China’s energy sector carbon dioxide (CO2) emissions increased 5.2% in 2023, meaning a record fall of 4-6% is needed by 2025 to meet the government’s “carbon intensity” target.
The new analysis for Carbon Brief, based on official figures and commercial data, shows rapid electricity demand growth and weak rains boosted demand for coal power in 2023, while the rebound from zero-Covid boosted demand for oil.
Other key findings from the analysis include:
- China’s CO2 emissions have now increased by 12% between 2020 and 2023, after a highly energy- and carbon-intensive response to the Covid-19 pandemic.
- This means CO2 emissions would need to fall by 4-6% by 2025, in order to meet the target of cutting China’s carbon intensity – its CO2 emissions per unit of economic output – by 18% during the 14th five-year plan period.
- China is also at risk of missing all of its other key climate targets for 2025, including pledges to “strictly limit” coal demand growth and “strictly control” new coal power capacity, as well as targets for energy intensity, the share of low-carbon energy in overall demand and the share of renewables in energy demand growth.
- Government pressure to hit the targets, most of which are in China’s updated international climate pledge under the Paris Agreement, makes it more likely that China’s CO2 emissions will peak before 2025 – far earlier than its target of peaking “before 2030”.
The deadline for peaking CO2 emissions has led officials and industries to pursue rapid emissions growth and carbon-intensive projects, while a window to do so remains open.
The government recently recognised and responded to the gap to meeting its targets, by calling for stronger controls on such projects, as well as faster renewables deployment.
Most of China’s climate targets can be met if the acceleration of clean energy deployment during 2023 is maintained – and if energy demand growth returns to pre-Covid levels.
- China’s CO2 emissions continued to increase in 2023
- China is off track to all of its 2025 climate targets
- Official energy data is over-reporting coal consumption growth
- Government response
- The clean energy boom can allow most targets to be met
- About the data
China’s CO2 emissions continued to increase in 2023
According to preliminary official data, China’s total energy consumption increased by 5.7% in 2023, the first time since at least 2005 that energy demand has grown faster than GDP.
With coal consumption growing by 4.4%, our analysis shows CO2 emissions increasing by 5.2% – at the same rate as GDP – highlighting energy-intensive recent growth patterns.
China’s economic growth during and after the Covid-19 pandemic has been highly energy- and carbon-intensive. CO2 emissions grew at an average of 3.8% per year in 2021-23, up from 0.9% a year in 2016-20, while GDP growth slowed from an average of 5.7% to 5.4%.
Another year of rapidly rising emissions in 2023 leaves China way off track against its target of cutting carbon intensity by 18% during the 14th five-year plan (2021-25).
As a result, CO2 emissions would now need to fall by 4-6% by 2025 to hit the goal. This is illustrated in the figure below, showing historical emissions (black line) and the reductions needed by 2025 to hit the carbon intensity target, depending on the rate of GDP growth.
Even if China’s GDP growth is high and averages 6% per year in 2024-25, the intensity target requires CO2 emissions to fall by 4%.
The main drivers of the emissions increase in 2023 were coal-fired power and oil consumption, which increased by 6% and 8%, respectively.
A major reason for the growth in power generation from coal was that hydropower operating rates reached the lowest level in more than two decades due to a series of droughts. These operating rates are likely to recover towards average levels in 2024.
The increase in oil consumption represents a rebound from the slow demand growth during zero-Covid and an outright drop in 2022. Gas consumption rebounded as prices came down from 2022 highs, while still remaining elevated.
The clean energy manufacturing boom also has a role in driving emissions, due to energy-intensive processes involved in the production of solar PV and batteries, in particular.
Approximately one percentage-point of CO2 emission growth can be attributed to these sectors, based on output data and emission intensities estimated for solar PV, electric vehicles and batteries.
This means that, without the clean technology manufacturing boom, China’s CO2 emissions would have grown by around 4.2%, instead of the 5.2% estimated in our analysis.
Nevertheless, the increase in manufacturing will result in a significant reduction in emissions in net terms, once the products are in use. About half of this reduction will be realised outside of China, as the products are exported.
