Incorporation of Environmental Considerations in Energy Planning in the People’s Republic of China

This 1995 report by the Stockholm Environment Institute, conducted as a UNEP project with the National Environmental Protection Agency of China, analyzes the environmental impacts of energy planning in the People's Republic of China. Using the LEAP/EDB model, the study compares a Business-As-Usual (BAU) scenario against two enhanced environmental scenarios to forecast pollutant emissions (SO2, CO2, NOx, PM, and CO) through 2020. The report identifies coal as the primary driver of pollution and recommends a shift toward a cleaner energy mix, improved energy efficiency, and the implementation of integrated energy-environment planning and economic instruments to achieve sustainable development.

• In 1990, coal was the dominant energy source in China, accounting for 76.19% of primary energy consumption. The report notes that "Coal is the main energy source in China" and that this coal-dominated mix is "not likely to alter" over the following 30 years.
• Energy consumption in China was the primary source of air pollution in 1990. Specifically, SO2 emissions were estimated at 16.23 million tons, with 95.71% related to coal combustion; smoke dust emissions were 11.44 million tons (98.83% from coal); CO2 emissions were 650 million tons of carbon equivalent (87.20% from coal); NOx emissions were 91.11 million tons (71.84% from coal); and CO emissions were 29.16 million tons (60.29% from coal).
• Under the Business-As-Usual (BAU) scenario, pollutant emissions are projected to grow significantly by 2020. SO2 emissions are expected to rise from 16.23 million tons in 1990 to 35.52 million tons, while CO2 emissions are projected to jump from 650 million tons to 1.64 billion tons of carbon equivalent.
• The report proposes two enhanced environmental scenarios to mitigate emissions. Scenario I assumes some market imperfections and realistic penetration rates for mitigation options, while Scenario II assumes well-established market mechanisms and maximum penetration rates. By 2000, SO2 emissions in Scenario I would be 20.84 Mt and in Scenario II would be 20.45 Mt, both of which meet Chinese government objectives.
• To reduce pollutant emissions, the report recommends improving the primary energy production mix by increasing the share of clean energy. Specifically, it suggests "accelerating development of hydropower", expanding the "exploitation and import of oil and natural gas", and "moderately speeding up the development of nuclear power".
• The study identifies several cost-effective mitigation options for reducing SO2 emissions. The lowest cost option is shifting high-quality coal from utility to industrial boilers in urban areas (117 Yuan per ton of SO2 reduced), followed by switching from raw coal to washed coal for industrial boilers (400 Yuan per ton). More expensive options include Flue Gas Desulfurization (1196 Yuan per ton) and Integrated Gasification Combined Cycle Combustion (2126 Yuan per ton).
• The report emphasizes the need for energy efficiency improvements in the residential sector, particularly for existing buildings. It notes that "buildings constructed in the past, when retrofitted, have failed to adopt this energy-saving standards" and recommends planned retrofits and the use of heat-insulated building materials.
• The study recommends establishing an integrated energy-environment planning system to identify the least cost options for implementation. This would involve bringing "the costs of environmental damage and resource compensation into the cost of production of energy" and strengthening organizational structures to coordinate between the state and regions.
• To ensure the implementation of energy policies, the report suggests several economic instruments, including a "pollution levy fee system" based on the principle that "polluters should pay", and the establishment of "environmental resource compensation" and CO2 taxes within a 3-5 year time frame.
• The report highlights the importance of international cooperation for financing and technology transfer. It estimates that Enhanced Scenario I requires a net additional cost of 2.1 billion yuan per annum (1990 prices), and Scenario II requires 3.7 billion yuan annually, necessitating support from international aid funds.

APA

Stockholm Environment Institute (1995). Incorporation of Environmental Considerations in Energy Planning in the People’s Republic of China. https://leap.sei.org/documents/ChinaUNEPNEPA.pdf

Chicago

Stockholm Environment Institute. Incorporation of Environmental Considerations in Energy Planning in the People’s Republic of China. 1995. https://leap.sei.org/documents/ChinaUNEPNEPA.pdf.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=Incorporation of Environmental Considerations in Energy Planning in the People’s Republic of China |date=November 1995 |url=https://leap.sei.org/documents/ChinaUNEPNEPA.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitute1995incorporation, author = {{Stockholm Environment Institute}}, title = {{Incorporation of Environmental Considerations in Energy Planning in the People’s Republic of China}}, institution = {Stockholm Environment Institute}, year = {1995}, month = nov, url = {https://leap.sei.org/documents/ChinaUNEPNEPA.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }