CleanPowerforIndustryinChina:PolicyEnablersfortheIndustrialSectorWHITEPAPERNOVEMBER2024IncollaborationwithAccentureContentsImages:GettyImages©2024WorldEconomicForum.Allrightsreserved.Nopartofthispublicationmaybereproducedortransmittedinanyformorbyanymeans,includingphotocopyingandrecording,orbyanyinformationstorageandretrievalsystem.DisclaimerThisdocumentispublishedbytheWorldEconomicForumasacontributiontoaproject,insightareaorinteraction.Thefindings,interpretationsandconclusionsexpressedhereinarearesultofacollaborativeprocessfacilitatedandendorsedbytheWorldEconomicForumbutwhoseresultsdonotnecessarilyrepresenttheviewsoftheWorldEconomicForum,northeentiretyofitsMembers,Partnersorotherstakeholders.ForewordExecutivesummaryIntroduction:Cleanenergyuseisessentialforindustry1Upgradingindustrialenergystorage1.1Guidingthedevelopmentofbusinessinnovationinenergystorage1.2Improvingtheintegrationofenergystorageinthepowermarket2Scalingupgreenpowerconsumption2.1Optimizingtop-leveldesignforthegreenpowermarket2.2FacilitatinggreenpowertradingthroughoutChina’sprovincesandregions2.3Encouraginglong-termgreenpowerprocurementConclusionContributorsEndnotes34577911111212141518CleanPowerforIndustryinChina:PolicyEnablersfortheIndustrialSector2ForewordSustainabledevelopmentemphasizesthedisruptionoftraditionalproductionmethodsandtheuseofinnovationtodrivestructuraltransformationoftheeconomy,industryandenergysystems,steeringtheminacleanandlow-carbondirectioninordertoestablishagreenproductionsystem.ThiswillbecrucialforChinatoachievewhatitterms“high-qualitydevelopment”,withthelow-carbontransitionbeingawayofmanifesting“techforgood”–leveragingtechnologytopromotetheemerginggreenprofessionsandshapingproductiontobecomemoreclimate-friendly,aswellasinjectingnewmomentumintogreeneconomicdevelopment.InChina,industryisthesecond-largestsourceofcarbonemissions,accountingforaboutone-thirdofnationaloutputin2020.1,2Toachievesustainabledevelopment,theChinesegovernmenthasproposedcarbonpeakingandcarbonneutrality(termedthe“dualcarbon”goals),3markingtheindustrialsectorasthefocalpointforachievinglow-carbontransformationandpoweringhigh-qualitydevelopment.Throughoutthecountry’scomprehensiveupgradingprocess–andbearinginmindthepositiveimpactofcleanenergyuseonclimatechangeandsustainabledevelopment–itwillbeessentialtomaintainabalanceamongenergysustainability,affordabilityandsecurity.4Forindustry,bothmaterialtransformationandenergytransitionarerequired.Thisinvolvesoptimizingtheconversionofrawmaterialsintoadvancedproductswhilealsomobilizingdifferentleversforprocesstransformation,suchaselectrification,energyefficiencyanduseoptimization,andswitchingtocleanfuels.Allwillrequirereducingindustry’srelianceonfossilfuels.By2060,industry’selectricitydemandinChinaisprojectedtodouble,andthisneedwillmainlybemetbyrenewableenergy.Chinaplaysanincreasinglyimportantrolein,andisaleadingcontributorto,theglobaltransitiontocleanenergy,spearheadingthemanufacturingofcleanenergytechnologiesandsolutions.Withitsstrongpositionincleanenergy,Chinaalsoholdsthepotentialtoleadthetransformationoftheindustrialsector,drivingeconomicgrowthwhileensuringanequitableandsustainabletransition.Forendusers,thisshifttowardscleanenergybyindustrywillbeanimportantfocusareaoverthenextdecade.Theglobalnet-zerotransitiondependsonChina’scontribution,andindustrial-sectorcom...