China is off track to all of its 2025 climate targets
China’s climate pledge under the Paris Agreement (nationally determined contribution, NDC) was updated in 2021, following commitments made by President Xi Jinping earlier that year and incorporating targets set under the 14th five-year plan.
The updated NDC makes commitments to strictly limit coal consumption growth; strictly control new coal power; reduce energy and carbon intensity by 2025; and increase the share of non-fossil energy sources to 25% by 2030.
In addition, the country’s five-year plans set targets of increasing the share of non-fossil energy sources to 20% by 2025 and deriving more than 50% of the increase in energy use from 2020 to 2025 overall from renewable sources.
All of these targets are severely off track after 2023.
The table below lists the various climate- and energy-related targets, the progress seen from 2020-23 and what would be needed during 2024-25 to achieve each of the goals. (See below for further details on each indicator and what is needed by 2025.)
China’s 2025 climate commitments and targets in the energy sector
| Indicator | Target | Progress in 2020-23 | Change needed in 2024-25 |
| Carbon intensity | -18% | -4.6% (-1.5%/year) | -7%/year; reduce emissions in absolute terms |
| Energy intensity | -13.5% | -2% (-0.6%/year) | -6%/year; reduce energy use in absolute terms |
| Coal consumption growth | “strictly limit” | Annual growth increased eightfold from 0.5% in 2016-20 to 3.8% | Negative growth to limit increase to the same rate as previous five-year period |
| New coal power projects | “strictly control” | Permits increased fourfold, from 25GW per year in 2016-20 to 110GW per year | Restrict new permits and review permits already granted |
| Non-fossil share of energy overall | Increase by 4.1 percentage points | Increased by 1.8 percentage points (0.6 points per year) | Rate of increase has to double to 1.2 points per year |
| Share of energy consumption growth met by renewables | Above 50% | 30%, down from 42% in 2016-20 | Renewable energy growth needs to double and energy consumption growth needs to slow to pre-Covid rate; total consumption of fossil fuels needs to fall.Renewable energy growth needs to double and energy consumption growth needs to slow to pre-Covid rate; total consumption of fossil fuels needs to fall. |
The centrepiece of China’s 2020 and 2025 climate commitments has been reducing carbon intensity, or CO2 emissions from energy use per unit of GDP.
The country’s carbon intensity reportedly fell 48% from 2005 to 2020. China committed to an 18% fall from 2020 to 2025 – and to reducing carbon intensity by more than 65% from 2005 levels by 2030, which requires a further reduction of at least 17% from 2025 to 2030.
However, as of the end of 2023, China’s carbon intensity has only fallen 5% in the 14th five-year plan period, lagging far behind the target of 18% from 2020 to 2025. If this target is to be met, CO2 emissions will have to come down in absolute terms from 2023 to 2025.
The figure below shows how China overachieved against its carbon intensity target for 2015-2020 but is veering increasingly off track against the goal for 2020-2025.
China’s energy intensity increased by 0.5% in 2023, the first annual rise since at least 2005. From 2020 to 2023, energy intensity only fell 2%.
The figure below shows that China narrowly missed its energy intensity target during the 13th five-year plan period, spanning 2016 to 2020, as progress halted in 2020. The country is now far off track for its 14th five-year plan target.
Indeed, to meet the target of a 13.5% reduction over 2020-25 – given the lack of progress as of the end of 2023 – energy consumption would have to fall in absolute terms over the next two years, while the rate of GDP growth is maintained or accelerated. This makes the goal all but unachievable.
The share of China’s energy demand met by non-fossil sources has increased by 1.8 percentage points from 2020 to 2023, against a target of 4.1 points by 2025.
This is shown in the figure below, illustrating the targeted 15% share for non-fossil energy by 2020 and 20% by 2025, as well as progress to date.
Meeting the 2025 target would mean that the rate of increase needs to double for the next two years. Moreover, if energy demand growth continues at the exceptionally high rate of 2020 to 2023, then energy production from non-fossil sources would need to grow at 11.3% per year to meet the target, up from 8.5% in the past three years.
Alternatively, the growth of renewables and nuclear could be maintained – but energy consumption growth would have to slow down to its pre-Covid average.
