Posted on 07 Aug 2024
China's State Council, the country's top administrative body, has issued a detailed work plan to establish a dual-control system for carbon emissions, marking China's practical shift from energy consumption control to carbon emissions control to achieve the central government's carbon peak and carbon neutrality goals, according to the State Council's latest release.
The "dual control" of carbon emissions refers to regulating both total carbon emissions and carbon emissions involved in producing a unit of economic output, also known as emission intensity.
Previously, China had been committed to reducing energy consumption and energy intensity – the "dual control of energy consumption" – but later found that the use of non-fossil fuel energy, such as nuclear and renewables, was suppressed under the guidance, even though both forms are regarded as 'green' energy, Mysteel Global has learned. Meanwhile, strict energy usage requirements also affected the production of raw materials that is intrinsically energy-intensive.
Therefore, in July last year, Chinese policymakers reached a consensus to gradually shift to the dual control of carbon emissions from energy consumption, and now, just over a year later, the development of a "dual-control" system for carbon emissions has been officially mapped out.
As outlined in the latest work plan, the system will be established during the next five-year plan period over 2026-2030, with emission intensity outweighing total emission volume during assessment. Should carbon emissions peak before 2030 as expected, the main gauge of the system will be shifted to overall carbon emissions, according to the release.
Carbon emission quotas will be incorporated into national economic and social development planning, and existing rules or policies will be amended, if necessary, to be in accordance with the dual control of carbon emissions, the State Council said.
Significantly, to lay the foundation for the "dual-control" system, by 2025 China will optimize the statistical and accounting system for carbon emissions, with a focus on key industries including power, steel, metals, building materials, and petrochemicals, according to the plan.
Also, a budgeting system for carbon emissions will be trialled at provincial and municipal levels before the end of 2025 to ensure feasible and flexible carbon budgets for the implementation of the new system.
Source:Mysteel Global
