Narrow Results

After the Chinese government’s announcement to achieve the goal of “carbon peaking and carbon neutrality”, the solar photovoltaic power generation industry in the country has experienced rapid development. This paper examines the impact of China’s “dual-carbon” goal on the country’s photovoltaic industry. Photovoltaic companies listed on the stock market are selected and the stock price data of these selected companies from June 1, 2020 to January 28, 2022 are tested for potential structural changes. The paper adopts the Quandt–Andrews test and the results show that the four selected companies have indeed undergone structural changes within one year after the announcement of the dual-carbon goal, and that the demand for photovoltaic power generation equipment has increased significantly. Finally, some suggestions are put forward for enhancing the photovoltaic industry after the COVID-19 pandemic.

Since September 22, 2020, President Xi Jinping, who is also the general secretary of the Communist Party of China (CPC) Central Committee, has reiterated China’s carbon peaking and carbon neutrality goals on many major international occasions and at many important conferences of the CPC Central Committee. The transition to carbon neutrality is becoming a systemic revolution concerning whether China’s high-quality economic and social development and sustainable prosperity can be achieved. Incorporating carbon peaking and carbon neutrality well into overall economic and social development framework and ecological civilization construction, setting out the timetable, clarifying the roadmap, and proposing specific action plans have become a global concern. Through the analysis of international situations and China’s national strategies, and the application of Integrated Assessment Modeling Consortium (IAMC), this paper explores China’s pathways to carbon peaking and neutrality, and puts forward recommendations for high-quality development featuring low emissions.

Power industry is the largest carbon emission sector in China. Therefore, this industry will play an important role in achieving the carbon peaking and carbon neutrality goals (“dual carbon” goals) for the whole society. For this purpose, it is critical to balance four relationships, i.e. relationship between carbon mitigation and energy security, carbon peaking in the short term and carbon neutrality in the long term, the coordinated carbon mitigation in power industry and other industries, and technical feasibility and economic efficiency. This paper proposes the China’s Energy Interconnection scenario to promote carbon peaking and carbon neutrality of the society, which can be divided into three stages, i.e. peaking carbon emissions before 2030, rapid emission reduction during 2030–2050, and comprehensive carbon neutrality before 2060. It is expected that the power system will achieve zero emissions before other industries and contribute negative emissions afterwards, providing emission space for carbon neutrality in other industries across the society. Looking into the future, China’s electricity demand will continue to grow. Clean energy will become the main power source, the use of coal-fired power will be gradually reduced, and gas-fired power will undertake the function of peak-load regulation. Faster progress will be made in forming an overall grid pattern with ultra-high voltage (UHV) grid as the backbone and featuring “west-to-east and north-to-south power transmission, a balanced energy mix, and transnational power interconnection.” Finally, this paper discusses a new-type of power system characterized by a high proportion of electricity generated from clean energy, high ratio of electric and electronic equipment, and a high proportion of power transmission and reception, together with summer and winter high load periods, and points out the challenges faced by the new-type power system with a high proportion of renewable energy sources in terms of flexibility, safety, and economic efficiency, and proposes corresponding policy recommendations.

Achieving carbon peaking and carbon neutrality in the building sector is an important component of China’s “dual carbon” goals. In recent years, the country’s direct carbon emissions in the building sector have hit a plateau while the total emissions still grow rapidly. Besides, the building materials for construction and refrigerants leaked during buildings’ operation also result in greenhouse gas emissions. To achieve the targets set for future low-carbon development, the building sector should feature “sufficient demand, decarbonized structure and flexible load.” According to the analysis of the emission reduction approaches adopted by different sectors, China’s building sector should make a ceaseless effort to promote building energy conservation, improve electrification, and load flexibility, reform the energy system in rural areas, optimize the heating structure in northern China’s urban areas, as well as reduce the emissions during construction and the non-CO₂ gas emissions. In the 14th Five-Year period, it is suggested to clarify the total energy consumption and carbon emission targets, adjust the energy structure more vigorously, and draw up more measures to reduce the emissions related to construction and refrigerant leakage.

This paper summarizes the new progress in building China’s national carbon market since 2020, and analyzes the connotation of China’s carbon peaking and carbon neutrality goals (“dual carbon” goals) and its significance to socio-economic development in China. Through case analysis, this paper expounds the role of China’s recent carbon trading activities in promoting the transition toward green and low-carbon socio-economic development. On that basis, this paper conceives a top-level design for building the national carbon market that serves the “dual carbon” goals: building and improving the national carbon market that fundamentally serves as an emission reduction tool, developing the institutions and systems of the national carbon market with a focus on emission cap, creating a multilevel and diversified carbon trading scheme centered on the national carbon market, exploring a mechanism that takes carbon emission reduction as the core and promotes the synergistic effect of the carbon market with other environmental rights trading markets, and pursuing the healthy and orderly development of carbon finance that aims to serve carbon emission reduction.

