China

CN-2:Energy and Carbon Intensity Targets of the 12th Five Year Plan

Policy Description

Following on the success of the energy intensity target of the 11th Five Year Plan and in support of the long-term target to reduce carbon intensity by 40-45%, the State Council set forth new intensity targets for the 12th Five Year Plan (2011-2015). Under the new targets, energy intensity (energy consumption per unit of GDP) will be reduced by 16% and carbon intensity (carbon emissions per unit of GDP) will be reduced by 17% below 2010 levels by the end of 2015.

Description

Following on the success of the energy intensity target of the 11th Five Year Plan and in support of the 2020 target to reduce carbon intensity by 40-45% below 2005 levels, the State Council set forth new intensity targets for the 12th Five Year Plan (2011-2015). Under the new targets, energy intensity (energy consumption per unit of GDP) will be reduced by 16% and carbon intensity (carbon emissions per unit of GDP) will be reduced by 17% below 2010 levels by the end of 2015. The 16% reduction in this Five Year Plan will bring the total reduction for the total ten year period (2006-2015) to 32% below 2005 levels.

The State Council has released a comprehensive work plan on energy efficiency and emissions reduction for the 12th Five Year Plan, which details 50 specific measures that are to be carried out in support of the energy intensity target (as well as absolute reduction targets for criteria pollutants such as chemical oxygen demand, ammonia, sulfur dioxide, and nitric oxides) [1].

The role of natural gas, nuclear, and renewable energy as a growing portion of the overall energy supply will help China to meet the carbon intensity target. By 2015, the proportion of non-fossil fuel based energy as a percentage of total primary energy consumption should reach 11.4%. [2].

The targets and expected achievements are broken down by sector and province.

Targets in the Industry Sector

The Ministry of Industry and Information Technology (MIIT) released the 12th FYP on industrial energy conservation on February 27, 2012, which serves as the guidance document for national industrial energy conservation during the 12th FYP.

The industrial energy conservation plan puts forth four prime targets:

  1. Firstly, the overall goal is to cut the energy consumption per unit of industrial value-added output by 21% from 2011 to 2015 and realize energy conservation of 670 million tce.
  2. Secondly, for nine energy intensive industries, the goal is to further reduce the energy consumption per industrial value-added output respectively during 12th FYP, such as 18% for iron and steel industry and 20% for chemical industry.
  3. Thirdly, for 20 major products, the reduction target of energy use per unit product was set to catch up international advanced levels (see CN-4).
  4. Fourthly, for 19 industries, the targets for phasing out backward production capacity were specified (see CN-5). To achieve these goals, the Plan stated the measures and approaches of energy conservation in energy intensive industries, key energy conservation projects (see CN-6) and other policy support.

Targets by Province

Provincial targets are shown in the following table. [1]

Provincial targets for 12th Five Year Plan Energy Intensity Target and 2011 achievement towards target

Province

11th Five Year Plan achievement (2006-2010)

12th Five Year Plan goal (2011-2015)

Expected total achievement (2006-2015)

Achievement (2011)

Beijing

26.60%

17%

39.10%

6.94%

Tianjin

21.00%

18%

35.20%

4.28%

Hebei

20.10%

17%

33.70%

3.69%

Shanxi

22.70%

16%

35.00%

3.55%

Inner Mongolia

22.60%

15%

34.20%

2.51%

Liaoning

20.00%

17%

33.60%

3.40%

Jilin

22.00%

16%

34.50%

3.59%

Heilongjiang

20.80%

16%

33.50%

3.50%

Shanghai

20.00%

18%

34.40%

5.32%

Jiangsu

20.50%

18%

34.80%

3.52%

Zhejiang

20.00%

18%

34.40%

3.07%

Anhui

20.40%

16%

33.10%

4.06%

Fujian

16.50%

16%

29.80%

3.29%

Jiangxi

20.00%

16%

32.80%

3.08%

Shandong

22.10%

17%

35.30%

3.77%

Henan

20.10%

16%

32.90%

3.57%

Hubei

21.70%

16%

34.20%

3.79%

Hunan

20.40%

16%

33.20%

3.68%

Guangdong

16.40%

18%

31.50%

3.78%

Guangxi

15.20%

15%

27.90%

3.36%

Hainan

12.10%

10%

20.90%

-5.23%

Chongqing

21.00%

16%

33.60%

3.81%

Sichuan

20.30%

16%

33.10%

4.23%

Guizhou

20.10%

15%

32.10%

3.51%

Yunnan

17.40%

15%

29.80%

3.22%

Tibet

12.00%

10%

20.80%

3.56%

Shaanxi

20.30%

16%

33.00%

N/A

Gansu

20.30%

15%

32.20%

2.51%

Qinghai

17.00%

10%

25.30%

-9.44%

Ningxia

20.10%

15%

32.10%

-4.60%

Xinjiang

8.90%

10%

18.00%

-6.96%

China

19.10%

16%

32.00%

2.01%

 

 

Policy Information Expand this section for information on the key features of the policy, such as its date of introduction, categorization, main objective(s) and linkages with other policies.

