Environment and Natural Resources

The Belfer Center began researching energy technology issues in the late 1990s. Its mission was “to determine and promote the adoption of effective strategies for developing and deploying cleaner and more efficient energy technologies that can reduce greenhouse gas emissions, reduce dependence on fossil fuels and stress on water resources, and improve economic development.”

In this issue, we look at the history and influence of the Center’s energy innovation efforts in the past two decades by focusing primarily on ETIP’s work in the U.S. and China.

"...[U]ntil now, Beijing's response to unmet energy demand has focused primarily on securing resources overseas, and building infrastructure for imports. China now generates more electricity from imported coal than from nuclear, wind and solar combined. Without a strong, coordinated policy shift, the country will depend on fuel imports for most of its energy consumption by the time it becomes a developed country."

China's dependency on coal fuels the country's phenomenal economic growth but at a major cost to the country's air and water quality, ultimately threatening human health and the country's continued economic growth. The Chinese government's efforts to put China onto a cleaner, low carbon development path have been substantial; however China's pollution and greenhouse gas emissions continue to grow. In an attempt to develop its own advanced coal generation technologies to improve the country's air quality and energy efficiency, the Chinese government is investing heavily in gasification and other technologies that can be employed in carbon capture and sequestration (CCS) applications. This investment has turned China into a global laboratory for CCS pilot projects, attracting foreign governments, multilateral institutions, nongovernmental organizations, and business partners.

China now faces the three hard truths of thirsting for more oil, relying heavily on coal, and ranking first in global carbon dioxide (CO2) emissions. Given these truths, two key questions must be addressed to develop a low-carbon economy: how to use coal in a carbon-constrained future? How to increase domestic oil supply to enhance energy security? Carbon Capture and Storage (CCS) may be a technological solution that can deal with today's energy and environmental needs while enabling China to move closer to a low-carbon energy future. This paper has been developed to propose a possible CCS roadmap for China.

A "deal" is proposed in this paper, whereby all major-emitting countries, including the United States and China, agree to reduce emissions through implementation of significant, mutually agreeable, domestic emission-reduction policies. To resolve the competitiveness and equity concerns, a proposed Carbon Mitigation Fund would be created. This proposed fund is contrasted with other existing and proposed mitigation funds and finance mechanisms. 

Carbon Capture and Storage (CCS), as an option in the portfolio of mitigation actions to combat climate change, is expected to have far-reaching implications for China. This paper (1) explores the strategic significance of CCS for China by making an extreme scenario analysis of Chinese power sector in 2030; (2) provides an overview of the recent CCS activities in China; and (3) identifies the major challenges with respect to CCS development in China and put forwards immediate strategies.