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China seeks to achieve climate goals with new framework

  • : Coal, Electricity, Emissions
  • 24/08/13

China has announced new guidelines to accelerate the country's energy transition and achieve its decarbonisation goals.

Under the guidelines, China expects the scale of its energy conservation and environmental protection industry to reach about 15 trillion yuan ($2.1 trillion) by 2030, according to a statement by the Central Committee of the Communist Party of China (CPC) and the State Council.

The country aims to accelerate progress in carbon emission reduction, resource utilisation and green development by 2030. It targets installed capacity of pumped-storage hydropower to exceed 120mn kW by then, and the carbon emission intensity of commercial transport for each unit of turnover to drop by about 9.5pc compared with 2020.

China targets to establish a green, low-carbon circular economy by 2035, with carbon emissions declining after reaching their peak. China aims to hit peak CO2 emissions by 2030 and net zero emissions by 2060.

China's installed renewable capacity reached 1.653bn kW as of the end of June, accounting for 53.8pc of total installed capacity, according to the National Development and Reform Commission (NDRC). The country achieved almost double its target for non-fossil power generation additions last year at 300GW, compared with a goal of 160GW, according to state-linked China Renewable Energy Engineering Institute. In the new framework, the target for non-fossil fuels in the country's primary energy consumption remains at 25pc by 2030, unchanged from its 2021 nationally determined contribution (NDC), and up from 15.3pc in 2019.

China's 2021 NDC also states that it will lower its CO2 emissions per unit of GDP by over 65pc from the 2005 level, and that it will bring its total installed capacity of wind and solar power to over 1.2bn kW. The country is expected to submit its 2035 climate targets to the UN early next year, including updates to its pre-existing 2030 targets.

The framework targets five main areas. It aims to optimise land space planning for green and low-carbon developments and seeks to accelerate the low-carbon transformation of the industrial sector. This includes the steel, non-ferrous metals and petrochemical industries. It also targets to advance the low-carbon transformation of the energy sector and develop non-fossil fuel energy and promotes the green transformation of the transportation sector. Lastly it aims to advance the green transformation of urban and rural construction, including agricultural developments.

Challenges ahead

China's green transformation faces significant challenges despite progress, the NDRC said. The country's energy and industrial sectors remain heavily dependent on coal, straining environmental goals, the commission said.

Under the latest framework, the country still aims to promote the clean and efficient use of coal and reasonably control the growth of coal consumption during the 14th five-year plan period, but to gradually reduce it in the subsequent five years. The National Energy Administration (NEA), China's energy regulator, expects the percentage of thermal generation capacity to fall to 45pc by the end of 2024, from 47.6pc by the end of 2023.

China in July announced plans to explore co-firing renewable ammonia and biomass at its coal-fired plants, as well as carbon capture, utilisation and storage. These measures will be applied to a number of projects by 2025.

The government also plans to develop a fiscal and taxation policy to promote low-carbon developments under the new guidelines, and aims to implement relevant tax incentives, as well as improve the green tax system. It also aims to bolster financial instruments such as green equity financing, green financial leasing, as well as central budgetary investment to provide support for key projects.

The new guidelines did not provide any details on methane cuts. The country has yet to set firm methane-reduction targets although it agreed in November to set goals to cover all greenhouse gases.

China, dubbed by the Paris-based IEA as the "clean energy powerhouse," is projected to spend $675bn on clean energy this year alone. Its renewable energy power generation deployment has progressed rapidly, but it remains unclear if this will prompt Beijing to raise its decarbonisation ambitions.


