MAKE PEAK CARBON AND CARBON NEUTRALITY AN INTEGRAL PART OF ECO-ENVIRONMENTAL CONSERVATION

MAKE PEAK CARBON AND CARBON NEUTRALITY AN INTEGRAL PART OF ECO-ENVIRONMENTAL CONSERVATION*

March 15, 2021

Achieving peak carbon dioxide emissions and carbon neutrality requires systematic and multidimensional efforts by all sectors involved. We must remain steadfast in implementing the new development philosophy and applying systems thinking so as to strike the right balance in the relationships between development and emissions reduction, between the whole and the part, and between short-term objectives and medium- to long-term goals.

Peak carbon and carbon neutrality should be an integral part of the overall endeavor to advance eco-environmental conservation. We should pursue the goal of full transformation towards a green economy and society underpinned by green and low-carbon energy by speeding up the development of spatial configurations, industrial structures, production models, and ways of life that save resources and are environment-friendly. We should pursue a green and low-carbon path to high-quality development that prioritizes eco-environmental conservation.

We need to adopt a road map and a timetable for achieving peak carbon and carbon neutrality, work harder to adopt an action plan for achieving peak carbon by 2030, and formulate a long-term plan for achieving carbon neutrality.

A proper level of carbon dioxide emissions peaking should be set, and relevant definitions and standards should be clearly defined. The goals of achieving peak carbon and carbon neutrality should be aligned to avoid carbon lock-in and an inflated peak. The quantitative targets should be further discussed so as to ensure that they are feasible and practical, and are in keeping with actual conditions; then region- and sector-specific targets can be set so as to achieve peak carbon in a phased way.

To realize peak carbon and carbon neutrality, we should pool strengths nationwide, prioritize conservation, leverage the role of both the government and the market, coordinate our domestic and international efforts, and guard against risks.

– To pool strengths nationwide, we should strengthen overall planning and top-level design, tap into our systemic strengths, and ensure that both the Party and the government assume their responsibilities and that all those involved play their part. On the other hand, no excessive reduction targets should be imposed at any level, and falsification is strictly prohibited. Different policies should be applied to different places, which are encouraged to take proactive steps to reach peak carbon at an early date. Economic restructuring should be pursued as a key step in steering the economy towards green and low-carbon growth that covers all areas and links of development. All localities and departments should work together to build a green, low-carbon and circular economy.

– To prioritize conservation, we should conserve energy resources as a top priority and implement a comprehensive conservation strategy. Resource intensity and carbon intensity should be lowered in industry, and the allocation of input factors of production should be improved to raise output efficiency. Efforts to improve living standards should be based on energy resource conservation, and simple, moderate, green and low-carbon ways of life should be encouraged to rein in carbon emissions at source.

– To leverage the role of both the government and the market, we should build a new system of mobilizing resources nationwide, intensify technological and institutional innovation, and accelerate the green and low-carbon technological revolution. There should be deeper reform in the energy sector and related fields, and barriers erected by vested interests must be removed. We should see that the market plays its role so as to form an effective mechanism that provides incentives and imposes disincentives, thus making carbon emissions more costly and carbon reduction more rewarding.

– To make coordinated efforts on the domestic and international fronts, we should strengthen international exchanges and cooperation, draw on other countries’ advanced green and low-carbon technologies and their practices, rules and regulations, and use domestic and international energy resources in a well-coordinated way. We should continue to reduce pollution and carbon emissions in keeping with our national conditions, increase our influence, and develop a stronger voice on the international stage.

– To guard against risks, we should do more to identify and control risks while striving to achieve peak carbon and carbon neutrality. We need to strike the right balance between pollution and carbon reduction on the one hand and ensure energy security, industrial and supply chain security, food security, and normal life on the other. Effective steps should be taken to deal with economic, financial and social risks that might accompany a green and low-carbon transformation so as to achieve safe decarbonization.

