China

CN-1:Energy Intensity Target of the 11th Five Year Plan

Policy Description

The energy intensity target of the 11th Five Year Plan set by the State Council was the first instance of China's government taking on an economy-wide energy efficiency target. It mandated that energy consumption per unit GDP be reduced by 20% below 2005 levels by 2010. 

Description

The energy intensity target of the 11th Five Year Plan set by the State Council was the first instance of China's government taking on an economy-wide energy efficiency target. It mandated that energy consumption per unit of gross domestic product (GDP) be reduced by 20% below 2005 levels by 2010. 

The State Council (and specifically the National Leading Working Group on Addressing Climate Change, Energy Saving, and Emission Reduction) and National Development and Reform Commission were responsible for overseeing the target. [1] The National Bureau of Statistics was responsible for setting the 11th Five Year Plan provincial level targets. Provincial energy conservation centers served as the mediator between the Top 1000 Energy-Consuming Enterprises and the national government for targets and progress reports. [4] 

Important industrial policies and supporting measures in meeting this target included:

  • the Top 1000 Energy-Consuming Enterprises Program,
  • Ten Key Projects, and
  • Small Plant Closures.

Other measures outside of industry included appliance standards, economic restructuring, and buildings energy efficiency. 

In February 2011, China announced that it had basically met the target, with a final achievement level of 19.1%. The targets and achievements by province are broken down in the following table. [2]

Provincial targets and achievements for 11th Five Year Plan Energy Intensity Target
Province 11th five year plan target 11th five year plan achievement
Beijing 20% 26.6%
Tianjin 20% 21.0%
Hebei 20% 20.1%
Shanxi 25% 22.7%
Inner Mongolia 25% 22.6%
Liaoning 20% 20.0%
Jilin 30% 22.0%
Heilongjiang 20% 20.8%
Shanghai 20% 20.0%
Jiangsu 20% 20.5%
Zhejiang 20% 20.0%
Anhui 20% 20.4%
Fujian 16% 16.5%
Jiangxi 20% 20.0%
Shandong 22% 22.1%
Henan 20% 20.1%
Hubei 20% 21.7%
Hunan 20% 20.4%
Guangdong 16% 16.4%
Guangxi 15% 15.2%
Hainan 12% 12.1%
Chongqing 20% 21.0%
Sichuan 20% 20.3%
Guizhou 20% 20.1%
Yunnan 17% 17.4%
Tibet 12% 12.0%
Shaanxi 20% 20.3%
Gansu 20% 20.3%
Qinghai 17% 17.0%
Ningxia 20% 20.1%
Xinjiang 20% 8.9%
China 20% 19.1%

 

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: 2006

End Date: 2010

Policy Linkages

Supported By Top-1000 Energy-Consuming Enterprises Program Effort Defining
Supported By Ten Key Projects Program Supporting Measure
Supported By Industrial Energy Performance Standards Effort Defining
Supported By Small Plant Closures and Phasing Out of Outdated Capacity Effort Defining
Supported By Financial Rewards for Energy-Saving Technical Retrofits Supporting Measure

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 20% off 2005 levels by 2010.

Target Group

Provinces and top 1000 energy-consuming enterprises

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 was economy wide, and efforts to meet it were widespread across power, industry, buildings, and transport sectors.

Quantitative Target? yes

Target: The national target was 20%, while each province had a specific target.

Time Period: January 1, 2006 - December 31, 2010

Progress Monitored? yes

Verification Required? yes

Enforced? yes

Requirements on the Target Group

In the implementation plan for energy intensity evaluation released in 2006 by the National Development and Reform Commission (NDRC), the evaluation procedures for provinces and Top-1000 energy-consuming enterprises are described in detail. In an evaluation of 100 total points, 40 points are delegated for achievement of the target and 60 points are delegated for implementation of energy conservation measures. The point systems in each area are different for provinces and for top energy consuming enterprises. Energy conservation measures include dozens of categories from economic structural shift to efficiency of new buildings to industrial energy efficiency demonstration projects 

Every year by March, each provincial government was required to report to the National Leading Working Group on Addressing Climate Change, Energy Saving, and Emission Reduction what their annual energy intensity target will be for that year. Also at that time, they had to provide their full progress report for the previous year to the NDRC, the Working Group, and the State Council. By May, the NDRC would evaluate all provinces' progress reports and publish a national report to the State Council. If a province did not meet its target, it would have one month after that release to report back to the State Council and NDRC on the near-term corrective actions it was putting in place. 

In January each year, each Top 1000 energy-consuming enterprise was also required to report on their progress to the provincial energy conservation centers. After performing a review with an expert committee, each provincial center was required to send a full provincial report to the provincial government and NDRC. [4] 

Support by Government

The National Development and Reform Commission and provincial governments gave rewards to those provinces and top energy-consuming enterprises who met or surpassed the targets on schedule. The national government also held the authority to demote or fire provincial level officials whose provinces did not meet the targets on schedule, as well as to delay the approval of new high energy-consuming industry projects.

Implementation Toolbox

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 A report by Lawrence Berkeley National Laboratory's China Energy Group estimated savings between the years 2006-2008 as 527 million tons of coal equivalent. [3] A report by Tsinghua University and the Climate Policy Initiative has estimated the amount of energy saved by the achievement of a 19.1% improvement in energy intensity as 630 million tons of coal equivalent, if we assume the baseline condition as no improvement in energy intensity from 2005 levels. The carbon dioxide emissions savings are estimated at 1,550 million tons of carbon dioxide. [5]
Estimated costs/benefits for industry
Estimated cost for government

References & Footnotes

References

[1] Chinese text on State Council's 11th Five Year Plan Targets and Work Plan http://www.molss.gov.cn/gb/zt/2006-11/21/content_149505.htm

[2] Chinese text on State Council's 11th Five Year Plan Provincial Target Allocation http://www.gov.cn/gongbao/content/2006/content_443285.htm

[3] Levine, Mark et al. "Assessment of China’s Energy-Saving and Emission-Reduction Accomplishments and Opportunities During the 11th Five Year Plan" http://china.lbl.gov/sites/china.lbl.gov/files/LBNL-3385E.Ace_Study_Report_FINAL.Rev_.pdf

[4] Chinese text on National Development and Reform Commission's Implementation Plan for the Energy Intensity Evaluation System http://news.sina.com.cn/c/2007-11-24/092714377859.shtml

[5] Tsinghua University and Climate Policy Initiative. "Annual Review of Low-Carbon Development in China (2011-2012)" http://www.climatepolicyinitiative.org/generic_datas/view/publication/123