needed to rectify the economic distortions caused
by such market failures. In addition, the introductory and growth periods of new energy need
support policies. Due to the complexity of the
energy system, the energy transition must use
market forces to promote innovation and find
effective and flexible ways to deliver desired
goals. Many governments have realised this and
are taking measures to ensure market failures are
corrected. Figure 10 shows the countries that have
implemented, are about to implement, or are
considering implementing carbon pricing (in the
form of a carbon tax or emissions trading system).
1.5 Developing and Emerging
Economies Can Leapfrog
Ahead
International experience shows that while there is
a general route for countries to follow in energy
transition as they develop, the path that a country
takes can vary significantly, depending on its
economic structure, improvements in energy
efficiency, consumption patterns, population
density and climate, among other things.
Countries such as China, Brazil and Malaysia
are at a crossroads. Their path to energy transition
may diverge from international experience. These
countries need to choose between the energy
development paths available to them: whether to
have a level of energy consumption per person
similar to that of the USA (high), South Korea
(medium) or Spain (low) as income per capita
increases. Alternatively, they can use policy to
leapfrog historical patterns of energy system
development to achieve high income per capita
and lower and cleaner energy consumption.
By leveraging advanced technologies and
learning from, then adapting, the policies and
institutional frameworks of other countries,
developing and emerging economies can achieve
lower energy consumption and greenhouse gas
emissions per capita earlier than high-income
countries (as shown in Fig. 11). Developing and
emerging economies have the potential to provide advanced energy services without the negative environmental impact that advanced
economies have had, and they can exploit their
late-mover advantage in the growing global
market for energy services.
2 From Quantity to Quality: The
Goal and Approach of China’s
Energy Revolution
2.1 The Goal of China’s Energy
Revolution
In 2015, China’s 13th Five-Year Plan (2016–20)
proposed to empower low-carbon cyclic development by promoting an energy revolution,
accelerating energy technology innovation, and
setting up a clean, low-carbon, secure and efficient energy system. In 2017, the report of the
19th National Congress of the Communist Party
of China noted that China’s economy has moved
from a phase of rapid growth to one of
high-quality development. China, it said, must
focus on improving the supply system and
strengthening the economy in terms of quality.
Quality energy is an important part of the supply
system and a key objective of the energy
revolution.
2.1.1 What is a High-Quality Energy
System?
Based on the 13th Five-Year Plan, the report of
the 19th National Congress of the CPC and
development strategies such as Made in China
2025 state that China’s high-quality energy system should feature the following three
characteristics:
First, it should be clean and low carbon.
A clean energy system is one in which the entire
energy life cycle—from production and conversion to transmission and consumption—achieves
the lowest possible levels of pollution and
emissions. Low carbon is a key part of this. CO 2
itself is not a polluting gas, but it has significant
impacts on the environment. Moreover, the
Chinese government has made a solemn commitment to the international community, as part
of its nationally determined contributions, to
reduce global carbon emissions. The energy
Overview: High-Quality Energy for High-Quality Growth …
9
by such market failures. In addition, the introductory and growth periods of new energy need
support policies. Due to the complexity of the
energy system, the energy transition must use
market forces to promote innovation and find
effective and flexible ways to deliver desired
goals. Many governments have realised this and
are taking measures to ensure market failures are
corrected. Figure 10 shows the countries that have
implemented, are about to implement, or are
considering implementing carbon pricing (in the
form of a carbon tax or emissions trading system).
1.5 Developing and Emerging
Economies Can Leapfrog
Ahead
International experience shows that while there is
a general route for countries to follow in energy
transition as they develop, the path that a country
takes can vary significantly, depending on its
economic structure, improvements in energy
efficiency, consumption patterns, population
density and climate, among other things.
Countries such as China, Brazil and Malaysia
are at a crossroads. Their path to energy transition
may diverge from international experience. These
countries need to choose between the energy
development paths available to them: whether to
have a level of energy consumption per person
similar to that of the USA (high), South Korea
(medium) or Spain (low) as income per capita
increases. Alternatively, they can use policy to
leapfrog historical patterns of energy system
development to achieve high income per capita
and lower and cleaner energy consumption.
By leveraging advanced technologies and
learning from, then adapting, the policies and
institutional frameworks of other countries,
developing and emerging economies can achieve
lower energy consumption and greenhouse gas
emissions per capita earlier than high-income
countries (as shown in Fig. 11). Developing and
emerging economies have the potential to provide advanced energy services without the negative environmental impact that advanced
economies have had, and they can exploit their
late-mover advantage in the growing global
market for energy services.
2 From Quantity to Quality: The
Goal and Approach of China’s
Energy Revolution
2.1 The Goal of China’s Energy
Revolution
In 2015, China’s 13th Five-Year Plan (2016–20)
proposed to empower low-carbon cyclic development by promoting an energy revolution,
accelerating energy technology innovation, and
setting up a clean, low-carbon, secure and efficient energy system. In 2017, the report of the
19th National Congress of the Communist Party
of China noted that China’s economy has moved
from a phase of rapid growth to one of
high-quality development. China, it said, must
focus on improving the supply system and
strengthening the economy in terms of quality.
Quality energy is an important part of the supply
system and a key objective of the energy
revolution.
2.1.1 What is a High-Quality Energy
System?
Based on the 13th Five-Year Plan, the report of
the 19th National Congress of the CPC and
development strategies such as Made in China
2025 state that China’s high-quality energy system should feature the following three
characteristics:
First, it should be clean and low carbon.
A clean energy system is one in which the entire
energy life cycle—from production and conversion to transmission and consumption—achieves
the lowest possible levels of pollution and
emissions. Low carbon is a key part of this. CO 2
itself is not a polluting gas, but it has significant
impacts on the environment. Moreover, the
Chinese government has made a solemn commitment to the international community, as part
of its nationally determined contributions, to
reduce global carbon emissions. The energy
Overview: High-Quality Energy for High-Quality Growth …
9