15th 5-year plan sets roadmap for future energy action

context: The 15th 5-year plan for national economic and social development was delivered by premier Li Qiang 李强 on 15 March. The plan outlined a number of major energy and environmental indicators, some already outlined in the country's Nationally Determined Contributions and separate policy documents. The headline is likely to be the call for a 17 percent reduction in carbon intensity, reflecting a lowering of ambition from the previous target, and the notable absence of a specific peak emissions figure for 2030, giving Beijing flexibility in meeting their 2035 greenhouse gas reduction target. 

The 15th 5-year plan for national social and economic development notes the main energy-related goals for the next five years, highlighting

  • notable progress in high-quality development 
    • unified national market advanced in-depth and the advantages of an ultra large-scale market highlighted 
  • the level of scitech self-reliance and self-strengthening greatly enhanced 
    • basic research and innovation capacity strengthened 
    • key and core technologies will achieve rapid breakthroughs 
    • number of major scitech discoveries will be produced, with more sectors moving from 'running alongside' to leading 
    • the role of innovation as the main driving force will be further strengthened 
  • major progress in building a 'Beautiful China' 
    • green production and lifestyles basically established 
    • carbon peaking target achieved on schedule 
    • carbon intensity (per unit of GDP) reduced by 17 percent
    • clean, low-carbon, safe and efficient new energy system preliminarily built 
    • environment quality comprehensively improved 
      • total emissions from major pollutants will continue to decline 
      • average concentration of PM2.5 in major cities to fall below 27 micrograms per cubic meter 
      • proportion of good quality surface water bodies will rise to 85 percent 
      • forest coverage will reach 25.8 percent
    • national security 'shield' further consolidated, with comprehensive production capacity reaching 5.8 billion tonnes of standard coal

Other key energy priorities mentioned in the report include

  • upgrading key industries and energy-intensive sectors 
    • promote structural adjustment in steel, petrochemicals and shipbuilding industries 
    • advance tech upgrading, with development of advanced, smart, green and service-oriented manufacturing 
    • promote market oriented mergers and acquisitions alongside the orderly exit of backward production capacity
    • launch projects to make breakthroughs on major equipment 
    • increase mid to long-term loans for tech innovation, digital smart transformation and green transformation 
  • developing and expanding new and future industries 
    • accelerate development of strategic emerging industries such as next-gen IT, renewables, new materials, smart NEVs, robots, biomedicine, high-end equipment and aerospace 
      • develop regionally distinct and complementary industry clusters
      • cultivate emerging 'pillars' with strong growth potential and broad application 
    • carry out planning for future industries 
      • foster new growth points in quantum tech, biomanufacturing, hydrogen and nuclear fusion energy, brain-computer interfaces, embodied intelligence and 6G 
  • building new-type energy infrastructure 
    • promote safe, reliable and orderly substitution of fossil fuels with non-fossil energy 
      • adhere to multi-energy mix of wind, solar, hydro and nuclear 
    • balance local consumption and power transmission 
      • build large-scale clean energy bases characterised by wind-solar bases in the north, hydro-wind-solar bases in the southwest and coastal nuclear and offshore wind
      • optimise national/cross-regional power flows and continue smart grid construction 
    • strengthen clean and efficient use of fossil fuels
      • promote upgrading and retroffiting of coal-fired power and the retirement of outdated plants 
    • raise electrification rate of final energy use 
  • fine-tuning energy prices, carbon peaking and the green transition 
    • achieve carbon peaking 
    • implement dual control for total and intensity of carbon emissions 
      • put systems in place for 
        • local carbon assessment 
        • sectoral carbon control
        • corporate carbon management 
        • project-level carbon evaluation
        • product carbon footprints
    • build control mechanisms for sectoral emissions 
      • manage emissions from high-intensity projects, required to implement equal emissions substitution 
      • formulate rules for product carbon footprint accounting 
      • establish system for product carbon labelling and certification 
    • promote energy-saving and carbon reduction in key sectors 
      • strictly control coal and energy-intensive projects 
      • build zero-carbon factories and parks in suitable regions 
      • relocate high-load industries relocated to areas rich in renewables 
  • strengthening energy security and international cooperation 
    • strengthen energy and resource supply through multi-source approach 
    • safeguard oil and gas needs with actions to increase reserves 
    • improve coal reserve system through long-term contract mechanisms for energy supply, emergency dispatch and backup generation capacity