Monday, February 6, 2012

China Set to Vigorously Develop Green Economy

BEIJING -- "Due to growing urbanization and resulting environmental threats, China has invested nearly US$50 billion annually into its renewable energy sector since 2009. China's five-year investment in environmental protection is on track to reach 3.1 trillion yuan (US$454 billion). By 2015, its environmental protection industry is expected to top 2 trillion yuan (US$317 billion).

China will introduce favorable tax and financial policies to support the development of its green economy, according to its 12th five-year plan, which started last year. A strong “green” policy is essential if China is to maintain its rapid and sustainable growth. "China will build a good fund raising environment for companies to develop green technologies by establishing green technology investment and related equity funds," said Wang Yuqing, deputy director of the Committee of Population, Resources and Environment of the CPPCC National Committee.

The transition to a global green economy may generate a large market exceeding US$1 trillion. During the 12th five-year plan period, the Chinese government will invest US$468 billion in green sectors compared to US$211 billion over the previous five-year period, with a focus on three sectors: waste recycling and re-utilization; clean technologies; and renewable energy. With this amount of public investment, China's environmental protection industry is expected to continue growing at an average of 15 to 20 percent per year, and its industrial output is expected to reach US$743 billion, up from US$166 billion in 2010. The multiplier effect of this emerging sector is estimated to be 8 to 10 times larger than other industry sectors..."


Is this a challenge to the rest of the world? Is China the only country able and willing to invest these kinds of funds into a green economy? What will China look like in five years after investing US$50 billion per year into its renewable energy sector?

We hope that it will look less polluted, less noisy, less dependent on outside oil and energy reserves, and leaner with costs having been driven way down, particularly on energy costs.

Not a bad place to be in 5 years. What about you, your company, your state, country? Falling behind should not be an option.

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