MONTHLY NEWS BRIEFING

iCET News Press / General Energy Issues / Climate Change /
Automobile and Transportation / Low Carbon Development

www.icet.org.cn

Volume VII, Issue 12, December, 2010

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TABLE OF CONTENTS



iCET News Express

    iCET holds side events and press conferences at COP16/iCET在墨西哥坎昆联合国气候大会(COP16)成功举办官方边会和新闻发布会
    iCET becomes the first and only Chinese organization to join the R20 regional initiative/iCET 成为第一个也是当前唯一一个加入R20的中国组织
    iCET organizes China NDRC delegation to attend Governors Global Climate Summit/中国发改委代表团和iCET团队共同参加州长全球高峰气候论坛
    iCET organizes two sub-forums at Global Sustainable Leaders Forum/iCET 举办全球可持续发展领袖论坛两分论坛
    iCET ECR team attends training workshops in US/iCET 的 ECR团队在美国进行交流和培训活动

General Energy Issues

    NDRC: Energy-saving targets within sight
    China's renewable energy has great potential: Report
    China approves more hydropower amid clean energy push
    China's solar PV output to exceed demand: Industry leaders
    Alternative power will result in the demand rising during next 5 years
    Trade council continues appeal against US probe into China's clean energy policies
    China, Russia reach consensus on energy cooperation

Automobile and Transportation

    China's auto industry moves into top gear
    Electric cars to spark market
    Beijing to offer electric, hybrid car subsidy
    Batteries still drag 'green vehicle' effort
    Beijing Proposes Road Fees, Public Bicycles to Ease World's Worst Traffic
    Volkswagen gears up in race to electric vehicles

Climate Change

    China Issues 2010 Climate Change Green Papergh
    China, US must fulfill their roles: UN
    U.S. and China Narrow Differences at Climate Talks in Cancún
    Who's more toxic, China or India?
    Experts count on China to tackle climate change
    China pushes to develop green economy
    China sets up real-time air quality monitoring network

Low Carbon Development

    Carbon emissions reduction likely to be binding
    China vows to control emissions in next 5 yrs
    Expert recommends early start to China's carbon trading
    China's Shenhua says CTL plant to begin storing carbon in '11
    Growing emission credit market lures foreign partners
    Guangyuan to provide 10,000-ton carbon emission reduction quota
    Nation spurs development of new, green technologies

Disclaimer:

The opinions and statements expressed in the articles are those of authors from cited sources,
thus do not represent the opinions of APECC.

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iCET News Express

The “iCET News Express” section provides updates on the progress of some of our exciting programs. We hope you enjoy these updates in addition to the regular news briefing we offer.

iCET holds side events and press conferences at COP16/ iCET在墨西哥坎昆联合国气候大会(COP16)成功举办官方边会和新闻发布会

The Innovation Center for Energy and Transportation, as a leading think tank and policy driver on energy efficiency and climate change in China, was actively involved in UN Climate Change Conference in Cancun, Mexico. The following items are main activities broadcasting for iCET in Cancun.

继2009年12月参加哥本哈根联合国气候变化框架公约第十五次缔约方会议,并成功举办一系列活动后, iCET再次组团参加于今年年底在墨西哥坎昆举行的联合国气候变化框架公约第十六次缔约方大会,并成功举办了一系列以下的官方边会和新闻发布会。

iCET Press Conference – Launching the China Green Car Rating System

On December 6th, 2010, iCET announced the release of a new website to rate and compare green attributes of different cars that are on the market in China. The press conference was held at the Press Room 2, Moon Palace at the COP16. The goal of the system is to empower new car consumers by providing them with more choices and information and encouraging them to make environmentally-friendly decisions when purchasing a car. The Green Car Rating System methodology is based on life cycle environmental impacts from the vehicle’s use, the fuel cycle (production and distribution), and from vehicle manufacturing. The website currently includes data for 88 car brands and will continue to grow as new cars enter the Chinese market. The live broadcast of this press conference is available at:http://webcast.cc2010.mx/webmedia_en.html?id=135

iCET COP16 新闻发布会一:中国绿色汽车评估系统启动

2010年12月6日,iCET在联合国气候变化大会坎昆会议(COP16)上举行新闻发布会,宣告正式启动中国首个环境友好汽车在线评估系统,同时发布了《中国绿色汽车指南2010》及中国绿色汽车排行榜。环境友好汽车在线评估系统为中国市场上销售的每款汽车给出一个绿色得分,根据此绿色得分将汽车的环境影响相对量化,为生产商、政策制定者和消费者提供一个准确科学的、能够基于车辆的总体环境影响从而区别车辆环境友好特性的方法。系统涵盖了80多个品牌,5000多款车型,随着新车的不断入市,数据库也将不断更新。该系统将为消费者在购车方面提供绿色指南。本次发布会相关视频请登录COP16大会视频官方网站:http://webcast.cc2010.mx/webmedia_en.html?id=135

iCET Press Conference - Announcing China’s Energy and Climate Registry

On December 8th, iCET announced at the COP16 that it will join forces with the Beijing Environmental Exchange, Los Angeles-based The Climate Registry and New York-based software company Misys to promote the Energy and Climate Registry as the predominant greenhouse gas reporting platform in China.The goal of the Energy and Climate Registry (ECR) is to produce reliable, consistent and verifiable information database and reporting tool for energy consumption and carbon emissions on the corporation and local municipality levels. By joining to the ECR, multinational and domestic corporations will be encouraged to voluntarily sign up to report input parameters to calculate energy consumptions and produce GHG emission inventories, which will be verified by a certified third party. The live broadcast of this press conference is available at:http://webcast.cc2010.mx/webmedia_en.html?id=214

iCET COP16新闻发布会二:宣告能效与碳注册系统在中国实施

12月8日,iCET 在COP16气候变化大会上召开新闻发布会,宣布将于北京环境交易所、位于洛杉矶的美国气候登记处及位于纽约的知名软件开发公司Misys共同合作并推动中国能效与碳注册系统建设项目,为中国打造一个权威的温室气体报告平台。能效与碳注册系统 (ECR) 旨在在中国创建可靠的、一致的、可核查的企业和地方层面的能效和温室气体排放的报告工具和信息系统。在华经营的企业可以通过加入ECR,使用ECR提供的工具和技术支持,自愿核算和报告能耗和温室气体排放,也可自愿寻求第三方来审核其能耗和温室气体排放清单。 随着信息的公开和标准化,企业可以根据自身情况采取措施,减少排放和能源成本。本次发布会相关视频请登录COP大会官方视频网站:http://webcast.cc2010.mx/webmedia_en.html?id=214

iCET Side Event - Low-Carbon Development in China: Clean Technologies and GHG Accounting

On December 9th, iCET held a side event at Monarca, Cancunmesse at COP16 conference. This event was joined by Secretary of California EPA, Linda Adams and Ms. Huang Wenhang, Director of the Division of International Cooperation at the Department of Climate Change of China’s National Development and Reform Commission. The panel event covered top-down and bottom-up approaches to low carbon development in China including clean technology, sub-national cooperation, especially through the R20 – a new initiative of regional governments responding to climate change led by California Governor Arnold Schwarzenegger, and finally platforms for measuring, reporting and verifying emissions reductions. Mr. Christophe Nuttall from UNDP, who has been asked by Schwarzenegger to serve as Executive Director of R20 joined Margret Kim, director of California’s China Program to discuss last month’s launch of the R20 and iCET’s role as the only Chinese organization to sign the R20 charter.
Dr. Feng An, iCET’s President and Executive Director, discussed recent developments in iCET’s low carbon transportation program, including China’s the first-ever GHG measurement, reporting and verification (MRV) standards for transportation fuels. Robyn Camp, Executive Vice President of The Climate Registry gave an overview of her organization’s eight year old reporting platform for North America. Dr. Yufu Cheng of iCET discussed recent developments of the Energy and Climate Registry – China’s first voluntary platform for GHG reporting including the publication of the ECR Reporting Protocol and the launch of the ECR reporting software developed by New York based software developer, Misys. iCET’s Lucia Green-Weiskel moderated the event.

