1 China’s Energy Transition Strategy in the Context of Global …
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production capacity and resources of each region, stressing clear regional division
of labor and cooperation to bring out comparative advantages, and guiding and
improving transportation infrastructure network; (3) bearing in mind the status quo
and disparities of regional energy development, and putting forward the plan for
energy system integration on a case-by-case basis. In theory, the envisioned energy
system not only fits in with the current requirements of carbon emission cut and
sustainable development, but also future mandates for zero or even negative carbon
emission. However, this notion is now a mere scientific assumption and a system-wide
proposition, and merits more research and practice to verification.
1.4 Requirements and Suggestions for Energy Governance
and Energy Market to Fulfill the “3+1” Vision
With the future path of the energy system proposed in Sect. 1.1.3, a new framework
of energy governance is needed to introduce strategy and policy that are to be implemented in the energy market so as to secure low-carbon transition of the physical
energy system. In particular, the novel approach of “3+1” energy system integration
would pose new challenges to China’s existing energy governance and energy market
model. The following section would put into perspective the main challenges for the
current system in light of the current energy governance and energy market in China,
and provide policy suggestions.
1.4.1 Challenges for Energy Governance and Energy Market
Brought by “3+1”
1.4.1.1 Fragmented Authority Renders Integrated Governance Difficult
The functions of China’s energy governance are currently split among a dozen
government agencies, which involves consultations among them when it comes to
major energy issues. The “3+1” approach would require involvement of more functional agencies to devise energy planning and exercise governance. Therefore, the
primary challenge for China’s energy governance is to coordinate a range of government authorities in promoting energy system integration, tackling climate change
while advancing low-carbon transition of the energy sector.
1.4.1.2 The “Top-Down” Management Approach Hampers Innovation
A vertical hierarchy has long characterized China’s energy management. The drawback of the “top down” approach is: when dealing with such complex and enduring
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production capacity and resources of each region, stressing clear regional division
of labor and cooperation to bring out comparative advantages, and guiding and
improving transportation infrastructure network; (3) bearing in mind the status quo
and disparities of regional energy development, and putting forward the plan for
energy system integration on a case-by-case basis. In theory, the envisioned energy
system not only fits in with the current requirements of carbon emission cut and
sustainable development, but also future mandates for zero or even negative carbon
emission. However, this notion is now a mere scientific assumption and a system-wide
proposition, and merits more research and practice to verification.
1.4 Requirements and Suggestions for Energy Governance
and Energy Market to Fulfill the “3+1” Vision
With the future path of the energy system proposed in Sect. 1.1.3, a new framework
of energy governance is needed to introduce strategy and policy that are to be implemented in the energy market so as to secure low-carbon transition of the physical
energy system. In particular, the novel approach of “3+1” energy system integration
would pose new challenges to China’s existing energy governance and energy market
model. The following section would put into perspective the main challenges for the
current system in light of the current energy governance and energy market in China,
and provide policy suggestions.
1.4.1 Challenges for Energy Governance and Energy Market
Brought by “3+1”
1.4.1.1 Fragmented Authority Renders Integrated Governance Difficult
The functions of China’s energy governance are currently split among a dozen
government agencies, which involves consultations among them when it comes to
major energy issues. The “3+1” approach would require involvement of more functional agencies to devise energy planning and exercise governance. Therefore, the
primary challenge for China’s energy governance is to coordinate a range of government authorities in promoting energy system integration, tackling climate change
while advancing low-carbon transition of the energy sector.
1.4.1.2 The “Top-Down” Management Approach Hampers Innovation
A vertical hierarchy has long characterized China’s energy management. The drawback of the “top down” approach is: when dealing with such complex and enduring