Research and analysis

China: Leapfrogging to low carbon in Chongqing

Published 14 November 2014

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This publication was archived on 1 August 2016

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This publication was archived on 4 July 2016

This article is no longer current. Please refer to Overseas Business Risk - China

Summary

Low Carbon Week in Chongqing addresses emissions in fastest growing part of China. Events on electric vehicles, CCUS and urban planning. Use of Prosperity Funds brings together partners, raises ambition and moves the debate forwards.

Detail

With GDP growth at 11%, Chongqing is China’s fastest growing province. With a population of some 33 million its emissions are projected to exceed the UK’s within two years. From Friday 17 to 24 of October British Consulate General Chongqing held a Low Carbon Week, bringing together a series of events targeting three areas where we can impact Chongqing’s soaring carbon emissions, as well as open doors to UK companies and universities.

Carbon Capture, Utilisation and Storage (CCUS) Workshop

Earlier this year the local Development and Reform Commission (DRC), Chongqing’s macroeconomic planning ministry, put CCUS on the agenda of our low carbon MoU, and asked us to pick up the baton. And CCUS might play an important role in southwest China: its booming heavy industry is the new frontier of the fight against climate change; geology of the Sichuan basin offers storage opportunity; there is potential utilisation in shale gas extraction and fertiliser production.

Our workshop brought experts from Edinburgh and Nottingham Universities, as well as Shell Cansolv, together with local and national thinkers and decision makers, to highlight recent progress in the UK, share the latest research and focus minds on next steps. We drew on good work done in our UK-China CCUS Centres in Guangdong and Shanghai . Attendees agreed a more coherent and strategic approach is required, starting with regional technical, geological and economic feasibility studies. We will look to use Prosperity Funding to leverage other funding, and to play a co-ordination role in order to inject impetus and direction.

Electric and Hybrid Vehicles: UK leads the charge

Car sales in Chongqing are sky-high – with carbon and air pollutants – and bringing crippling congestion. A current prosperity project cited transport as one of the key areas where Chongqing might reduce its emissions over the next Five Year Plan. Although it is a national electric vehicle (EV) pilot city with an impressive fleet of electric buses, its record on private vehicles suffers from a lack of infrastructure, social incentives and consumer marketing to blame.

Chongqing is itself an auto manufacturing base: it churns out about as many cars as the UK per year, and local powerhouse Chang An (which has a UK R&D centre) is likely to become the largest Chinese OEM by 2020. But its companies have yet to develop the high end engineering needed for EVs, presenting opportunities for UK innovators.

We co-hosted a conference with the UK Institution of Engineering and Technology, in partnership with the China Automotive Engineering Research Institute and local government. The event brought experts from Ricardo, TRL, Low Carbon Futures, MIRA and Newcastle and Lancaster Universities to the heart of the country’s auto establishment. Over two days we showcased UK expertise in wireless charging, battery management systems, vehicle-to-grid integration and infrastructure planning and delivery. Excellent complementarity with local partners means a good chance of substantial partnerships, and we will be following up actively over the coming weeks.

Sustainable urban planning

China’s breakneck urbanisation is writ large in Chongqing. The government aims to boost the urbanisation rate from 55% in 2012 to 70% by 2020 – meaning another five million people moving to cities in this time – and the urban core is now one of the fastest growing big cities in the world. Challenges are exaggerated by geography, characterised as 69% mountainous and clustered with small and medium-sized cities. This model suits China’s senior leaders, who are keen to avoid sprawling car-based metropolises.

But it isn’t easy being green. So our two year Prosperity project with the Chongqing Academy of Social Sciences and ARUP aimed at encouraging Chongqing’s planning process in a more sustainable direction. The project has produced a practical low carbon plan for a sub-district of Chongqing and delivered advice and training to municipal government and its planners, and the recommendations now feature in Party Secretary Sun Zhengcai’s new urbanisation strategy. The project concluded at the end of October with planners from UK local government and the private sector presenting on the UK’s experience on small and medium sized cities and its 20th Century new towns.

With Bilateral Programme Funding support, the UK experts also met fast-developing Ba’Nan District to engage Party Officials. Our seminar prompted open, energetic discussions with the heads of a dozen key departments, including the DRC and Disciplinary Commission. They are keen on more UK expertise and commercial engagement – including attending our Modern Garden Cities forum and mission in November – which we will pursue.

Comment

This package of targeted events offered good value. The flow of top UK experts across three very different topics was well received by local government and industry, and received strong coverage in Chongqing’s media.

The week also received strong support from the local DRC, and put real flesh on the bones of the MoU we signed when Minister Simmonds came to Chongqing in May this year. We also engaged other government departments with an emphasis on science and innovation that sits well with Chongqing’s own strategic priorities. We will be building on the links made and following up on the outcomes.

Disclaimer

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