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25/03/10

Brazil ignores fossil fuel phase-out in Cop 30 letter

Brazil ignores fossil fuel phase-out in Cop 30 letter

Sao Paulo, 10 March (Argus) — Climate activists praised Brazil's stance of making UN Cop 30 a "turning point" for real climate change commitments but criticized the presidency's letter for turning a blind eye to fossil fuels' leading role in global warming. The summit's president Andre Correa do Lago unveiled on Monday a letter addressing the event's goals and outlooks, which includes boosting climate financing to $1.3 trillion/yr from the target stipulated at Cop 29 of $300bn/yr. "Lago calls on foreign countries — especially the US — to leave individuality and irresponsibility behind in exchange for cooperation and our planet's future," scientist Karin Bruning — a graduate of the University of Heidelberg and the Massachusetts Institute of Technology — said. "However, the letter has no use if Brazil does not pull its own weight." Bruning recalled Brazilian president Luiz Inacio Lula da Silva's [public feud](http://direct.argusmedia.com/newsandanalysis/article/2657369 with the country's environmentalist watchdog Ibama regarding the exploration in Brazil's equatorial margin region. "A country with so much renewable energy available cannot look at past solutions such as exploring and pushing for fossil fuels," Bruning said. She also highlighted the importance of respecting technical and scientific decisions on matters such as oil exploration. Environmental concerns have always been at the center of the equatorial margin debate, as it stands near a freshwater barrier reef. State-controlled Petrobras has long been trying to explore the area's Foz do Amazonas basin — which holds an estimated 10bn bl of crude, according to energy research bureau Epe — but has struggled to receive the environment licenses to do so. Ibama last denied the company a request to drill in the area in May 2023. Brazilian climate think tank Observatorio do Clima called the letter "inspiring," but added that it "excludes the elephant in the room." It recognized the letter as a "relief for giving the Paris Agreement negotiations to professionals who understand the gravity of the moment" but bashed it for keeping fossil fuels' gradual stoppage out of Cop 30's priorities list. Still, Correa do Lago's letter was celebrated for recognizing "the scale of the challenge and the urgency of response," according to climate change think-tank E3G's associate director Kaysie Brown. Holding on to past pledges Previous Cop agreements and global stocktakes (GST) — a five-yearly checkpoint agreed upon in the 2015 Paris Agreement — were ignored and pushed back against in Baku's final text. Correa do Lago's letter focused on rolling back decisions regarding developing countries and increasing financing for them, which has long been one of the Brazilian government's priorities. This includes the climate financing target of $1.3 trillion. "We do have pending issues to solve at Cop 30, notably the UAE dialogue on implementing the GST outcomes and the just transition work programme," Correa do Lago said in his letter. "The GST is an invaluable legacy that unites us. We must all continue to subscribe to it as the ultimate benchmark for climate implementation." By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Ontario adds fee for electricity exports to US: Update


25/03/10
25/03/10

Ontario adds fee for electricity exports to US: Update

Updates with comments from US utilities Calgary, 10 March (Argus) — Ontario is imposing a 25pc tariff on electricity exports to the US starting today, carrying through on its threatened retaliation for a trade war started by US president Donald Trump. "We will apply maximum pressure to maximize our leverage, that's why today we're moving forward with a 25pc surcharge on electricity exports for the 1.5mn American homes and business that Ontario powers," Ontario premier Doug Ford said today in Toronto. Ontario was the largest exporter of electricity to the US in 2023, sending 15.2 TWh to New York, Michigan and Minnesota. The neighbouring province of Quebec, which exported 13.4 TWh the same year to New York and New England, has said it is also considering its options amid the trade war. Ford said he feels "terrible" because average consumers will pay when it is really Trump who is responsible. The surcharge will cost the US up to $400,000/d, amounting to an increase of $100 for consumers each month, according to Ford. "I will not hesitate to increase this charge," said Ford. "If necessary, if the United States escalates, I will not hesitate to shut the electricity off completely." Trump on 4 March imposed a 10pc tax on Canadian energy imports, a 25pc tariff on non-energy imports from Canada and a 25pc tariff on all imports from Mexico. But executive orders that he signed on 6 March exempted North American trade covered by the US-Mexico-Canada (USMCA) free trade agreement from new tariffs after 12:01am eastern time on 7 March. Trump has said he is delaying the tariffs on Canada and Mexico until 2 April, but his executive orders make no mention of that restart date. Minnesota Power, a subsidiary of Allete, imports "a small portion" of its electricity from Ontario but expects the impact to be "negligible", the utility said. Minnesota Power receives 11pc of its of its energy supply from Manitoba Hydro, but Manitoba has not followed Ontario's lead and imposed a surcharge. Michigan's largest utility, Consumers Energy — which serves 6.8mn of the state's 10mn residents — does not purchase power from Ontario. Xcel Energy, which serves customers in Minnesota and Michigan, also said it did not buy power from Ontario. By Brett Holmes and Anna Harmon Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

