Re­port: En­ergy costs to hit $5.7 tril­lion

IEA ex­pects heavy spend­ing to make trans­porta­tion sec­tor more ef­fi­cient

China Daily (Canada) - - BUSINESS - By DUJUAN dujuan@chi­nadaily.com.cn

China could in­vest as much as $5.7 tril­lion by 2035 to find, pro­duce and save en­ergy, ac­count­ing for 15 per­cent of global spend­ing in the sec­tor, a re­port from the In­ter­na­tional En­ergy Agency said on Thurs­day.

Fatih Birol, chief econ­o­mist of the Paris-based IEA, told a work­shop on the re­port in Bei­jing that China has made “out­stand­ing ef­forts” to in­crease en­ergy ef­fi­ciency and re­duce coal use to meet global cli­mate tar­gets.

Ac­cord­ing to the re­port, China will in­vest $1.6 tril­lion in en­ergy ef­fi­ciency by 2035, ac­count­ing for about one­fifth of the global to­tal.

Birol said that trans­porta­tion will be the largest tar­get for China’s in­vest­ment in en­ergy ef­fi­ciency, ac­count­ing for about 71 per­cent of the $1.6 tril­lion, fol­lowed by in­dus­try and the build­ing sec­tor.

“The Chi­nese govern­ment is work­ing hard to re­duce oil con­sump­tion in cars, which will lead to in­creas­ing in­vest­ment in rais­ing en­ergy ef­fi­ciency in trans­porta­tion,” said Birol. “It is cru­cial for emis­sion re­duc­tion.”

From 2011 to 2013, China avoided 900 mil­lion met­ric tons of car­bon emis­sions by curb­ing coal de­mand, ac­cord­ing to IEA data.

Birol called that a “big story”, since the amount saved was equal to about one year of global emis­sions.

“China’s re­duc­tion of coal use has a much greater im­pact on global mar­kets than the United States’ shale gas revo­lu­tion,” he said.

Zou Ji, deputy di­rec­tor-gen­eral of theNa­tional Cen­ter for Cli­mate Change Strat­egy and In­ter­na­tional Co­op­er­a­tion, said China has been de­vel­op­ing high ef­fi­ciency coal-fired power gen­er­a­tion in re­cent years to cut emis­sions and pro­tect the en­vi­ron­ment.

“The need for in­vest­ment in low-car­bon en­ergy in the com­ing two decades is huge,” Zou said.

He added that the coun­try should use in­vest­ment as a tool to guide tech­no­log­i­cal trans­for­ma­tion and the ca­pac­ity of en­ergy sup­ply.

“It can be an in­ter­est­ing point to con­sider about leading roles of de­vel­oped coun­tries in re­form­ing the world en­ergy in­vest­ment sys­tem to cre­ate in­cen­tives and guid­ance,” he said.

Ac­cord­ing the IEA, cap­i­tal costs to pro­duce en­ergy have dou­bled since 2000.

In 2013, the num­ber soared to $1.6 tril­lion to pro­vide con­sumers with en­ergy glob­ally. IN­VEST­MENT IN EN­ERGY SUP­PLY (2014-35)

63%

37% IN­VEST­MENT IN EN­ERGY EF­FI­CIENCY (2014-35)

71% amount of car­bon emis­sions re­duced from2011 to 2013

“To­day’s in­vest­ments lock in pat­terns of con­sump­tion, fuel use and emis­sions for long into the fu­ture,” said the re­port.

The global in­vest­ment needs in en­ergy sup­ply to­tal $40 tril­lion by 2035, twothirds of which will be in emerg­ing economies. The core in­vest­ment area will shift from China to other coun­tries in Asia, as well as Africa and Latin Amer­ica.

Up to $23 tril­lion of the $40 tril­lion will go to fos­sil fuel ex­plo­ration, trans­porta­tion and re­fin­ing while $10 tril­lion will go to power gen­er­a­tion.

The re­main­der will be spent on power trans­mis­sion and dis­tri­bu­tion.

Guo Haitao, a pro­fes­sor at the China Univer­sity of Petroleum, said China should in­vest in clean coal, dis­trib­uted nat­u­ral gas power gen­er­a­tion and elec­tric ve­hi­cles for en­ergy ef­fi­ciency.

“Fu­ture in­vest­ment in en­ergy might turn out to be less than the IEA has fore­cast be­cause of tech­no­log­i­cal de­vel­op­ment.”

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.