What is China's pathway to limit global warming to 1.5°C?

Industry

Last update: 1 October 2021

China’s industry sector accounted for 49% of final energy consumption in 2019. Industrial energy consumption increased substantially between 2002-2014, before somewhat flattening out at around 42 EJ/yr. Industry emissions in China were 5.1 GtCO₂e in 2019 (about 38% of the country’s total GHG emissions in that year, excluding LULUCF). The sector’s energy use has become less emissions intensive in recent years, with a 14% reduction in gCO₂/MJ between 2009-2019. Given the industry sector’s importance to the national economy, and the ongoing initiatives put in place to both reduce industrial energy intensity and transition the sector to higher value-added manufacturing, China has realised a 48.1% reduction in carbon intensity (CO₂ per unit of GDP) in 2019 relative to 2005 levels.1,2,3

China's energy mix in the industry sector

petajoule per year

Scaling

Fuel share provided refers to energy demand only from the industry sector.

A transition towards “green and low-carbon industries” is one of the key components of China’s NDC implementation. The government has already put policies in place to direct capital to green industries such as the manufacturing of electric vehicles and renewable energy technologies and seeks to further improve industrial energy efficiency and resource utilisation.4 In addition, high emitting industries such as steel, cement, and aluminium are likely to be targeted in the expansion of the country’s ETS.5,6

A 1.5°C compatible pathway for China’s industry sector would see energy-related emissions, which were 3124 MtCO₂ in 2019, decrease 71-78% by 2030 and reach zero between 2040 and 2050. This could be driven by increased sectoral electrification and the introduction of hydrogen as an energy carrier and feedstock. Electricity’s share of industrial energy use would reach 72% by 2050. The sector’s emissions intensity could consequently decline by roughly 60% from 2019 to 2030. As this is a much greater decline than the 14% between 2009-2019, increased efforts in energy efficiency and energy transition should be undertaken in the sector.

Similarly, industry process emissions would need to rapidly decline. Some analysed pathways show that emissions should have already peaked in 2020, reaching 1990 levels by 2030 and close to zero by 2050.

China's industry sector direct CO₂ emissions (of energy demand)

MtCO₂/yr

Direct CO₂ emissions only are considered (see power sector for electricity related emissions, hydrogen and heat emissions are not considered here).

China's GHG emissions from industrial processes

MtCO₂e/yr

1.5°C compatible industry sector benchmarks

Direct CO₂ emissions, shares of electricity, and combined shares of electricity, hydrogen and biomass from illustrative 1.5°C pathways for China

Indicator
2019
2030
2040
2050
Decarbonised industry sector by
Direct CO₂ emissions
MtCO₂/yr
3124
679 to 905
179 to 315
20 to 77
2040 to 2050
Relative to reference year in %
-78 to -71%
-94 to -90%
-99 to -98%
Indicator
2019
2030
2040
2050
Share of electricity
per cent
33
45 to 51
65 to 67
72 to 72
Share of electricity, hydrogren and biomass
per cent
33
52 to 60
68 to 83
73 to 86

Fuel share provided refers to energy demand only from the industry sector. BECCS are the only Carbon Dioxide Removal (CDR) technologies considered in these benchmarks.
Only direct CO₂ emissions are considered (electricity, hydrogen and heat emissions are not considered here; see power sector for emissions from electricity generation). All values are rounded. Year of full decarbonisation is based on carbon intenstiy threshold of 5gCO₂/MJ.

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