iCET COP16官方边会:中国低碳发展-清洁技术和温室气体核算

12月9日,iCET 在COP16 气候变化大会的Monarca, Cancunmesse召开了名为“中国低碳发展-清洁技术和温室气体核算”的边会。边会座无虚席,取得极大成功。iCET共邀请了6位中美嘉宾来参与此次边会,其中包括美国加州环保局局长Linda Adams 女士和中国发改委气候司国际合作处黄问航处长。会议内容涵盖了关于中国低碳发展的自上而下和自下而上的解决途径,包括清洁技术,区域合作,特别是美国加州州长施瓦辛格先生最新提出的地方政府合作的新项目—R20,以及测量、审核和报告减排的平台搭建。联合国开发计划署的 Christophe Nuttall先生被施瓦辛格州长聘任为R20项目的执行主任,他与加州政府中国项目主任Margret Kim女士在边会上讨论了上个月R20的启动仪式以及 iCET作为唯一一个签署R20的中国组织所发挥的重要作用。

在边会上,iCET 执行主任安锋博士主要介绍了iCET在低碳交通项目的进展,特别是新开发的中国首报告温室气体排放可测量、可报告与可核查标准—《交通燃料生命周期温室气体评价原则与报告》和《交通燃料生命周期温室气体评价报告核查要求》。美国气候登记处副总裁Robyn Camp女士分享了气候登记处在北美创建与运行8年间的经验。此外,iCET 的程裕富博士也介绍了中国第一个自愿温室气体报告平台—能效与碳注册系统(ECR)发展的最新进展,包括ECR报告议定书的发布以及与软件公司Misys合作开发在线注册软件的启动仪式。边会由iCET气候变化项目经理Lucia Green-Weiskel女士主持。



China Green Car Rating System Website
中国绿色汽车在线评估系统网站
www.GreenCarChina.org
China Energy and Climate Registry Website
中国能效与碳注册网站
www.ChinaClimateRegistry.org



iCET becomes the first and only Chinese organization to join the R20 regional initiative/iCET 成为第一个也是当前唯一一个加入R20的中国组织

On November 16th, iCET became the first and only Chinese organization to join the R20 regional initiative. The R20 -- Regions of Climate Action, launched by California governor Arnold Schwarzenegger, is a first-of-its-kind, innovative subnational public-private alliance that will work toward climate change solutions and building the global green economy. Composed of subnational governments and private and nongovernment partners, R20 is a global coalition committed to fast tracking the development of clean technologies, climate resilient projects and green investment, and influencing national and international policies. iCET’s President and Executive Director, Dr. Feng An signed the R20 agreement with Schwarzenegger. iCET will work with Chinese central and local governments to promote R20 partnership in China. The R20 was signed at the Governors’ Global Climate Summit 3, held at the University of California, Davis on November 15-16th, 2010. iCET was instrumental in bringing a delegation from China’s National Reform and Development Commission including, NDRC Director General, Mr. Guangsheng Gao to the event.

2010年11月15日-16日,美国加州州长施瓦辛格在加州大学戴维斯分校举办了第三届 “州长全球气候高峰会”。此次高峰会最引人关注的成果是“R20气候行动地区”的启动。R20由施瓦辛格创办,是一个在瑞士正式注册的联合国之外的非营利组织,也是一个创新性的区域间寻求气候变化解决方案并建设全球绿色经济的联盟。R20的合作伙伴包括全球各地区政府,私有及非政府机构。作为全球性的联盟,R20的使命是快速的发展清洁技术,气候稳定项目,绿色投资,并影响国家和国际的相关政策。来自亚洲,非洲,欧洲和美洲的各界领军人物共同宣布加入R20合作。iCET非常荣幸地成为第一个也是迄今为止唯一一个加入R20的中国组织。总裁兼执行主任安锋博士和施瓦辛格在高峰会议上共同签署了R20协议。iCET将和中国中央及地方政府一起合作,促进和推广R20在中国的发展。

iCET's President and Executive Director Dr. Feng An signed the R20 agreement with Schwarzenegger.
iCET总裁兼执行主任安锋博士和Schwarzenegger在R20签署仪式上。

iCET organizes China NDRC delegation to attend Governors Global Climate Summit/中国发改委代表团和iCET团队共同参加州长全球气候高峰论坛

From Nov. 15-16, iCET organized a delegation from Climate Department, of National Development and Reform Commission (NDRC) to attend the Governor’s Global Climate Summit 2010 in Los Angeles. Leaders from nations around the world, US governments, research institutes, enterprises, NGOs made presentations at the summit. Mr. Guangsheng GAO, Director general of Department of Climate Change, NDRC, Ms. Wenhuang HUANG, Director of International Collaboration and President Dr. Feng An and Vice President Dr. Yufu Cheng from iCET gave speeches and attended panel discussions. NDRC and iCET delegation also met California governor Arnold Schwarzenegger, and representatives from California Environment Protection Agency, California Energy Commission, UNDP, Canada governments and US State Department, etc, to discuss the collaboration between China and international partners on low carbon development, as well as future cooperation on R20. After the meeting, from November 16th – 19th , NDRC and iCET delegation also visited some US based world well-known organizations, including Stanford University, Applied Materials, HP, APPLE, Climate Work Foundation, and UC Davis, UCLA, Southern California Edison, Etc.

2010年11月15-16日,中国发改委代表团一行4人和iCET团队共同参加了在美国加州大学戴维斯分校举行的第三届州长全球气候变化高峰论坛。高峰会议上,来自各国,美国联邦、地方和区域的领导人,及来自研究机构、商业企业和非盈利机构的发言人分别进行了主题演讲。发改委气候司高广生司长,黄问航处长及iCET总裁兼执行主任安锋博士和副总裁陈裕富博士在会议上也分别做了精彩演讲和参加了论坛讨论, 并与参会的国际低碳发展领袖们,包括加州州长施瓦辛格会面及商谈。此外,发改委和iCET代表团在会议上也会见了来自加州环保局、加州能源局、加州农业局、联合国发展署、加拿大大不列颠哥伦比亚省、美国国务部等机构的与会嘉宾,并探论了中国地方与加州的低碳发展合作及R20 的合作前景。会议之外,发改委和iCET代表团也参加了一些早餐和晚宴的交流活动,例如由联合国发展署的创新合作伙伴的主任Christophe Nuttall举办的有关R20的早餐交流会,由加拿大四个美国区域总领事和加州大学戴维斯分校校长举行的晚宴,以及Pegasus投资集团的晚宴和湾区经济委员会的招待晚宴。在访美的后四天,11月16日-19日,发改委和iCET代表团在美也进行了一系列的访问交流活动。访问的知名公司和机构包括:斯坦福大学,美国应用材料公司,美国惠普技术公司,气候工作基金会,苹果公司,加州大学戴维斯分校和爱迪生电力公司等。

China NDRC and iCET delegation attended Governors Global Climate Summit 2010 and made speeches.
中国发改委和iCET 代表团参加州长全球气候高峰论坛2010并做演讲。

iCET organizes two sub-forums at Global Sustainable Leaders Forum/iCET举办全球可持续发展领袖论坛两分论坛

In the morning of Nov.24th, 2010, a sub-forum on GHG Management and Carbon Market was organized by iCET at Global Sustainable Leaders Forum. The sub-forum focused on carbon accounting and management, carbon market, as well as the low carbon economy and enterprises development. Ge Xingan, Vice-Director of Special Pilot Department, CBEEX, Nigel Zhang, President of Greenfield Environmental Consultants Limited, Xu Hao, Senior Associate of Sustainability and Climate Change, PWC, David Xin, Regional Director North china, SGS, and Li Xueyu, Research Analyst of Climate Program, iCET, gave speeches at the forum and discussed the relevant issues with conference participants.

iCET also organized another sub-forum entitled “China Low Carbon Transportation System” in the afternoon. iCET’s Low Carbon Transportation Program Analyst Mr. Dong Ma, Low Carbon Transportation Program Officer Ms. Liping Kang, and Mr. Zhenyu Li from China Academy of Transportation Sciences, Professor Xiujin Li from Beijing University of Chemical Technology, and Vice President of Keystone Ventures Jin Yi gave opinions on China green car rating system, low carbon fuel standards and policy, transportation plan and policy operation, as well as low carbon transportation technology and investment opportunities.

