Energy and climate policy in China's twelfth five‐year plan: A paradigm shift

The twelfth five‐year plan (FYP) endorsed by the People's National Congress in March 2011 plays a crucial role in shaping China's development trajectory over the next decades , and especially for the fulfillment of the 40–45 carbon intensity reduction target by 2020. The plan will condition both the medium and long term perspectives of economic restructuring, rebalance between the inclusive economic growth and environmental objectives, which are compounded by multiple constraints faced by China such as aging population, natural resources depletion, energy supply security and environmental deterioration. This article investigates the major energy and climate targets and actions specified in the 12th FYP to gain insights into the nature and magnitude of challenges and difficulties with regard to the medium and long run economic and environmental policies. It points out that China should articulate sectoral policies with the global climate mitigation targets to avoid long term carbon lock‐in. Based on an in‐depth analysis of the objectives in the plan, it is argued that the implementation should include mainstreaming developments of appropriate instruments to support cost‐effective energy efficiency improvements and carbon intensity reduction in the next five years.