EU China Energy Magazine 2023 November Issue: 2023, #10
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About this ebook
EU-China Energy Cooperation Platform was launched on 15 May 2019, to support the implementation of activities announced in the 'Joint Statement on the Implementation of EU-China Energy Cooperation'.
The Joint Statement was signed during the 8th EU-China Energy Dialogue that was held in Brussels on 9th April between Commissioner for Climate Action and Energy Miguel Arias Cañete and the Administrator of the National Energy Administration of China Mr ZHANG Jianhua, back-to-back with the 21st EU-China Leaders' Summit on 9 April 2019 and was witnessed by Jean-Claude Juncker, President of the European Commission; Donald Tusk, President of the Council of Europe and Dr Li Keqiang, Premier of China.
The start of the implementation of the EU-China Energy Cooperation Platform (ECECP) was included in the EU-China Leaders Summit Joint Communique.
The overall objective of ECECP is to
'enhance EU-China cooperation on energy. In line with the EU's Energy Union, the Clean Energy for All European initiative, the Paris Agreement on Climate Change and the EU's Global Strategy, this enhanced cooperation will help increase mutual trust and understanding between EU and China and contribute to a global transition towards clean energy on the basis of a common vision of a sustainable, reliable and secure energy system.'
ECECP Phase II is implemented by a consortium led by ICF, and National Development and Reform Commission- Energy Research Institute.
Disclaimer:
The views and opinions expressed in the articles of this magazine are the authors' own, and do not represent the views of ECECP.
EU-China Energy Cooperation Platform Project is funded by the European Union Foreign Policy Instrument
Copyright European Union 2021, 2022, 2023. All Rights Reserved.
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EU China Energy Magazine 2023 November Issue - EU-China Energy Cooperation Platform Project
Letter from the Team Leader
Dear All,
Welcome to the November 2023 issue of the EU-China Energy Magazine. In this issue, we explore the critical role of innovation in achieving net-zero emissions, China's progress in clean energy and climate action, the implications of the Carbon Border Adjustment Mechanism for the iron and steel sector, and key takeaways from the Florence School of Regulation policy brief ‘Energy policy ideas for the next European Commission: from targets to investments’.
The path to net-zero emissions is paved with innovation. In our lead article, the International Energy Agency (IEA) highlights the need for accelerated innovation in clean energy technologies to meet ambitious climate goals. Despite the challenges, the IEA emphasises the significant progress already made in developing and deploying these technologies.
China, a global leader in renewable energy and electric vehicles, is demonstrating its commitment to climate action. In our second article, CREA projects that China's carbon emissions are set for a structural decline in 2024, driven by record growth in the installation of green energy sources, implying a foreseeable early carbon peaking before 2030.
China's dominance in the manufacturing of solar cells, lithium batteries, and electric vehicles is a testament to its strategic focus on clean energy technologies. In a curated article, China Dialogue delves into the factors that have propelled China to the forefront of these critical industries.
The Carbon Border Adjustment Mechanism (CBAM) is a policy being introduced by the EU that aims to level the playing field for European industries facing carbon pricing regulations. In another article, carboneer explores the potential impact of CBAM, providing a practical to-do list for companies to consider.
Finally, we summarise the key takeaways from Florence School of Regulation’s latest policy brief ‘Energy policy ideas for the next European Commission: from targets to investments’. The report offers a roadmap for the next European Commission to accelerate the energy transition and achieve the EU's ambitious climate goals.
On 13 December 2023, the EU China Energy Cooperation Platform will host a public event at the Wangfujing Peninsula Hotel to showcase its accomplishments over the past five years. We will also present the findings from three new studies: integrating renewable energy in rural China; business opportunities in LNG, green hydrogen, and carbon capture, utilisation, and storage (CCUS); and energy security in the context of the energy transition. Please save the date and join us either in person or online to help celebrate our five years of dedication.
Our next issue (a double issue for December) will be published by 24 December 2023. Please keep an eye on your inbox for the latest edition.
We hope you enjoy this issue of EU-China Energy Magazine and find the articles informative and thought-provoking.
Warm regards,
Dr. Flora Kan
ECECP Team Leader
1. Reaching net zero emissions demands faster innovation, but we’ve already come a long way
Meeting climate targets will not require fundamentally new technology concepts, but it will require innovation
A new energy economy is emerging fast, building on a long history of technological progress. And if history is any guide, clean energy innovation can be a slow journey. For example, while the photovoltaic effect was discovered in the late 1830s and the first solar PV cell prototyped in the 1880s, technology progress only accelerated much later, in the 1950s. Solar power reached 1% of global electricity generation in 2015 only. Similarly, the first wind turbine was built in the 1880s, but wind power only reached 1% of national power generation in Denmark a century later, and 1% of global power generation later still, in 2008. The battery effect was demonstrated in 1800, but today’s well-known lithium-ion batteries were prototyped for the first time in the 1980s and reached the mass market by 2010.
Reaching net zero CO2 emissions from the energy sector by 2050 does not necessarily require fundamentally new scientific concepts or breakthroughs comparable to the initial discovery of solar, wind or batteries. However, innovation still plays an important role: about 35% of the CO2 emission reductions needed in the recently updated Net Zero Emissions by 2050 Scenario (NZE Scenario) in 2050 come from technologies that are still in development and thus have not reached markets at commercial scale. Continued innovation will also be needed to improve performance and reduce costs of technologies already delivering emissions reductions, as well as to improve manufacturing processes. But our analysis suggests that even the most ambitious technology improvements in the NZE Scenario could be considered incremental in comparison to major discoveries.
In many cases, the challenge is to bring new technologies to commercial scale in time to ensure an affordable energy transition. This calls for better designs or new combinations of existing technologies that can help to reduce costs, improve performance, address new use cases, minimise the use of critical resources, and mitigate other environmental impacts. Of course, completely new ideas may still arise, leading to new technology concepts or materials that could further accelerate the clean energy transition and broaden its scope. So even if it is reassuring that existing clean technologies can enable a net zero world, governments should continue to nurture and support early R&D to increase the chances of such breakthroughs.
Clean energy innovation is advancing rapidly
Considerable progress has been made in recent years to address pressing innovation gaps, resulting in important technology readiness upgrades. This has been reflected in the recently updated NZE Scenario: in our 2021 roadmap, the share of CO2 emission reductions in 2050 from technologies that were not yet on the market at the time of writing stood at almost half (46%), a