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CEMF | China Energy Model Forum Releases Report on 'Low-Carbon, Resilient, and Inclusive Development of Energy Transition' (Including Full Report Download Link)
Source:清华大学CIDEG Sep 23, 2022
Abstract
 

Energy transition is an important measure to mitigate climate change. The IPCC Working Group II report "Climate Change 2022: Impacts, Adaptation, and Vulnerability" clearly indicates that the significant threat posed by climate change to critical infrastructure, including energy, is one of the important risks that human society will face.

In recent days, CEMF published the report 'Low-Carbon, Resilience, Inclusivity Development of Energy Transformation'. The report pointed out that the task of achieving 'Dual Carbon' is limited in time and has a huge burden. And the key for China to achieve low-carbon development is energy industry transformation. Under the new status, however, the change in international geopolitics and energy supply-demand situation and the higher frequency of extreme weather occurrences would bring many challenges for energy transformation. Energy systems have complex mutual relationships with economics, society, and environmental system. Hence, energy transformation is not only a revolution of the energy system but also a systematic revolution for economic society. The energy transformation of the new era must be a process for the synergistic development of low carbon, resilience, and inclusivity.
 
On-site Interpretation of the Report

The "Low-Carbon, Resilient, and Inclusive Development of Energy Transition" report was publicly released online during the "Zero Carbon Think Tank Series Forum III." Ms. Qiu Ying, the project director of the Beautiful China project at the China Energy Model Forum, provided an on-site interpretation of the report.

Ms. Qiu Ying, Project Director of CEMF, interpreting the report on-site

 

Highlights of the Report Launch Event
 
'Carbon Reduction, Carbon Utilization, Carbon Replacement, Carbon Sequestration'

"Carbon dioxide emissions from energy consumption are the main source of greenhouse gas emissions. Therefore, developing and establishing a clean, low-carbon, safe, and efficient energy system has become an important strategy and current trend for promoting global sustainable development," stated He Jiankun, Director of the National Expert Committee on Climate Change and Chairman of the China Energy Model Forum (CEMF) Academic Committee, at the launch event. Wu Mouyuan, Deputy Director of the Economic and Technological Research Institute of China National Petroleum Corporation and a strategic research expert, summarized China's path to low-carbon energy transformation with the four words: 'Carbon Reduction, Carbon Utilization, Carbon Replacement, Carbon Sequestration.' Under the 'Dual Carbon' goal, the main strategies for achieving low-carbon transformation include:

• The share of non-fossil energy in primary energy consumption needs to experience exponential growth and become the dominant energy source within 10 to 20 years after peaking. By 2060, when carbon neutrality is achieved, non-fossil energy should account for more than 75% of primary energy demand.
• The power system needs to achieve net-zero emissions at an early stage through a high proportion of non-fossil energy sources, carbon capture and storage (CCS), and negative emission technologies. By 2060, non-fossil energy generation should reach around 90%.
• The level of electrification in end-use sectors needs to be significantly increased from the current level of around 27% to between 60% and 90% by 2060.
• The industrial and transportation sectors face significant challenges in achieving carbon neutrality by 2060 and require improvements in energy efficiency, electrification, the use of low-carbon energy, and CCS technology.

Research conducted by the CEMF team on pathways to carbon neutrality shows that driving energy transition through a combination of policies that promote the substitution of high-intensity electricity, the development of renewable energy, and improvements in energy efficiency can help China achieve its macroeconomic development goals. Overall, the economic cost of achieving carbon neutrality shows a small initial fluctuation but a larger fluctuation in the later stages. Therefore, achieving peak emissions and deep emission reductions with high efficiency, speed, and quality will reduce the cost and difficulty of achieving the long-term goal of carbon neutrality.

 

Resilience and inclusivity in energy development support energy security and a fair transition.
However, energy low-carbon transition is a long-term process. Strong energy storage methods and the need for energy and power load balancing at different times or seasons are among the technical challenges that still need to be addressed, as pointed out by Mr. He Jiankun, Chairman of the Academic Committee of CEMF. Li Junfeng, Executive Director of the China Energy Research Association, mentioned the need to consider the resilience of energy transition, which includes various dimensions, such as natural changes, economic changes, and various situations, based on the vulnerability of the energy system itself.

An energy system with resilience should be able to anticipate risks and respond accordingly, rapidly adapt to disturbances, recover quickly, and adapt to future risk patterns. Building a resilient development framework for energy transition is crucial. The CEMF research shows that extreme weather increases the demand for flexible power sources in the electricity system. Enhancing the power system's resilience can be achieved through diversified power supply structures, including traditional fossil fuels.