The 14th Five-year Plan period (2021-2025) is a critical window for reaching peak carbon emissions, so we should complete the following priority tasks:

First, building an energy structure that promotes the clean, low-carbon, safe and efficient use of energy. The total consumption of fossil fuels should be brought under control, and such fuels should be used more efficiently. Coal use should be reduced at a faster pace, to ensure that coal consumption ideally remains at the current level during the 14th Five-year Plan period and gradually declines during the 15th Five-year Plan period (2026-2030). A renewable energy substitution action should be launched. The development of photovoltaic and wind power should be accelerated, hydropower and nuclear power should be developed in a proactive yet prudent manner, a smart grid should be built, and plans for the future development of hydrogen energy projects should be made. Coal-fired power generation should be brought under strict control. We should expand reform of the power sector, improve mechanisms for electricity pricing, transmission and trading, and build a power sector consisting mainly of new energy.

Second, reducing pollution and carbon emissions in key industries and fields. Green manufacturing should be advanced in the industrial sector and outdated production capacity should be phased out to save resources and cut energy use. Energy conservation construction standards should be raised, and electricity, along with low-carbon energy, should be used as a main form of energy in buildings. A green and low-carbon approach should be adopted in promoting urban renewal and rural revitalization. In the transport sector, we should move faster to develop electric vehicles, promote intelligent transport, improve the transport structure, and encourage green and low-carbon transport.

Third, making major breakthroughs in green and low-carbon technologies. We should lose no time in making plans for research on cutting-edge low-carbon technologies and launch leading demonstration and application projects. Wider use of pollution and carbon emissions reduction technologies should be promoted, and technologies for efficient and safe energy storage and carbon capture should be developed. The development and large-scale use of hydrogen technology should be promoted. A sound system for assessing and trading in green and low-carbon technologies as well as a service platform for innovation in such technologies should be set up.

Fourth, improving green and low-carbon policy and market systems. During the 14th Five-year Plan period, a basic institutional framework should be put in place to lay the groundwork for achieving peak carbon and carbon neutrality goals. We should improve the system for control over the volume and intensity of energy use and step up efforts to establish a similar system setting mandatory caps on carbon emissions. A system for carbon monitoring and accounting should be set up, and improvements should be made to fiscal, tax, price, financial, land, and government procurement policies and other related policies that contribute to green and low-carbon development. We should consider establishing a carbon pricing mechanism, encourage trading in carbon emissions rights, consider the possibility of collecting carbon taxes and tariffs, and improve the system for corporate carbon reporting and disclosure. We should actively develop green finance, consider setting up a national fund for low-carbon transformation, and support the green transition of traditional industries and resource-rich regions.

Fifth, encouraging a green and low-carbon lifestyle. The public should increase their green and low-carbon awareness and oppose waste and extravagance. Green travel should be encouraged and a green and low-carbon lifestyle should become a new social trend. Green and low-carbon development should be included in the national education system, and demonstration programs on developing a green and low-carbon society should be launched.

Sixth, increasing the carbon sink capacity of the eco-environment. Currently, China’s ecosystems absorb more than 1.2 billion tonnes of carbon each year, with 80 percent sequestrated in forests. We must strengthen territorial planning and land use regulation, and exploit forests, grasslands, wetlands, seas, soil, and permafrost in carbon sequestration. We should carry out large-scale greening programs, improve forest quality, and launch major eco-environmental conservation and restoration projects to boost the carbon sink capacity of the ecosystems. A recompense mechanism for eco-conservation that gives value to carbon sinking should be developed.

Seventh, strengthening international cooperation on response to climate change. We should take an active part in international negotiations on climate change, contribute to making international rules and standards, and build a green Silk Road. We should tell the world more about what China has done to respond to climate change.

Achieving peak carbon and carbon neutrality is a tough fight and a major test of our Party’s ability to govern. We should strengthen centralized, unified leadership of the Party Central Committee and improve systems of supervision and evaluation. Party committees and governments at all levels should fulfill their responsibilities and ensure that targets are set, measures are taken, and inspections are carried out.

Work to achieve peak carbon and carbon neutrality should be placed under inspection carried out by the central authorities on eco-environmental protection and supervision. During the 14th Five-year Plan period, new projects must meet carbon emissions standards to guard against setting peak emissions at a high level. Leading officials should learn more about carbon emissions to acquire professional knowledge necessary for promoting green and low-carbon development. We should do more to raise public awareness of the importance of green and low-carbon development.

∗ Part of the speech at the ninth meeting of the Commission for Financial and Economic Affairs under the CPC Central Committee.

(Not to be republished for any commercial or other purposes.)