context: ‘Dual control’ targets were implemented rigidly in the past at the expense of economic growth. By advocating for flexibility and considerations beyond numerical ‘dual control’ targets, Beijing is leaving room for emissions to grow in 2022 to meet its ambitious 5.5 percent GDP annual growth target, even as it aims to reduce energy intensity by 13.5 percent by 2025.
Important changes for measuring carbon emissions and meeting carbon targets were announced in the 2022 GWR (Government Work Report) delivered by Premier Li Keqiang 李克强 on 5 Mar 2022. These include
- assessing energy intensity targets in a comprehensive manner, leaving appropriate room for flexibility
- excluding renewables and the use of raw fuels in chemical processing from controls on total energy consumption
Assessing energy intensity targets in a comprehensive manner involves assessing the whole energy system, including emissions, economic indicators and energy security, rather than focusing on certain specific targets, noted Zeng Ming 曾鸣 North China Electric Power University, Energy Internet Research Centre director. Zeng sees this move as beneficial for coordinating the development of energy security, the economy and renewables.
The use of raw fuels excluded under the GWR refers to the consumption of fossil fuels in chemical processes in the coal chemical and petrochemical industries, according to Zhou Dadi 周大地 NDRC's (National Development and Reform Commission) Energy Research Institute former director. Zhou emphasised that fuels used for power generation in these industries will not be exempt.
In the past, even firms using renewable energy were subject to production and electricity limits, explained Wang Weiquan 王卫权 China Energy Research Society, Energy and Environment Committee secretary general, as he welcomed the changes as a boost for renewables.
Growth in power consumption outpaced GDP growth in 2021, reducing energy intensity by 2.7 percent, slightly short of the 2021 GWP’s goal of 3 percent.
Compared to recent years, 2022's GWR puts greater emphasis on fossil fuels for energy security and clean coal. Unlike the 2021 GWR, it does not mention 'reforms' in the energy sector.