The Industry Program is interested in:
- Climate Leader Plants – Supporting key industrial pilot Climate Leader Plants to implement CO2 mitigation options and to use their experience to provide leadership and best practice examples to scale across China’s most energy-intensive industries;
- Sustainable Products and Consumption - Assisting Chinese industry to provide the world with energy-efficient, long-lasting, high-quality, and sustainable materials and products and to significantly increase sustainable consumption and recycling awareness within industrial enterprises; and
- Early Peaking Industrial Cities – Helping China to achieve an ambitious early peaking of industrial energy consumption and CO2 emissions in key industrial cities.
EFC Industry Program aims to provide strategic, targeted assistance to support China’s industry sector in peaking its CO2 emissions by 2020 or earlier with maximum benefit for the economy, which is essential for China to meet its national 2030 CO2 peaking goal and for the world to realize the 2050 2°C global warming goal.
Industry is the cornerstone of China’s domestic economy, providing the materials necessary for expanding infrastructure and building new cities and meeting the growing consumption needs of an ever-wealthier 1.38 billion people. China’s industry is also a strong contributor to China’s economic growth, with manufacturing value-added increasing by 10.3 percent on average annually between 2001 and 2014.
China’s industrial sector dominates the country’s total energy consumption, accounting for about 70 percent of total energy use and energy-related CO2 emissions. China’s industrial sector relies heavily on coal and coal-based electricity, so CO2 emissions from China’s industry are significant.
Despite the importance of China’s industrial sector, Chinese manufacturing facilities remain, on average, less energy-efficient than manufacturing facilities in more developed countries. The products produced in these plants are often of low quality, driving excess consumption as products and infrastructure fail prematurely or are unable to meet quality specifications. And Chinese manufacturing facilities are often located in urban areas – nearly 60 percent of China’s urban CO2 emissions are from the industrial sector – significantly contributing to China’s serious air quality and public health issues.
The Industry Program’s strategy is to assist China in accelerating China’s low-carbon industry for a clean future by leveraging plants, products, and cities to peak emissions through: 1) Policy Changes: top –down policy targets supported by practical bottom-up action by local governments, industry associations, and companies to demonstrate success; 2) Market Engagement: creating the ability for companies to transact on goods or services to seek profits, minimize losses, or manage risks; 3) Communications: education, information-sharing and communication should facilitate better policy design and implementation; and 4) Stakeholder Engagement: creating “upstream” pressure to change behavior through direct engagement of manufactures, suppliers, customers, or other critical stakeholders.