China has unveiled a comprehensive plan aimed at reducing carbon dioxide emissions across key industries by approximately 1% of the 2023 national total through enhanced efficiency measures. Released on Wednesday, the government's initiative encompasses various sectors, from steel production to transportation, aligning with President Xi Jinping's vision for fostering “new productive forces.”
The plan outlines targets for enhancing energy efficiency, with a goal of requiring 2.5% less energy for every unit of GDP growth by 2024. This objective will be pursued through targeted interventions within industries such as building materials and petrochemicals.
Acknowledging challenges in reconciling emissions reduction efforts with economic growth objectives, China aims to navigate this balance by implementing measures to control coal and petroleum consumption, while promoting the utilization of biofuels and sustainable aviation fuel. The government underscores the importance of natural gas as a transitional energy source, emphasizing the expedited development of domestic resources like shale gas and coal bed methane.
Renewable energy plays a central role in China's decarbonization strategy, with plans to increase the share of non-fossil energy sources in total energy use to around 20% by 2025. This includes the development of large-scale renewable power complexes and offshore wind power projects, aimed at boosting non-fossil energy's contribution to total power generation to 39% by 2025.
To address challenges related to renewable energy curtailment, China plans to relax restrictions and increase the limit on curtailment from 5% to 10%. This move is expected to spur the addition of approximately 30GW of new solar capacity. Additionally, the plan sets ambitious targets for new-type energy storage, predominantly battery storage, aiming for at least 40GW of capacity by the end of 2025.
The plan also outlines measures to support the adoption of new energy vehicles and the development of crucial metals like silicon, lithium, and magnesium, vital components in semiconductors and batteries. State agencies will actively promote metal recycling as part of broader efforts to achieve sustainable development goals.
