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Expert analysis: China faces five major energy issues
China's economy is currently grappling with five significant challenges related to energy: low per capita energy consumption, a shift away from the global mainstream energy mix, environmental pollution caused by energy use, excessive strain on ecosystems, and severe energy waste. These issues were highlighted by researcher Dai Yande, deputy director of the Energy Research Institute under the National Development and Reform Commission, during a recent special lecture series hosted by the China Petroleum and Chemical Industry Association.
According to reports, China is the world’s second-largest energy consumer, yet its per capita energy consumption stands at 0.79 tons of standard oil, which is just half of the global average and about 10% of that in the United States. This indicates a major gap in energy efficiency and accessibility compared to developed nations.
China's energy structure is heavily reliant on coal, a low-quality energy source that contributes to inefficiency, environmental degradation, and high production costs. This coal-based system not only reduces economic efficiency but also makes Chinese products less competitive in the global market. The heavy reliance on coal has led to serious pollution problems, overwhelming natural ecosystems and public health.
Data shows that over 80% of sulfur dioxide and smoke emissions in China come from energy consumption. Additionally, more than 95% of coal-fired power plants lack desulfurization equipment, exacerbating air pollution. Coal mining has resulted in 400,000 hectares of land subsidence, while annual wastewater discharge from mines reaches around 3 billion cubic meters. Mine gas emissions are estimated at 9 to 12 billion cubic meters annually.
Energy efficiency remains a critical issue. The energy consumption for key energy-intensive products in China is 25% to 60% higher than international standards, and the efficiency of energy production, conversion, and terminal use lags behind that of other countries by more than a dozen percentage points. The 16th Central Committee’s Fifth Plenary Session set a target to reduce energy consumption per unit of GDP by 20% during the "Eleventh Five-Year Plan" period. Achieving this goal will require significant efforts from sectors like petroleum and chemical industries in promoting energy conservation and exploring new energy alternatives.
Currently, China’s per capita recoverable reserves of oil, natural gas, and coal are only 10%, 5%, and 55% of the world average, respectively. This scarcity underscores the urgency of improving energy efficiency and developing sustainable energy solutions to support long-term economic growth.