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106 Pages

ThiersSh

Course: CHINA 101, Fall 2008
School: Martin Luther
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Word Count: 1828

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Push Chinas for Rural Renewable Energy and Greenhouse Gas Reduction. Paul Thiers Associate Professor, Washington State University Visiting Professor, China Agricultural University thiers@vancouver.wsu.edu Chinas Agricultural Economy and Trade: Agribusiness, Food Marketing, Environmental Issues and Evolving Policies Shanghai, July 12-13, 2007 Energy Demand Forecasts (mtoe) (Rosen and Houser 2007) Chinas Oil...

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Push Chinas for Rural Renewable Energy and Greenhouse Gas Reduction. Paul Thiers Associate Professor, Washington State University Visiting Professor, China Agricultural University thiers@vancouver.wsu.edu Chinas Agricultural Economy and Trade: Agribusiness, Food Marketing, Environmental Issues and Evolving Policies Shanghai, July 12-13, 2007 Energy Demand Forecasts (mtoe) (Rosen and Houser 2007) Chinas Oil Demand and Domestic Supply, 1995-2005 (Downs 2006) Energy and Environmental Policy Increasingly Linked Energy and Environmental Policy Increasingly Linked Energy from Coal Energy and Environmental Policy Increasingly Linked Energy from Coal 80% of Chinas Primary Energy Production Energy and Environmental Policy Increasingly Linked Energy from Coal 80% of Chinas Primary Energy Production Reduce SO2 Pollution by 2.4 Million Tons Energy and Environmental Policy Increasingly Linked Energy from Coal 80% of Chinas Primary Energy Production Reduce SO2 Pollution by 2.4 Million Tons Reduce Electricity from Coal by 50 GW Energy and Environmental Policy Increasingly Linked Energy from Biomass Energy and Environmental Policy Increasingly Linked Energy from Biomass Alternative to Coal Energy and Environmental Policy Increasingly Linked Energy from Biomass Alternative to Coal Pollution from Confined Animal Husbandry Energy and Environmental Policy Increasingly Linked Energy from Biomass Alternative to Coal Pollution from Confined Animal Husbandry Pollution from Field Burning Energy and Environmental Policy Increasingly Linked Energy from Biomass Alternative to Coal Pollution from Confined Animal Husbandry Pollution from Field Burning Biofuel Ambivalence Energy and Environmental Policy Increasingly Linked Climate Change Mitigation Policy Energy and Environmental Policy Increasingly Linked Climate Change Mitigation Policy Worlds Largest Emitter of GHG Energy and Environmental Policy Increasingly Linked Climate Change Mitigation Policy Worlds Largest Emitter of GHG Erosion of Per Capita Arguments Energy and Environmental Policy Increasingly Linked Climate Change Mitigation Policy Worlds Largest Emitter of GHG Erosion of Per Capita Arguments Avoid GHG Reduction Commitments Energy and Environmental Policy Increasingly Linked Climate Change Mitigation Policy Worlds Largest Emitter of GHG Erosion of Per Capita Arguments Avoid GHG Reduction Commitments Offer Renewable Energy and Conservation Targets Instead Projected Annual CO2 Emissions Million Metric Tons (Rosen and Hauser 2007) 2004 and 2030 Projected Metric Tons Per Capita CO2 Emissions (Rosen and Hauser 2007) Energy Demand by Sector (2005) (Rosen and Hauser 2007) Per Capita Residential Energy Consumption (1990-2004) Year Total (kgce) 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 139 138 133 131 129 131 145 133 116 121 126 130 137 154 164 Coal (kg) 147 142 126 121 110 112 118 100 72 67 63 62 59 63 63 Urban (kgce) 298 292 267 250 238 242 260 237 207 210 215 213 216 237 243 Rural (kgce) 83 83 85 83 86 86 97 86 72 75 77 82 87 99 109 Rural/Urban (%) 27.9% 28.4% 31.8% 33.2% 36.1% 35.5% 37.3% 36.3% 34.8% 35.7% 35.8% 38.5% 40.3% 41.8% 44.9% Source: China Energy