Foreword 2
It is an honour for Royal Dutch Shell to have worked with the Development
Research Center (DRC) of the State Council on this book. The fact that this is
the third book we have produced together on China’s energy system is a
matter of great pride to me and to the company. It is a partnership of mutual
respect and understanding.
The book you are holding is the greatest achievement so far in a collaboration which started in 2011. This collaboration brings together the DRC’s
deep understanding of China’s energy system and the development challenges which need to be addressed, with Shell’s international experience and
knowledge of energy markets, regulatory mechanisms and the drivers of
energy demand.
In the first publication, the DRC and Shell took a broad look across
China’s energy system. The second focused on the role of natural gas in
diversifying China’s energy mix. This book explores China’s energy revolution in the context of a changing world energy system.
It is hard to miss the changes taking place in China’s energy landscape. In
2019 China produced 40% of all the wind turbines in the world. It made
three-quarters of the world’s solar panels. Nearly half of the electric vehicles
on the planet today, and half the hydrogen-fuelled vehicles, are owned by
Chinese people.
The role of renewables in China’s energy system is also gaining ground
fast. The amount of wind energy could double and the amount of solar
quadruple between 2015 and 2020. And the Chinese government’s move
towards establishing a national carbon pricing mechanism is yet another sign
of the country making progress towards a new era of cleaner energy.
Of course, China’s challenge is the world’s challenge: to meet growing
energy demand while causing as little harm as possible to the environment.
The world population is growing, from 7.5 billion today to 9.8 billion in
2050, according to the United Nations. That population, which currently
includes around 1 billion people without access to basic electricity, is seeking
a better standard of living. Many of the people who improve their lives will
do so by consuming more energy. So, we can expect global energy demand
to rise.
vii
It is an honour for Royal Dutch Shell to have worked with the Development
Research Center (DRC) of the State Council on this book. The fact that this is
the third book we have produced together on China’s energy system is a
matter of great pride to me and to the company. It is a partnership of mutual
respect and understanding.
The book you are holding is the greatest achievement so far in a collaboration which started in 2011. This collaboration brings together the DRC’s
deep understanding of China’s energy system and the development challenges which need to be addressed, with Shell’s international experience and
knowledge of energy markets, regulatory mechanisms and the drivers of
energy demand.
In the first publication, the DRC and Shell took a broad look across
China’s energy system. The second focused on the role of natural gas in
diversifying China’s energy mix. This book explores China’s energy revolution in the context of a changing world energy system.
It is hard to miss the changes taking place in China’s energy landscape. In
2019 China produced 40% of all the wind turbines in the world. It made
three-quarters of the world’s solar panels. Nearly half of the electric vehicles
on the planet today, and half the hydrogen-fuelled vehicles, are owned by
Chinese people.
The role of renewables in China’s energy system is also gaining ground
fast. The amount of wind energy could double and the amount of solar
quadruple between 2015 and 2020. And the Chinese government’s move
towards establishing a national carbon pricing mechanism is yet another sign
of the country making progress towards a new era of cleaner energy.
Of course, China’s challenge is the world’s challenge: to meet growing
energy demand while causing as little harm as possible to the environment.
The world population is growing, from 7.5 billion today to 9.8 billion in
2050, according to the United Nations. That population, which currently
includes around 1 billion people without access to basic electricity, is seeking
a better standard of living. Many of the people who improve their lives will
do so by consuming more energy. So, we can expect global energy demand
to rise.
vii