China’s recent emergence as a global superpower has been nothing short of spectacular. An economic powerhouse cementing itself as a major manufacturing hub producing goods at competitive costs, it boasts the qualities of a key player in trade and a leader in technological innovation. However, the booming economy that has fueled its national growth has been accompanied by an environmental cost as the country grapples with transitioning towards a sustainable future. In light of the Shanghai Climate Week that took place from the 22nd to the 26th of April, we review a hallmark development in Chinese sustainability policy dating from 2021, namely its ‘Action Plan for Carbon Dioxide Peaking Before 2030’. Here, we delve into the plan’s perspective on domestically phasing out non-renewables and enabling a circular economic shift to transition to greener sources of energy and resource efficiency.
Published just before COP26 by China’s Department of Resource Conservation and Environmental Protection, the Action Plan sets ambitious goals for the energy sector. As the name indicates, it seeks to align itself with the Paris Agreements and aims to peak carbon emissions by 2030 to see through a transition away from fossil fuels towards cleaner sources of energy. The plan puts forth a set of guidelines for cracking down on non-renewables while developing a circular industry that promotes clean energy sources in waste-intensive sectors across all regions.
A move away from tradition: sunsetting non-renewables & promoting clean energy sources
As the world’s largest emitter of carbon dioxide (CO2), China decided to target coal consumption and limit its use throughout the next two Five-Year plans. An energy source traditionally used in an array of industries, coal represented a 60.6% share of its energy supply at the time of the plan’s release. Used as an effective and affordable resource over the last few decades, it seeks to phase out coal-intensive practices by placing severe restrictions on “new coal power projects”. And in the cases they do approve of such projects, they are expected to be benchmarked against international standards. Additionally, designated zones will see a ban on bulk coal burning, replaced by cleaner options over time. Oil and gas have also been named as areas that will see increased regulation this decade with consumption not exceeding a “reasonable” range and alternatives being promoted when possible.
The expansion of its renewable energy portfolio constitutes another key point of the plan. Wind and solar power will see large-scale, high-quality development across the country, considering both centralised power plants feeding into the national grid and other distributed systems like rooftop solar panels that generate power for local use. Construction of wind and solar farms will be accelerated, with a particular focus on integrating cutting-edge technologies. Beyond established renewable sources, China is exploring the vast potential of alternative energy options. Biomass power generation and heating, which utilises organic materials like wood waste or agricultural residues, is expected to attract CN¥1.2T of investment from the government between 2021-2025. This is further reinforced by the plan’s ambition to promote “a low-carbon transition in rural development”, a goal notably supported by the construction of eco-friendly housing, clean energy heating, and low-carbon greenhouses among other initiatives.
Practising circular economic principles - an ambitious review of industry
China’s multi-pronged approach to gradually yet significantly reduce reliance on non-renewables also factors in the importance of including circular economic principles. Ranging from industry standards to household-oriented policy, the plan outlines four main focus areas.
A prominent feature of Chinese economic development since the 1980s has been the establishment and subsequent development of its industrial parks. Subject to circular experimentation since the State Council’s 2005 opinion piece on Speeding up the Development of the Circular Economy calling for pilot programs in these zones, it comes as no surprise they are included here. In this case, Beijing seeks to optimise spatial layouts to facilitate resource exchange and cascading use. Efforts are further directed towards encouraging circular production practices in both individual enterprises and respective industries within the parks. In the spirit of circular economic practice, the plan highlights the importance of retrofitting existing facilities for clean production technologies. Comprehensive waste utilisation solutions and sharing platforms will ultimately also be integrated to make all key industrial parks at the provincial level and above to support circular operations by 2030.
Building on the latter point, the use of bulk solid waste makes up another pillar of Beijing’s strategy. This includes finding new applications for waste materials and encouraging using these materials as substitutes for raw resources. This idea is promoted by the “in-situ reclamation and reuse of pavement materials”. Keeping in mind that bulk solid industrial waste tallied at 1.5 billion tons in 2020, this represents a major effort towards closing the loop in the manufacturing industry. For the agricultural sector, a major source of waste, namely crop straw, will be targeted for value-added recycling. This involves streamlining purchasing, storage, and transportation systems for crop straw while strictly enforcing a ban on burning. Projects to showcase the comprehensive utilisation of bulk solid waste will be accelerated to explore diverse applications of these materials in hopes of remaining on track to meet the target of annually recycling around 4.5 billion metric tons of bulk solid waste by 2030. To maximise resource recovery, it plans to create modernised centres for recovering minerals from urban waste, promoting clean and large-scale use of these materials. Emerging waste streams like decommissioned batteries and wind turbine blades will be targeted for circular utilisation, alongside fostering high-quality remanufacturing industries for products like auto parts. This focus is expected to significantly increase recycling rates, with a target of 510 million metric tons of nine key resources recycled annually by 2030.
The last component of the circle and a non-negligible factor in the transition are the households themselves. The Xi administration estimates that by 2025 the reclamation rate of household waste will reach 60%, increasing to 65% by 2030. Done in accordance with the above initiatives, it emphasises the need for faster collection, transportation, and disposal systems so as to enable sorting at designated facilities. The recycling of sewage is seemingly also on the agenda although no further elaboration is provided to narrow down the extent of the initiative.
China Action, Global Standard
International cooperation and participation in green governance systems make up part of the concluding sections of the plan. Advocating for Xi’s "ecological civilisation" approach that accentuates the coexistence of humans and nature, China makes clear its intention to contribute to global discussions by pushing for fair and effective global environmental governance. To achieve this, it promotes the trade and disclosure of eco-friendly products and green technologies, with a focus on collaboration in clean energy research and development. Additionally, financial tools like green bonds are encouraged to support the shift towards a low-carbon economy whilst maintaining healthy market structures. Finally, it highlights an intent to green the Belt and Road Initiative by emphasising sustainability in infrastructure, energy, and finance.
Now, whether China will reach its goal to peak CO2 emissions by 2030 remains to be seen. An expert poll conducted by the Helsinki-based Centre for Research on Energy and Clean Air in 2021 concluded with 70% of respondents agreeing it would meet its target. And while the shift stimulated by a combination of the post-pandemic economic environment and ongoing negotiations with international powers was initiated, recent developments have slowed it down. A real estate sector marred with lingering debt issues and a series of stimulus packages aimed at reinvigorating industrial output has put economic well-being ahead of sustainable growth. In this sense, 2024 could see China increase its use of coal to facilitate an economic rebound and would see its share of global coal emissions rise from an already record-breaking 64.4% in 2023. The upcoming months will prove valuable in determining how close the Eastern powerhouse can stay to its target and hold true to its Action Plan.