2010年11月24日上午,iCET在全球可持续发展领袖论坛上成功举办了主题为“温室气体管理和碳市场”的分论坛。来自北京环境交易所双特部的葛兴安副主任、格林菲尔德环境有限公司首席执行官张宁先生、SGS国际认证部辛斌总监、普华永道气候变化与可持续发展项目官员许浩先生以及iCET气候变化项目分析师李雪玉女士,围绕国内外温室气体核算、碳管理、碳市场、低碳经济以及企业发展的现状与展望进行了主题演讲,并与参会者进行了深入的讨论。

24日下午,iCET还举办“中国低碳交通系统”分论坛,能源与交通创新中心低碳交通项目分析师马冬先生、能源与创新中心低碳交通项目官员康利平女士、交通运输部科学研究院城市交通研究中心副研究员李振宇先生、北京化工大学博士生导师李秀金教授以及Keytone Ventures副总裁衣进就中国绿色汽车评估系统、低碳燃料标准与政策、交通规划与政策实施、低碳交通技术及投资机会等主题进行了报告。

iCET ECR team attends training workshops in US/中国发改委代表团和iCET的 ECR团队在美国进行交流和培训活动

From Nov. 29th to Dec.3rd, 2010, iCET’s ECR team came to Los Angeles and attended a one-week training on GHG registry at The Climate Registry (TCR). The training covered protocol development, reporting software, member service, marketing, member training as well as other related aspects. ECR team also visited members of TCR for understanding their concerns on registry from enterprises’ perspective. The success of TCR’s operation in North America was valuable experience that iCET could transfer to China and contribute to the local development of GHG registry.

2010年11月29日-12月3日,iCET的能效与碳注册项目小组成员赴美国洛杉矶,在美国气候登记处(TCR)参加了为期一周的交流和培训活动。气候登记处的工作人员为此次培训投入了很多精力,ECR小组成员分别与温室气体核算议定书的开发、排放清单的第三方审核、报告软件、企业培训、市场、成员维护等部门的相关工作人员以及TCR的成员企业进行了充分的交流和探讨。美国气候组织在北美地区的成功实践,对目前中国正在起步的能效与碳注册系统具有非常重要的借鉴意义,此次培训也必将为iCET实施的能效与碳注册系统的发展起到积极的引导和推动作用。

iCET’ ECR team was with the TCR staff in Los Angeles.
iCET的ECR 团队和TCR成员在洛杉矶进行交流活动。

General Energy Issues

NDRC: Energy-saving targets within sight

November 25 (China Daily): BEIJING - China's energy consumption per unit of GDP fell 3 percent in the first three quarters year-on-year and the nation is likely to achieve the energy-saving targets of the 11th Five-Year Plan (2006-2010) by the end of this year, the National Development and Reform Commission (NDRC) said on Wednesday.

The country's energy consumption per unit of GDP decreased 15.61 percent during the first four years of the 11th Five-Year Plan period, while the amount of energy saved has reached 490 million tons of coal equivalent and carbon dioxide emissions fell 1.13 billion tons during the same period, said Xie Zhenhua, vice-chairman of the NDRC.

Meanwhile, in the clean energy sector, China's installed capacity in hydropower and wind power is expected to reach 210 million kW and 40 million kW respectively by the end of this year, said Xie.

He said that stricter measures to save energy and cut emissions would be included in the 12th Five-Year Plan (2011-2015).

These will include making energy saving a compulsory target, establishing carbon trading markets and green taxes.

Xie made the remarks at the China International Green Industry Forum, the first national level event of its kind, one week ahead of the United Nations Cancun Conference in Mexico.

However, to meet the goal of developing a green economy, China faces many challenges.

Currently, industrial production accounts for 84.3 percent of sulfur dioxide emissions and 34.4 percent of chemical oxygen demand, accounting for 71.3 percent of China's overall energy consumption, according to data from the Ministry of Industry and Information Technology.

"High energy consumption, together with heavy pollution, will pose a severe hurdle for the country's future industrial development," said Miao Wei, vice-minister of industry and information technology.

To meet its target of cutting carbon dioxide emissions by 40 percent to 45 percent by 2020, China will have to reduce its energy consumption for industrial production by 85 million tons of coal equivalent, he added.

During the 12th Five-Year Plan, the country will focus on fostering modern industry, particularly new and high technology, Miao said.

He said the government will offer the industrial sector more guidance in technological innovation and provide more support for service sectors, including logistics, software and the creative and cultural industries.

In addition to new and rising industries, the country will also concentrate on the transformation and upgrading of its traditional industries, Miao added.

"The traditional industries are the pillar and foundation of China's industry, which shall never be left out of the plan," Miao said.

During the past five years, China's industrial-added value has increased 13.5 percent year-on-year and is expected to exceed 15 trillion yuan ($2.26 trillion) by the end of 2010, said the ministry. Moreover, by the end of 2010, energy consumption per unit of industrial-added value is expected to drop 25 percent in comparison with 2005, equivalent to saving of 650 million tons of standard coal, according to official figures.

http://www.chinadaily.com.cn/business/2010-11/25/content_11606537.htm

China's renewable energy has great potential: Report

November 23 (Xinhua): BEIJING - A climate change report published Monday in China highlighted the fact that the country's great potential lies in renewable energy.

The report, entitled "Annual Report on Actions to Address Climate Change," which was published by the Social Sciences Academic Press, said: "With the support of renewable energy policies, China has been making rapid progress in developing and utilizing renewable energy."

Figures from the report show that the country's wind energy capacity has increased 100 percent annually since 2006. As of the end of 2009, China's wind energy capacity surpassed 24 million kilowatts, ranking the second in the world after the United States.

Meanwhile, the country has also been focusing on closing down incompetent high energy consumption industries, with the report stating that some 1,259 small mines had been closed since mid-September 2009, surpassing the country's goal for that year by 80 percent.

However, the report also referred to various problems with the current environmental protection actions. It stated that some local governments believe that economic development is incompatible with energy saving and emission reduction, yet they still blindly invest in high energy consumption industries to pursue economic growth.

This has led to a number of energy-saving goals that lack of scientific research, however, being accepted by local governments without detailed implementation plans and policy support.

http://www.chinadaily.com.cn/bizchina/2010-11/23/content_11595160.htm

China approves more hydropower amid clean energy push

November 30 (China Daily): BEIJING - China has approved several new hydropower projects recently, in a sign that the government is speeding up development of clean energy.

The National Development and Reform Commission (NDRC) said on Monday in reports on its website (www.ndrc.gov.cn) that it had approved the construction of the 2.6-gigwatt (gW) Changheba hydropower project in Sichuan province this month.

The commission said it had also approved the 2.4-gW Guan'di hydropower station and the 600-megawatt Tongzilin hydropower project, both in Sichuan, in September.

The approvals come after the NDRC agreed in late October for China Three Gorges Power Corp (CTGPC) to proceed with early-stage studies for the 8.7-gW Wudongde and 14-gW Baihetan hydropower projects.

The government has pledged to increase the proportion of non-fossil fuels in overall primary energy use to 15 percent by 2020 and to cut carbon intensity -- the amount of carbon dioxide per unit of gross domestic product -- by 40-45 percent during the same period.

The country's total hydropower capacity reached 200 gW in August and top energy official Zhang Guobao said capacity had to reach 380 gW by 2020 if the country was to meet its clean energy and emissions targets.

He said China needed to start building 120 gW of hydropower projects in the six years through 2015 given the longer construction time needed compared with coal-fired plants.

http://europe.chinadaily.com.cn/business/2010-11/30/content_11630365.htm

China's solar PV output to exceed demand: Industry leaders

November 19 (Xinhua): NANJING - China's solar photovoltaic (PV) production industry could see an overcapacity next year as output is estimated to almost double this year, industry experts said Thursday.

Production was set to hit 7,000 to 8,000 megawatt (mW) this year from last year's 4,011 mW, which would account for more than half of the world's total, Shi Dinghuan, president of the China Renewable Energy Society, told a conference in the eastern city of Nanjing.

China's PV industry had experienced faster growth than the world average since 2004, said Zhao Yuwen, head of the society's PV committee. In 2003, China's world market share was less than two percent, he said.

The world's total installed PV capacity is projected to jump more than 65 percent annually to 12,200 mW this year, said Shi Zhengrong, chairman and CEO of Chinese solar panel maker Suntech Power Holdings Co Ltd.

The industry would see overcapacity next year as slow economic recovery in many European countries had resulted in slower growth in clean energy investment, warned Shi.

