China Briefing, 8 July 2021: Xi invited to COP26; ‘Largest’ coal-chemical project suspended; New authority for climate roadmap

A brand-new research study has discovered that Chinas energy-consumption authorization trading plan (ECPTS) “substantially” lowered energy usage and energy strength of those pilot provinces. The paper says that the plan, carried out in China in 2016, produced an average energy saving of 43m tonnes of coal equivalent (Mtce) from 2016 to 2019. Unlike an emissions trading plan (ETS), which manages services carbon emissions, an ECPTS manages their energy consumption. Companies are allocated a particular number of “permits” by the government, which represent their energy-using quota of the year. They can then purchase or offer their “permits” according to their requirements. Among the papers authors, Dr Shi Xunpeng from the University of Technology Sydney, informs Carbon Brief: “This study will provide self-confidence to the role of the ECPTS and promote conversation of its future applications, which might be complementary to the ETS.”.

CARBON CAPTURE: Sinopec, a state-run corporation, said on Monday that it would start developing a carbon storage, capture and utilisation (CCUS) project in eastern Chinas Shandong province, China Chemical Industry News reported. The project is arranged to enter into operation by the end of 2021 and would be able to decrease carbon dioxide (CO2) emissions by 1m tonnes yearly, the website stated. Reuters reported that the job would involve catching CO2 produced from an oil refinery throughout a hydrogen-making procedure and then injecting it into 73 oil wells in an oilfield..

WHY IT MATTERS: Boriss invite to Xi is “really crucial” for the outcome of the COP26, according to Dr Chen Gang from the East Asian Institute of the National University of Singapore. COP26 has actually been described as “the most crucial environment top” given that the Paris Agreement was agreed at COP21 in 2015. Dr Chen informs Carbon Brief: “Chinese paramount leaders rarely attended UNFCCC COP conferences, and if Xi makes it, it will reveal Chinas paying unmatched attention to environment modification and emission cutting”. He likewise expects Xis possible existence to “enforce pressure upon other major developing countries that have yet to commit to carbon-neutral targets”. Dr Nordin says that the environment is “pointed to as an area where cooperation between China and nations like the UK is possible and required”. She adds: “Johnson knows that his own leadership of a green program through COP26 will be considered a failure if China is not part of resulting efforts.”.

WHAT: Chinas president Xi Jinping has received a “individual invite” from UK prime minister Boris Johnson to participate in the COP26 in Glasgow in November, according to the Sunday Times. The paper stated that Johnson had actually also invited Russias President Vladimir Putin. It added that “numerous leaders of the 196 countries plus the EU that are represented at COP” had been invited by the UK..

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WHY IT MATTERS: The task was noted as a “key job” for energy development under the 13th five-year plan and its suspension could imply Shaanxis seriousness in realising its “dual-control” targets and controlling its carbon emissions for 2021, according to 21st Century Business Herald. “Dual-control” was a policy proposed by Chinas main federal government in 2015 to regulate the nations total energy usage and energy strength (the energy use per system of GDP). Wang Jun, an emissions policy expert and analyst, tells Carbon Brief that the news shows the “progressively rigorous” implementation of the “dual-control” targets in the country under the 2060 “carbon neutrality” objective and that the guidelines “will only get tougher”. As a result, brand-new jobs would need to eliminate their “backward” production capability to get permission to begin, he adds.

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WHAT: The building and construction of a coal-chemical job boasting more than 120bn yuan (₤ 13bn) in financial investment has been “stopped momentarily” in northern Chinas Shaanxi province, reported the 21st Century Business Herald. The monetary outlet stated that the move came amid the regional federal governments efforts to crack down on “dual-high” tasks– those with “high” energy usage and “high” emissions. According to the report, the plant is a “demonstration task” run by the state-controlled Shaanxi Coal and Chemical Industry Group and developed to produce “new” chemical products through the “utilisation of coal”.

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ECOLOGICAL CIVILISATION: The MEE has set up a research study centre for “Xi Jinping Thought on Ecological Civilisation”, according to Xinhua, Chinas state news company. “Xi Jinping Thought on Ecological Civilisation” is part of “Xi Jinping Thought”, which is a series of essential concepts and policies derived from the leaders speeches and writings.