France's energy plan to allow new fossil-fired plants


25/03/10
25/03/10

France's energy plan to allow new fossil-fired plants

London, 10 March (Argus) — A revised version of France's 10-year energy plan, released for final public consultation, cuts a pledge to no longer build any more fossil fuel-fired power plants, while the government is pushing a bill that allows coal-fired plants to be converted to gas firing rather than shut down. The PPE3 plan, which sets out a roadmap for how France will change its energy system out to 2035 in order to comply with the country's goals to reduce greenhouse gas emissions, is now in the last stage of public consultation, several years after it was due to be finalised. The latest version maintains a pledge to phase out coal, with France's last two remaining coal-fired power plants set to close by 2027. But the pledge included in the previous version to "not build new electricity generation sites based on fossil energy" has been removed. And a pledge to "launch studies or pilot projects" to convert existing or build greenfield thermal plants using 100pc decarbonised energy has been watered down. It now promises simply to "help" operators of such plants launch studies or projects, and on fuels that are "less emitting" rather than completely decarbonised. A bill is currently passing through the French parliament that allows the country's two remaining coal-fired plants to be converted to gas operation. Gazelenergie, operator of one of the plants, hailed the bill when it was announced last month. It has the backing of the government, as well as of parliamentarians from across the political spectrum in the Moselle region, where one of the coal-fired plants is located. The new version of the plan also cuts ambitions for solar power as revealed last month , in light of views that the previous aim was too high given France's extensive nuclear fleet. The government now aims for 65-90GW by 2035, down from 75-100GW in the previous plan. It hopes to achieve this aim by launching two tenders per year of 1GW each for ground-mounted solar and three tenders of 300MW each for roof-mounted solar. The roof-mounted tenders "may be adjusted" according to changes made to subsidies, the government said. And one technologically neutral 500MW tender per year will be held. In the past, these tenders typically have been dominated by solar projects. The government has not explicitly decided on a separate tender for agrivoltaic projects, as the solar sector had called for, but it may decide to hold them, deducting any capacity called for from other solar buckets. The trajectory for solar is set at 5GW of projects assigned per year, for 4GW constructed, assuming 20pc of projects do not advance. This then could be modified upwards from 2028-29, to a maximum of 7 GW/yr, if increases in demand and flexibility justify it. On onshore wind, two tenders of 900MW each will be held every year in order to hold the trajectory of construction at roughly 1.5 GW/yr. France's electricity is already substantially decarbonised, thanks to its large nuclear fleet and renewables installations. Fossil fuel-fired plants will only be needed to cover demand spikes and ensure energy security, the government said in the consultation. By Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Ontario adds 25pc tariff on electricity exports to US


25/03/10
25/03/10

Ontario adds 25pc tariff on electricity exports to US

Calgary, 10 March (Argus) — Ontario is imposing a 25pc tariff on electricity exports to the US starting today, carrying through on its threatened retaliation to a trade war started by US president Donald Trump. "We will apply maximum pressure to maximize our leverage, that's why today we're moving forward with a 25pc surcharge on electricity exports for the 1.5mn American homes and business that Ontario powers," Ontario premier Doug Ford said Monday in Toronto. Ontario was the largest exporter of electricity to the US in 2023, sending 15.2 TWh to New York, Michigan and Minnesota. The neighbouring province of Quebec, which exported 13.4 TWh the same year to New York and New England, has said it is also considering its options amid the trade war. Ford added he feels "terrible" because average consumers will pay when it is really Trump who is responsible. The surcharge will cost the US up to $400,000 each day, amounting to an increase of $100 for consumers each month, according to Ford. "I will not hesitate to increase this charge," said Ford. "If necessary, if the United States escalates, I will not hesitate to shut the electricity off completely." Trump on 4 March imposed a 10pc tax on Canadian energy imports, a 25pc tariff on non-energy imports from Canada and a 25pc tariff on all imports from Mexico. But executive orders that he signed on 6 March would exempt North American trade covered by the US-Mexico-Canada (USMCA) free trade agreement from new tariffs after 12:01am eastern time on 7 March. Trump has said he is delaying the tariffs on Canada and Mexico until 2 April, but his executive orders make no mention of that deadline. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