China's solar panel makers needed to be cautious about output expansion as 95 percent of their output relied on exports, Shi said.

http://www.chinadaily.com.cn/bizchina/2010-11/19/content_11577793.htm

Alternative power will result in the demand rising during next 5 years

November 16 (China Daily): BEIJING - New-energy-related industries will be the main contributor to growth in copper consumption during the next five years, according to the International Copper Association.

Meanwhile, low -carbon-related businesses, including solar and wind power generation equipment as well as electric vehicles and batteries, will contribute at least 20 percent of that increase, Victor Zhou, the association's China and Southeast Asia president, said at the International Metal Solar Industry Alliance conference in Beijing.

An electrified society will hugely boost demand for copper, according to Zhou.

Use of copper in wind and solar power equipment could be four-to-six times higher than that in coal-fired projects, he added.

But cables, which consume more than one million tons of copper, will remain the largest contributor to consumption.

The use of refined copper is projected to grow by 11.5 percent to 6.8 million tons this year, according to the latest report by Beijing Antaike Information Development Co.

Output of the refined metal by the world's largest producer will probably grow 10 percent to 4.55 million tons this year, resulting in a deficit of 2.25 million tons, according to Antaike.

The widespread use of the metal in manufacturing and construction has made it a vital import for China as the country continues to undertake a major phase in industrialization.

The price of copper ore has shot up to a record high. The benchmark copper contract on the London Metal Exchange rose by 2.5 percent to a record price of $8,966 per ton on Nov 11, beating the $8,940 figure of 2008.

If Chinese copper demand continues to grow at the current rate, analysts predict that prices may soar by 25 percent next year as domestic demand outstrips supply.

It was only in the wake of the 2004 commodities boom that copper prices began to climb. Prior to that the metal traded at less than $2,000 per ton.

Meanwhile, Chinese imports of unwrought and semi-finished copper products fell nearly 26 percent month-on-month to 273,511 tons in October, the lowest level in a year, as high prices bit into demand, data from the General Administration of Customs showed.

It was the second straight monthly decline, coming after imports fell nearly 3 percent to 368,410 tons in September from August.

China's output of refined copper reached 3.9 million tons over the first 10 months of this year, representing an increase of 12.5 percent year-on-year, according to figures from the National Bureau of Statistics.

http://www.chinadaily.com.cn/usa/2010-11/16/content_11558127.htm

Trade council continues appeal against US probe into China's clean energy policies

November 17 (Xinhua): BEIJING - A trade promotion council Wednesday stepped up its pressure against a US government investigation into China's green technology sector, calling on the US government not to ignore the huge potential of new energy cooperation with China.

Wan Jifei, head of the China Council for the Promotion of International Trade (CCPIT), made the appeal in a letter to US Trade Representative Ron Kirk Wednesday.

The CCPIT letter came about a month after the Office of the US Trade Representative (USTR) responded to claims by the United Steelworkers (USW) and initiated an investigation into China's green technology sector policies on October 15 to see whether they were in line with World Trade Organization rules.

The USW claims contended that certain policies and practices by China to stimulate and protect its clean energy industry were inconsistent with its WTO obligations.

"After a thorough analysis of cooperation in new energy between China and the United States, we found the launch of investigation by USTR under the Section 301 (of the 1974 Trade Act) will severely damage China-US cooperation in new energy," Wan said in the letter.

According to CCPIT statistics, a quarter of China's solar battery materials are imported from the United States; while 60 percent to 70 percent of solar battery production machines are also imported from overseas, the United States in particular.

The Chinese business community understood that some US companies in new energy sector were facing development difficulties against the backdrop of global financial crisis, Wan said.

"But they should overcome such difficulties through strengthening cooperation with China rather than wasting taxpayers' money on such an investigation and sanctions against foreign companies."

Wan said China was cooperating with many US state governments and companies in the new energy and clean energy sector and greatly helping promote US exports to China.

He said CCPIT was willing to work with the US to negotiate in advance on possible economic and trade disputes and protect the utmost interests of companies from both countries.

"We hope the US government can handle the issue by not damaging the China-US economic and trade relations," he said.

US Energy Secretary Steven Chu said Wednesday in Beijing that the United States and China had launched a joint clean energy initiative to enable joint research and development of clean energy technologies, including carbon capture, electric vehicles and energy-efficient buildings.

Under the initiative, $150 million of investment from private and public funding will be earmarked for teams of scientists and engineers from both countries collaborating over five years.

http://www.chinadaily.com.cn/bizchina/2010-11/17/content_11565975.htm

China, Russia reach consensus on energy cooperation

November 23 (Xinhua): ST. PETERSBURG, Russia - Visiting Chinese Vice-Premier Wang Qishan met with his Russian counterpart Igor Sechin in St. Petersburg on Monday, exchanging views on Sino-Russian bilateral energy cooperation and reaching consensus on further development.

Wang spoke highly of bilateral energy cooperation between the two countries, saying it has witnessed a development of all-round, wide-range and deep-level since the establishment of Sino-Russian energy negotiation mechanism.

He said the mechanism upgraded the level of bilateral practical cooperation with rich fruits, including the completion of Sino- Russian pipeline which is expected to be put into operation by the end of 2010, the foundation-laying of China-Russia Eastern Petrochemical (Tianjin) Oil Refinery and the completion of the negotiation on extension of Tianwan nuclear plant.

Cooperation in electricity and natural gas was also promoted, Was said, adding that coal export from Russia to China is expected to exceed 12 million tons in 2010.

Wang said Sino-Russian energy cooperation with significant strategic nature has been maintaining momentum, stressing that China is willing to jointly endeavor with Russia to promoted bilateral energy cooperation by the mechanism.

China, by the principle of market-oriented and mutual benefits, is ready to further strengthen Sino-Russian strategic partnership of coordination and boost bilateral cooperation in oil, natural gas, nuclear power, electricity, new energy and other fields, Wang said.

Sechin attached great importance of bilateral energy cooperation between the two countries, saying it plays an important role in the development of Sino-Russian strategic partnership of coordination.

He said both countries are effectively carrying out interlocal outlines issued before and being paid back rich fruits, including the completion of Sino-Russian oil pipeline which is seen as a landmark of Sino-Russian friendly cooperation.

Russia will work together with China to comprehensively boost bilateral cooperation in the fields of natural gas, nuclear power, coal, electricity, new energy and other fields, he said.

After the meeting, Wang and Sechin also attended signing ceremony of several energy cooperation documents.

At the invitation of Deputy Prime Ministers Alexander Zhukov and Igor Sechin, Wang arrived in St. Petersburg on Nov 21, kicking off his visit to Russia.

http://www.chinadaily.com.cn/bizchina/2010-11/23/content_11596278.htm

Automobile and Transportation

China's auto industry moves into top gear

November 17 (China Daily): As Chinese automakers are keen to develop their brands and expand overseas, Dong Yang, secretary-general of China Association of Automobile Manufacturers, shares his views.

Q: In your opinion, is it right for the Chinese automobile industry to "trade (China's) market with (foreign) technology" over the past 30 years?

A: I cannot agree with the notion of trading market with technology. The development of China's automobile industry follows the policy of reform and opening-up. We cannot simply say other industries need not trade market with technology, and automobile industry failed to do so.

The success of Chinese automobiles can be elaborated in three aspects. First, we solved the problems of technology, funding and products after adopting the reform and opening-up policies. In 1984, the number of imported automobiles in China was tens of times as Chinese automobiles. But Chinese companies make 90 percent of cars in China now.

Second, we established a world-class automobile industrial system, and mastered the modern technology applied in automobile manufacturing. Though the development of technology is not that smooth, we still strive for the best. The research and development of Chinese-branded automobiles was started during the 11th Five-Year Plan (2006-2010), and will be in full swing in the 12th Five-Year Plan (2011-2015).

Third, we maintain the coexistence of State-owned, private and foreign sectors, among which State-owned share quite a lot. From this point, the automobile industry feeds more people.

Meanwhile, we have become the largest automobile production and marketing country in the world. The dominance of foreign automobiles in Chinese market has been brought to an end. Sales of Chinese automobiles are 20 percent of the world market.

Q: Among the "20 percent", how many Chinese-branded automobiles did companies in China make?

A: In commercial vehicles, more than 90 percent are Chinese brands. In cars, the market share has been raised from zero to 30 percent. Some of the cars were made by Chinese companies but labeled as foreign brands.

Q: How do you view the phenomena that some joint venture brands plan to develop independent brands?

