China has set out more ambitious targets for reducing energy intensity in 2024 after falling short of the objective set for last year, as reported by Reuters on March 5. The National Development and Reform Commission (NDRC) has announced the target to bring down national energy intensity, or the energy consumption per unit of gross domestic product (GDP), by 2.5% in 2024. This year’s target follows a missed target for a 2% reduction in energy intensity in 2023, when China only recorded a 0.5% reduction in energy intensity. Notably, last year is the first time in two decades that China’s energy consumption growth outpaced GDP expansion. The NDRC cited the rapid growth of industrial and civilian power consumption as the reason for the miss of carbon intensity goal.

China’s 14th Five-Year Plan (2021-2025) outlined two key energy and climate tasks of reducing energy intensity by 13.5% and emissions intensity by 18% during the five-year period. However, following a series of power outages from 2020 to 2022, China loosened its grip on coal-fired power generation to ensure energy security. The shift led to a fourfold increase in approvals for new coal power plants between 2022 and 2023, compared to the total approved from 2016 to 2020. Consequently, carbon intensity only saw a 2% decline from 2020 to 2023, significantly lagging behind the targets set in the Five-Year Plan. To get back on track to reach the climate objectives, the NDRC vowed to “redouble efforts” this year to cut emissions and boost energy efficiency. Moreover, it will improve the carbon pricing mechanism, expand the Emission Trading Scheme (ETS), and develop clean technologies such as new energy vehicles and hydrogen power.

S****ources:

https://www.reuters.com/business/energy/china-sets-tougher-energy-efficiency-goal-after-falling-behind-2025-targets-2024-03-05/

https://www.bloomberg.com/news/articles/2024-03-05/china-targets-modest-reduction-in-energy-intenstity-for-2024

https://www.bloomberg.com/news/articles/2024-03-04/china-s-energy-target-failure-could-prompt-reset-at-national-people-s-congress

https://energyandcleanair.org/publication/china-risks-missing-multiple-climate-commitments-as-coal-power-approvals-continue/#:~:text=Following%20its%202021%20pledge%20to,power%20plants%20have%20been%20permitted