Yearbook 2005 Residential Per Capita Energy Use Rural and Urban Households 1990-2004 350 300 250 kgce 200 150 Urban (kgce) Rur al (kgce) 100 50 0 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 Year Sour c e: Chi na E ner gy St at i s t i c al Y ear book 2005 Why Include Rural China in Renewable Energy Policy? Why Include Rural China in Renewable Energy Policy? Ongoing Transition to Commercial Energy Opportunities for Efficiency Opportunities for Alternative Infrastructure Why Include Rural China in Renewable Energy Policy? Ongoing Transition to Commercial Energy Opportunities for Efficiency Opportunities for Alternative Infrastructure Additional Policy Benefits Environmental Protection and Human Health Rural Economic Development Social Equality Why Include Rural China in Renewable Energy Policy? Ongoing Transition to Commercial Energy Opportunities for Efficiency Opportunities for Alternative Infrastructure Additional Policy Benefits Environmental Protection and Human Health Rural Economic Development Social Equality Rural Energy Use and GHG Emissions are Significant in Absolute Terms and Expanding Quickly GHG Marginal Abatement Costs by Sector in China (World Bank 2004) The Renewable Energy Law Effective January 1, 2006 The Renewable Energy Law Effective January 1, 2006 Subsidy for Biomass to Electricity Through a Grid Tariff RMB 0.25 per kwh Several New Plants Coming on Line Now The Renewable Energy Law Effective January 1, 2006 Preferential Policies for Large-Scale Wind Domestic Content Requirements 50% Reduction in VAT Priority Access to Grid Dramatic Growth to 1.6 GW by end 2006 The Renewable Energy Law Effective January 1, 2006 Renewable Rural Energy Targets Small and Micro-Hydro Continued Expansion of Small and MicroHydro Serving 56 Million Households by 2001 No Specific Targets for 2010 Renewable Rural Energy Targets Decentralized Wind Power Government Targets for 2010 300,000 Township and Village Units 75 MW of Total Installed Capacity 1.5% of National Wind Power Capacity Renewable Rural Energy Targets Household Biogas Digesters 7-12 Million Units in Use in 2005 Renewable Rural Energy Targets Household Biogas Digesters 7-12 Million Units in Use in 2005 40 Million Units by 2010 80 Million Units by 2020 Large and Medium Scale Anaerobic Plants for Animal Waste 750 Plants Completed by 2005 Large and Medium Scale Anaerobic Plants for Animal Waste 750 Plants Completed by 2005 4000-4700 Plants by 2010 10,000 Plants by 2020 Biomass to Energy Targets 2010 Direct Combustion 3 Million KW of Field Residue Liquid Biofuel Land in Biofuel Crops 2020 15 Million KW 2.2 Million KW 10 Million KW 25 Million Mu 50 Million Mu Fuel Ethanol Production Official Production in 2006 was 1.02 Million Tons Only Four Government Approved Plants Subsidized at RMB 1,300/Ton Fuel Ethanol Production Official Production in 2006 was 1.02 Million Tons Only Four Government Approved Plants Subsidized at RMB 1,300/Ton Target for 2010 is 3 Million Tons Fuel Ethanol Production Official Production in 2006 was 1.02 Million Tons Only Four Government Approved Plants Subsidized at RMB 1,300/Ton Target for 2010 is 3 Million Tons Real 2006 Figure may be 5 Million Tons Unofficial Production and New Plants Local Governments and Company Investment Boom May 2007, Central Government Demands strict control of Corn Processing Industry Biodiesel Production No Government Targets or Subsidy Biodiesel Production No Government Targets or Subsidy Far Less Production than Southeast Asia Biodiesel Production No Government Targets or Subsidy Far Less Production than Southeast Asia One Large Plant Completion Nearing Biolux Biofuel Company in Nantong Will Produce 300,000 Tons per Year Will Consume 800,000 Tons of Rapeseed Contracting 325,000 Hectares along Yangtze River The Clean Development Mechanism (CDM) and China The Clean Development Mechanism (CDM) and China CDM Developing Rapidly in China Established in China in 2004 The Clean Development Mechanism (CDM) and China CDM Developing Rapidly in China Established in China in 2004 China is the Leading Host Country by Value and Third by Number of Projects The Clean Development Mechanism (CDM) and China CDM Developing Rapidly in China Established in China in 2004 China is the Leading Host Country by Value and Third by Number of Projects 85 Registered Projects as of June 2007 The Clean Development Mechanism (CDM) and China CDM Developing Rapidly in China Established in China in 2004 China is the Leading Host Country by Value and Third by Number of Projects 85 Registered Projects as of June 2007 Annual Chinese Earnings Currently Estimated at about USD 650 Million (Could Reach 2 Billion) Marginal Abatement Costs for Carbon by Region (Estimates for 2010) (World Bank 2004) The Clean Development Mechanism (CDM) and China The Clean Development Mechanism (CDM) and China NDRC Progressive Taxation of CDM Projects in China HFC and PFC Reduction CERs Taxed at 65% N20 Reduction CERs Taxed at 30% CERs from Projects Contributing to Key Sustainable Development Goals Taxed at 2% Proceeds to go to a China CDM Fund for Support of Sustainable Development and GHG Reduction. Key Sustainable Development Projects Under NDRC Criteria Energy Conservation Alternative and Renewable Energy Methane Recovery and Utilization Afforestation The CDM and Renewable Energy in Rural China Some Wind Power and Hydropower The CDM and Renewable Energy in Rural China Some Wind Power and Hydropower 44 Wind Power Projects Registered or Pending The CDM and Renewable Energy in Rural China Some Wind Power and Hydropower 44 Wind Power Projects Registered or Pending Most Large Scale Wind Projects have CDM Involvement The CDM and Renewable Energy in Rural China Some Wind Power and Hydropower 44 Wind Power Projects Registered or Pending Most Large Scale Wind Projects have CDM Involvement Combine with Domestic Policy Incentives, CDM has Helped Establish Domestic Wind Industry The CDM and Renewable Energy in Rural China Large Scale Biogas and Biomass to Energy Electricity Generation from Biomass Residue Large Scale Animal Waste to Energy Projects The CDM and Renewable Energy in Rural China Large Scale Biogas and Biomass to Energy Electricity Generation from Biomass Residue Large Scale Animal Waste to Energy Projects There are no Crop to Liquid Biofuel Projects Under Approved CDM Methodologies CDM Projects in Rural China Large Scale Biomass to Energy Electricity Generation from Biomass Residue 5 Projects Fully Registered 13 Projects with Registration Pending or at Validation CDM Projects in Rural China Large Scale Biomass to Energy Electricity Generation from Biomass Residue 5 Projects Fully Registered 13 Projects with Registration Pending or at Validation Hebei, Jinzhou 24MW Straw-Fired Power Project 176 Thousand Tons of Corn and Wheat Straw Annually Anticipated GHG Emissions Reduction 1250381 tCO2e CERs Could Earn 100 Million RMB over Seven Years CDM Projects in Rural China Large Scale Biogas Large Scale Animal Waste to Energy Projects Three Projects are at Validation (Pending Approval) A Few Others are Under Development But None are Registered so far Confined Animal Husbandry Facilities in China 2.4 Million Facilities of Some Scale Confined Animal Husbandry Facilities in China 2.4 Million Facilities of Some Scale More than 95% are Small-Scale Less than 500 Hogs, 200 Cows or 15,000 Hens These are Largely Unregulated Unlikely to Qualify for Grid Based Subsidies Likely to Qualify for Small-Scale CDM Small-Scale Methodologies Chinas Missing CDM Designed to Promote Wider Participation and Decentralized Technology Small-Scale Methodologies Chinas Missing CDM Designed to Promote Wider Participation and ...

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