China's Industrial Energy Use
The industrial sector represents 68% of all primary energy consumption in China, and strong growth in industrial primary energy use continues.
- China is the world's largest producer of cement, steel, and ammonia and in the top-10 for production of aluminum, paper, and petroleum.
- Industrial production is necessary for China's infrastructure development, including roads, buildings, equipment. High levels of industrial production and energy use has serious environmental consequences including air pollution, water pollution, industrial waste, and greenhouse gas emissions contributing to global warming.
Early efficiency efforts in the 1980s were aimed at industry, but as government programs declined or disappeared in the 1990s, there were few mechanisms in place to spur industrial efficiency. At the same time, China became one of the largest industrial producers in the world, and its domestic infrastructure needs alone will propel industrial growth for some time to come. The environmental and energy consequences of this industrial growth are tremendous.
With in-depth studies of energy-efficiency in industrial and buildings sectors, we have shown what China has already accomplished, and what practical, cost-effective opportunities remain. Our market assessments—including cogeneration and building technologies—provide important information for U.S. businesses that want to enter Chinese markets for efficient equipment.
We have examined options in the largest energy-consuming industries—like iron and steel, building materials, and chemicals—and have analyzed the complex, and sometimes contrary influences that economic system reforms have had on incentives to adopt energy-efficient technologies.
Most recently, we have worked with the Industrial Energy Use Analysis Group to examine trends in and opportunities for energy efficiency in China's steel and cement industries. The China Motor Systems Energy Conservation Program is a multi-year program to optimize the design and testing of industrial motor systems in China. Our staff led an Asian Development Bank technical assistance project to China in 1997, the Market-Based Energy Conservation and Environmental Improvement Project. The objectives were to develop a market-based financing mechanism for industrial energy-conservation investments and to evaluate a sample set of investment projects.
The China Energy Group works to promote Industrial Energy Efficiency in China, and has conducted studies of the oil refining sector.
China Energy Group reports on industrial energy use are available on the industry publications page.