China: Clean Energy and Environmental Technology
The widespread environmental degradation that has accompanied economic growth has led to unprecedented demand for technologies to control, reduce and abate pollution. China, the new economic powerhouse is seeking to diversify energy sources, boost energy supply and reduce carbon emissions in the context of sustained economic growth. Clean technology investments in this nation will be enormous over the next 10 years, so now is the time to enter these important markets.
China’s rapid economic growth has been accompanied by widespread pollution and environmental degradation. This, combined with limited energy resources and inefficient use of energy, has caused the central government to make clean energy, environmental technologies, and energy efficiency a strategic priority. In the 11th Five-Year Plan (2005-2010), the government has set the targets of reducing energy intensity per unit of GDP by 20% and reducing emissions for major pollutants (e.g. carbon dioxide and sulphur dioxides) by 10%.
The Chinese Government’s recent passage of the new Renewable Energy Law has codified many of these mandates, including a renewable energy portfolio of at least 10 percent by 2020 (up from approximately 3 percent in 2003). This law is partly responsible for the increase in new renewable energy projects and offers U.S. producers an important opportunity to provide wind turbines, solar photovoltaics, waste-to-energy, biomass, geothermal, biofuels, and resource mapping technologies. Achieving the targets for wind energy alone (30 GW by 2020 from 1.2 GW in 2005) will require $21-28 billion in investment. China has already invested $12 billion in renewable energy capacity in 2007 and will most likely spend even more in 2008.
In addition to renewable energy, China has a substantial need for energy and environmental products that will render energy production from coal cleaner. Coal accounts for 69% of China’s energy use and thus the need to develop clean coal technologies provides a substantial opportunity for U.S. producers of combined heat and power, coal beneficiation products, coal mine methane extraction technologies, gas turbines, circulating fluidized bed boilers, pollution control technologies such as desulphurization technologies, and coal conversion technologies such as advanced pulverized coal gasifiers.
In addition to air pollution and the need for cleaner, more efficient energy, water issues are among the top priorities of China’s environmental protection plan. It is estimated that in the next five years, China will invest $175 billion in environmental protection, accounting for 1.3-1.4% of GDP.
All these initiatives underscore China’s intention to deploy cleaner and more efficient technologies. U.S. technology providers with accurate market information and a sound business strategy have the potential to take advantage of the growing Chinese market for clean energy and environment technologies.
U.S. companies have the chance to initiate or expand sales in this booming markets when they join the U.S. Department of Commerce on this trade mission to China Commerce Assistant Secretary David Bohigian will lead the Mission with coordination from Commerce staff in the United States and China.