Now, China has made it clear that it will strive to have CO₂ emissions peak before 2030 and achieve carbon neutrality before 2060 (the “dual carbon” goals), based on the logic that carbon peaking is a prerequisite for carbon neutrality. The year 2021 is the first year of China’s 14th Five-Year Plan period. As the main battlefields to achieve the “dual carbon” goals, cities are also required to build on their pathways towards such goals under new conditions. Based on the progress China has made with pilot cities for low-carbon development and the discussion on 60 cities by category, this paper identifies the commonalities and differences between Chinese cities’ pathways towards carbon peaking, and concludes that Chinese cities need to peak their carbon emissions in an organized and step-wise way on the basis of classification and according to their own development level and emission characteristics. In light of the above conclusion, this paper provides feasible suggestions for Chinese cities’ carbon peaking.

In the analogy where achieving the “carbon peaking and carbon neutrality” goals (the “dual carbon” goals) is compared to a battle, energy is the main battlefield, and electric power the main force. The low-carbon transformation path of the electric power industry exerts fundamental impact on progress towards carbon peaking and carbon neutrality of the whole society. Therefore, this paper first analyzes challenges and opportunities faced by the electric power industry to achieve the “dual carbon” goals; secondly, on the basis of deep low-carbon, zero-carbon and negative-carbon scenarios of the electric power industry, this paper quantifies and delves into the consumption structure of primary energy and final energy, as well as the future development positioning and trend of different categories of energy. Based on the research results, this paper proposes low-carbon transformation path of the electric power system at the stages of carbon peaking, deep low-carbon and carbon neutrality, and analyzes the trend of power supply cost changes in different scenarios. On this basis, a series of implementation key points and measures are proposed to adapt to green and low-carbon transformation of the electric power industry, covering areas such as coal-fired electric power development positioning, new energy development and utilization, diversified supply and demand, new energy industry chain, and power supply costs, and so forth.

After the carbon peaking and carbon neutrality goals were proposed, different institutions and scholars carried out research on China’s medium- and long-term mitigation pathways. Through the literature review of China’s research on carbon neutrality, this paper finds that the zero-carbon energy transition is the key to achieving carbon neutrality. The main driving factors of reducing energy-related carbon emissions include the cleanliness of primary and secondary energy supply systems, the electrification of energy consumption and the development of hydrogen energy, energy efficiency improvement, carbon capture and storage (CCS), and negative emissions. Furthermore, based on the literature, this paper conducts a quantitative comparative analysis, and selects key indicators for comparative analysis and summary from seven dimensions, including economic and social development, carbon emission pathways, primary energy consumption, final energy consumption, final hydrogen energy consumption, electricity demand and supply, and installed capacity and structure of power generation. Main conclusions are as follows: (i) In terms of carbon emission pathways, the institutions generally believed that China will peak carbon emissions around 2028 and achieve carbon neutrality between 2050 and 2060. Achieving net-zero or near-zero emissions first in the power sector is the key to carbon neutrality across the society; (ii) In terms of energy supply, it is a consensus to increase the proportion of clean energy and reduce carbon emissions from the source. The proportion of clean energy in primary energy will increase to more than 85%, and the proportion of clean energy power generation and installed capacity will reach more than 90%; (iii) In terms of energy use, electricity will become the core of final energy consumption in the future. The predicted electricity consumption across the society will range 14.3–18.4PWh, and the predicted electrification rate will exceed 65%.

The iron and steel industry is the largest carbon emitter in China’s manufacturing sector and one of the most important fields in the country’s response to climate change. This paper aims to explain the current situation, technological pathways, and future direction of green and low-carbon development of the iron and steel industry. According to the carbon emissions of the iron and steel industry, this paper analyzes the relationship between steelmaking technologies and carbon emissions, as well as the transformation trend of the world’s iron and steel industry, finding that China’s iron and steel industry faces both opportunities and challenges. Steel scrap recycling and electric furnace steelmaking technologies, re-electrification, hydrogen metallurgy, resource recycling and by-products, and carbon capture and utilization (CCU) are the main technologies tailored to the transformation pathways, and the optimization of energy consumption structure is an important direction for future development. Therefore, this paper believes that clean energy, as a guarantee for carbon mitigation, will play an increasingly important role in the process towards achieving carbon peaking and carbon neutrality goals (the “dual carbon” goals), in addition to the transformation of metallurgical technologies.