Editing IPCC:AR6/WGIII/Chapter-16 (section)

=== Box 16.7 | China Energy Labelling Policies, Combined with Sale Bans and Financial Subsidies ===

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From 1970 to 2001, China was able to significantly limit energy demand growth through energy-efficiency programmes. Energy use per unit of gross domestic product (GDP) declined by approximately 5% yr –1 during this period. However, between 2002 and 2005, energy demand per unit of GDP increased on average by 3.8% yr –1 . To curb this energy growth, in 2005, the Chinese government announced a mandatory goal of 20% reduction of energy intensity between 2006 and 2010 ( [[#Zhou--2010|Zhou et al. 2010]] ; [[#Lo--2014|Lo 2014]] ).

An energy labelling system was passed in 2004. It requires manufacturers to provide information about the efficiency of their electrical appliances to consumers. From 2004 to 2010, 23 electrical appliances (including refrigerators, air conditioners and flat-screen TVs) being labelled as energy efficient with five different grades – grade 1 being the most energy efficient and grade 5 the least efficient. Any appliances with an efficiency grade higher than 5 cannot be sold in the market.

In addition to providing information to consumers, the National Development and Reform Commission, (which was in charge of designing the policies), and the Ministry of Finance launched in 2009 the ‘energy-saving products and civilian-benefiting project’ ( [[#Zhan--2011|Zhan et al. 2011]] ). It covered air conditioners, refrigerators, flat panel televisions, washing machines, electrical efficient lighting, energy saving and new energy vehicles with the energy grades at 1 or 2. The project also included financial subsidies for the enterprises producing these products. The standard design of these financial subsidies involved the government paying for the price difference of energy-efficient products and general products. The manufacturers that produce the energy-efficient products receive financial subsidies directly from the government (Z. [[#Wang--2017|]] [[#Wang--2017|Wang et al. 2017]] ).

Before 2008, the market share of grade 1 and grade 2 air conditioners was about 5%, and about 70% of all air conditioners were grade 5 (the most inefficient). Driven by the financial subsidies, the selling price of the highly efficient air conditioners became competitive with that of the general air conditioners. Hence, the sales of energy-efficient air conditioners increased substantially, making the market share of grade 1 and 2 air conditioners about 80% in 2010 (Z. [[#Wang--2017|]] [[#Wang--2017|Wang et al. 2017]] ). According to the information from China’s National Institute of Standardization, the energy label system saved more than 1.5 hundred billion kWh power between 2005 and March 2010, equivalent to more than 60 million tonnes of standard coal, 1.4 billion tonnes of carbon dioxide emissions, and 60 tonnes of sulphur dioxide emissions ( [[#Zhan--2011|Zhan et al. 2011]] ), which significantly contributed to energy saving goals of China’s 11th Five-Year Plan.

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