Facing China's Coal Future - IEA

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Facing China’s Coal Future: Prospects and Challenges for CCS © OECD/IEA 2011 Page | 16 Climate Change China's Policies and Actions for Addressing Climate Change (2008) Guide for CCS Science and Technology Development promote CCS research, development and demonstration. This was listed as one of the key tasks of GHG mitigation technology development by advancing capacity building, and developing a CCS technology roadmap and programmmes for demonstration of CO 2 utilisation and storage. On 29 October 2008, the State Council Information Office published a White Paper entitled China's Policies and Actions for Addressing Climate Change. It listed “Research of CCS technology" as one of China’s policies and actions to mitigate climate change and indicated that China will advance the use of cleaner coal and develop efficient and clean power-generating technology, such as large-scale combined cycle units and polygeneration, to promote technology for carbon dioxide sequestration. An initiative developed by MOST outlines CCS R&D goals in 2020 and 2030, identifying major tasks for capture, storage, transportation and utilisation technology development and determines near-term priority projects under national science and technology programmes. China’s 12th Five-Year Plan In March 2011, China’s 12 th Five-Year Plan (FYP) was released establishing CO 2 emissions reduction targets and further supports the development of advanced fossil fuel and low carbon technologies and RD&D as a means to reduce CO 2 emissions. China’s Policies and Actions for Addressing Climate Change (2011) On November 2011, the State Council Information Office published an updated White Paper on China's Policies and Actions for Addressing Climate Change in advance of COP17. The paper emphasises key climate actions of the 12th FYP and guidance on the National Plan to Address Climate Change (2011-2020). The paper highlights the importance China places on expanding key cooperation and R&D initiatives including CCS, and development of low carbon technology roadmaps. It also details 12th FYP commitments to emissions trading markets and low carbon pilot projects. Source: PRC Information Office of the State Council and Chinese government publications. China’s first CCS policy efforts began with a series of central government policies led by the National Development and Reform Commission, China’s leading policy‐making institution along with MOST. These policies focus on supporting CCS R&D within national science and technology programmes. China’s Medium and Long‐term National Plan for Science and Technology Development (2006‐20) noted that CCS was an important frontier technology. In 2007, China issued its National Climate Change Programme, which aims to strengthen the development and dissemination of advanced technologies. A large portion of this programme focuses on developing coal gasification and systems including CCUS technologies (NDRC, 2007). As mentioned earlier, in 2007, MOST issued China’s Scientific and Technological Actions on Climate Change (MOST et al., 2007), an initiative developed in conjunction with 13 of the many government institutions involved in energy policy and administration (Figure 7). Under this initiative, projects in China of over USD 100 million must go through project approvals. In the case of storage projects, requirements must be approved by the National Development and Reform Comission, the National Energy Administration and the Ministry of Land Resources. In line with broad policy priorities established in the five‐year plan and related energy planning, further development of CCS will require legislative action at top‐level bodies, including the State Council, the National People’s Congress and ministries with jurisdiction across several industrial sectors and areas. Provincial, local and municipal bodies will also be essential to specific projectapproval processes, as will engaging local stakeholders throughout the planning, feasibility and approval stages, to avoid projects being derailed late in the process. Municipal and local authorities in China have led significant efforts in developing low‐carbon and clean‐energy projects within their jurisdictions. Given the complexities of industry sectors and geological and environmental considerations, engagement at the local level will be important for CCS project development in China and globally.
© OECD/IEA 2012 Facing China’s Coal Future Prospects and Challenges for Carbon Capture and Storage Figure 7 Chinese government institutions involved in energy policy and administration Page | 17 Source: IEA and Chinese government publications. Several agencies that have oversight and regulatory authority over power generation, power markets and coal development may also have active roles in the development of CCS policy in China. For instance, the State Electricity Regulatory Commission of China (SERC), the agency responsible for regulating China’s power sector, is developing a climate change action plan which will include aspects for consideration of the CCS industry with a focus on possible mandates and incentives for improved energy efficiency and renewable energy in the electricity sector. Following higher‐level policy development and legal and regulatory frameworks in China, SERC may be in a position to provide further regulation on CCS with a view to integrating CCS in future action plans. This may include a range of actions, from requirements for new plant builds requiring CCS readiness to more aggressive mandates on efficiency and emissions that would provide incentives for CCS. Given China’s rapidly evolving regulatory frameworks for industry, stricter environmental considerations and the unique challenges posed by China’s increasing energy demand, regulators will need to identify gaps and work to develop CCS‐related regulations that consider examples of relevant regulations adopted in other countries while meeting China’s unique situation and development priorities. Regulatory developments in the CCS sector will need to cut across
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