Options for reducing greenhouse gas emissions in the Chinese industrial sector

The Global Environmental Facility (GEF) was established in 1992 to provide assistance to developing countries in addressing global environmental issues. One of the first projects initiated under the GEF was a study of options for reducing greenhouse gas emissions in China, This article provides an overview of the options considered for the Chinese industrial sector which along with power generation generates 75% of China's total energy demand, The study involves 25 industrial case studies assessing technology options to reduce CO2 emissions. Individual cases are assessed based upon standard project appraisal techniques as well as on global and local environmental benefits associated with the project. It is found that the energy conservation projects considered here typically have high rates of return. Thirteen of the 24 cases for which environmental benefits were calculated had negative costs per ton of CO2 emission reduction. In addition, 19 of 24 cases had a positive net benefit per ton of CO2 emission reduction. The study suggests that targeted investments to reduce greenhouse gas emissions can produce a large number of no-regrets outcomes. It is concluded that institutional arrangements must be improved to facilitate the implementation of environmentally benign development technology. (C) 1998 Elsevier Science Ltd. All rights reserved.