Policy Categorisation

Policy Instrument Type: Administrative

Position in the Pyramid

About Us

Participation: Mandatory

Period

Start Date: 2011

End Date: 2015

Policy Linkages

Supported By Top-10,000 Energy-Consuming Enterprises Program Effort Defining
Supported By Ten Key Projects Program Supporting Measure
Supported By Energy Performance Contracting and Energy Service Companies (ESCOs) Supporting Measure
Supported By Small Plant Closures and Phasing Out of Outdated Capacity Effort Defining
Supported By Carbon Emissions Trading Pilots Supporting Measure
Supported By Industrial Energy Performance Standards Effort Defining

Agencies Responsible

State Council
National Development and Reform Commission
Local, Provincial, Central governments

Primary Objective: Energy

Objective

To reduce the energy intensity of the Chinese economy by 16% and carbon intensity of the Chinese economy by 17% off 2010 levels by end of 2015.

Target Group

The target is economy wide, but many of the government's supporting policies specifically target the provinces, the Top 10,000 Energy-Consuming Enterprises, and buildings.

Driver of energy consumption or emissions affected by policy:

Implementation Information Expand this section for information on targets, monitoring, verification and enforcement regimes, and implementation requirements and tools.

Coverage

The target is economy wide, and efforts to meet it will be spread across power, industry, buildings, and transport sectors.

Quantitative Target? yes

Target: The national energy intensity target is 16%, while each province has a specific target. The national carbon intensity target is 17%, which has not been broken down by province.

Time Period: January 1, 2011 - December 31, 2015

Progress Monitored? yes

Verification Required? yes

Enforced? yes

Requirements on the Target Group

The implementation plan for energy and carbon intensity evaluation for provinces and Top-10000 energy-consuming enterprises have not yet been released by the NDRC for the 12th Five Year Plan. They should be released in the coming months. In the mean time, please refer to the "Requirements on the Target Group" section of the 11th Five Year Plan page.

Support by Government

Implementation Toolbox

In the State Council's Comprehensive Work Plan on Energy Saving and Emissions Reduction for the 12th Five Year Plan [1], the following twelve general areas of focus, which will support the achievement of the 12th Five Year Plan targets, were outlined in detail: 

  1. The main requirements and targets of the 12th Five Year Plan
  2. Strengthen the target responsibility mechanisms (for provinces and top energy consuming enterprises)
  3. Improve the economic structure (such as by increasing the proportion of GDP from service and strategic industries or by removing outdated capacity via the small plant closures program)
  4. Implement the key energy-saving projects
  5. Improve the management of energy conservation and emissions reduction efforts (such as through the top 10000 energy-consuming enterprises program)
  6. Develop a circular economy
  7. Quicken the pace of clean technology development and application
  8. Improve economic policies that promote energy conservation and emissions reduction
  9. Strengthen monitoring and evaluation
  10. Promote market mechanisms for energy conservation and emissions reduction (such as through the carbon emission trading pilots and energy performance contracting)
  11. Strengthen work and implementation capacity (such as through improved standardization systems)
  12. Mobilize the general public to participate in energy conservation and emissions reduction (through improved public education and public actions)

Impacts, Costs & Benefits Expand this section to find information on policy effectiveness and efficiency.

Impact Quantitative Estimate Qualitative Estimate
Estimated effect on energy consumption or emissions The total expected energy savings for the 12th Five Year Plan is 670 million tons of coal equivalent. [1]
Estimated costs/benefits for industry
Estimated cost for government

References & Footnotes

References

[1] Chinese text of State Council's Comprehensive Work Plan on Energy Saving and Emissions Reduction for the 12th Five Year Plan http://hzs.ndrc.gov.cn/newzwxx/t20110907_433096.htm

[2] Chinese text of the outline of the 12th Five Year Plan from National People's Congress http://www.moa.gov.cn/fwllm/jjps/201103/t20110317_1949003.htm