Energy Efficiency

China's energy productivity is well below the world average. In 2006, the country used 15 percent of global energy to achieve about 6 percent of global GDP. The Chinese government is determined to change that and now has one of the world's most aggressive energy efficiency programs, promising to reduce the country's energy use intensity by 20 percent between 2006 and 2010.

If successful, it will cut China's carbon dioxide emissions by an estimated 1.5 billion tons annually. China's leaders have tied the job performance of provincial governors and the heads of China's top 1,000 energy-guzzling factories to their success in curbing energy use.

Adapting U.S. Experience

NRDC's work builds on the group's long experience in California and adapts the lessons learned there to China. In the United States, we helped develop efficiency standards and incentives that save Californians $6 billion a year and have allowed the state to expand its economy by more than 70 percent since 1973 -- without increasing per capita energy consumption.

A top priority in our work with Chinese partners is to reduce reliance on coal, which is used to produce more than three-quarters of China's electricity and is the largest contributor to global warming pollution. Studies have shown that increased energy efficiency in China could cut the nation's growth in energy demand in half and reduce greenhouse gas emissions by up to 50 percent in 2030 over projected levels.

Demand Side Management

Our main focus is on helping China develop large-scale incentive programs that use a portion of electricity rates to fund energy efficient technologies. This is known as demand-side management, or DSM.The concept can also be described as helping China build virtual "efficiency power plants."

Our landmark DSM program in Jiangsu Province was lauded by Premier Wen Jiabao as a model for the rest of the country. U.S. Secretary of State Hilary Clinton hailed it as a model for U.S.-China energy cooperation. NRDC also helped China's government develop tough lighting and efficiency standards for commercial buildings and new electronic equipment.

Taking it Nationwide

In partnership with China's most powerful central government agency, the National Development and Reform Commission, we are now expanding our work in Jiangsu and taking it nationwide, with new efforts in Beijing, Suzhou and Hebei Province. We help China identify the energy efficiency projects that will have the quickest results.

The goal is to rapidly reduce carbon dioxide emissions and other forms of pollution while easing the pressure for China to build new coal-fired power plants. This is done by:

• Demonstrating success in individual factories around the country, showing managers, government officials and utilities that energy efficiency is worth the investment and comes with substantial rewards.
• Providing intensive training for local leaders and experts, who can in turn train others.
• Assisting China in developing a national framework to measure and verify the energy savings from DSM programs.
• Helping the central government create policies and guidelines that make "best practices" available throughout the country.