| Contents Executive summary 5 Model portfolio 24 Where we are today 28 Emissions are rising 30 China the No. 1 emitter of CO2; India No. 5 30 Coal — a key energy source — is responsible for much of the emissions 33 Chinese government: fighting climate change 36 China’s energy intensity fell in the past three years 38 India’s emissions not to peak soon 39 Global CO2 emissions to grow by 45% by 2030 39 Reasons China must act 40 International pressure 40 Environmental impact on China 40 China’s challenges 45 Population concentrated along the coast 45 Disparity in economic development 46 Lack of efficient technologies 46 Difficult to greatly diversify away from coal 46 Chinese government’s plan to address climate change 51 Government’s principles 51 China’s targets 52 Major areas for GHG mitigation 53 10 key energy conservation priority programs 54 China is set to become world’s largest renewable market 58 China’s plan for renewable energy 58 Other solutions 65 Nomura Expert Series: Study on China’s Policy for Co-Control of Air Pollution and GHGs by Dr Hu Tao 67 1 Policy Background 67 2 Review of China’s “Eleventh Five-Year Plan” Implementation 69 3 Review of Co-benefits in China 70 4 The Proposed New Concept of Co-control 71 5 Co-control Policy Simulation Results 72 6 Policy Suggestions 77 7 Conclusion 80 8 Appendix I: Notes for Emission Factors 81 Implications for various sectors in China 87 Clean and renewable energy 88 Wind 88 Solar 93 Hydropower 99 Bio-energy 103 Nuclear 107 Gas 113 Coalbed methane 117 Coal-to-chemical 124 Environmental protection 131 Waste management and waste-to-energy 131 Forestry 135 Environmental solution service provider industry 137 Thermal power 138 Water 143 Other sectors 148 Steel 148 Cement 148 Textiles 149 Paper 151 Coal 152 Auto 153 Tyres 154 Battery 155 Reasons India must act 157 International pressure 157 India’s challenges 159 Dominance of coal as fuel 159 Indian government’s plan to fight climate change 162 No clarity on the long-term plan yet 162 Promoting renewable energy 166 International solutions on climate change 172 Background on Kyoto Protocol 172 EU Emissions Trading Scheme 173 International carbon trading market 173 CDM projects 175 Policies in other countries 178 EU has the most aggressive emission reduction targets 178 Australia’s Carbon Pollution Reduction Scheme 178 The US carbon plan 178 Japan plans to cut emissions by 15% 179 South Korea’s response to climate change 179 Thailand’s increased emphasis on renewable energy 180 Outcome of the UN Climate Change Conference in Bali 184 What to expect at Copenhagen 185 Latest company views Cheung Kong Infrastructure 187 Epure International Ltd 241 Hongkong Electric 190 Tianjin Capital Environmental 244 CLP Holdings 193 China High Speed Transmission 247 Hong Kong & China Gas 196 Yingli Green Energy 250 Datang International Power 199 JA Solar 253 China Resources Power 202 Solargiga Energy Holdings 256 Huaneng Power International 205 Suntech Power Hldg 259 China Power International 208 Canadian Solar Inc 262 Huadian Power International 211 Trina Solar Ltd 265 Xinao Gas Holdings 214 E-Ton Solar Tech 268 China Resource Gas 218 Motech Industries 271 Towngas China 222 BYD 274 China Everbright International 226 NTPC 279 Guangdong Investments Ltd 229 Tata Power 282 China Water Affairs Group Ltd 232 Power Grid 285 Beijing Enterprises Water 235 Reliance Power 288 Hyflux 238 Lanco Infratech 291 Appendix Appendix I: Gas decomposition is the most lucrative investment as a result of CDM 294 Appendix II: Registered CDM projects in China 296 Appendix III: Background information on global warming 305 |