Annual Review of Low-Carbon Development in China (2011-2012)
Summary
During the 11th Five-Year Plan (2006-2010), China achieved a 19.06 percent reduction in energy intensity against a 2005 baseline, driven primarily by technological development and structural adjustments. Despite these efficiency gains, total emissions increased by 33.6 percent, making China the world's largest emitter in 2007. The government deployed significant investment, totaling 1.73 trillion yuan in new and renewable energy and 859.2 billion yuan in energy efficiency, though these efforts primarily benefited large state-owned enterprises over small and medium enterprises. Looking toward the 12th Five-Year Plan, the document identifies challenges in meeting ambitious energy and carbon intensity targets due to rapid urbanization, rising marginal costs of conservation, and the continued prioritization of GDP growth by local governments.
Key insights
- China reduced its energy intensity by 19.06 percent relative to the 2005 baseline during the 11th Five-Year Plan (2006-2010), which corresponds to a CO2 emissions reduction of 1550 Mt. This improvement was driven mostly by technological development (69 percent) and structural adjustment (23 percent), with energy-efficiency improvements accounting for 87 percent of the total CO2 reduction.
- Despite intensity reductions, China's total emissions volume grew by 33.6 percent during the 11th Five-Year Plan, leading the country to surpass the United States as the world's largest emitter in 2007.
- China's investment in new and renewable energy from 2006 to 2010 totaled 1.73 trillion yuan (USD 266.6 billion), making it the global leader in such investment. The breakdown includes 621.8 billion yuan for hydropower, 469.9 billion yuan for wind power, 366.8 billion yuan for nuclear power, 199.7 billion yuan for solar photovoltaic power, and 74.9 billion yuan for biomass.
- An additional 859.2 billion yuan was invested in energy efficiency during the 11th Five-Year Plan, with private investment providing 85.3 percent (733.1 billion yuan) and government funding providing 14.7 percent (126.1 billion yuan). The industrial sector received 64.1 percent (551.1 billion yuan) of this total, while the building sector received 30.2 percent (259.3 billion yuan).
- The geographic shift of energy-intensive industries from eastern China to western and northeastern China during the 11th Five-Year Plan resulted in a relative energy intensity increase of approximately 0.5 percent in those regions, locking in a high-emissions economic structure in the West and Northeast.
- Policy implementation during the 11th Five-Year Plan relied heavily on administrative and incentive instruments, which reduced carbon emissions by 473 MtCO2 and 777 MtCO2 respectively, while market instruments only reduced emissions by 15 MtCO2.
- The 12th Five-Year Plan sets ambitious targets, including a 16 percent reduction in energy intensity, a 17 percent reduction in carbon intensity, and a 11.4 percent share of non-fossil energy in total primary energy consumption. Achieving these is complicated by the fact that many 'low-hanging fruit' efficiency gains have already been realized.
Cite the original document
- APA
- Climate Policy Initiative (2012). Annual Review of Low-Carbon Development in China (2011-2012). https://www.climatepolicyinitiative.org/wp-content/uploads/2011/11/China-Country-Study-Chapter-Summaries-Updated.pdf
- Chicago
- Climate Policy Initiative. Annual Review of Low-Carbon Development in China (2011-2012). 2012. https://www.climatepolicyinitiative.org/wp-content/uploads/2011/11/China-Country-Study-Chapter-Summaries-Updated.pdf.
- Wikipedia
- {{cite report |author=Climate Policy Initiative |title=Annual Review of Low-Carbon Development in China (2011-2012) |date=30 January 2012 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2011/11/China-Country-Study-Chapter-Summaries-Updated.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{climatepolicyinitiative2012annual, author = {{Climate Policy Initiative}}, title = {{Annual Review of Low-Carbon Development in China (2011-2012)}}, institution = {Climate Policy Initiative}, year = {2012}, month = jan, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2011/11/China-Country-Study-Chapter-Summaries-Updated.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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