Energy Insider: China’s ‘Comprehensive’ Green Transition Plan, NEVs Outsell Fossil-Fuel Cars in July

The Caixin energy wrap for this week covers significant updates in China’s climate and energy sphere, with a focus on policy, industry, and technological advancements across various sectors.

China has devised an extensive plan to achieve a comprehensive green transition by 2035, with significant progress to be evident by 2030 [para. 5][para. 6]. According to a document published by the country’s central authorities, the plan aims to advance green and low-carbon development across all sectors, from heavy industries to consumer markets [para. 6]. Specific targets include expanding the energy-saving and environmental industry to 15 trillion yuan ($2 trillion), increasing the share of non-fossil energy to 25% from the current 17.9%, and boosting the capacity of pumped-storage hydroelectricity to surpass 120 GW, more than double that of 2023 levels [para. 7]. However, challenges persist, such as a reliance on coal and the emergence of green trade barriers globally [para. 9][para. 10].

For the first time in China's market, new-energy vehicles (NEVs) outsold fossil-fuel passenger cars in July [para. 11][para. 13]. The China Passenger Car Association (CPCA) reported that 878,000 NEVs were sold that month, making up 51.1% of passenger vehicle sales [para. 12]. This surge is attributed to favorable government policies, including a scheme where buyers received a significant cash bonus for trading in old cars for new NEVs [para. 15]. Innovation in plug-in hybrid technology also contributed to this success [para. 15].

A state-owned Chinese fossil fuel company, Offshore Oil Engineering Co. Ltd. (COOEC), has completed a massive oil and gas offshore platform for Saudi Arabia’s Marjan oilfield [para. 19]. This platform, among the largest globally, is taller than a 24-storey building and features a deck the size of 15 basketball courts [para. 20]. It can handle 24 million tons of crude oil and 7.4 billion cubic meters of gas annually [para. 20]. This accomplishment underscores deepening energy cooperation between China and the Middle East, emphasizing traditional fossil fuels while green energy emerges as a new growth driver [para. 21][para. 23].

To address the rapid growth and retirement of NEV batteries, the Ministry of Industry and Information Technology has released draft regulations for battery recycling [para. 25]. Regulating NEV battery recycling is becoming crucial as batteries' lifespan of about eight years leads to a burgeoning "retirement wave" [para. 27]. Projections indicate the volume of end-of-life NEV batteries will rise tenfold from 294,000 tons in 2021 to 3 million tons by 2030, creating a 150-billion-yuan recycling market [para. 28].

China General Nuclear Power Corp. (CGN) has initiated a novel approach to boost tourism by opening its plants to the public [para. 32]. With a digital app launched on August 7, tourists can now book tours to nine nuclear power bases, including Daya Bay, the first commercial nuclear power station on the Chinese mainland [para. 33]. This initiative, known as "nuclear power industrial tourism," not only offers unique experiences but also significantly impacts local economies [para. 35][para. 36].

Each of these updates signifies substantial steps towards China achieving its environmental and technological goals, with a keen focus on transitioning towards sustainable energy practices while addressing existing economic and industrial challenges.