4.4.2 Continuously Improve
and Implement Non-fossil
Energy Subsidy Policies
With the introduction of carbon pricing and
non-fossil energy subsidy policies, the proportion
of non-fossil energy in the energy mix will
increase. Non-fossil energy subsidies will have a
greater impact on energy mix adjustment than
carbon pricing. This may be due to the slower
reduction in cost of non-fossil energy technologies in the absence of policy support. Even though
carbon pricing policies reduce fossil energy
Fig. 24 Influence of carbon pricing and non-fossil
energy subsidies on total energy consumption and the
energy mix. Note BAU represents a carbon- and
subsidy-free baseline scenario. T90, T60 and T30
represent three carbon price scenarios ($90/tCO 2 e,
$60/tCO 2 e and $30/tCO 2 e respectively). S30 and S20
represent two scenarios (non-fossil energy price subsidy
of 20% and 30% respectively)
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