ASSESSING CARBON EMISSIONS DETERMINANTS IN THE POWER INDUSTRY UNDER THE 'DUAL CARBON' MANDATE

Abstract

Following decades of unprecedented economic growth, China has ascended to the global forefront in gross domestic product (GDP), trade volume, and manufacturing output. However, this surge in economic prowess has been coupled with the unenviable distinction of being the world's leading carbon dioxide emitter, responsible for nearly 30% of global emissions in 2005. In a pivotal announcement during the 75th UN General Assembly in September 2020, General Secretary Xi Jinping pledged an augmented, self-driven commitment to combat climate change. With resolute policies and robust measures, China aims to crest its CO2 emissions by 2030, embarking on an ambitious trajectory toward carbon neutrality by 2060. In this context, this study delves into the influence of the carbon trading market on the electricity sector within the ambit of the "double carbon" paradigm. Employing the LMDI decomposition method, the paper scrutinizes both power generation and consumption facets imperative for realizing China's carbon reduction objectives. It asserts that a concerted impetus toward low-carbon and clean energy sources in power generation, alongside a diminution in coal-dependent generation, expeditious adaptation of flexible coal-fired power generation, and the establishment of a multifaceted clean energy generation infrastructure, remain potent levers in achieving the "double carbon" imperatives