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A market instrument to achieve carbon neutrality: Is Chinas energy-consumption permit trading plan effective?Applied Energy.

Massive implementation of carbon storage, utilisation, and capture (CCUS) is the “second-best” option for China to realise its “carbon neutrality” objective prior to 2060, according to a brand-new paper. The “finest” choice is to shift energy sources from fossil fuels to renewables “in a short time”, states Dr Xu Shengqing from Jiangsu Ocean University, the papers co-author. Dr Xu keeps in mind that, however, the social, economic and political restrictions in China “deeply hamper” energy transition towards low carbon and renewable resource. The “ideal” technique might not reach carbon neutrality under Beijings timeframe. “Large-scale deployment CCUS can avoid stranding assets in existing fossil energy markets, and hence it incurs less resistance from incumbents,” Dr Xu tells Carbon Brief. He adds: “With an approximated storage capability of 3,120 GtCO2, China has terrific potential to release CCUS.”.

HOW: 21st Century Business Herald said it was not immediately clear why the project had actually been suspended, however “people near to the job” mentioned the “failure to complete an energy evaluation” as the main factor. The news followed Shaanxis deputy guv, Liang Gui, had actually examined the tasks operator, Yulin Energy and Chemical Company, at the end of May and start of June. Liang “elaborately enquire [d] after” the companys operation and carbon emissions status, along with its emission-reducing and energy-saving efforts, reported Shaanxi Daily. Liang urged the company to bear relevant responsibilities and “successfully” reduce its energy intake, the newspaper stated..

WHO: President Xi consulted with German chancellor Angela Merkel and French president Emmanuel Macron through video link on Monday– one day after the report of Xis COP26 invite– to go over matters consisting of climate change, said Deutsche Welle. The German broadcaster reported that, according to France ′ s Elysee palace, the conference was held to “discuss the leaders various positions ahead of the COP26 environment summit in Glasgow and the G20 top in Rome later this year”. The Straits Times, based in Singapore, also mentioned the Elysee palace, saying that Macron and Merkel gone over with Xi “the value of ending the financing of coal-fired power stations”.

UK prime minister Boris Johnson has actually welcomed Chinas president Xi Jinping– in addition to Russias president Vladimir Putin– to COP26 in Glasgow in November. The Sunday Times reported the news during the weekend, stating that the existence of either leader would be “a significant minute” for the UK. COP26 will occur face to face over the first two weeks of November. Xi has not yet verified his presence.

ETS: Chinas State Council, the national administrative authority, has revealed that the nation will release its national carbon emissions trading plan (ETS) for the electricity sector at “a proper time” in July, reported state broadcaster CCTV. The national ETS was expected to begin trading “by the end of June”, however the target was missed out on and no main reason has been provided. Recentlys China Briefing has more detail. The brand-new launch timeline was chosen during an executive conference of the State Council yesterday, CCTV stated. The authority prepares to bring more sectors under the scheme as “the next action”, the report included. Carbon Briefs in-depth Q&A discusses how the national ETS might assist China combat climate change.

HOW: It stays unclear how President Xi will respond to the invitation. An unidentified diplomat suggested to the Sunday Times that “if Putin goes, Xi will go”. In April, Xi accepted Joe Bidens invitation to the “leaders climate top” 2 days after Putin validated his attendance– and four days after China and the US vowed to cooperate on taking on environment modification. Prof Nordin recommends that Xi will participate in COP26 if “it makes him and China look excellent, humane and strong in the eyes of both Chinese individuals in the house and global audiences abroad”. She specifies that Xis attendance is “more likely” to happen if “those going to have set out locations of arrangement and dispute in advance”. In reference to Xis conference with Macron and Merkel, Prof Nordin notes that Xi requires to feel “confident” that “Macron and Merkel will likewise portray Chinas role in COP26 in an excellent light”.

