Assessment of China’s Energy-Saving and Emission-Reduction Accomplishments and Opportunities During the 11th Five Year Plan

During the period 1980 to 2002, China experienced a 5% average annual reduction in energy consumption per unit of gross domestic product (GDP). The period 2002-2005 saw a dramatic reversal of the historic relationship between energy use and GDP growth: energy use per unit of GDP increased an average of 5% per year during this period. China's 11th Five Year Plan (FYP), which covers the period 2006-2010, required all government divisions at different levels to reduce energy intensity by 20% in five years in order to regain the relationship between energy and GDP growth experienced during the 1980s and 1990s. This report provides an assessment of selected policies and programs that China has instituted in its quest to fulfill the national goal of a 20% reduction in energy intensity by 2010. The report finds that China has made substantial progress toward its goal of achieving 20% energy intensity reduction from 2006 to 2010 and that many of the energy-efficiency programs implemented during the 11th FYP in support of China's 20% energy/GDP reduction goal appear to be on track to meet – or in some cases even exceed – their energy-saving targets. It appears that most of the Ten Key Projects, the Top-1000 Program, and the Small Plant Closure Program are on track to meet or surpass the 11th FYP savings goals. China's appliance standards and labeling program, which was established prior to the 11th FYP, has become very robust during the 11th FYP period. China has greatly enhanced its enforcement of new buildin genergy standards but energy-efficiency programs for buildings retrofits, as well as the goal of adjusting China's economic structure to reduce the share of energy consumed by industry, do not appear to be on track to meet the stated goals. With the implementation of the 11th FYP now bearing fruit, it is important to maintain and strengthen the existing energy-saving policies and programs that are successful while revising programs or adding new policy mechanisms to improve the programs that are not on track to achieve the stated goals.