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World Energy Outlook 2007

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energy efficiency improves. However, as the average carbon content of each unit<br />

of primary energy consumption rises slightly, from 2.9 tonnes of CO 2<br />

per toe of<br />

energy in 2005 to 3.0 tonnes in 2030, emissions, at 3.3% per year, are projected<br />

to grow faster than total primary energy demand, at 3.2%.<br />

The power sector, which is mainly fuelled by coal, contributes most to China’s<br />

CO 2<br />

emissions. Its share is projected to rise, from 49% in 2005 to 52% in 2015<br />

and 54% in 2030 (Table 9.10). The transport sector’s share also increases, from<br />

7% to 11%. Industry’s share, by contrast, falls from 28% in 2005 to 21% in 2030.<br />

Table 9.10: <strong>Energy</strong>-Related CO 2<br />

Emissions by Sector in the Reference Scenario<br />

(million tonnes)<br />

1990 2005 2010 2015 2030 2005-<br />

2030*<br />

Power generation 652 2 500 3 589 4 450 6 202 3.7%<br />

Industry 800 1 430 2 014 2 186 2 373 2.0%<br />

Transport 121 337 486 664 1 255 5.4%<br />

Residential and services** 479 468 550 622 715 1.7%<br />

Other*** 191 365 585 709 903 3.7%<br />

Total 2 244 5 101 7 223 8 632 11 448 3.3%<br />

* Average annual growth rate. **Includes agriculture sector. *** Includes other transformation and non-energy use.<br />

Box 9.6: China and the Clean Development Mechanism<br />

The Clean Development Mechanism (CDM) is a mechanism set up to<br />

help countries meet their greenhouse gas commitments under the Kyoto<br />

Protocol while also contributing to external development. China is now the<br />

dominant player on the supply side of the fast-growing CDM market<br />

(i.e. the host to projects generating credits). The main buyers are companies<br />

in the European Union and Japan (see Chapter 6).<br />

China is expected to account for more than half of all the credits to be<br />

generated by CDM projects to 2012. China’s big market share means that<br />

it sets a de facto global price floor for Certified Emission Reductions (CERs,<br />

each of which corresponds to one tonne of CO 2<br />

). By August <strong>2007</strong>, China<br />

had 737 CDM projects in the pipeline (including all projects registered, at<br />

the validation stage or requesting registration), which were expected to<br />

314 <strong>World</strong> <strong>Energy</strong> <strong>Outlook</strong> <strong>2007</strong> - CHINA’S ENERGY PROSPECTS

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