Only 30% of energy consumption growth has been met by renewable energy in 2020 to 2023, against a target of more than 50% during 2020-25.
This is illustrated in the figure below, showing contributions to annual energy demand growth from fossil fuels (grey bars), nuclear (blue) and renewables (red).
The 50% target is now highly unlikely to be met without a slowdown in energy consumption growth. Without a slowdown, renewables would have to grow by 20% per year to meet the target, up from 8.9% in the past three years.
Both growth in coal consumption and new coal power projects accelerated sharply in 2021-23, despite Xi’s pledges to “strictly control” them.
This is illustrated in the figure below, with annual coal consumption growth on the left and the amount of new coal capacity added each year on the right.
Indeed, the average growth rate of coal consumption increased 8-fold from 0.5% per year in 2016-20 to 3.8% per year in 2021-23.
Similarly, new coal power approvals increased fourfold in 2022-23, compared with the five years before the “strictly control” pledge, based on analysis of Global Energy Monitor data.
Since the beginning of 2022, a total of 218 gigawatts (GW) of new coal power plants have been permitted. By the end of 2023, some 89GW of this capacity had already started construction, while 128GW had yet to break ground.
Furthermore, the government’s official policy has shifted to strongly encouraging new coal power. An assessment of the projects permitted in 2022-23 shows that requirements, set for approving new coal power plants in August 2021, have not been enforced.
Statements from developers and government officials – see below – confirm that the 14th five-year plan period until 2025 is being seen as a “window of opportunity” for new coal power plants, rather than a period when new projects are strictly controlled.
This is causing a rush to secure permits for new projects. China Shenhua called the period until 2025 “an opportune time for thermal power construction”. The provincial state-owned enterprise supervisor boasts of Inner Mongolia Energy Group “achieving a flying start” to 2023 and “seizing the policy window” for coal power projects.
The Zhejiang province energy regulator emphasised the importance of seizing the time window for thermal power construction during the 14th five-year period.
Power China called for joint efforts with local government officials to exploit the coal power development window effectively, citing a plan known as “three times 80GW”. This refers to a proposal promoted by the thermal power construction industry to permit and commission 80GW of coal power plants each year, from 2022 to 2024.
The meaning of the pledges to “strictly control” growth in coal consumption and new coal power projects lacks a precise definition. However, a sharp acceleration of coal consumption growth and coal power plant approvals, along with active government promotion of new projects, is hard to reconcile with the pledge to exert strict control.
By this logic, meeting the pledge on coal consumption growth would require, at the very least, reducing coal use from 2023 to 2025 to bring the growth rate during the 2021 to 2025 period closer to the rate during the preceding five-year period.
Similarly, meeting the commitment to control new coal power projects would require enforcing existing policy to limit new schemes, restricting new permits and reviewing permits already granted, to limit the acceleration compared with the preceding five-year period.
Official energy data is over-reporting coal consumption growth
In 2022, government policies seeking to increase coal mine output and push down coal prices led to a sharp deterioration in the quality and calorific value of coal produced.
This fall in quality meant that the weight of coal being consumed increased by far more than the amount of energy supplied or CO2 emitted from that coal.
China’s official statistics failed to capture the change and consequently over-reported the growth in coal consumption and under-reported the improvement in CO2 intensity in 2022. This 2022 data could be expected to be revised once more complete energy statistics are released later.
Unlike in 2022, the officially-reported coal consumption growth rate for 2023 is more closely aligned with growth in coal power generation and output in key heavy industry sectors. The data indicates that coal use grew 4.4% in 2023, while power generation from coal rose 6%.
However, the conclusion that CO2 emissions need to fall from 2023 to 2025 to meet the carbon intensity target holds, even if a correction to 2022 data is made.
Calculating with current official data, CO2 emissions need to fall by 3.8-6.5% in the next two years, depending on the growth rate of GDP.
Based on my previous estimate that the growth in CO2 emissions in 2022 was inflated by 2.3 percentage points, a correction for 2022 would put the required reduction at 1.6-4.3%.
Government response
Energy intensity and carbon intensity reduction are among the 20 “main indicators” specified in China’s overarching five-year plan for 2021-25.
