The paper “Clean Power for Industry in China: Policy Enablers for the Industrial Sector” by the World Economic Forum concludes that in the next decade, China is set to expedite industrial decarbonization, with the intention of shifting from controlling energy consumption and intensity to controlling carbon emissions and carbon intensity. In this process, the government could play a much more proactive role in identifying practical applications and boosting businesses’ confidence to participate.
On the production side, the integration of green power with the production of downstream raw materials – such as green hydrogen, green ammonia and green methanol – could be strengthened. On the infrastructure side, the new power systems could be optimized to balance the grid expansion and the cost-effectiveness of user-side BTM facilities. On the demand side, participation in demand response could be incentivized to facilitate the grid’s supply-and demand balance amid the growing integration of renewables.
Collaborative efforts among government, businesses, multilateral agencies and all sectors of society are imperative. More policies and measures are needed to speed up research and development, hasten the application of clean energy technologies, accelerate China’s nationally determined contributions amid global action against climate change and propel the country’s economy and its society towards a sustainable transition.
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