· China is currently the second largest energy consumer in the world, following the United States (about 36 quadrillion Btu in 1995 versus 88 quadrilllion Btu in the United States).

· China's rapidly growing economy will drive energy demand growth of about 4-5 percent annually through 2015 (compared with growth of about 1 percent in the industrialized countries). China currently consumes about 10 percent of the world's energy, and also accounts for about 10 percent of world energy production.

· China became a net importer of energy in 1995, and is expected to become increasingly dependent on imports; however, it is expected to remain a net exporter of coal through the forecast period. China has been a net importer of oil since 1993.

· Production and distribution of energy will be one of China's greatest challenges in coming years. For instance, only about 80 percent of the population is hooked up to China's electrical grid; energy reserves are far from consumption centers; and bottlenecks exist in transportation and electricity distribution (for example, 60 percent of rail transport is tied up in transporting coal).

· In 1995, coal accounted for 74.5 percent of China's primary energy production. In the same year, petroleum accounted for 18.1 percent, hydroelectricity 5.1 percent, natural gas 1.9 percent, and nuclear power 0.4 percent.

· China's electricity is generated overwhelmingly by coal (about 75 percent). Hydroelectricity ranks a distant second (about 20 percent), followed by oil, gas, and nuclear power, which account for the remaining 5 percent.

· Coal is expected to retain its importance in China's fuel production mix, increasing its share to 77.4 percent of the total by 2015 (from 74.5 percent in 1995). Hydroelectricity, natural gas, and nuclear energy will also become increasingly important, while the petroleum share declines.

· The natural gas share of total energy production is expected to grow to about 4.1 percent by 2015, as China begins to take greater advantage of its large domestic reserves. The hydroelectric share is expected to reach 6.2 percent, and the nuclear share 1.6 percent, as the petroleum share falls to 10.7 percent.

· Overall, China's energy production is expected to reach about 44.3 quadrillion Btu (quads) in 2000, about 2.5 times 1980's production of 18.1 quads, largely due to a doubling of coal output. By 2015, overall energy production is expected to reach 72.5 quads, of which 56.1 quads is projected to be coal. (For comparison purposes, the United States produced about 69 quads in 1995).

· China consumed 35.9 quadrillion Btu (quads) of energy in 1995, representing about 9.8 percent of world energy consumption. Of this amount, coal accounted for 26.3 quads (73.2 percent) and petroleum another 7.0 quads (19.5 percent).

· The industrial sector historically has accounted for about 75 percent of China's energy consumption. Continuing increases in industrial energy efficiency are expected from such measures as installation of more efficient boilers. At the same time, however, industry is likely to become more electricity-intensive as it phases out direct fuel burning.

· The transportation sector, in contrast, accounts for only about 7 percent of China's energy consumption; however, transportation demand is projected to increase rapidly.

· China's electricity demand more than doubled between 1986 and 1995, and is expected to triple between 1995 and 2015. The residential/commercial sector should experience the most rapid growth in electricity demand, driven largely by enormous increases in appliance ownership and continued electrification of rural areas.

· China's industrial sector alone emitted 485 million metric tons of carbon in 1990, or about 75 percent of the country's total carbon emissions in that year. For perspective, China's industrial carbon emissions are greater than total emissions from any country in the world, except for the United States and Russia.

· China's carbon emissions increased about 5 percent per year in all economic sectors between 1980 and 1990. In absolute terms, industrial carbon emissions grew the most (about 180 million metric tons), while transportation sector emissions grew the least (about 15 million metric tons) during the 1980s.

At present, China has one of the highest energy intensities in the world, although this has dropped rapidly since the late 1970s as the country has introduced more market-oriented incentives into its economy.