The mid-term evaluation of progress, published by China’s top economic planner the national development and reform commission (NDRC) in December 2023, identified these indicators as two of the four that were off track, along with a key air quality target.
(Air pollution concentrations also rose in 2023 due to increased industrial and transportation emissions, along with unfavourable weather conditions.)
In late 2023, the NDRC reprimanded the provinces of Hubei, Shaanxi, Gansu, Qinghai, Zhejiang, Anhui, Guangdong and Chongqing for lagging behind on the targets to control energy intensity and total energy consumption.
Zhou Dadi, a member of the national climate change expert advisory committee, pointed to the weak growth in service industries as the reason for the lack of progress on the intensity targets.
Service sectors have relatively low energy demand and carbon emissions relative to economic output, so the decline in their share of economic activity tends to increase the energy and carbon intensity of the economy.
The NDRC’s evaluation report also identified measures to achieve the targets, including improving policies to control energy use and carbon emissions, curbing the initiation of projects with high energy consumption and high emissions, strictly limiting total coal consumption, promoting a shift to cleaner industry and transportation, promoting energy conservation and, importantly, accelerating the deployment of renewable energy.
The clean energy boom can allow most targets to be met
While China fell severely behind on its 2025 climate targets for the energy sector, the past two years saw a veritable boom in clean energy installations – particularly solar power.
This boom puts most of the targets still in reach, especially if energy demand growth returns to the pre-Covid rates.
My earlier analysis showed that China’s CO2 emissions could fall this year and then stabilise, if additions of low-carbon power generation continue at 2023 rates and electricity demand returns to trend.
Under this projection, CO2 emissions fall by approximately 1.5% from 2023 to 2025. Therefore, achieving the 4-6% reduction in CO2 emissions needed to meet the CO2 intensity target from 2023 to 2025 would require further acceleration in clean energy deployment, or a sharp slowdown in energy demand growth.
The increase in the share of non-fossil energy should be possible to achieve given the sharp increase in solar and wind installations in 2023. To start with, slow progress was partially caused by the record-low hydropower operating rates in 2023, linked to record droughts.
Even if energy demand continued to grow at the 2020-23 rate, continued low-carbon energy additions at the 2023 level should suffice to raise the share of non-fossil energy to 21%, comfortably ahead of the target.
The target of renewable energy contributing half of the growth in total energy demand is significantly more challenging.
If energy consumption growth rate slows down to its pre-Covid average and clean energy capacity additions continue at the 2023 rate, enabling the growth rate of renewable energy production to almost double to 16%, then the target would likely be reached.
This would also mean a reduction in the total consumption of fossil fuels and a reduction in energy sector CO2 emissions. This scenario would arguably also meet the commitment to “strictly limit the growth in coal consumption”.
Meeting the pledge to “strictly control” new coal power projects would mean thoroughly assessing the justification for permits granted in the past two years and restricting the issuance of new permits.
The large amount of electricity storage being deployed – especially pumped hydro, but increasingly also grid-connected batteries – reduces the need for thermal power plants.
For a significant restriction of new coal power to be possible while ensuring electricity supply security, progress would also be needed on power system reforms that increase flexibility and make more efficient use of existing capacity.
China’s clean energy boom has been happening much faster than official targets for wind and solar installations would require, driven by enthusiasm from local governments, state-owned enterprises and investors.
However, due to the rapid increase in energy consumption, meeting China’s headline climate targets now requires that the momentum of clean energy installations is maintained.
About the data
Total energy consumption and energy mix were taken from national bureau of statistics annual data. Improvements in energy intensity and carbon intensity were compiled from the bureau’s annual statistical communiques and changes in carbon emissions were calculated based on reported GDP growth and carbon intensity improvement.
Growth in total energy consumption and changes in the energy mix were taken from preliminary information released by the national bureau of statistics. Growth in CO2 emissions in 2023 was calculated using Intergovernmental Panel on Climate Change default emission factors based on changes in the consumption of coal, oil and gas.
The post Analysis: Record drop in China’s CO2 emissions needed to meet 2025 target appeared first on Carbon Brief.
