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Case Study: UK Government

Identifying opportunity for Chongqing to become a low carbon, high growth economy.

Background

In light of the urgency to combat climate change, the UK Government’s Foreign and Commonwealth Office (FCO) is delivering a series of research and capacity-building projects across China to facilitate China's movement towards a low carbon, high growth economy. ERM's China team was hired by the FCO to collaborate with the Chongqing Academy of Social Sciences and UK-based think-tank Chatham House to identify options for Chongqing municipality's move towards low carbon, which could inform the drafting of Chongqing's Twelfth Five Year Plan. The strong presence of heavy industry and diverse socio-economic conditions present tough challenges for low carbon planners in this municipality of 32 million people.

Our Approach

As the lead international implementer, ERM is working with the UK think tank, Chatham House and the local government’s think tank, Chongqing Academy of Social Sciences to create a roadmap for Chongqing’s transition to a low carbon economy. To maximize ERM’s value, we are focusing on three of the most important sectors in realizing emissions reductions – energy, transport/vehicle manufacture and petrochemicals. The consortium’s output is expected to provide valuable input to the municipal government’s next Five Year Plan.

Three key mechanisms being studied include:

  • government policies to drive greater energy efficiency and carbon emission reductions into every area of the economy;
  • financial incentives in the form of domestic and international investment opportunities for low carbon projects and initiatives; and
  • development and deployment of new, affordable technologies that enable significant carbon reductions.

Benefits and Value

ERM has an extensive knowledge of low carbon technologies and policies derived from experience in working with governments and companies across the world to develop sustainability plans. This knowledge has benefitted Chongqing officials in being able to understand the potential of the most affordable and effective carbon reduction policies available to them.

With a better understanding of carbon abatement costs and the technological maturity of specific technologies, ERM is helping Chongqing officials decide which policies will be most effective and when they should be implemented.

 

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