A: This is a positive change and can elucidate two aspects of the Chinese automobile industry. First, companies cannot count on foreign brands entirely because it cannot fully satisfy the demand. Second, consumers no longer want just foreign cars and are accepting the development of joint ventures in China.

Q: Which companies do you think can make breakthroughs on core technology?

A: Companies such as Chery, Geely, Great Wall, FAW, Dongfeng and Shanghai Automotive all have made breakthroughs. But I think Chinese brands are still like children while foreign brands are like adults. You can say that an adult is more powerful than a child, but will it be so in the future?

Q: Exports, dominated by second- and third-tier Chinese brands, are facing problems of policy barriers and being uncompetitive. Are exports of Chinese automobiles in trouble?

A: Trade protectionism is increasing around the world and cases related to Chinese automobiles are increasing. But in general, these cases are not beyond normal trade frictions. I think companies should have long-term and comprehensive export strategies.

Q: Do you think it is time for Chinese automobile companies to enter international market?

A: Yes, given the fact that China has become the largest production and marketing country in the world. But this doesn't mean we should be in a hurry to succeed.

Q: Some say it is wrong for China to "overtake on a bend" by trying to develop automobiles powered by new energy. Do you agree?

A: I agree. In new energy for automobiles, there are gaps in research, industrialization of new technology and improvements of the industrial chain between China and other countries. Without the solid foundation of traditional automobile technology, the development of electric automobiles cannot go well.

http://www.chinadaily.com.cn/bizchina/2010-11/17/content_11565057.htm

Electric cars to spark market

BEIJING - All-electric cars are the only area where Chinese automobile companies are likely to play a leading role in the global market, Chen Quanqing, president of the World Electric Vehicle Association, said on Monday.

"The area is where Chinese manufacturers have the smallest gap with the world's leading technology," said Chen, who is also a member of the Chinese Academy of Engineering, which advises the government and industry on key scientific and technological issues.

"Making all-electric cars also bypasses China's shortfall in internal-combustion engine technology and oil resources," he said.

Chen made the comments at the World Electric Vehicle Symposium and Exposition (EVS) in Shenzhen, a major fair for the world's electric car industry.

"Due to its deteriorating environment, China has made all-electric cars a priority in developing the electric vehicle industry," Chen said.

The term "electric cars" includes all-electric cars, those employing fuel cells, and hybrids.

The all-electric variety, exclusively battery-powered are the most environmentally friendly.

Chen added that the country's highly developed battery technology will also help domestically produced all-electric cars gain an advantage in the international market.

The Chinese government has been fostering domestic sales by offering financial support in recent years.

In June, China granted subsidies of up to 60,000 yuan ($9,000) to buyers of all-electric vehicles in the five cities chosen for the pilot program - Shanghai, Changchun, Shenzhen, Hangzhou and Hefei. Buyers of plug-in hybrid cars are eligible for incentives worth up to 50,000 yuan.

Jia Bingcheng, chairman of Zhongwen Yixing Electric Car, said the company gets 500,000 yuan from the central government, and 300,000 yuan from local authorities, for every all-electric passenger car it produces.

The Shandong-based company has an annual production capacity of 500 cars, which sell for 1.3 million yuan.

"The subsidies make our cars more affordable than diesel models, giving us a competitive edge over traditional vehicles," Jia said.

The subsidies were established before the new-energy car industry was written into the draft of the 12th Five-Year Plan (2011-2015), China's economic development roadmap, as one of seven strategic emerging industries set to receive further government support.

According to a report by the Shanghai Securities News, China may invest more than 100 billion yuan in the alternative-energy vehicle industry during the next 10 years.

http://www.chinadaily.com.cn/bizchina/greenchina/2010-11/10/content_11529094.htm

Beijing to offer electric, hybrid car subsidy

November 29 (China Daily) - Beijing will promote the use of 30,000 electric and hybrid cars, build 100 recharging stations and provide 36,000 rechargers by the end of 2012, People's Daily reported Monday, citing the Beijing Municipal Science and Technology Commission.

A pilot subsidy plan for individuals' purchases of new energy vehicles that was prepared by the Beijing Municipal Science and Technology Commission and Finance Bureau of Beijing was approved by an experts' panel on Nov 28.

The plan said the municipal government will give subsidies to individuals who buy new energy vehicles, and set a target at 23,000 electric vehicles and 7,000 hybrid vehicles by the end of 2012. The subsidies were based on the cost of providing battery power to the cars, which is about 3,000 yuan ($450) per kilowatt-hour. The buyer will receive a subsidy of up to 60,000 yuan for one electric vehicle, or up to 50,000 for one hybrid vehicle.

The capital city will build a transformer substation and a transport management digital system for new energy vehicles.

Beijing will increase government procurement of new energy vehicles, encourage the use of electric vehicles by institutions and enterprises, and encourage financial institutions to provide loans, warrants and other support to promote the purchase of electric vehicles, according to the report.

http://europe.chinadaily.com.cn/china/2010-11/29/content_11629440.htm

Batteries still drag 'green vehicle' effort

November 15 (China Daily): BEIJING - Combined global sales of hybrid and battery electric vehicles are expected to total 5.2 million units in 2020, about 7.3 percent of the 70.9 million passenger vehicles forecast to be sold worldwide that year, according to a recent report from JD Power and Associates.

Of those 5.2 million vehicles, 3.9 million units are expected to be hybrids, with sales coming mostly in the US (1.7 million units), Europe (977,000) and Japan (875,000), the report said. Fewer than 100,000 are expected to be sold in China in 2020.

Of the 1.3 million battery electric cars sold, Europe and China will account for 742,000 and 332,000 units respectively. About 100,000 will be sold in the US and a similar number in Japan, the report said.

Global sales of hybrids and battery electric vehicles are expected to reach 954,000 units this year, or 2.2 percent of the 44.7 million vehicles projected to be sold through the end of 2010.

The report noted it will be difficult to convince large numbers of consumers to switch from conventionally powered passenger vehicles.

It said that a consumer migration to alternative powertrain technologies will most likely require significant events such as soaring petroleum prices, a breakthrough in green technology that sharply reduces costs or coordinated government policies to entice consumers.

But none of the scenarios are likely during over next decade based on current information, it said.

"While considerable interest exists among governments, media and environmentalists in promoting (alternative energy cars), consumers will ultimately decide whether these vehicles are commercially successful or not," said John Humphrey, senior vice-president of automotive operations at JD Power.

"We don't anticipate a mass migration to green vehicles in the coming decade," Humphrey said.

Consumer sentiment

According to the report, consumer concerns include:

Dislike the look or design

Worries about reliability of new technologies

Dissatisfaction with overall power and performance

Anxiety about driving range

Concern about the time needed to recharge battery packs

Yet more important are the personal financial implications of deciding to purchase an alternative-energy vehicle, the report said. While many consumers around the world say they are interested in the vehicles for the expected fuel and environmental savings, interest declines significantly when they learn the price tag.

While governments of the world's largest automobile-producing nations have schedules in place for improving fuel economy and reducing emissions, there is little consensus on the timing or way to achieve objectives, the report said.

Some governments are promoting hybrids, while some are focusing on battery electric vehicles and still others are considering additional options.

Humphrey said the lack of consistency in regulations across markets is causing global automakers to hedge their bets by seeking alliances and technology-sharing agreements.

The heavy fixed costs associated with developing multiple powertrain options simultaneously are prohibitively expensive.

One unpredictable aspect of the 2020 outlook is how markets would be affected if more stringent and consistent legislation is adopted to support specific technologies, according to the report.

"In particular, China has the ability to move quickly, invest heavily in the development of one specific propulsion technology, and mandate fuel economy or emissions standards that could favor a particular technology or require a minimum sales penetration level for vehicles with a designated technology," it said.

Given the size and continued growth of the Chinese auto market, such a coordinated regulatory environment might allow Chinese companies to achieve economies of scale and drive down the cost of alternative-energy vehicles, it added

Same shortcomings

While they offer an interesting alternative for the future, vehicles powered by batteries still have many of the shortcomings they had 100 years ago, according to the report.

The problems include limited driving range, extended recharging times, limited support infrastructure and the high cost of battery packs.

Reducing emissions was not an important factor in the development of battery-based vehicles 100 years ago, but it has been a significant driver behind their development today, the report said.

For many governments, the primary goal of using alternative powertrains is to reduce exhaust emissions, and it is not clear how much reduction can be achieved at present.

