Background paper December 2010 Simon Zadek, Maya Forstater, Kelly Yu and Jon Kornik ICTandLowCarbonGrowthinChinaICT and Low carbon growth in China Page 1 This paper has been developed by Dr Simon Zadek, Maya Forstater, Kelly Yu and Jon Kornik for Digital Energy Solutions Campaign. Comments on the paper are welcomed and should be sent to Dr Zadek at simon@zadek.net or through The paper has been produced with support and inputs of its members including Intel, HP, Lenovo and Nokia. The aim of this paper is to feed into and support discussion at the China International ICT and Low Carbon Economy Development Forum being directed by the Ministry of Industry and Information, the Ministry of Science and Technology, and the Ministry of Environmental Protection, which will be held in Beijing on Dec 17th 2010. The paper will be further developed following the event, drawing insights from the discussions provoked amongst policy makers, business leaders, as well as experts from ICT industry and low carbon growth areas. This background paper draws on the valuable existing work of key institutions including the Development Research Center of the State Council, Energy Research Institute of the National Development and Reform Committee, the Program of Energy and Climate Economics at Renmin University, the UN Development Program, The Climate Group, the Global e‐Sustainability Initiative, WWF and McKinsey & Company. We also appreciate comments and inputs during the scoping phase of this research from Feng Fei, Industrial Economics Research Department, DRC , Li Junfeng, Energy Research Institute, NDRC, Zong Fang of Energy Saving Promotion Committee, Steve Harper, CY Yeung, Terry Zhang, Ding Wei, and David Xu of Intel, Hongjun Zhang of Holland & Knight, Zhao Jun of HP, Dr Tao Hongzhi, Gong Xun, and Paul Huang of Lenovo, Chen Min of Nokia, Professor Qi Ye of Tshinghua University and the Climate Policy Institute, Dr Zou Ji of Renmin University and WRI, Professor Jin Min of Renmin University, Director Huang Dao of the China Iron and Steel Association, Peter Johnstone and Robert Madelin of the European Commission, Dennis Pamlin, who has been a leader on WWF’s area in this work, Chris Tuppen who has been active in this area through BT, Smart 2020 and GeSI. Molly Webb, and Wu Changhua of Climate Group Mark Levine, Jonathon Toomey, Dale Sartor, and Bo Shen of Lawrence Berkeley Labs. Antonio Álvarez García‐Mon provided key support to the quantitative modeling. The reports content, including and errors and omissions, remain the responsibility of the authors. Cover photo by Huangjiahu ICT and Low carbon growth in China Page 2 ContentsSummary...............................................................................................................4 1ICT and China’s low carbon growth goals..........................................................81.1.1The opportunity for green transformation.............................................101.1.2The ICT sector contribution....................................................................13 2The relationship between ICT, growth & emissions........................................162.1.1The ICT industry drives productivity and competitivness.......................162.1.2The ICT contributes directly to economic growth..................................202.1.3The ICT sector’s own footprint...............................................................222.1.4ICT enabled carbon savings in other parts of the economy...................26 3Realizing the potential for ICT enabled low carbon growth in China...............333.1.1What are the barriers to technology adoption?.....................................333.1.2What should technology users do?........................................................343.1.3What tools and measures of support are already available?.................363.1.4What should technology providers do?.................................................38 4Annex.............................................................................................................45ICT and Low carbon growth in China Page 3 Exhibits Exhibit A:Relationship between ICTs and intensity goals.........................................4Exhibit B: ICT sector emissions intensity fall faster than general economy.............6Exhibit C: ICT enabled contribution to national carbon intensity targets................7Exhibit D: Key technology opportunities..................................................................7 Exhibit 1:ICTs and energy and carbon intensity impacts........................................13Exhibit 2:Investment in ICT asset base drives growth............................................16Exhibit 3:ICT contribution to economic growth, by % by region............................17Exhibit 4:Growth impacts of ICT................................................................