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Industrial energy efficiency and technology transfer in the Chinese cement sector

Panel: Panel 6: Energy Efficiency Under Joint Implementation & The Clean Development Mechanism

Authors:
Joakim Nordqvist, Lund University
Lars Nilsson, Lund University

Abstract

The present patterns of energy use are a major driver of greenhouse gas emissions. Therefore, a key strategy in climate change mitigation is to address the large potentials for increased energy efficiency in industry. Cement production is a particularly interesting sector. In addition to being highly energy intensive, it is based on a calcination process which in itself releases carbon dioxide.

China is the world's leading cement producer and the second largest source of greenhouse gases. Due to widespread use of outdated technology, energy efficiency in Chinese cement production is generally poor, despite a reduction in national energy intensity during the past two decades.

For reasons not including climate concern, a process of structural transformation of China's cement industry has been initiated through policy statements and regulatory measures. If successful, the reform will bring substantial reductions of greenhouse gas emissions, but competing objectives and other impediments will make progress slow. A future framework such as the clean development mechanism, which creates market-based incentives for foreign private actors to invest in technology transfer, may catalyse the transformation. Dual objectives of climate change mitigation and third world development could be combined.

Various barriers in China threaten to deter climate-change driven, privately funded technology transfer. Based on literature studies and on-site interviews, this paper touches upon the reasons for this situation and ways to address it. Systems of innovation, capacity building, industrial behaviour, and market change exemplify focal areas of the analysis.

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