China's govt issues warning to provinces on energy targets
London (Quantum Commodity Intelligence) - Only a third of Chinese provinces and regions are on course to meet both their energy consumption and energy intensity targets, China's main planning agency said in a statement Thursday, warning the remaining 20 local governments to increase efforts.
In a quarterly barometer, China's National Development and Reform Commission (NDRC) said just 10 provinces and regions are on track to meet goals to collectively reduce the energy intensity of its economy by 3% this year.
Of 30 provinces and regions, the NDRC highlighted four most likely to miss targets, including those that are some are the biggest emitters, such as Zhejiang, Guangdong, Guanxi and Yunnan, which it issued a "first warning" level to for likely missing both targets.
Sixteen other provinces are likely to miss one or both targets, according to the data.
"Areas with the first and second warning levels must resolutely implement the decisions and deployments of (central government), stay vigilant about the severe energy-saving situation in the first quarter, thoroughly analyze and reflect on the causes of problems, and take effective measures to quickly reverse the situation," the NDRC said.
China has a broader target to cut energy intensity by 13.5% over the 2021-2025 period, including a reduction of 18% in the carbon intensity of the goods and services it produces.
The policy is meant to help the world's biggest emitter to ensure carbon emissions peak in 2030 and it becomes carbon neutral by 2060.
However, China missed its energy intensity goals last year as some regions and provinces struggle to marry national energy and emissions targets with the need to provide cheap energy.
In February China launched its carbon emissions trading scheme in a bid to force investment away from coal and towards cleaner fuels.
But low penalties and the way the scheme is structured mean it is likely a data gathering exercise – much in the same way the European scheme was in 2005-2007 - for the 2,220 power stations the Chinese scheme will cover in the first year.
