# Clean Power for Industry: China ## China accounts for around 40% of global energy emissions across industry. China’s industrial sector accounts or more than half of global production of many key bulk materials such as steel, aluminum, and cement, and nearly half of chemicals and paper. To reduce energy emissions in industry two key actions are required at scale. First, a massive increase to clean power is required, 83% of China’s generation capacity will need to be from non-fossil sources by 2060. Second, electricity needs to rise from 25% to 56% of final energy consumption through the electrification of industry’s transport, equipment & processes. ## White Paper: Clean Power for Industry in China: Policy Enablers for the Industrial Sector The industrial sector in China accounts for more than half of global production of many key bulk materials such as steel, aluminum and cement, and nearly half of all chemicals and paper. This white paper presents 10 policy options for consideration to scale up clean power deployment in the sector.World Economic Forum, in collaboration with Accenture I November 2024 [Read the Report](https://www.weforum.org/publications/clean-power-for-industry-in-china-policy-enablers-for-the-industrial-sector/) ## Mainstream Measures in Chinese Industries China's energy transition journey is marked by innovative solutions to address barriers to (1) transitioning to clean power generation and (2) scaling green power procurement. [View More](#) ### Onsite Self Generation & Onsite Power Purchase Agreements (PPAs) Chinse industries are actively investing in onsite renewable energy generation and engaging in onsite PPAs to secure renewable energy directly from these facilities. ### Offsite PPAs & Green Power Trading Chinese industries are increasingly entering into offsite PPAs and participating in green power trading platforms to access renewable energy without the need for onsite infrastructure, supporting the growth of renewable markets. ### Energy Attribute Certificates (EACs) Chinese industries are utilizing Energy Attribute Certificates (EACs) to certify their renewable energy usage, supporting renewable energy development in China. ### Transitioning to Clean Power Generation Economic Factors Cost of Storage: Deploying shared energy storage models could potentially slash costs by up to 20% rendering investments in storage economically competitive compared to grid electricity.Capital Cost: While the initial capital outlay for clean power generation assets remains high, projections indicate that the lifetime costs of clean power sources will soon surpass those of coal in China, expected to occur from 2025 onwards.Business Models: Industrial players often face the dilemma of either financing clean power assets independently or relinquishing some control over asset governance and returns. Innovations in business models are crucial to address these concerns. Resource ConsiderationsHydropower: Overuse of hydropower resources in southwest provinces due to high aluminum production. Space Availability: Limited available space and complex property rights regulations pose bottlenecks in the installation of clean power infrastructure.Curtailment: Over generation without the required storage has led to high curtailment rates. ## Scaling Green Power Procurement Competitive Advantages of Innovation: While clean power tariffs may initially pose cost challenges, the nation's strategic investments in research and development foster technological breakthroughs that drive down costs, enhancing the attractiveness of green power procurement.Integrated Market Dynamics: Despite initial disconnects between green power trading and carbon markets, efforts to streamline administrative processes and eliminate redundancies showcase China's determination to optimize market structures, minimizing costs and maximizing efficiency. [View More](#) ## Related insights ## Featured Content ### Clean energy deployment along the value chain is key to China's industry decarbonization. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit. [Read more](https://www.weforum.org/agenda/2023/12/china-industry-decarbonization-value-chain-cop28/?utm_source=sfmc&utm_medium=email&utm_campaign=2818427_WeeklyAgenda15December2023&utm_term=&emailType=Agenda%20Weekly) ### Clean Power Across Industry is Key for China to Meet Net Zero, Two Approaches Can Accelerate Its Use When ordering food or beverages to go, customers can opt for a reusable revolv cup. A deposit is placed on the cup, which will be paid back upon return at a drop-off station or to any participating café. Revolv provides users with incentives, including discounts, to opt for a revolv cup [Read more](https://www.yicaiglobal.com/news/clean-power-across-industry-is-key-for-china-to-meet-net-zero-two-approaches-can-accelerate-its-use) ### When the earth's hottest year meets COP, what methodology can China's experiences contribute to? Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit. ### Join a vibrant community We welcome high intensity energy users, such as material industries (metals, chemicals, cement/concrete), data centres etc. to join us. Get in touch and discover projects, best practices, and case studies and unlock partnership opportunities. [Related Community](https://www.weforum.org/communities/international-energy-community-china/)