Strengthening the resilience of the power system is the key to realizing the resilient development of the energy transition. CEMF research shows that extreme weather increases the demand for flexible power sources in power systems. The realization of diversified power supply structures such as traditional thermal power generation, renewable energy power generation and other energy power generation, centralized, distributed and mobile multi-type power supply modes, and the application of energy storage technology can strengthen the resilience of the power system. Before energy storage technology can be applied on a large scale, the role of thermal power guarantee is indispensable. In addition, to strengthen the resilience of the power system, it is also necessary to build a large-scale power transmission system to support cross-regional power transmission.

It is worth noting that energy transition is a matter of national importance and people's livelihoods, involving a complex array of stakeholders. This includes different levels of government in various regions, all companies along the energy industry value chain, employees working in the energy sector, and the vast population relying on energy production for their livelihoods. These stakeholders may have entirely different demands and interests regarding economic benefits, social development, and ecological conservation. Therefore, based on their own interests, the impacts they face, and their positions, these stakeholders may make different choices during the energy transition process, thereby influencing the progress and outcomes of the energy transition. Only by achieving inclusive development in energy transition can we balance the interests and demands of different stakeholders, eliminate potential adverse effects resulting from unequal distribution, and reduce resistance to the energy transition. According to Li Junfeng, 'Inclusiveness is crucial. Without inclusiveness, there can be no cooperation. Cooperative inclusiveness is the key to the success of global energy transition and also the key to the success of China's energy transition.'

The report argues that promoting inclusive development in energy transition requires a people-centered approach. It emphasizes the need to establish regionally differentiated energy transition plans, formulate plans for diversified regional economic development, and identify new industries and economic growth areas to replace traditional energy industries. It also highlights the importance of early planning for the orderly phase-out of fossil fuels and the implementation of measures for related industry transformation and upgrading.
 
The report stresses the importance of fully anticipating the impacts of the energy transition on different population groups and developing comprehensive social protection policies to provide greater support in terms of policies and funding for vulnerable groups. It calls for the establishment of mechanisms to coordinate interests and ensure a fair distribution of transition costs and benefits. Transparent and inclusive decision-making and implementation mechanisms are recommended, with broad participation from multiple stakeholders, including governments, businesses, research institutions, and the public, in developing and implementing energy transition solutions.
 
Additionally, the report emphasizes the need to establish long-term mechanisms for tracking population, social, and regional development and proper documentation and data preservation to support evidence-based decision-making. To embark on a path of efficient, rapid, and high-quality emissions reduction in China, the report highlights the vision of openness, cooperation, inclusiveness, and green low-carbon approaches, as envisioned by Wu Mouyuan, to collectively move towards the future.

 

 The coordinated development of low-carbon, resilience, and inclusiveness needs to be implemented as soon as possible.

Many local governments have recognized the importance of resilience and inclusiveness in energy transition and have been actively promoting it. Beijing Municipality issued the "Guiding Opinions on Accelerating the Promotion of Resilient City Construction" in November 2021. Over the years, Shanxi Province has been implementing the concept of inclusive development in addressing the reemployment of laid-off workers in the coal and steel industries. Data shows that in 2016, the capacity reduction in Shanxi's coal and steel industries involved 25 coal mines and 1 steel company, requiring the resettlement of 31,662 employees.

The aforementioned practical cases reflect the initial stages of resilience and inclusive development, laying the foundation for accelerating the coordinated development of low-carbon, resilience, and inclusiveness in energy transition. To further promote this synergy, the report suggests that relevant decision-making departments and supporting institutions should promptly undertake the following tasks:

• Establish a clear roadmap for the coordinated development of the three aspects, fully exploring and leveraging the synergies between low-carbon energy development, resilience development, and energy technologies, and incorporating the elements of resilience and inclusiveness into relevant energy transition plans.
• Systematically construct the outline of energy transformation resilient development, enhancing research on the pattern of new risk on the energy system, assessing the harm scale of each sort of risky factor, including frequency, degree, and time, and setting long-term strategy for reacting risks.
• Establishing an assessment system of energy transformation inclusivity development and taking it into the criteria of energy transformation examination.
• Develop differentiated and adaptive energy transition strategies for different regions, balancing the short-term and long-term interests of various sectors and regions, and leveraging policy tools and market mechanisms to coordinate the costs and benefits of energy transition.

• Improve social protection policies and long-term guarantee mechanisms, increase policy and financial support to vulnerable groups, and explore forms of broad participation from relevant stakeholders to promote successful practices as quickly as possible

Ensuring resilience and inclusive development is of great significance in the energy transition process. According to He Jianku, we can achieve the coordinated and sustainable development of the economy, society, energy, and environment by strengthening technological innovation and promoting energy transition. This will promote the construction of a global ecological civilization, foster the building of a community with a shared future for humanity, and achieve harmonious development between humans and nature. He emphasized the importance of adapting to and leading the global trend and tide of the energy transition, making China's contribution to the construction of a global ecological civilization.

 

 

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