"We don't want to replace tailpipe emissions with the emissions from coal- and oil-fired power plants that produce electricity," said Humphrey. "We have to look at the carbon footprint of the entire energy chain."

http://www.chinadaily.com.cn/cndy/2010-11/15/content_11547893.htm

Beijing Proposes Road Fees, Public Bicycles to Ease World's Worst Traffic

November 29 (China Daily) - Beijing will promote the use of 30,000 electric and hybrid cars, build 100 recharging stations and provide 36,000 rechargers by the end of 2012, People's Daily reported Monday, citing the Beijing Municipal Science and Technology Commission.

A pilot subsidy plan for individuals' purchases of new energy vehicles that was prepared by the Beijing Municipal Science and Technology Commission and Finance Bureau of Beijing was approved by an experts' panel on Nov 28.

The plan said the municipal government will give subsidies to individuals who buy new energy vehicles, and set a target at 23,000 electric vehicles and 7,000 hybrid vehicles by the end of 2012. The subsidies were based on the cost of providing battery power to the cars, which is about 3,000 yuan ($450) per kilowatt-hour. The buyer will receive a subsidy of up to 60,000 yuan for one electric vehicle, or up to 50,000 for one hybrid vehicle.

The capital city will build a transformer substation and a transport management digital system for new energy vehicles.

Beijing will increase government procurement of new energy vehicles, encourage the use of electric vehicles by institutions and enterprises, and encourage financial institutions to provide loans, warrants and other support to promote the purchase of electric vehicles, according to the report.

http://europe.chinadaily.com.cn/china/2010-11/29/content_11629440.htm

Batteries still drag 'green vehicle' effort

November 15 (China Daily): BEIJING - Combined global sales of hybrid and battery electric vehicles are expected to total 5.2 million units in 2020, about 7.3 percent of the 70.9 million passenger vehicles forecast to be sold worldwide that year, according to a recent report from JD Power and Associates.

Of those 5.2 million vehicles, 3.9 million units are expected to be hybrids, with sales coming mostly in the US (1.7 million units), Europe (977,000) and Japan (875,000), the report said. Fewer than 100,000 are expected to be sold in China in 2020.

Of the 1.3 million battery electric cars sold, Europe and China will account for 742,000 and 332,000 units respectively. About 100,000 will be sold in the US and a similar number in Japan, the report said.

Global sales of hybrids and battery electric vehicles are expected to reach 954,000 units this year, or 2.2 percent of the 44.7 million vehicles projected to be sold through the end of 2010.

The report noted it will be difficult to convince large numbers of consumers to switch from conventionally powered passenger vehicles.

It said that a consumer migration to alternative powertrain technologies will most likely require significant events such as soaring petroleum prices, a breakthrough in green technology that sharply reduces costs or coordinated government policies to entice consumers.

But none of the scenarios are likely during over next decade based on current information, it said.

"While considerable interest exists among governments, media and environmentalists in promoting (alternative energy cars), consumers will ultimately decide whether these vehicles are commercially successful or not," said John Humphrey, senior vice-president of automotive operations at JD Power.

"We don't anticipate a mass migration to green vehicles in the coming decade," Humphrey said.

Consumer sentiment

According to the report, consumer concerns include:

Dislike the look or design

Worries about reliability of new technologies

Dissatisfaction with overall power and performance

Anxiety about driving range

Concern about the time needed to recharge battery packs

Yet more important are the personal financial implications of deciding to purchase an alternative-energy vehicle, the report said. While many consumers around the world say they are interested in the vehicles for the expected fuel and environmental savings, interest declines significantly when they learn the price tag.

While governments of the world's largest automobile-producing nations have schedules in place for improving fuel economy and reducing emissions, there is little consensus on the timing or way to achieve objectives, the report said.

Some governments are promoting hybrids, while some are focusing on battery electric vehicles and still others are considering additional options.

Humphrey said the lack of consistency in regulations across markets is causing global automakers to hedge their bets by seeking alliances and technology-sharing agreements.

The heavy fixed costs associated with developing multiple powertrain options simultaneously are prohibitively expensive.

One unpredictable aspect of the 2020 outlook is how markets would be affected if more stringent and consistent legislation is adopted to support specific technologies, according to the report.

"In particular, China has the ability to move quickly, invest heavily in the development of one specific propulsion technology, and mandate fuel economy or emissions standards that could favor a particular technology or require a minimum sales penetration level for vehicles with a designated technology," it said.

Given the size and continued growth of the Chinese auto market, such a coordinated regulatory environment might allow Chinese companies to achieve economies of scale and drive down the cost of alternative-energy vehicles, it added

Same shortcomings

While they offer an interesting alternative for the future, vehicles powered by batteries still have many of the shortcomings they had 100 years ago, according to the report.

The problems include limited driving range, extended recharging times, limited support infrastructure and the high cost of battery packs.

Reducing emissions was not an important factor in the development of battery-based vehicles 100 years ago, but it has been a significant driver behind their development today, the report said.

For many governments, the primary goal of using alternative powertrains is to reduce exhaust emissions, and it is not clear how much reduction can be achieved at present.

"We don't want to replace tailpipe emissions with the emissions from coal- and oil-fired power plants that produce electricity," said Humphrey. "We have to look at the carbon footprint of the entire energy chain."

http://www.chinadaily.com.cn/cndy/2010-11/15/content_11547893.htm

Beijing Proposes Road Fees, Public Bicycles to Ease World's Worst Traffic

December 13 (Bloomberg) - The city of Beijing, ranked as having the world’s worst traffic, has proposed offering public bicycles, building tunnels and possibly imposing fees for driving in parts of the Chinese capital to ease congested roads.

Other proposals that Beijing’s municipal government posted online for reducing traffic include limits on the number of government cars in the city and construction of additional subway lines. The proposals were posted yesterday to the city transportation department’s website so that local residents could submit comments.

Tax cuts and subsidies offered by the government to spur automobile sales have fueled a surge in both the number of drivers and traffic on roads as China passed the U.S. last year to become the world’s biggest car market. Authorities are looking to allay concerns among residents after an International Business Machine Corp. report ranked traffic in Beijing as being tied with Mexico City as the world’s worst.

“The measures will raise the cost of using a car instead of the cost of buying one,” said Jenny Gu, a Shanghai-based analyst at auto industry researcher J.D. Power & Associates. “ People who really want a car will not give it up.”

Sales of passenger cars to dealers in November increased 29.3 percent from a year earlier to a monthly record of 1.34 million units, the China Association of Automobile Manufacturers said last week. Stimulus measures helped China’s industry wide vehicle sales jump 46 percent last year to 13.6 million units.

Beijing Drivers

In Beijing, more than 20,000 vehicles were sold in the first week of December, more than double the 9,000 vehicles sold during the same period of a 2009, the official Xinhua News Agency reported. The Chinese capital had more than 4.7 million registered cars and more than 6.2 million licensed drivers as of Dec. 5, according to the city government.

A global poll of 8,192 motorists conducted by IBM this April and May, ranked Beijing as the most “onerous” commute in the world, when factors such as traffic predictability, gasoline prices and emotional stress were included. Beijing was also tied with Moscow as being the city with the most road trips canceled due to anticipated traffic jams.

To alleviate the congestion, Beijing’s municipal government already bars cars from the city roads on specific days each month depending on the last digit of the license. The city is also aiming to have public transportation account for 50 percent of commutes in the city by 2015 and may offer 50,000 public bicycles to commuters at 1,000 stations around the city, according to the proposals posted yesterday.

Shanghai, China’s wealthiest city, has since 1986 controlled the number of vehicles on its roads by restricting car licenses. The city sells a limited number of licenses each month at auction. Shanghai auctioned 8,500 car licenses on Nov. 20 at an average price of 45,291 yuan each ($6,807), according to government data.

http://www.bloomberg.com/news/2010-12-14/beijing-proposes-congestion-tolls-bicycles-to-ease-world-s-worst-traffic.html

Volkswagen gears up in race to electric vehicles

November 18 (China Daily) - Auto giant reveals plans to begin local production of 'blue-e-motion' models

SHENZHEN - Germany's Volkswagen Group, the top-selling carmaker in China, is presenting its electric drive designs and technologies at the 25th World Battery, Hybrid and Fuel Cell Electric Vehicle Symposium & Exhibition (EVS25) that opened on Nov 4 in the southern metropolis.

