China leading in renewable energy?
August 6th 2008

China is already the world’s leading renewable energy producer and is over-taking more developed economies in exploiting valuable economic opportunities, creating green-collar jobs and leading development of critical low carbon technologies, says a new report to be published by The Climate Group.

The report – China’s Clean Revolution - shows that China’s transition to a low carbon economy is well underway, led by supportive government policies which are not only driving innovation in low carbon technologies but also diverting billions of dollars of investment into energy efficiency and renewable energy.

The report reveals that the low carbon economy is just as attractive to developing nations like China, as it is for richer countries such as the UK, Japan and Germany.

China’s combination of cost advantages, a clear policy framework, a dynamic and entrepreneurial business environment and abundant abatement opportunities, is proving that developing nations have as much, if not more, to gain from investment in low carbon solutions creating green-collar jobs, social benefits and economic growth.

Despite its coal-dependent economy, the report reveals Chinese government and businesses have embarked on a Clean Revolution that has already made it a world leader in the manufacture of solar photo-voltaic technology (Solar PV) where its six biggest solar companies have a combined market value of over USD $15 billion.

China is also set to become the world’s leading manufacturer of wind turbines, with production capacity expected to reach 10GW per year by the end of 2009, and is competing aggressively in other low carbon markets including solar water heaters, energy efficient home appliances, and rechargeable batteries.

Steve Howard, CEO of The Climate Group says: “For too long, many governments, businesses and individuals have been wary of committing to action on climate change because they perceive that China – the world’s largest emitter – is doing little to address the issue. However, the reality is that China’s government is beginning to unleash a low carbon dragon which will power its future growth, development and energy security objectives.”

Changhua Wu, China Director, The Climate Group, says: “Far from ignoring climate change, Chinese leaders have already committed to improving energy efficiency and scaling up the growth of low carbon industries. China is beginning to pull its weight on climate change and the targets and policies in place are in line with those being taken by ‘leading’ countries like the UK and Germany.”

Investment in renewable energy in China - almost USD $12 billion in 2007 - is almost level with world leader Germany as a percentage of GDP. Stronger policies from the Chinese government are creating increased demand for low carbon investment and China will require a further USD $398 billion (USD $33billion per year) to meet its 2020 renewable energy goals.

Steve Howard says: “China’s current trajectory will ensure it remains a strategic global hub for low carbon investment, innovation and growth over coming decades.”

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