Distinguished guests, ladies and gentlemen,

Good Morning. On behalf of the DRC, I'd like to extend a cordial welcome and my heartfelt thanks to our distinguished guests, and old and new friends. This forum was organized by the DRC's Research Institute of Resources and Environmental Policies and its Industrial Economy Research Deptartment, with support from the National Energy Administration. And we have so many officials, entrepreneurs, and scholars here to discuss China's gas-clean energy development and energy transformation, now that the 2014 APEC meeting has concluded successfully, and this is really significant.

We all know that energy is fundamental for the modern economy and, over the past 300 years, as the population has grown and people have begun demanding a better quality of life, energy use has grown and the energy problems have been severe, such as exacerbating environmental pollution, extreme climate, and energy security problems. If we take China as an example, we see that, although China's per capita GDP is one-eighth that of the United States and its per capita installed power-generating capacity, one-fourth, and its per capita petroleum consumption, one-seventh, its environmental problems, such as air pollution have really grown, which is closely related to its energy consumption structure and energy use efficiency. And, energy use is expected to increase in the future because China's economy will continue to grow and people's living standards will improve, so green, circular and low-carbon development is a pressing matter, through greater energy efficiency and a better energy structure, to reduce emission of pollutants and carbon dioxide.

President Xi Jinping said, at an energy research meeting, that China has to push energy production and consumption reforms forward to reach its modernization goals and ensure energy security, in view of the change in energy supplies and demand. China's energy reforms conform to historical trends in energy transformation, and all countries, especially those with large populations, need to face up to conflicts in energy consumption, environmental protection, economic development, and improved living conditions. Since the 1970s, problems with air pollution, ozone depletion, and greenhouse gas emissions have been on the rise everywhere, and have forced human beings to take steps to reduce emissions. People are aware of the fact that only we change energy production and consumption patterns, can we protect our common home for all. There has been a big change in global energy structure and technology in recent years, with the use of shale gas technology, renewable energy such as solar and wind energy, and research on nuclear power. People are doing their best to increase the use of low-carbon energy to develop green, low-carbon energy production and consumption.

It's worth noting that the US, the world's largest economic power, has increased the use of natural gas with a breakthrough in shale gas technology, pushed energy structure transform, and sped up the move to become energy independent, which has had a far-reaching effect on global energy supply and demand, geopolitics, climate cooperation, and the re-industrialization of developed countries. It has also set an example for China to learn from.

China is the largest developing country, and has confronted more energy shortage and environmental pollution problems in recent years, including energy security, aggravated resource and environmental constraints, and bigger international pressure on its greenhouse gas emission. Its population will continue to grow and its industrialization will continue, resulting in greater life quality needs, increased demand for energy, and greater pressure on environmental protection and emissions reduction. So, increasing energy efficiency, improving the energy structure, and developing clean energy are inevitable in its economic and social development. Against the background of global energy transformation, China needs an energy development change and energy production, technology, consumption, and system reforms, as well as strengthened international energy cooperation, to ensure efficient, clean-energy use and energy security with coal, oil, gas, nuclear power, and renewable energy.

China and the US reached an agreement on climate change during APEC, when President Obama visited, and both countries announced new goals in carbon dioxide emissions. The US plans to reduce emissions by 26-28 percent, compared with 2005, and work to reach 28 percent by the end of 2025, while China will see peak carbon emissions around 2030 and will do its best to reach that goal earlier and get non-fossil energy use to 20 percent of total primary energy consumption by the end of 2030. China and the US will continue their policy talks and cooperation in advanced coal technology, nuclear energy, shale gas, and renewable energy, and this is good news for gas clean energy development and transformation worldwide.

This summit is to talk about the role of gas energy development in energy transformation in China and around the world, and technological, economic, and policy support for gas energy. The DRC has given a lot of attention to energy development and conducted research on China's mid-to-long term energy development strategy, ended in 2013, and China's natural gas development strategy, with Royal Dutch Shell Co, since 2012. It began studying China's gas-clean energy development policies, in 2013, and cooperated with other Chinese research institutes on methods for increasing natural gas use and shale gas development during the 13th Five-Year Plan (2016-2020) and beyond, in response to a National Energy Administration request.

The research shows that increasing the proportion of gas-clean energy, including natural gas, shale gas, coal bed methane, coal methane, combustible ice, hydrogen energy, and biomass gas, could help take some pressure off China's energy security, environmental protection, and emissions reductions, while at the same time developing new economic growth points and becoming engine for energy reforms and strategic choices for sustainable development. The researchers will provide detailed information later. The summit has also asked many professionals and scholars to explain the technologies, industrial development models, laws, regulations, policies and international experiences in gas-clean energy.

Dear members of the audience, we're seeing a big transformation and reforms in energy in the world, with energy technology, markets, and geopolitics changing dramatically. The next two decades provide a good opportunity for China in its energy production and consumption reforms, and the country is committed to energy reforms and cooperation to build a safer, greener, more efficient energy system for China's security and modernization.

And, I thoroughly believe that this China Gas-Clean Energy Development Summit will bring a great exchange of ideas on global energy transformation and China's energy development and hope that it proves to be a rewarding experience for all of you.

And, in concluding, I wish the forum big success. Thank you.

This is an excerpt from a speech made by Li Wei, minister of the Development Research Center of the State Council, at the 2014 China Gas Clean Energy Development and Energy Transformation Summit, on Nov 15.

Author: Li Wei, Development Research Center of the State Council

Source: China Economic Times, Nov 17