The auto group, one of the largest exhibitors at the EVS25, is aiming to gain the initiative in the contest to offer cleaner mobility to increasingly prosperous motorists in the world's No 1 vehicle market.

Volkswagen's exhibits include three new models equipped with innovative electric drive technologies - the Golf blue-e-motion, Lavida blue-e-motion and Touareg Hybrid - as well as its E-Lab that enables audiences to learn more about the future of electric vehicles.

"Electric vehicles are the right direction for future mobility," said Dr Karl-Thomas Neumann, president and CEO of Volkswagen Group China in an interview with China Daily. "Volkswagen Group China will provide affordable and attractive electric vehicles to Chinese customers."

The group will work with its two Chinese joint ventures - FAW Volkswagen and Shanghai Volkswagen - for local production of the Golf and Lavida blue-e-motion models between 2013 and 2014, Neumann said.

The German carmaker will also export the Touareg Hybrid to China in 2011.

Neumann, who was appointed president and CEO of Volkswagen Group China in September, is an expert in the global electric vehicle (EV) industry. Before accepting his current position, he headed Volkswagen Group's EV business.

Desire to lead

Analysts say the appointment of Neumann indicates Volkswagen Group's intention to take the lead in China's electric vehicle market.

Electric vehicles became a hot topic last year as China's auto industry faced mounting pressures for environmental protection and fuel conservation.

A phalanx of foreign and homegrown carmakers including BMW, Mercedes-Benz, Nissan, Dongfeng, Chery and Geely are also planning to launch electric vehicles.

"Volkswagen Group China has already established a very clear E-Mobility strategy and roadmap - we will introduce hybrid power and E-Mobility technologies to China and endeavor to become a market leader in China's electric vehicle market by 2018," Neumann said.

Next year, a zero-emission demonstration fleet of Golf and Lavida blue-e-motion cars will be rolled out for test drives in the nation's major cities, according to Volkswagen Group China.

Volkswagen will invite research institutions, government agencies, the media and customers to experience its EV technologies. Feedback from test drives will help the carmaker and its Chinese partners develop the most suitable EV models for the market.

"EV technologies still face many challenges on the road ahead, such as high battery costs and insufficient numbers of battery charging stations," Neumann said.

"But advancement in electrification technologies will clear these obstacles step by step."

Noting the problems, he said "Volkswagen Group will follow a four-step roadmap for EV development, keeping pace with technology sophistication and market readiness."

The stages include:

Mild hybrid vehicles with start-stop systems and recuperation

Full hybrid vehicles with start-stop systems, recuperation, power assist and 2 kilometers of electric-powered range

Plug-in hybrid vehicles with start-stop systems, recuperation, power assist and over 20 kilometers of electric-powered range

Totally electric vehicles with over 100 kilometers of electric-powered range such as the Golf blue-e-motion.

Government support

Governments at various levels in China are also backing the development of electric and other new-energy vehicles.

Owners of purely electric cars in five pilot cities - Shanghai, Changchun, Shenzhen, Hangzhou and Hefei - have been eligible for a subsidy of 60,000 yuan since June this year. Owners of plug-in hybrid cars can receive subsidies of up to 50,000 yuan.

Volkswagen has a long history of developing electric cars. In 1900, its 25-year-old chief designer Ferdinand Porsche stunned the world with the electric Lohner-Porsche.

With electric hub motors on the front wheels, the Lohner-Porsche was lauded by the press as an "epoch-making masterpiece".

Despite its aggressive EV strategy, Neumann said Volkswagen will further tap potential of internal combustion engines by slashing fuel consumption and emissions.

In 2007 Volkswagen Group China began introduction of two of its core BlueMotion technologies - the TSI engine and DSG transmission.

The TSI - turbocharged stratified injection - engine enables highly efficient combustion of fuel while the DSG - or double-shift gearbox - transfers power smoothly and efficiently for optimal use of energy.

The carmaker now has TSI engine production sites in Dalian, Shanghai and Changchun. It also has a DSG plant in Dalian.

Volkswagen's China-made models with TSI engines and DSG transmissions include the Lavida, Magotan, Sagitar and Skoda Octavia Mingrui.

Target reached

In May, the carmaker announced that it reached the target set in 2007 to cut fuel consumption and emissions in its China-made fleet by 20 percent, mainly due to its TSI engines and DSG transmissions.

The efficient technologies have also helped Volkswagen Group boost sales.

In the first three quarters of this year, Volkswagen's China sales surged by 39 percent year-on-year to 1.48 million vehicles. The figure, up from 1.4 million units for the whole of last year, enabled the German carmaker to maintain its two decades of leadership in China's passenger car market.

http://www.chinadaily.com.cn/bizchina/2010-11/08/content_11516978.htm

Climate Change

China Issues 2010 Climate Change Green Paper

November 24 (Beijing Review) - Chinese social and meteorologic scientists have unveiled their latest discoveries about the country's challenges and developments in tackling climate change. This year's annual report, the Climate Change Green Paper, was published on November 22.

Why is climate change such a threat?

How can we share emission cut responsibilities?

And what can we expect from the next round of negotiations?

Chinese scientists said the green paper is aimed at finding answers to these questions.

"This paper will help the world learn about China's concern for the problem of climate change, give impetus to more reasonable international rules, and actions to tackle climate change,as well as help the Cancun UN climate change conference produce more practical results," said Wang Weiguang, Vice President of China Academy of Social Science.

The Cancun Conference is meant to be the stepping stone to a legally binding deal next year on reducing greenhouse gas emissions to mitigate the effects of global warming.

The Green Paper said China hopes to see progress in Cancun, but would not yield on its right to make economic growth an overriding priority.

"China will adhere to its road of sustainable development and speed up the creation of green and low carbon living and consuming styles," said Su Wei, Chinese Chief Climate Negotiator. "China will continue its active and constructive role in tackling climate change with other countries."

The Green Paper also summarizes China's latest achievements in cutting carbon emissions by applying more green technologies in urban construction.

The writers hope their work will underscore the importance of going green within government policies and the ideas of the Chinese people.

http://bjreview.com.cn/special/2010-11/24/content_314370.htm

China, US must fulfill their roles: UN

November 30 (China Daily) : NEW YORK - China and the United States should cooperate with each other to fulfill their roles in slowing down global warming while pushing forward the upcoming climate change negotiations, which kicked off on Monday in Cancun, Mexico, a United Nations official said.

In an exclusive interview with China Daily, Robert C. Orr, UN assistant secretary-general for strategic planning and policy coordination, said that as two of the biggest greenhouse gas emitters, China and the US have different economic structures, but they both depend heavily on coal.

"So there're some commonalities between the two countries that people often ignore," he said.

"The size of the two countries means their geography can help solve some of the challenges. There is much room for China and the US to work together on concrete clean energy projects," he said.

Orr said that the "two big players carry a certain responsibility" because they represent developing countries on one side and the most developed world on the other.

"If they can come to an understanding on some key political issues, I think the rest can be agreed upon."

During the last climate change summit in Copenhagen, China and the US disagreed on some key issues, such as ways to share the burden of reducing greenhouse gas, and if developed countries, like the US, owe developing countries a climate debt.

China and the US had long-standing discussions on issues of mitigation target, transparency and commitments.

"They are two responsible countries. If they work together and agree on the tough issues, this negotiation in Cancun will lead to very good prospects for a successful agreement next year in South Africa," Orr said.

China has kept up its efforts in mitigating climate change. The draft for the country's 12th Five-Year Plan (2011-2015) has listed clean energy development and reductions in the intensity of greenhouse gas emissions as key priorities.

China will also seek to improve energy efficiency laws and standards, build energy-saving market mechanisms while continuing its efforts to establish carbon markets.

Orr praised China's efforts, but he maintained that more needs to be done to adequately address climate change.

"The kind of leadership that a country like China has dramatically shown in a very short time - scaling up its efforts in the area of clean energy and climate change - is encouraging. But it is not enough either for China or any other major player," he said.

Orr said that bilateral agreement and cooperation between the US and China should be encouraged but that alone is not enough.

"We do need a global deal so that everyone can scale up to the sufficient level necessary to meet the full scale of the challenge."

Even reaching a legally binding treaty is not in sight during the Cancun talks, Orr said, adding there will be "a balanced set of decisions" that will move the climate change agenda forward "on all fronts".

