Insights Library

Browse TTP’s updates on the latest insights and analysis in chronological order below. 

China’s photovoltaic industry needs to maintain a steady and healthy growth in 2024    

Xing Yiteng, Director of New Energy Division, Department of New and Renewable Energy, National Energy Administration

The unprecedented surge in China’s photovoltaic (PV) installations in 2023 is an unusual (thus unsustainable) case stemming from various factors: a surprising drop in upstream prices in the PV industry, accelerated construction of power stations during the post-pandemic period, and the concentrated launch of large-scale wind and solar projects. This year, however, the foremost goal for the industry is to ensure stable and healthy growth, avoiding drastic fluctuations. As the second-largest contributor to China’s installed capacity, the PV industry shoulders greater responsibilities and faces mounting pressures. It needs to proactively adapt to the power system, prepare for greater participation in the electricity market on a larger scale, and explore effective mechanisms for integrating distributed renewable energy generation into the market. 

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Storage and Transportation are key to effective utilization of biomass energy  

Li Jingming, General Secretary of China Biogas Society 

Biomass energy plays an indispensable role in recycling waste resources, promoting circular development, protecting the environment and so on. By using mature technologies that already exist, biomass energy can be harnessed in various forms—solid, gas, and liquid—with applications spanning across diverse scenarios.  

The recently issued Opinions on Accelerating the Construction of a Waste Recycling System underscore the importance of establishing a robust system for collecting and transporting waste resources, which is key to the effective utilization of biomass energy. To ensure the good function of such a system, several problems need to be taken into consideration. For instance, it is crucial to link the straw collection and transportation system with downstream industries. Merely collecting and storing without effective utilization may lead to new issues and waste. Additionally, given the continuous and seasonal nature of waste resources, the collection and transportation system require periodic maintenance and equipment updates. 

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The diversity of risks and opportunities across sectors results in variation in the ESG disclosure landscape with distinct indicators  

Zhang Junjie, Professor of Environmental Science and Policy, Duke Kunshan University

ESG essentially helps businesses identify risks and opportunities in environmental, social, and corporate governance. As a result, ESG disclosures reflect strong industry characteristics, with risks and returns varying significantly across different sectors. 

Taking the power industry as an example, thermal power sector may encounter significant risks in the transition process prompted by tightening climate policies. However, within these risks lie opportunities, such as the expansion of renewable energy sources, implementation of smart grid technologies, and development of electric vehicles. Meanwhile, for companies in agriculture-related sectors, the primary risk stems from climate-related issues. Both long-term climate change and extreme weather events can pose challenges to production, supply chain stability, and market expansion. Thus, it is essential to consider to what extent information in ESG disclosure will influence the company and the whole society. 

If we can demonstrate that investment in ESG helps businesses improve their operational performance, aligning shareholder interests with those of other stakeholders, then debates over whether to prioritize ESG will no longer occur.  

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New energy vehicles will play an indispensable role in emissions reduction in the transportation industry after carbon peaking   

Liu Daizong, East Asia Director, Institute for Transportation & Development Policy

Like other sectors, emissions reduction in the transportation industry requires simultaneous efforts in three areas: reducing (unnecessary travel), transitioning (transportation modes), and improving efficiency. New energy vehicles mainly fall under the latter area. 

During the phase leading up to carbon peaking, namely before 2030, transitioning transportation modes and reducing non-essential travel will play a more crucial role. However, after 2030, during the transition from the “peak” to “zero”, new energy vehicles will play a significantly important role. Without new energy vehicles, it will be very challenging for the transportation industry to achieve net-zero emissions. 

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China stood for developing countries’ actual needs during the first global stocktake  

Gao Xiang, researcher at National Center for Climate Change Strategy and International Cooperation 

China has made significant contributions to the first global stocktake over the past two years. To dispel the misconception that climate ambition is solely indicated by numerical targets in commitments, China advocated for a holistic perspective, emphasizing the need to strengthen targets, enhance implementation, and improve the means of implementation, including finance, technology, and capabilities. 

China adopted a dual focus on both mitigation and adaptation, avoiding the trend of a narrow emphasis on emission reduction during the stocktake. It called on all nations to contribute to the global transition to sustainable energy based on their specific national circumstances and context, rather than simply imposing strict targets for phasing out fossil fuels. 

