China has established more rigorous energy intensity objectives for 2024 after falling short of last year’s target, as the world’s largest energy consumer endeavors to bridge the gap on its climate objectives within a five-year plan concluding in 2025.
The National Development and Reform Commission (NDRC) unveiled a new target aiming to reduce energy intensity by 2.5% in 2024, surpassing the previous year’s unmet 2% goal. This announcement was made at the commencement of the annual National People’s Congress.
Despite reporting a mere 0.5% decline in energy intensity in 2023, China also failed to achieve last year’s objective of reducing carbon emissions per unit of GDP.
The nation’s efforts to curb emissions and enhance energy efficiency often clash with the imperative to stimulate economic growth and improve living standards. The NDRC acknowledged challenges stemming from accelerated industrial and civilian energy consumption, resulting in shortcomings in energy and carbon intensity reductions.
In 2023, China’s primary energy production reached 4.83 billion metric tons of standard coal, marking a 4.2% increase from 2022, as reported by the National Bureau of Statistics.
Research conducted by two energy think-tanks indicated that China lagged significantly behind its five-year plan target of a 13.5% reduction in energy use per unit of economic growth for the 2021-2025 period, with a 2% decrease observed between 2020 and 2023.
To meet its objectives, China would need to achieve a 6% reduction in energy intensity and a 7% cut in carbon intensity for both 2024 and 2025, according to assessments by the Centre for Research on Energy and Clean Air in Helsinki and the Global Energy Monitor in the United States.
The NDRC affirmed its commitment to intensify efforts in emission reduction and energy efficiency this year, emphasizing enhancements to carbon pricing mechanisms and the expansion of emissions trading scheme coverage to encompass additional sectors beyond coal power.
Furthermore, the government outlined plans to establish a national research platform focusing on clean energy and storage, bolstering advancements in the new energy vehicle segment and advancing hydrogen power development. The government also pledged to promote the controlled expansion of nuclear power and enhance offshore reactor unit construction where feasible.
Despite acknowledging climate target setbacks, China reiterated its support for coal power within its energy framework and outlined intentions to fortify advanced coal reserves, develop strategic coal-to-liquids and coal-to-gas facilities, and prioritize oil, natural gas, and strategic minerals exploration and production to safeguard energy and resource security.
Additionally, the government underscored the urgency of accelerating energy pricing reforms, particularly concerning refined petroleum product pipeline transportation.