In February 2022, the government released guidelines&nbsp; promoting the High-Quality Development of the Iron and Steel Industry and that required to reach peak CO2 emissions by 2030. In July, the Ministry of Industry and Information Technology approved a plan to oblige companies in steel, building materials, petrochemicals, non-ferrous metals, consumer goods, equipment manufacturing and electronics sectors with an annual revenue of CNY20m (US$2.9m) or more to slash energy use by 13.5% from 2020 levels in 2025, and to reach peak carbon emissions by 2030.</div><div>

The plan was introduced by a notice from the Ministry of Housing and Urban-Rural Development and the National Development and Reform Commission. According to this plan, new-build public buildings and factories in town and cities should be covered at 50% by solar panels by 2025.

This document provides guidelines on leveraging the role of fiscal policies to achieve the country's carbon peaking and carbon neutrality goals, set in 2021 in the "1+N" Action Plan. According to the guidelines, the country will update its financial policy framework by 2030 to support green and low-carbon development, notably making use of market mechanisms like carbon and pollution discharge trading.&nbsp; According to its stated objectives, a first step in the enrichment of fiscal policy tools as well as the tax policy framework will be reached by 2025. This should cover all regions and industries. Before 2030, the fiscal and taxation policy system will be finalised, enabling the carbon-peaking threshold. A long-term mechanism to promote green and low-carbon development will be gradually established. Before 2060, the policy system of financial support for green and low-carbon development will enable to reach carbon neutrality.

<div>This document sets the government strategy to boost low-carbon hydrogen supply in the country and notably decarbonise high-energy-consuming and high-emission industries.It explicitly favours green hydrogen over grey hydrogen. By 2025, the plan hopes that China will enjoy a relatively complete system and policy environment for the development of the hydrogen energy industry, significant improvements in industrial innovation capability, a mastering of core technologies and manufacturing processes, and a relatively complete supply chain and industrial system. It also sets directional goals to the 2030 and 2035 horizons. The plan further seeks to:</div><ul><li>Coordinate and promote the construction of hydrogen energy infrastructure</li><li>Actively carry out international cooperation in hydrogen energy technology innovation</li><li>Build a storage and transport system</li><li>Develop planning of hydrogen refueling network</li><li>Ppromote the diversified demonstration application of hydrogen energy</li><li>Promote fuel-cells medium and heavy vehicles</li><li>Explore alternative applications in the industrial field</li><li>Accelerate the improvement of hydrogen energy development policies and institutional guarantee systems</li><li>Establish and improve the hydrogen energy policy system</li><li>Establish and improve the hydrogen energy industry standard system</li><li>Promote pilot demonstrations</li><li>Strengthening fiscal and financial support</li><li>Carry out the publicity and implementation of safety regulations and safety standards for hydrogen energy production, storage, transmission and use, enhance the safety awareness of the main body of enterprises, and build a solid foundation for the safe utilization of hydrogen energy.</li></ul>

This plan explicitly mentions global climate governance and the ongoing low-carbon transformation of the energy and industry sectors. It seeks to coordinate measures to improve national energy security and achieve carbon peaking by 2030 and carbon neutrality by 2060 to ensure a high-quality economic and social development. It adheres to the national people-entered development philosophy. It also reasserts the regulating role of coal and the goal of boosting national production of natural gas. It enshrines into national policy the goal of supporting developing countries with green energy while not supporting any new overseas coal power projects. The plan calls for a speed up of the adjustment of the energy sector. It seeks to:<ul><li>Strengthen power security and electricity greed in particular</li><li>Improve energy network security management and control.</li><li>Strengthen risk management and emergency management.&nbsp;</li><li>Sets a number of energy targets and development of non-fossil energy for 2025</li><li>Accelerate the promotion of green and low-carbon transformation of energy (chapter 4).</li><li>Enhance power coordination and optimised operation capability</li><li>Improvement of wind and photovoltaic power forecasts</li><li>Accelerate the large-scale application of new energy storage technologies</li><li>Promote the development of power-side energy storage</li><li>Improve power load flexibility</li><li>Strengthen the construction of power demand side response capacity</li></ul>

This law was enacted to strengthen wetland protection, maintain wetland ecological functions and biodiversity, ensure ecological security, promote the construction of ecological civilization, and achieve harmonious coexistence between man and nature (art 1). Article 39 of the law states that scientific studies shall be performed and measures taken accordingly to the local conditions of the original and degraded wetlands to ensure a restoration of their ecological functions. It further charges local governments to take measures relative to water body management, land improvement, vegetation restoration, and animal protection to enhance functions and carbon sink capabilities.

This law aims to guarantee and promote the development of the electric power industry, safeguard the lawful rights and interests of investors, companies and consumers of electric power and to guarantee safe operation. Article 5 stipulates that the State encourages and supports the generation of electricity through the use of renewable and clean energy resources.