Analysis: Record drop in China’s CO2 emissions needed to meet 2025 target
Gabrielle Dreyfus is chief scientist at the Institute for Governance and Sustainable Development, Thomas Röckmann is a professor of atmospheric physics and chemistry at Utrecht University, and Lena Höglund Isaksson is a senior research scholar at the International Institute for Applied Systems Analysis.
This March scientists and policy makers will gather near the site in Italy where methane was first identified 250 years ago to share the latest science on methane and the policy and technology steps needed to rapidly cut methane emissions. The timing is apt.
As new tools transform our understanding of methane emissions and their sources, the evidence they reveal points to a single conclusion: Human-caused methane emissions are still rising, and global action remains far too slow.
This is the central finding of the latest Global Methane Status Report. Four years into the Global Methane Pledge, which aims for a 30% cut in global emissions by 2030, the good news is that the pledge has increased mitigation ambition under national plans, which, if fully implemented, could result in the largest and most sustained decline in methane emissions since the Industrial Revolution.
The bad news is this is still short of the 30% target. The decisive question is whether governments will move quickly enough to turn that bend into the steep decline required to pump the brake on global warming.
What the data really show
Assessing progress requires comparing three benchmarks: the level of emissions today relative to 2020, the trajectory projected in 2021 before methane received significant policy focus, and the level required by 2030 to meet the pledge.
The latest data show that global methane emissions in 2025 are higher than in 2020 but not as high as previously expected. In 2021, emissions were projected to rise by about 9% between 2020 and 2030. Updated analysis places that increase closer to 5%. This change is driven by factors such as slower than expected growth in unconventional gas production between 2020 and 2024 and lower than expected waste emissions in several regions.
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This updated trajectory still does not deliver the reductions required, but it does indicate that the curve is beginning to bend. More importantly, the commitments already outlined in countries’ Nationally Determined Contributions and Methane Action Plans would, if fully implemented, produce an 8% reduction in global methane emissions between 2020 and 2030. This would turn the current increase into a sustained decline. While still insufficient to reach the Global Methane Pledge target of a 30% cut, it would represent historical progress.
Solutions are known and ready
Scientific assessments consistently show that the technical potential to meet the pledge exists. The gap lies not in technology, but in implementation.
The energy sector accounts for approximately 70% of total technical methane reduction potential between 2020 and 2030. Proven measures include recovering associated petroleum gas in oil production, regular leak detection and repair across oil and gas supply chains, and installing ventilation air oxidation technologies in underground coal mines. Many of these options are low cost or profitable. Yet current commitments would achieve only one third of the maximum technically feasible reductions in this sector.
Recent COP hosts Brazil and Azerbaijan linked to “super-emitting” methane plumes
Agriculture and waste also provide opportunities. Rice emissions can be reduced through improved water management, low-emission hybrids and soil amendments. While innovations in technology and practices hold promise in the longer term, near-term potential in livestock is more constrained and trends in global diets may counteract gains.
Waste sector emissions had been expected to increase more rapidly, but improvements in waste management in several regions over the past two decades have moderated this rise. Long-term mitigation in this sector requires immediate investment in improved landfills and circular waste systems, as emissions from waste already deposited will persist in the short term.
New measurement tools
Methane monitoring capacity has expanded significantly. Satellite-based systems can now identify methane super-emitters. Ground-based sensors are becoming more accessible and can provide real-time data. These developments improve national inventories and can strengthen accountability.
However, policy action does not need to wait for perfect measurement. Current scientific understanding of source magnitudes and mitigation effectiveness is sufficient to achieve a 30% reduction between 2020 and 2030. Many of the largest reductions in oil, gas and coal can be delivered through binding technology standards that do not require high precision quantification of emissions.
The decisive years ahead
The next 2 years will be critical for determining whether existing commitments translate into emissions reductions consistent with the Global Methane Pledge.
Governments should prioritise adoption of an effective international methane performance standard for oil and gas, including through the EU Methane Regulation, and expand the reach of such standards through voluntary buyers’ clubs. National and regional authorities should introduce binding technology standards for oil, gas and coal to ensure that voluntary agreements are backed by legal requirements.
