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icient use of energy, and further promotion amount of energy consumed, these types of
of the low-carbon transformation in industry, intrinsically energy-intensive but necessary
construction, transportation, and other fields”. industries are heavily impeded, even if
efforts are made to switch to greener energy.
Under the dual control mechanism, China
aims to decrease overall carbon emissions by The switch to focusing on dual control of
controlling total energy consumption and the carbon emissions will therefore help to
consumption intensity of companies and projects. incentivize the use of renewable energy
It involves setting energy use “budgets” at the while also anchoring the country’s core
provincial level (or the municipal or regional level emissions reduction strategy directly to its
for municipalities and autonomous regions). dual carbon goals.
The provincial government is then tasked
with prioritizing energy resources for core How will China shift to dual
applications, such as residential use, modern control of carbon emissions?
services, high-tech industries, and advanced
manufacturing while tailoring strategies to The shift from dual control of energy
control fossil fuel consumption. consumption to dual control of carbon
emissions will be a gradual one and is
Why is China’s focus changing already underway.
from energy consumption to
emissions control? In a statement posted on the NDRC website,
the Director and Spokesperson of the Policy
The dual control of energy consumption Research Office of the NDRC Jin Xiandong
mechanism has come under review in the years stated that the Opinions, which have not
since China’s announcement of its dual carbon yet been publicly released, propose a step-
goals in 2020. The pivot has also been mentioned by-step plan to implement and promote
several times in various policy documents. this transformation. Further, the work of
For instance, the readout of the 2021 Central transitioning to the new mechanism will be
Economic Work Conference (CEWC), which sets the promoted from three aspects.
economic blueprint for the following year, called
for transitioning “from ‘dual control’ of energy First, recognizing that the transformation
consumption to ‘dual control’ of total carbon will not be accomplished overnight, the
emissions and intensity as soon as possible”. statement says that it is necessary to
make use of the achievements that have
In the years since China’s announcement of its already been made through the dual energy
dual carbon goals, several shortcomings of the consumption controls and make a “smooth
dual energy consumption control mechanism and orderly transition to dual carbon
have been revealed. emission controls”. During the process
of transitioning, work will be carried out
One shortcoming is that a focus on reducing to improve support systems, such as the
energy consumption and energy intensity carbon emissions statistical accounting
will inevitably encompass the consumption system, as well as carbon management
of non-fossil fuel energy, such as nuclear and systems. Jin’s statement makes it clear that
renewables. In renewable-rich areas, this the implementation of dual carbon emission
mechanism could even suppress the use of controls “does not mean any relaxation of
renewables. The 2021 CEWC also acknowledges energy conservation work”.
this issue, stating that “it is necessary to
scientifically assess that new renewable energy The second aspect of the transition
and raw material energy use will not be included concerns the need to continue improving
in the total energy consumption control”. energy conservation capabilities by
“implementing a comprehensive
Meanwhile, the focus on total energy consumption conservation strategy, continuously
also includes the energy consumed for the improving energy utilization efficiency, and
production of raw materials, which has relatively promoting sustained and healthy economic
rigid energy requirements. By limiting the development at the minimum [energy] cost”.
SOUTH CHINA BUSINESS JOURNAL 4
of the low-carbon transformation in industry, intrinsically energy-intensive but necessary
construction, transportation, and other fields”. industries are heavily impeded, even if
efforts are made to switch to greener energy.
Under the dual control mechanism, China
aims to decrease overall carbon emissions by The switch to focusing on dual control of
controlling total energy consumption and the carbon emissions will therefore help to
consumption intensity of companies and projects. incentivize the use of renewable energy
It involves setting energy use “budgets” at the while also anchoring the country’s core
provincial level (or the municipal or regional level emissions reduction strategy directly to its
for municipalities and autonomous regions). dual carbon goals.
The provincial government is then tasked
with prioritizing energy resources for core How will China shift to dual
applications, such as residential use, modern control of carbon emissions?
services, high-tech industries, and advanced
manufacturing while tailoring strategies to The shift from dual control of energy
control fossil fuel consumption. consumption to dual control of carbon
emissions will be a gradual one and is
Why is China’s focus changing already underway.
from energy consumption to
emissions control? In a statement posted on the NDRC website,
the Director and Spokesperson of the Policy
The dual control of energy consumption Research Office of the NDRC Jin Xiandong
mechanism has come under review in the years stated that the Opinions, which have not
since China’s announcement of its dual carbon yet been publicly released, propose a step-
goals in 2020. The pivot has also been mentioned by-step plan to implement and promote
several times in various policy documents. this transformation. Further, the work of
For instance, the readout of the 2021 Central transitioning to the new mechanism will be
Economic Work Conference (CEWC), which sets the promoted from three aspects.
economic blueprint for the following year, called
for transitioning “from ‘dual control’ of energy First, recognizing that the transformation
consumption to ‘dual control’ of total carbon will not be accomplished overnight, the
emissions and intensity as soon as possible”. statement says that it is necessary to
make use of the achievements that have
In the years since China’s announcement of its already been made through the dual energy
dual carbon goals, several shortcomings of the consumption controls and make a “smooth
dual energy consumption control mechanism and orderly transition to dual carbon
have been revealed. emission controls”. During the process
of transitioning, work will be carried out
One shortcoming is that a focus on reducing to improve support systems, such as the
energy consumption and energy intensity carbon emissions statistical accounting
will inevitably encompass the consumption system, as well as carbon management
of non-fossil fuel energy, such as nuclear and systems. Jin’s statement makes it clear that
renewables. In renewable-rich areas, this the implementation of dual carbon emission
mechanism could even suppress the use of controls “does not mean any relaxation of
renewables. The 2021 CEWC also acknowledges energy conservation work”.
this issue, stating that “it is necessary to
scientifically assess that new renewable energy The second aspect of the transition
and raw material energy use will not be included concerns the need to continue improving
in the total energy consumption control”. energy conservation capabilities by
“implementing a comprehensive
Meanwhile, the focus on total energy consumption conservation strategy, continuously
also includes the energy consumed for the improving energy utilization efficiency, and
production of raw materials, which has relatively promoting sustained and healthy economic
rigid energy requirements. By limiting the development at the minimum [energy] cost”.
SOUTH CHINA BUSINESS JOURNAL 4
