Bejing plan sets ambitious targets for emissions and resource conservation
Tough energy reforms lie ahead Image: CNPC |
China's central government has unveiled its thirteenth "Five Year Plan" for energy, which will guide the processes at China's largest state-owned oil companies for the next half-decade.
The plan focuses on slowing the nation's carbon emissions in line with overarching goals of hitting its CO2 peak by 2030.
Following the recent Sino-US joint agreement on emissions, China has officially pledged to lower its carbon emissions to around 10.5bn tons by 2020, with a view to slowing any further increase by just 0.5bn to 11bn tons by 2030.
One of the key challenges will be in standardising emissions reporting across all provinces and industries. Reporting can vary greatly province-to-province and the central government is investing heavily in establising accurate metrics that are standardised but also allow for flexible and responsive target setting.
For energy companies, the newest Five Year Plan will have nine key componenets:
- Promoting energy conservation
- Improving domestic oil and gas supply capacity
- Developing clean coal technologies
- Substantially increasing the use of renewable energy
- Safe development of nuclear power
- Increasing international cooperation on energy projects
- Building and strengthening strategic oil reserves
- Deepening reform in the energy sector
- Enhancing technological expertise and promoting innovation in the energy sector
As the recent Sino-US emissions pact indicates, China is opening up to international collaboration on energy issues and is committed to long-term, sustainable energy use.
The strong focus on R&D combined with an increase in foreign partnerships could be a boon for international players with strong expertise in the sector.