One approach to promoting better progress on methane is to develop a binding methane agreement, starting with the oil and gas sector, as suggested by Barbados’ PM Mia Mottley and other leaders. Countries must also address the deeper challenge of political and economic dependence on fossil fuels, which continues to slow progress. Without a dual strategy of reducing methane and deep decarbonisation, it will not be possible to meet the Paris Agreement objectives.
Mottley’s “legally binding” methane pact faces barriers, but smaller steps possible
The next four years will determine whether available technologies, scientific evidence and political leadership align to deliver a rapid transition toward near-zero methane energy systems, holistic and equity-based lower emission agricultural systems and circular waste management strategies that eliminate methane release. These years will also determine whether the world captures the near-term climate benefits of methane abatement or locks in higher long-term costs and risks.
The Global Methane Status Report shows that the world is beginning to change course. Delivering the sharper downward trajectory now required is a test of political will. As scientists, we have laid out the evidence. Leaders must now act on it.
The post Curbing methane is the fastest way to slow warming – but we’re off the pace appeared first on Climate Home News.
Curbing methane is the fastest way to slow warming – but we’re off the pace
The leaders and climate ministers of governments around the world will be invited to meetings on the Pacific islands of Fiji, Palau and Tuvalu in the months leading up to the COP31 climate summit in November.
Under a deal struck between Pacific nations, Fiji will host the official annual pre-COP meeting, at which climate ministers and negotiators discuss contentious issues with the COP Presidency to help make the climate summit smoother.
This pre-COP, expected to be held in early October, will include a “special leaders’ component” hosted in neighbouring Tuvalu – 2.5-hour flight north – according to a statement issued by the Australian COP31 President of Negotiations Chris Bowen on LinkedIn on Thursday.
Bowen said this “will bring a global focus to the most pressing challenges facing our region and support investment in solutions which are fit for purpose for our region.” Australia will provide operational and logistical support for the event, he said.
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Like many Pacific island nations, Tuvalu, which is home to around 10,000 people, is threatened by rising sea levels, as salt water and waves damage homes, water supplies, farms and infrastructure.
Dozens of heads of state and government usually attend COP summits, but only a handful take part in pre-COP meetings. COP31 will be held in the Turkish city of Antalya in November, after an unusual compromise deal struck between Australia and Türkiye.
In addition, Pacific country Palau will host a climate event as part of the annual Pacific Islands Forum (PIF) – which convenes 18 Pacific nations – in August.
Palau’s President Surangel Whipps Jr told the Australian Broadcasting Corporation (ABC) that this meeting would be a “launching board” to build momentum for COP31 and would draw new commitments from other countries to help Pacific nations cut emissions and adapt to climate change.
“At the PIF our priorities are going to be 100 per cent renewables, the ocean-climate nexus and … accelerating investments that build resilience from climate change,” he told ABC.
The post World leaders invited to see Pacific climate destruction before COP31 appeared first on Climate Home News.
World leaders invited to see Pacific climate destruction before COP31
Alejandro Álvarez Iragorry is a Venezuelan ecologist and coordinator of Clima 21, an environmental NGO. Cat Rainsford is a transition minerals investigator for Global Witness and former Venezuela analyst for a Latin American think tank.
In 1975, former Venezuelan oil minister Juan Pablo Pérez Alfonzo gave a now infamous warning.
“Oil will bring us ruin,” he declared. “It is the devil’s excrement. We are drowning in the devil’s excrement.”
At the time, his words seemed excessively gloomy to many Venezuelans. The country was in a period of rapid modernisation, fuelled by its booming oil economy. Caracas was a thriving cultural hotspot. Everything seemed good. But history proved Pérez right.
Over the following decades, Venezuela’s oil dependence came to seem like a curse. After the 1980s oil price crash, political turmoil paved the way for the election of populist Hugo Chávez, who built a socialist state on oil money, only for falling prices and corruption to drive it into ruin.
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By 2025, poverty and growing repression under Chávez’s successor Nicolás Maduro had forced nearly 8 million Venezuelans to leave the country.
