China set for energy efficiency spree

In consequence, this means that China’s levels of investment in sustainable energy is now outstripping that of the UK, not only in absolute but more importantly in per capita terms.

The state-owned China Daily newspaper reports that the State Council has already approved the relevant investment plan.  It is designed to support the country’s goal of reducing its carbon intensity by up to 45 per cent between 2005 and 2020. A country’s carbon intensity is calculated by measuring the amount of emissions per unit of Gross Domestic Product.

China also plans to phase in a nationwide carbon trading market from 2015. At present there are pilot cap-and-trade  exercises  underway in seven regions.

Xie Zhenhua, deputy director of the National Development and Reform Commission has announced that the government will be “rolling out tiered power pricing for eight energy intensive industry sectors.” The objective is plainly to tighten the energy efficiency of these enormous energy consumers, by using sophisticated price signals to drive investment patterns.

He also stated that sectors that “struggle with overcapacity” will face higher power tariffs. Again this is designed to curb excess production –related energy consumption, by stimulating extra investments in process plant energy efficiency.