Trajectory of the Green Giant Dragon: The Development of China's Energy Conservation Policy (2000s-2020s)

Trajectory of the Green Giant Dragon: The Development of China's Energy Conservation Policy (2000s-2020s)

In the early 2000s, China's rapid economic growth led to worsening energy consumption and environmental pollution; the Energy Conservation Law enacted in 1997 was revised in 2006, imposing reporting requirements on companies to introduce energy-saving technologies, and establishing an incentive system and a local government responsibility structure. Tax incentives and subsidies were used to promote the introduction of energy-saving equipment and renewable energy.

In the 2010s, the "12th Five-Year Plan" (2011) was launched, setting a target of reducing CO₂ emissions per GDP by 40-45% from the 2010 level. Solar and wind power generation expanded rapidly, and China became the world's largest solar market in 2017. Smart grid and electric vehicle (EV) policies have also been strengthened, with EV infrastructure development and the introduction of subsidies stimulating the market for BYD, Tesla, and others.

In the 2020s, the "14th Five-Year Plan" set the goals of CO₂ peak out by 2030 and carbon neutrality by 2060; by 2025, the installed capacity of wind and solar power will be expanded to more than 1.2 billion kilowatts and energy consumption intensity will be reduced by 13.5%. Beijing plans to use energy-efficient construction for more than 80% of new buildings, and Shanghai plans to convert half of its new car sales to EVs. The State Grid Corporation is promoting smart grid and renewable energy integration, and BYD is emerging as a global EV company based in Shenzhen.

Summary of related information

Legislation: The "14th Five-Year Plan" sets targets to reduce energy consumption intensity by 13.5% and CO₂ emissions by 18% by 2025.
Numerical targets: non-fossil fuel share to 20% by 2025 and 25% by 2030. Forest coverage to 24.1% by 2025.
Major locations and examples:
- Beijing: Over 80% of new buildings to be energy efficient.
- Shanghai: 50% of new cars sold will be EVs.
Major companies:
- State Grid Corporation: Promoting integration of renewable energy and smart grid.
- BYD: Based in Shenzhen, BYD has grown into a global EV company.