204 G. CHEN
Supportive Policies
Targets in the Five-Year Plans. As a typical model of state capitalism,
China’s FYP system, together with various forms of subsidies and other
policy supports offered by the state to a wide range of energy industries, has been vital in fostering fierce competition among various energy
sectors, most of which are highly regulated by the state. As evident in the
specifications of targeted growth rates and supporting policies in various
FYPs for different non-fossil fuels, as well as policy changes in tariffs
and subsidies of on-grid electricity, China’s active low-carbon strategy,
being sensitive to dynamics of domestic supporting industries, technological competitiveness and environmental protection, has reshaped China’s
power market.
The government set the target of cutting energy intensity, which refers
to energy consumption per unit of GDP, by 20, 16, and 15%, respectively, in its 11th, 12th, and 13th FYP. At the Copenhagen Climate
Summit in 2009, China added carbon intensity, another efficiency index
measuring carbon emissions per unit of GDP, into its energy planning
system. Accordingly, China’s 12th and 13th FYP set the five-year targets
of cutting carbon intensity by 17 and 18%, respectively (Chen 2019,
p. 111). In order to implement this, the government used economic and
taxation tools such as preferential purchase of renewable power, preferential taxation policies toward energy efficiency projects, favorable financing
policies, tax rebate cuts on high-energy intensity exports and compulsory government procurement of energy-saving products to achieve the
goal. Detailed energy efficiency actions included petroleum substitution,
surplus heat utilization, construction of energy efficiency buildings, public
transport development, energy-saving auto development, innovation of
coal-fueled industrial boilers and green lighting project.
Since 2007, the government started to use energy intensity index
together with overall economic and investment figures to measure performances of local officials. Some regional energy efficiency and low-carbon
projects like the state-level pilot zone in Hubei and Hunan Provinces
and the Singapore-China Eco-City in Tianjin were launched. Finally, the
country achieved a 19.1% decrease in energy intensity in the five years
to 2010, 0.9 percentage point lower than the original target. In order
to improve its image in global climate politics before the Copenhagen
Climate Summit in 2009, China, for the first time declared that it was
targeting a hefty 40–45% cut in carbon intensity (the amount of carbon
Supportive Policies
Targets in the Five-Year Plans. As a typical model of state capitalism,
China’s FYP system, together with various forms of subsidies and other
policy supports offered by the state to a wide range of energy industries, has been vital in fostering fierce competition among various energy
sectors, most of which are highly regulated by the state. As evident in the
specifications of targeted growth rates and supporting policies in various
FYPs for different non-fossil fuels, as well as policy changes in tariffs
and subsidies of on-grid electricity, China’s active low-carbon strategy,
being sensitive to dynamics of domestic supporting industries, technological competitiveness and environmental protection, has reshaped China’s
power market.
The government set the target of cutting energy intensity, which refers
to energy consumption per unit of GDP, by 20, 16, and 15%, respectively, in its 11th, 12th, and 13th FYP. At the Copenhagen Climate
Summit in 2009, China added carbon intensity, another efficiency index
measuring carbon emissions per unit of GDP, into its energy planning
system. Accordingly, China’s 12th and 13th FYP set the five-year targets
of cutting carbon intensity by 17 and 18%, respectively (Chen 2019,
p. 111). In order to implement this, the government used economic and
taxation tools such as preferential purchase of renewable power, preferential taxation policies toward energy efficiency projects, favorable financing
policies, tax rebate cuts on high-energy intensity exports and compulsory government procurement of energy-saving products to achieve the
goal. Detailed energy efficiency actions included petroleum substitution,
surplus heat utilization, construction of energy efficiency buildings, public
transport development, energy-saving auto development, innovation of
coal-fueled industrial boilers and green lighting project.
Since 2007, the government started to use energy intensity index
together with overall economic and investment figures to measure performances of local officials. Some regional energy efficiency and low-carbon
projects like the state-level pilot zone in Hubei and Hunan Provinces
and the Singapore-China Eco-City in Tianjin were launched. Finally, the
country achieved a 19.1% decrease in energy intensity in the five years
to 2010, 0.9 percentage point lower than the original target. In order
to improve its image in global climate politics before the Copenhagen
Climate Summit in 2009, China, for the first time declared that it was
targeting a hefty 40–45% cut in carbon intensity (the amount of carbon