China Carbon Credit Platform

Energy Research Institute of the National Development and Reform Commission: A correct view of China's green competitive advantage

Release Time1 month ago

The development and growth of China's new energy industry, especially the "going out" of photovoltaic modules, lithium batteries and new energy vehicles, is the inevitable embodiment of China's green competitive advantages in energy efficiency, carbon emission reduction and cost-effectiveness, which not only adapts to the green and low-carbon transformation of the global energy structure, but also makes positive contributions to meeting the needs of the global energy market. The global energy transition needs more high-quality production capacity from China, and we should face up to China's green competitive advantage and jointly build a high-quality green and low-carbon industrial and supply chain with a more positive attitude.

China's new energy industry has a triple "green competitive advantage" of excellent energy efficiency, low carbon emissions and low cost, which represents high-quality production capacity. The "going out" of new energy products is the embodiment of green competitive advantage, rather than the dumping of excess capacity.

China's industrial production system is complete and modern, and the comprehensive energy efficiency level is better. After years of energy conservation and efficiency improvement work, advanced and efficient technology and equipment have been widely popularized, and the energy efficiency level has been steadily improved, and the energy intensity per unit of GDP in China is significantly lower than that of other developing countries. From the perspective of specific fields, taking electrolytic aluminum and polysilicon as examples, the comprehensive AC power consumption of aluminum ingots in China is at the world's leading level, more than 8% lower than that in North America and more than 11% lower than that of the European Union; The energy consumption level of polysilicon products is more than 10% lower than the global average outside of China. In addition, China is the country with the most complete industrial chain in the world, and the domestic large-scale compound industrial system can greatly reduce the energy consumption of intermediate products such as storage and transportation, and can also obtain more efficiency dividends through large-scale production and refined division of labor.

China has accelerated the construction of a new energy system, the scale of green power has been continuously improved, and the low-carbon attributes of the whole life cycle of "Made in China" have been highlighted. The low-carbon development momentum of China's energy structure is rapid, and the scale and level of "green electricity" have created conditions for the decarbonization of industries and products. At the same time, China also has the world's strongest transmission and distribution capacity and the longest safety operation record of the power grid system. It is not difficult to see that the large scale, high level of utilization, and strong power guarantee capacity of green power make "Made in China" have very obvious carbon emission reduction benefits, and truly achieve "producing green products with green energy".

China has given full play to its scale advantages and network benefits, and has obvious cost advantages, which is conducive to reducing the cost of global energy transition. China has built the most complete industrial production system. Factors such as economies of scale, cluster benefits, infrastructure support, and high labor productivity have jointly shaped the comprehensive competitive advantage of Made in China. China's new energy industry gathers and forms a close cooperation network between the upstream and downstream of the industrial chain, which has also played a great role in promoting the transformation of energy technology.

China's new energy industry has cultivated real skills in opening up, and continues to send "living water from the source" to the global energy transition, and "Made in China" will support the global sustainable energy transition. In the context of actively responding to climate change, the global demand for new energy products will increase several times, and the high-quality production capacity is not only not excessive, but far from insufficient.

China's new energy industry continues to expand its influence in the world, and China's production capacity has enriched global supply and made important contributions to the global energy transition. Relying on the triple "green competitive advantage", the global new energy industry has accelerated its agglomeration in China, and the development of China's new energy industry has also provided a strong boost for the global transition to clean energy. In 2023, China's photovoltaic module output will be close to 500GW, wind turbines will exceed 80GW, and new energy vehicles will exceed 9.5 million, most of which will meet the needs of domestic energy transformation, rather than external sales. On this basis, China has also sent "living water from the source" to the energy transition of other countries and regions, and the photovoltaic and wind turbine products exported in 2023 can produce more than 300 billion kilowatt hours of clean electricity per year. At the same time, China is actively building a "circle of friends" for low-carbon development with other developing countries and regions. China's new energy vehicles, lithium batteries and photovoltaic products have become global hot-selling products, and renewable energy products have been exported to more than 200 countries and regions around the world, providing high-quality green products to people around the world, helping developing countries obtain clean, reliable and affordable energy, and making important contributions to the global green and low-carbon transformation.

The global energy transition process is shifting gears faster, and more high-quality production capacity is urgently needed. Addressing climate change is a major challenge faced by all countries around the world, and more than 150 countries and regions have proposed carbon neutrality goals. At present, with the frequent occurrence of global geopolitical "black swan" events, the high operation of international energy prices, and the rising risk of decoupling and chain breaking, the pace of energy transition will not slow down, but will further accelerate. Therefore, the current production capacity of new energy products is far from meeting the market demand of the global energy transition. In the context of inflation, the green premium of energy transition has become an "unbearable burden" for various countries and regions, and the "green and cheap" high-quality production capacity that supports the global energy transition is not only not excessive, but far from enough, and "Made in China" will have broader development prospects in the future.

The global energy transition will create huge market demand, and developed countries still have certain advantages in technology, capital, talent, business model innovation, etc., and can form an effective docking with China. We should put aside the "zero-sum game" mentality, explore the establishment of a mutually beneficial and win-win cooperation model, jointly build a green and efficient new energy industry chain and supply chain, and jointly share the fruits of global energy transformation.

The development of China's new energy industry is changing with each passing day, which is created by technology research and development, market inspection, and product iteration. The world does not need China to reduce output, but needs more money, technology and products to accelerate the energy transition and eradicate poverty. We should objectively look at the green competitive advantages that China's new energy industry has formed in terms of energy efficiency, carbon emissions, costs, etc., and promote cooperation in technology, industry, and talent with a more positive attitude from the perspective of improving the well-being of all mankind.

China will firmly promote the high-quality development of the new energy industry and build a green and efficient industrial chain and supply chain. Give full play to the economies of scale, and continue to improve the industrialization level and market competitiveness of new energy. Aiming at the world's frontier of energy science and technology, focusing on key energy areas and major needs, rationally selecting technical routes, strengthening joint research on key core technologies, strengthening the transformation and application of scientific research achievements, cultivating energy technology and its related industries into new growth points that drive China's industrial upgrading, and promoting the development of new quality productivity. Promote international cooperation in the new energy industry chain in an orderly manner, strengthen the protection of intellectual property rights, patents and brands, attract foreign investors to invest in new energy R&D centers and production bases in China, guide enterprises to increase overseas market layout and industrial chain support, and build a new win-win model of green and low-carbon energy transformation.

Author Affilications:Energy Research Institute, National Development and Reform Commission