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XIS QUOTES: Chinas president Xi has vowed that China would make “exceptionally difficult efforts” to satisfy its “dedications” of peaking carbon emissions and achieving “carbon neutrality” throughout a speech at the Communist Party of China (CPC) and World Political Parties Summit on Tuesday. According to Peoples Daily, the mouthpiece of the CPC, Xi said at the virtual meeting that China intended to make an “even bigger contribution” to the worldwide efforts to deal with environment change. The leader added that China would go over a brand-new governance strategy for worldwide biodiversity with “all parties” at the UN Biodiversity Conference (COP 15), which is set up to happen in October in the Chinese city of Kunming.

Additionally, Bloomberg reported on Tuesday that Chinas leading financial preparation body, the National Development and Reform Commission (NDRC), had been put in charge of devising a plan for the nation to cut greenhouse gas (GHG) emissions. The newswire mentioned “people acquainted with the matter”, including that the move implies “environment policies are getting a more central function in the countrys long-lasting advancement strategy”.

RENEWABLES: The cumulative installed capability of sustainable electricity generation in China had reached 934m kilowatts by the end of 2020, accounting for 42.5% of the nations overall electricity-generating capacity, reported Beijixing Electricity Net. The energy news website pointed out a report launched by the National Energy Administration (NEA), Chinas energy regulator.

Xi gets personal invitation to COP26 from Johnson.

The trip symbolized what was described as the “golden era” of relations between China and the UK. In contrast, Johnsons invitation to Xi takes location “in the context of increasing rhetorical positioning of a systemic rivalry in between China and the West”, according to Prof Astrid Nordin from the Lau China Institute of Kings College London.

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₤ 13bn coal-chemical job stopped in the middle of energy crackdown.

STEEL PRODUCTION: Furnaces in “all major” steel mills in Chinas biggest steel-producing city, Tangshan, have actually resumed operation with production capped at 70% of capability, the state-run Global Times reported on Monday, mentioning a market report. In March, the authorities of Tangshan– a city 110 miles east of Beijing– bought lots of steel plants to keep their output at 50% to tackle contamination following a surprise assessment by the head of the MEE, Caixin reported previously.

Shaanxi explains itself as a “strong energy province” with abundant fossil-fuel resources, according to a federal government report. The document said Shaanxis “coal power” ensured the countrys “energy security” and steady economic growth in 2020.

According to Chinas Agriculture and Technology News, the job was expected to turn more than 20m tonnes of coal into nearly 6m tonnes of chemical items every year. The outlet stated that the jobs first stage was set up to go into operation last month following 2 years of building and construction.

EMISSIONS ROADMAP: Sources informed Bloomberg that Chinas central government had actually made a “brand-new plan” to guarantee the country hits its environment objectives. Chinas state financial organizer, NDRC, will “take the lead” in designing the broad strategy for cutting emissions and roadmaps for cleaning up carbon-intensive sectors, it said.

The building of an enormous coal-chemical project in China has been “stopped temporarily”, 21st Century Business Herald reported on Monday. The publication specified in an “special” that the 1,300-hectare task by Shaanxi Coal and Chemical Industry Group is the largest of its kind under building and construction globally. It stays uncertain why the suspension entered into location, but “people close to the project” told the outlet that the task had not completed its energy usage assessment..

CCUS As a second-best choice for Chinas carbon neutrality: an institutional analysisClimate Policy.

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In contrast, Johnsons invite to Xi takes place “in the context of increasing rhetorical positioning of a systemic competition between China and the West”, according to Prof Astrid Nordin from the Lau China Institute of Kings College London. “Dual-control” was a policy proposed by Chinas central federal government in 2015 to manage the countrys overall energy intake and energy intensity (the energy use per unit of GDP). XIS QUOTES: Chinas president Xi has promised that China would make “very strenuous efforts” to satisfy its “commitments” of peaking carbon emissions and attaining “carbon neutrality” throughout a speech at the Communist Party of China (CPC) and World Political Parties Summit on Tuesday. CARBON CAPTURE: Sinopec, a state-run corporation, said on Monday that it would start constructing a carbon storage, utilisation and capture (CCUS) job in eastern Chinas Shandong province, China Chemical Industry News reported. The energy news portal cited a report launched by the National Energy Administration (NEA), Chinas energy regulator.