout (+100GW/yr wind and solar)
+ buildout of efficient coal plants to facilitate RE integration
+ construction of more UHV transmission lines

On coal:
- resolutely control the consumption of fossil energy, especially strictly and reasonably control the growth of coal consumption
- orderly reduce and substitution
- '3 upgrading linkage' of coal plants (efficiency, flexibility and heating)

Energy security (...is of course emphasized)

strengthen the foundation of domestic energy production
ensure coal supply security
maintain stable growth of oil&gas production capacity, strengthen reserves
promote energy storage (large scale deployment)

specific on new energy:

-give more prominence to promoting the development of new and clean energy
-actively and orderly develop solar, silicon, H2, and renewables (....this is in fact bit confusing for me. shouldn't renewables include solar etc.?)

specific on new energy (cont.):

accelerate the development of new energy sources with scale and efficiency, wind/solar/biomass/geothermal/ ocean/H2

Hydro: coordinate development and ecological protection

on Nuclear energy:

actively develop nuclear power in a safe and orderly manner

There are also some details on industry/transport/green finance/carbon accounting system etc...

Moreover, the study session stressed:
'switching from Energy dual control to Total Emissions and Emission Intensity dual control'

Xi Focus: Xi stresses solid implementation of decisions, arrangements on carbon peaking, neutrality

english.news.cn/20220125/2ac02…