I-REC, I-Track demand soars in Feb alongside supply


25/03/10
25/03/10

I-REC, I-Track demand soars in Feb alongside supply

London, 10 March (Argus) — Both redemptions and issuances of international renewable energy certificates (I-RECs) and non-renewable I-Track certificates were nearly 40pc higher year on year in February, with Brazil driving most of the increase. Global I-REC and non-renewable I-Track redemptions totalled 45.1TWh last month, up from 32.8TWh in February 2024, according to data from global registry Evident. Demand last month was at its highest since March last year, when it reached 47TWh. The 12-month rolling average for redemptions was 1TWh higher on the month at 20.6TWh in February. Total demand in January-February stood at 71TWh, nearly a third of the 233TWh cancelled in the whole of last year. Issuances hit 46.2TWh in February, which was up by 38pc year on year and also the highest since 54TWh in March 2024. The 12-month rolling average for issuances rose to 26TWh last month from 25TWh in January. Latin America The number of cancelled I-RECs more than doubled on the year in Latin America to 29.1TWh in February, with issuances having risen by 43pc year on year to 27.4TWh. Both demand and supply in Brazil climbed to about 21TWh last month, compared with less than 10TWh a year earlier. Total demand in January-February reached 23.4TWh, making Brazil the largest I-REC market so far in 2025 ahead of China, which accounted for the largest share last year. Brazil is seeking to address slowing growth in its onshore wind sector, with new legislation expected to speed up the development of the country's first offshore wind projects. The government also has planned several auctions to boost the hydroelectric sector . Argus assessments for current-year Brazilian wind and hydropower I-RECs averaged $0.20/MWh and $0.18/MWh, respectively, in February, each steady on the month. Demand in Chile was at 1.6TWh last month, more than five times higher than a year earlier. Redemptions in Mexico and Colombia increased by about 55pc and 85pc on the year to 2.1TWh and 4TWh, respectively, in February. Mexican prices continued to be volatile, with 2025 wind and solar I-RECs valued at $3.25/MWh at the end of last month, with offers in a wide range of $3.50-4.50/MWh and small volumes having changed hands at $4.15/MWh. South Asia I-REC cancellations in south Asian countries last month nearly tripled on the year to 1.83TWh. India led most of this increase, with demand in the country having risen to 1.79TWh in February compared with just 565GWh a year earlier. Issuances rose more slowly, to 890GWh from 678GWh, with solar power accounting for more than half of the certificates issued last month and taking over from wind, which had accounted for the largest share in February last year. Argus assessments for wind, solar and hydro I-RECs last month averaged $0.79/MWh and $0.86/MWh for the 2024 and 2025 vintages, respectively, having inched down by $0.01-0.03/MWh from January. Asia-Pacific Overall I-REC redemptions slipped by 22pc on the year in Asia-Pacific to 10.2TWh in February, although they edged up from 9.7TWh in January. The decline was driven largely by Malaysia, where demand fell to 2.1TWh last month from 3.5TWh in February 2024. Redemptions also decreased in Singapore, by 80pc year on year to 136GWh last month. Singapore and Malaysia in January agreed to study the formation of a credible framework that recognises renewable energy certificates (RECs) associated with cross-border electricity trade. But policy and regulatory gaps are hampering cross-border REC transactions in the region, according to the Asean Centre for Energy. Argus assessed current-year Malaysian solar I-RECs at an average of $5.55/MWh in February, $0.24/MWh lower on the month. Average assessments for 2025 Singaporean solar I-RECs were down by $3.10/MWh on the month to $75/MWh in February. Demand in China, where the use of I-RECs will officially cease after 31 March, was at about 6TWh in February, broadly steady on the month and on the year. By Giulio Bajona Global I-REC redemptions, Feb 2025 TWh Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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