House Speech: GLOBE G8+5 and China’s Energy Explosion

As a member of the International Advisory Board for GLOBE G8 +5, I had the pleasure of attending the Asian Carbon Expo 2006 in Beijing, China last month.

The main purpose of our visit was to hold meetings with members of the National People's Congress (NPC), Committee on Environment and Natural Resources Protection, headed by Chairman Mao Rubai.

China's total primary energy consumption in 2002 was 1.514 billion Tonnes of coal equivalent (TCE). By 2020, if the growth trend of the past few years continues, China's energy demand will be more than 4 billion TCE. Electricity output is rising rapidly, but is still inadequate to keep up with demand.

Industry consumes a large proportion (around 70%) of total energy use. Energy intensive industrial sectors have grown rapidly over the period 2000 - 2005. Transportation is rapidly growing as an energy use sector. Growing affluence amongst the Chinese population is also pushing up demand for energy.

In our discussions, the Chinese made it clear they are determined to build an energy efficient society which they say is fundamental for China's development. The 11th Five Year Plan sets the goal of quadrupling GDP by 2020m while only doubling energy consumption.

Clearly the phenomenal growth particularly in the automotive sector, will mean that pollution issues, and urban planning issues will now top the political agenda.

Traffic in Beijing has reached gridlock not seen even in Jakarta or Bangkok.

The Chinese adopted the Clean Production Promotion Law in 2003, which contains provisions aimed at improving efficiency of energy use in production. Enterprises are required to recover and utilize waste heat from their production processes, and to monitor their resource consumption and waste generation.

Engaging members of the committee was important both from the perspective of understanding the impact of energy consumption on China's growth but more importantly, to engage them on issues such as clean coal technology, nuclear power and energy conservation.

As a member of the GLOBE G8+5, we are working with China and others to promote the need for clear policies to enable long term investment decisions concerning energy management and environment controls. In practical terms would greater progress be made if attention were to be focused on securing deals in particular industrial sectors or by applying specific solutions such as clean coal including efficiency measures in China?

We will continue to ensure that parliamentarians promote these issues in China and elsewhere in terms of the political agenda.