Venezuela is now at a crossroads. Since the US abducted Maduro on January 3 and seized control of the country’s oil revenues in a nakedly imperial act, all attention has been on getting the country’s dilapidated oil infrastructure pumping again.
But Venezuelans deserve more than plunder and fighting over a planet-wrecking resource that has fostered chronic instability and dispossession. Right now, 80% of Venezuelans live below the poverty line. Venezuelans are desperate for jobs, income and change.
Real change, though, won’t come through more oil dependency or profiteering by foreign elites. Instead, it is renewable energy that offers a pathway forward, towards sovereignty, stability and peace.
Guri Dam and Venezuela’s hydropower decline
Venezuela boasts some of the strongest potential for renewable energy generation in the region. Two-thirds of the country’s own electricity comes from hydropower, mostly from the massive Guri Dam in the southern state of Bolívar. This is one of the largest dams in Latin America with a capacity of over 10 gigawatts, even providing power to parts of Colombia and Brazil.
Guri has become another symbol of Venezuela’s mismanagement. Lack of diversification caused over-reliance on Guri for domestic power, making the system vulnerable to droughts. Poor maintenance reduced Guri’s capacity and planned supporting projects such as the Tocoma Dam were bled dry by corruption. The country was left plagued by blackouts and increasingly turned to dirty thermoelectric plants and petrol generators for power.
Today, industry analysis suggests that Venezuela is producing at about 30% of its hydropower capacity. Rehabilitating this neglected infrastructure could re-establish clean power as the backbone of domestic industry, while the country’s abundant river system offers numerous opportunities for smaller, sustainable hydro projects that promote rural electrification.
Venezuela also has huge, untapped promise in wind power that could provide vital diversification from hydropower. The coastal states of Zulia and Falcón boast wind speeds in the ideal range for electricity generation, with potential to add up to 12 gigawatts to the grid. Yet planned projects in both states have stalled, leaving abandoned turbines rusting in fields and millions of dollars unaccounted for.
Solar power is more neglected. One announced solar plant on the island of Los Roques remains non-functional a decade later, and a Chávez-era programme to supply solar panels to rural households ground to a halt when oil prices fell. Yet nearly a fifth of the country receives levels of solar radiation that rival leading regions such as northern Chile.
Developing Venezuela’s renewables potential would be a massive undertaking. Investment would be needed, local concerns around a just and equitable transition would have to be navigated and infrastructure development carefully managed.
Rebuilding Venezuela with a climate-driven energy transition
A shift in political vision would be needed to ensure that Venezuela’s renewable energy was not used to simply free up more oil for export, as in the past, but to power a diversified domestic economy free from oil-driven cycles of boom and bust.
Ultimately, these decisions must be taken by democratically elected leaders. But to date, no timeline for elections has been set, and Venezuela’s future hangs in the balance. Supporting the country to make this shift is in all of our interests.
What’s clear is that Venezuela’s energy future should not lie in oil. Fossil fuel majors have not leapt to commit the estimated $100 billion needed to revitalise the sector, with ExxonMobil declaring Venezuela “uninvestable”. The issues are not only political. Venezuela’s heavy, sour crude is expensive to refine, making it dubious whether many projects would reach break-even margins.
Behind it all looms the spectre of climate change. The world must urgently move away from fossil fuels. Beyond environmental concerns, it’s simply good economics.
Recent analysis by the International Renewable Energy Agency finds that 91% of new renewable energy projects are now cheaper than their fossil fuel alternatives. China, the world’s leading oil buyer, is among the most rapid adopters.
Tethering Venezuela’s future to an outdated commodity leaves the country in a lose-lose situation. Either oil demand drops and Venezuela is left with nothing. Or climate change runs rampant, devastating vulnerable communities with coastal loss, flooding, fires and heatwaves. Meanwhile, Venezuela remains locked in the same destructive economic swings that once led to dictatorship and mass emigration. There is another way.
Venezuelans rightfully demand a political transition, with their own chosen leaders. But to ensure this transition is lasting and stable, Venezuela needs more – it needs an energy transition.
The post There is hope for Venezuela’s future – and it isn’t based on oil appeared first on Climate Home News.
There is hope for Venezuela’s future – and it isn’t based on oil
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