This law promotes the development of a circular economy, aims to improve resource usage and protect the environment. It notably seeks to enhance energy efficiency, increase the role of renewable energy sources&nbsp;

The Act aims to strengthen energy conservation, particularly for key energy-using entities, promote efficient use of energy and adoption of energy conservation technology. The term "energy" as used in this Law refers to various sources such as coal, oil, natural gas, biomass energy, electricity, heat, and other resources that process or convert into useful energy (Article 2). There are six substantive chapters to this Law: General Provisions; Energy Conservation Management; Reasonable Use and Energy Conservation (further split into Industrial Energy Conservation, Building Energy Conservation, Transport Energy Conservation, Public Institutions, Key Energy Consumption Units); Conservation Technology Progress; Incentives; and Legal Liability. Under Article 6, the government's of provinces, autonomous regions, and municipalities must report annually to the State Council on the performance of their energy-saving target responsibilities. The department responsible for energy conservation within the State Council is responsible for the supervision and management of this Law (see Article 10). Article 33 states that the construction of coal-fired power generation units, oil-fired power generation units, and coal-fired thermal power units, which "do not comply with national regulations" are prohibited. There are also provisions requiring relevant authorities to prepare energy efficiency and conservation plans. For example, Article 34 requires construction departments of local government's at or above county levels to formulate building energy conservation plans within their administrative regions. Article 41 also requires the relevant transport department of the State Council to formulate energy conservation plans.

This Act describes duties of the government, business and other users in renewable energy development and use. It includes measures and goals relating to mandatory grid connection, price management regulation, differentiated pricing, special funds and tax reliefs, and sets the goal to realise 15% of China's energy from renewable sources by 2020. The Act requires the government to encourage and support the application of renewable energy in various areas. The Act also requires that the government budget establishes a renewable energy development fund. In terms of monitoring arrangements, it requires that energy authorities of the State Council are responsible for organising and co-ordinating national surveys and management of renewable energy resources, and work with related departments to establish technical regulations for resource surveys. Relevant departments of the State Council, within their respective authorities, are responsible for related renewable energy resource surveys. The survey results will be summarised by the energy authority in the State Council. Energy authorities of the State Council must set mid- and long-term targets for the total volume of renewable energy at the national level, which shall be implemented and released to the pubic after being approved by the State Council. Notice 25/2021 determines the objectives for solar and wind in particular for the year 2021. A <a rel="noopener noreferrer" href="http://www.npc.gov.cn/npc/c30834/201912/2b7568de01944c33b9326c325dcd498f.shtml" target="_blank">report </a>of the Congress' Law Enforcement Inspection Team of the Standing Committee inspecting the implementation of the law was published in December 2019. A draft amendment of the law was published in 2020 for consultation.

China's submission to the global stocktake, Submission to the Global Stocktake from China in 2022

China's Mid-Century Long-Term Low Greenhouse Gas Emission Development Strategy, Long-Term Low-Emission Development Strategy from China in 2021

China First NDC (Updated submission), Nationally Determined Contribution,Adaptation Communication from China in 2021

China. National communication (NC). NC 3., National Communication from China in 2019

China. Biennial update report (BUR). BUR 2., Biennial Update Report from China in 2019

Energy Development Strategy Action Plan (2014-2020)

Law passed

Published by the State Council, the Plan aims to reduce China's high energy consumption per unit GDP ratio through a set of measures and mandatory targets, promoting a more efficient, self-sufficient, green and innovative energy production and consumption. &nbsp; &nbsp;The targets include a cap on annual primary energy consumption set at 4.8bn tonnes of the standard coal equivalent until 2020, with a need to limit the annual growth rate of primary energy consumption to 3.5% for the next six years. The annual coal consumption should be held below 4.2bn tonnes until 2020 (16.3% more than the 3.6bn tonnes burned in 2013, according to the National Coal Association), with the main coal consumption reduction to be achieved in regions around Beijing, the Yangtze River Delta and the Pearl River Delta - the three biggest city clusters in China. The share of non-fossil fuels in the total primary energy mix is to rise to from 9.8% in 2013 to 15% by 2020, with an indicative 20% share by 2030. The share of natural gas is to rise to above 10%, while that of coal will be reduced below 62%. In addition, installed nuclear power capacity is to reach 58GW by 2020, with additional 30GW expected to be under construction in 2020. Installed capacity of hydro-, wind and solar power in 2020 is expected to reach 350GW, 200GW and 100GW, respectively. Energy self-sufficiency should reach around 85%.

By 2020, the total primary energy consumption will be controlled at about 4.8 billion tons of standard coal, and the total coal consumption will be controlled at about 4.2 billion tons by 2020 against a 2014 baseline

By 2020, natural gas will account for more than 10% by 2020 against a 2014 baseline

By 2020,  the proportion of coal consumption will be controlled within 62% by 2020 against a 2014 baseline

By 2020, it will cumulatively increase the verified geological reserves of conventional gas by 5.5 trillion cubic meters, and produce 178 billion cubic meters of conventional natural gas per year by 2020 against a 2014 baseline

By 2020, shale gas production will strive to exceed 30 billion cubic meters by 2020 against a 2014 baseline

For group access standards, coal consumption for newly-built coal-fired power generation units is lower than 300 grams per kilowatt-hour of standard coal, and pollutant emissions are close to those of gas-fired gas turbines by 2014

Non-fossil energy will account for 15% of primary energy consumption by 2020

Geothermal energy to reach 50 million tons of standard coal by 2020

Energy Development Strategy Action Plan (2014-2020)

Main documents

Targets (8)

Timeline

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