International Climate Policy

World steel sector energy intensity index by region, 2005

Steel production accounted for nearly 17 percent of China’s primary energy use in 2008. Compared to developed countries’ steel producers, China’s steel sector has much higher primary energy intensity. This higher intensity can be explained by heavy reliance on coal, relatively higher iron alloy production, lower waste energy recovery, smaller scale of equipment, lower conversion efficiency of steam and oxygen, and relatively poor material quality (Huang 2008; Tsinghua Study 2009).

China's installed turbine capacity, 2006

A majority of turbines erected in China are small, with 600–850 kW turbines accounting for 80 percent of the market share. In 2006 the average size of turbines in China was 830 kW, compared to 1634 kW in Germany, 1634 kW in the United States, and 1100 kW in Spain. Today, the United States is developing 10 MW turbines, while China just tested 3 MW turbines.

Global installed wind energy capacity (GW) by nation, 2009

Due to constant technological improvement as well as enabling policies, worldwide installed wind power capacity has risen rapidly, from about 14 GW in 1999 to 158 GW in 2009, of which the United States and Germany accounted for approximately 41 percent. The 158 GW installed capacity was estimated to generate 340 terawatthours (TWh) electricity and save 204 million tons of CO2 in 2009 (Sawyer 2010).

Coal-fired electricity generation versus coal consumption per kWh in China, 2003-2009

Coal consistently contributes to over 75 percent of electricity in China (China Bureau of Statistics 2009). To meet its ever growing demands for electricity, China has seen rapid growth of coal-fired power generation. From 2003 to 2009 the country more than doubled its coal-fired generation capacity, making its fleet the largest in the world. However, the fuel consumption per unit of electricity generated during this period has steadily decreased. The use of supercritical/ultrasupercritical technology has significantly contributed to the improvement of energy efficiency.

China's R&D Expenditure, 1998-2008

In the past two decades China has emerged from a technology importer to a major manufacturer of a number of low-carbon technologies. China’s government R&D appropriations have increased dramatically, from 43.9 billion Yuan (US$6.8 billion) in 1998 to 254 billion Yuan (US$39 billion) in 2008. Accordingly, three other measures—gross R&D expenditure, R&D intensity, and government science and technology (S&T) appropriations—have also enjoyed rapid growth.

Map of China Carbon Capture and Storage (CCS) Projects

Following the government’s lead in supporting CCS technology research activities, leading Chinese energy enterprises have been investing in CCS technology demonstration projects. Petro China, the largest national oil company, began building China’s first CO2-Enhanced Oil Recovery (EOR) project at the Jilin Oil Field in Jilin Province in 2006. Two rival companies have plans to deploy plants with components of CCS technology in the next two years: GreenGen Co.’s IGCC plant with associated CCS plant, and Shenhua’s direct coal-to-liquids power plant with CO2 capture and storage.

Green Stimulus Spending

In addition to legislation, other completed actions have climate consequences, notably stimulus packages that made green spending a key feature, passed in response to the global economic crisis.

Projected U.S. Emissions under Different State Action Scenarios

This chart is based on WRI’s recent analysis of potential greenhouse gas emissions reductions under existing federal authorities and state actions through 2030.

Sample of Current and Planned Real Estate Projects in Southeast Asia Overlaid on Areas Exposed to Climate Hazards

Increased frequency of floods and storms from climate change can increase project delays, either through construction stoppage or late arrival of building materials due to transportation disruptions. Furthermore, the region’s building owners and developers should be prepared for stricter enforcement of permitting terms and tougher regulatory requirements relating to energy and water use. These factors contribute to higher material costs, so developers could face longer-term price increases for energy-intensive and imported materials.

Southeast Asia Electricity Demand in 2005 and Projected Demand in 2015 and 2030

Although the current global financial crisis has somewhat tempered growth in electricity demand in recent years, experts still predict that this region will experience the world’s largest growth in electric power consumption over the next decade. Residential/commercial demand is expected to be a critical driver in electricity demand in all focus countries through 2030. Of the focus countries, Malaysia exhibits the highest per capita electricity consumption rates, followed by Thailand.