Over the past two weeks, a well-known phenomenon in China’s northeast has resurfaced: Smog. Many parts were smothered by smog clouds so dense it was visible from space. We're just a few days away before winter heating starts in Beijing. As the toxic levels of pollution persist, energy reforms are desperately needed. The challenge now is: How can China maintain sustainable growth while at the same time cutting pollution?
Is it fog or is it smog? That is no longer a question, air quality in most Chinese cities is far below World Health Organization standards with major cities like Beijing and Shanghai constantly covered in chocking smog.
As PM 2.5 has become the topic for small talks instead of the weather---the message is clear, nation-wide action is more urgent than ever.
China remains heavily dependent on coal which accounts for close to 70 percent of energy usage. China recently announced its plan to cut coal consumption to below 65% by 2017. It also aims to cut the density of small particulate matter by 25 percent in Beijing.
But the challenge is made more difficult by the fact that China is currently adding some 2 billion square meters of construction every year. At the same time, living standards are increasing, creating demand for ever more power. With coal remaining subsidized, consumers don’t see the fuels true cost in their heating prices.
Analysts say that energy prices must start to reflect the full costs of energy ---including the costs to the environment and people’s health.
Internalize the cost of energy by adding pollution taxes and fees, among other policies, would make coal as expensive as it really is, which could help change the structure of the energy mix and make renewable energy options more attractive.
But that would just be a start. China remains inefficient in the use of energy. It uses more energy to produce a dollar of economic activity than developed countries. Almost every use of energy can be optimized-which could result in less pollution going into the air.
China is certainly stepping on the gas on energy reform, but it will need many more coordinated government policies to clean the air and make it healthy for people to breathe again.
