Clean Power for Industry in China: Policy Enablers for the Industrial Sector
The industrial sector in China accounts for more than half of global production of many key bulk materials such as steel, aluminium and cement, and nearly half of all chemicals and paper. This new white paper presents ten policy options for consideration to scale up clean power deployment in the sector.
The industrial sector in China accounts for more than half of global production of many key bulk materials such as steel, aluminium and cement, and nearly half of all chemicals and paper. This new white paper presents ten policy options for consideration to scale up clean power deployment in the sector.
In China, industry is the second-largest source of carbon emissions, accounting for about one-third of national output in 2020. To mitigate this, electrification and the proportion of clean power used to generate the energy required by industry need to increase.
The paper examines how policy could strengthen the wide adoption of on-site clean energy and clean power procurement in industry, focusing on two key areas:
- Upgrading industrial energy storage: Reducing the installation costs and enhancing the economic benefits of industrial energy storage could help expand its availability and use.
- Scaling up green power consumption: Incentives to procure off-site green power could be created by optimizing market design, unifying nationwide markets and promoting power purchase agreements.