Energy Insider: China Reports 13 Billion Tons of Annual Emissions, Mega Domestic Lithium Mines Discovered

In this week's Caixin energy wrap, significant updates in China's climate and energy sector are highlighted, focusing on policy changes, industry developments, and project updates. [para. 1]

**China's Annual Emissions:**

China's greenhouse gas emissions reached 13 billion tons of carbon dioxide equivalent in 2021, marking a 4.3% increase from the previous year and 70% more than in 2005. Of this, energy-related activities accounted for about 85%, with fuel burning alone contributing 10.3 billion tons, a 4.5% increase from the previous year. The comprehensive climate change report submitted to the United Nations also indicated that China will need approximately 268.2 trillion yuan ($36.6 trillion) from 2024 to 2060 to manage emissions and climate change adaptation. These figures are the latest official data since 2018, making them crucial for understanding China's current climate impact and future commitments. Beijing is expected to submit new climate targets for the period up to 2035 shortly, which will set the course for post-peak emissions goals. [para. 5][para. 6][para. 7]

**Resurgence in Lithium Reserves:**

China's lithium reserves have seen a significant boost due to new discoveries made by Chinese surveyors. A series of breakthroughs have led to the identification of massive lithium deposits within China, with one substantial find in Western China measuring 2,800 kilometers long, potentially holding over 30 million tons of lithium. These discoveries have propelled China's position in global lithium reserves standings from sixth to second, currently accounting for 16.5% of worldwide reserves. This development is vital as China is the largest importer of unprocessed lithium and the biggest refiner, possessing around three-quarters of global refining capacity. Domestic sourcing of lithium is crucial to counter the heavy reliance on imports, with demand for such materials expected to rise steeply. [para. 9][para. 10][para. 11][para. 12]

**Emission Factors Database:**

Beijing has initiated its first national database for emission factors, essential for industries and companies to compute their greenhouse gas emissions accurately. The database allows for categorization by emission sources or industries, ensuring consistent and verifiable carbon emission calculations. This database is particularly beneficial for Chinese companies in accurately assessing their products' carbon footprints in international markets, which often rely on different emission standards. To address international trade requirements, China's Ministry of Commerce proposed emission standards for solar exports recently, thus aligning with growing global demands. [para. 14][para. 15][para. 16][para. 17][para. 18]

**Support for 'Green' Construction:**

The Chinese government has expanded subsidies for the use of "green construction materials" in public buildings, effective January 1. The policy encompasses a wide range of public projects, including hospitals, schools, and more, across 101 cities and districts. Green construction emphasizes less resource-intensive, energy-efficient materials with minimal environmental impact over their lifespans. The construction sector is China's second-largest carbon emitter after the power industry, making it a focal point in the country's carbon neutrality plans by 2060. Government aims include significantly scaling ultra-low energy demand buildings by 2027, as outlined in a recent work plan. [para. 20][para. 21][para. 22][para. 23][para. 24]

Overall, these developments represent China's strategic moves toward managing its emissions, bolstering its energy resources, and pursuing sustainable practices in alignment with its long-term environmental goals. [para. 1-24]