On finance, China underscored the crucial distinction between developed countries’ obligations and the global needs. China, with the support of other developing countries, demanded developed nations to prioritize and fulfill their international obligations. This demand is reflected in the global stocktake texts. Meanwhile, China also expressed concerns about developing countries’ finance needs and developed countries’ lack of compliance. 

(Originally published on World Environment, Vol.6, 2023) 

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China witnessed record-breaking high average temperature in 2023 

National Meteorological Centre

In 2023, the national average temperature in China hit 10.7°C, which was 0.8°C higher than usual annual level (9.9°C), breaking the record of 10.5°C in 2021 and setting a new all-time high. Most regions in the country experienced temperatures elevated by 0.5 to 1℃. Thirteen provincial areas, including Shandong, Liaoning, Xinjiang, Guizhou, Yunnan, Tianjin, Hunan, Hebei, Sichuan, Henan, Beijing, Inner Mongolia, and Guangxi, recorded their highest temperatures since 1961. Across the nation, a total of 127 meteorological stations saw their daily maximum temperatures surpassing or equaling historical extremes. 

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Human-induced climate change reduces extreme cold events but increases the occurrence and intensity of others   

Qian Cheng and his research team, Chinese Academy of Science   

Since the middle of December 2023, North China, the Huang-Huai area, Northeast China, and Inner Mongolia have experienced the coldest regional average temperatures for this period since 1961. However, it is likely that the severe cold would be even more common and extreme in the absence of anthropogenic climate change. A rapid attribution study on the recent extreme cold weather shows that, if anthropogenic climate change were not a factor, an event of this kind would be 14 times more likely and around 1.9°C colder.   

But the team behind this research highlights the complex impact of anthropogenic climate change on the weather. While the chances of extreme cold weather events have decreased, there has been a rise in both the frequency and intensity of other extreme events like heatwaves and heavy precipitation-heatwave combinations, posing a significant threat to human life. 

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Carbon emission trading urgently needs legislative regulation to promote a healthier market   

Wang Peng, Researcher at Guangzhou Institute of Energy Conversion, Chinese Academy of Sciences   

Clarifying the rights and responsibilities in the form of laws will make the carbon market more binding and carbon trading more formalized. In the past, I have learned that some moribund companies with high carbon emissions delayed their market exit because they could sell carbon allowances to make profits, which affected the fairness of trading. This calls for more meticulous supervision of carbon emission trading and the establishment of regulations to provide a reasonable management system to maintain scientific, standardized and orderly carbon emission trading.  

Currently in China’s carbon market, a significant number of participants, including large emitters, lack a deep understanding of the rules. Many participating companies are motivated by financial gain, much like retail investors in the stock market. However, carbon allowances are more of a responsibility. Providing education and training for companies involved in the carbon market is helpful for robust and effective trading. 

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The recent approvals for new coal-fired power projects are phased steps in energy substitution and transition   

Su Wei, China’s Chief Climate Negotiator   

Regarding the pace of coal phase-out, it is essential to acknowledge that the role of coal itself is also undergoing a gradual transition from a primary power source to a flexible and peak-shaving power source (in China). The direction of this transition is clear, though it necessitates a gradual process. As for approvals for new coal-fired power projects in the recent period, there are two primary reasons. Firstly, there is a practical need for ensuring energy supply. Secondly, these new approvals contribute to providing flexible power support for the large-scale development of renewable energy. Approving new coal-fired projects is a temporary move in the long-term development. With the widespread development of renewable and non-fossil energy, not only will the incremental growth of coal power gradually decrease, but its overall proportion will also decline. This aligns with the prevailing trend of energy substitution and transition.   

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The current bottleneck in solar photovoltaic industry development lies in the overall power system    

Shi Zhenrong, Chinese solar industry pioneer, Founder of Sunman Energy    

Examining the entire power system through the lens of photovoltaic (PV) products, the PV industry has experienced remarkable development in the past two decades. As a product, PV has achieved perfection in aspects like conversion efficiency, cost, capacity, and the supply chain. At 1 yuan per watt, costs in the PV industry have already reached a satisfactory low point. Further cost reduction would not only be unprofitable for the PV sector but might also fail to generate additional returns for the overall power system. 

The PV industry can easily and swiftly achieve the goal of tripling installed capacity, or even more. The current bottleneck in industry development lies not in the production but in the overall power system. Today’s power system is not fully equipped to handle the intermittent and large-scale integration of PV and wind energy into the grid. Overcoming this challenge requires both top-level design and a rapid push toward the development of smart grid interconnection.    

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