He highlighted some major issues, most importantly deforestation, which contributes to almost 20 percent of global emissions, and the wider dissemination of technology and stronger financing.

The agreement over the mobilization of $30 billion over the next three years would help build more confidence in overall financing for the climate change process, he said.

Although UN Secretary-General Ban Ki-moon had made climate change a priority throughout his tenure at the helm of the UN, previous climate change talks in Bali and Copenhagen failed to produce expected results.

There has been criticism on the credibility of the UN and the UN Framework Convention on Climate Change (UNFCCC), which coordinate the negotiations on climate change.

Orr said that the fundamental fact is there is no alternative to the UN for this negotiation. And this global issue requires all players in the world to agree because "everyone is affected and everyone has a piece of the problem and a piece of the solution".

"So you can't have a final negotiation among small sub-groups; you can facilitate a negotiation by working in some kind of sub-groups, which certainly is happening in major economies' forum, such as the G20," he said.

"But there is only one place you can finalize a global comprehensive deal, and that is through the UNFCCC," he added.

"We (the UN) can set the table for the governments, but the governments have to make the decision."

http://www.chinadaily.com.cn/usa/2010-11/30/content_11631305.htm

U.S. and China Narrow Differences at Climate Talks in Cancún

December 8 (The New York Times) - CANCÚN, Mexico — The United States and China have significantly narrowed their differences on the verification of reductions in greenhouse gas emissions, officials said, providing hope that a United Nations conference here on climate change can achieve some modest success.

The verification issue, which cuts deeply on matters of national sovereignty and international trust, was a major factor in the torpedoing of last year’s climate negotiations in Copenhagen. But China has since significantly softened its position and the United States has moderated its insistence on the issue.

The reduced friction between the two nations has greatly improved the mood here, and envoys from both expressed guarded optimism that a deal could be reached by the end of the conference on Friday.

“I do think there is an agreement to be had,” Todd Stern, the chief American climate change negotiator, said Tuesday, although he added, “At the same time there are a lot of difficulties, so we’ll have to see.”

Xie Zhenhua, China’s top climate envoy, also signaled a willingness to sign an accord here, as long as it met Chinese objectives on financial aid to developing countries, transfer of clean energy technology to poor nations and a continuing of discussions under the 1997 Kyoto Protocol. Speaking to the press on Monday, he pointedly did not raise verification or transparency issues as a barrier to the negotiations.

The overall talks are grinding on slowly, and there is some concern that with only three full negotiating days ahead, there will not be enough time to resolve differences on remaining issues like money, technology, adaptation, emissions reductions and forestry programs, the basic agenda of the climate negotiations.

The United Nations Framework Convention on Climate Change, under whose auspices these annual talks are held, operates on the principle of consensus, meaning that any of the more than 190 participating nations can hold up an agreement.

Last December, a group of nations led by Bolivia, Venezuela, Cuba and Sudan played the role of spoiler in Copenhagen. This year, Bolivia in particular has raised objections on a number of matters, including plans to compensate landowners for preserving forests. The Bolivian leader, Evo Morales, says this threatens the livelihoods of landless peasants, and he plans to address the conference on this issue.

There is some talk in the corridors of breaking off the forestry issue and negotiating a separate deal that would save millions of acres of forestland while increasing compensation to countries like Brazil and Indonesia where forests are fast disappearing.

Another issue is the fate of the Kyoto Protocol, whose emissions targets expire at the end of 2012. Most developing nations are insisting that new targets be set and that money continue to flow to them for projects that reduce the emissions that contribute to global warming.

Japan startled the conference last week by announcing that it would not accept any new targets under the Kyoto Protocol, and Russia, Canada and some other parties to the protocol have also signaled a reluctance to assume new commitments. The issue could scuttle the conference. Some countries, including the United States, which never accepted the Kyoto treaty, hope to find a way to finesse the issue so it can be dealt with in the future.

Despite these disputes, the overall atmosphere of the talks is vastly improved from a year ago in Copenhagen, in large part because the United States and China are not at each other’s throats. Contributing to that more relaxed mood, the delegates are not awaiting the arrival of 140 heads of state, who flew into Copenhagen for the final hours of negotiations and raised the temperature beyond the boiling point.

“There is more camaraderie here, more dialogue, more intensive engagement and less shadow boxing than in Copenhagen, because China has moved on the transparency issue,” Jairam Ramesh, India’s environment minister, said in an interview. “That is very important.”

Mr. Ramesh proposed a plan for bridging the gap between the United States and China on verification, by establishing a voluntary program known as international consultation and analysis. Under the plan, also known as I.C.A., countries would declare their emissions reduction targets and provide regular reports on how they were meeting them and gauging their own progress.

There would be no international monitors or inspectors, and no penalties for failing to reach stated targets. Smaller countries would have less frequent and less detailed reporting requirements than major emitters.

Mr. Ramesh’s concept has been broadly accepted here, but there are still disputes over how detailed the agreement should be and how soon the reporting requirements would take effect.

Mr. Stern said he wanted these matters addressed explicitly and not, as he put it, “at the 50,000-foot level.” Other major emitters, including Brazil and South Africa, are balking at providing the kind of detailed reports that the United States is demanding. China’s position is unclear, but Mr. Ramesh said that he spent four hours with the Chinese delegation on Sunday and that he was confident that China would not stand in the way of a deal because of the verification issue.

He noted that China had recently leapfrogged over the United States to become the world’s largest emitter of greenhouse gases. “They know the world’s radar is on them,” he said. “If transparency becomes the stumbling block, China doesn’t want to be blamed. If China is the only party holding out, they won’t collapse the negotiations.” http://www.nytimes.com/2010/12/08/science/earth/08climate.html?partner=rss

Who's more toxic, China or India?

December 10 (The Washington Post) - Politicians opposed to unilateral reductions in U.S. greenhouse-gas emissions often claim that China and India are the real problem. Some have even supported legislation barring federal regulation of carbon dioxide emissions until the world's most populous nations do the same. China and India are always lumped together. But which of the two countries is more dangerous to the environment?

Before pitting Asia's behemoths against one another in a cage match of environmental destruction, we should note that Westerners remain unsurpassed in the field. Take, for instance, greenhouse-gas emissions. As of 2007, the average American was responsible for 19.8 metric tons of carbon dioxide emissions annually, with Australians, New Zealanders and Canadians in hot pursuit. China (at 4.7 metric tons per person) and India (1.2 metric tons) lag far behind. According to the U.S. Energy Information Administration, neither country is likely to surpass the United States for decades.

It also bears mentioning that China produces one-third of its CO2 emissions manufacturing goods for export. Forty percent of the consumer goods purchased in the United States are made in China, representing more than 18 percent of China's total exports. So blaming China for climate change is a bit like blaming your chauffeur for using so much gas.

But if forced to choose between the rising Asian powers, China is clearly poised to do more environmental damage over the next few decades than India. Although its per-capita emissions are lower, China surpassed the United States as the largest total emitter of greenhouse gases in 2007. India is in fourth place, with less than one-third the output of China.

To boot, China's upward trend in emissions is the steepest in the world. In 2000, China consumed just 9 percent of the world's energy. By 2007, that share had reached 16 percent. India's share of global energy consumption, in contrast, rose from 3 percent to 4 percent during the same period.

Although India's population is growing faster than China's, that difference isn't nearly enough to offset the widening gap between the two countries in per-capita emissions. According to some estimates, the two countries will have approximately the same population in 2035, about 1.49 billion residents each. But China will be responsible for more than six times as much carbon dioxide emissions as India. Fifteen years later, when India has 191 million more people than China, China will still emit 10 billion more metric tons of CO2 than India. That difference is the equivalent of putting 1.9 billion extra cars on the road - three times the number currently in use worldwide.

Of course, there's more to environmental health than carbon dioxide. Pollution plagues many Indian and Chinese cities, but again, China appears to have it worse. According to a 2007 study by the Blacksmith Institute, an environmental research organization, China is home to six of the world's 30 most polluted cities, while four are in India.

Linfen has become the poster child for polluted Chinese cities, a blighted industrial burg that suggests a post-apocalyptic nightmare. Unregulated coal mines, steel factories and refineries have left half of the town's well water unsafe to drink, and cancer rates are way above average.

India, though not at China's levels of air pollution, still has little to brag about. The number of cars in India increases by 20 percent every year, and its government set fuel-economy standards for the first time this year.

Yet, despite its surging environmental exploitation, China may be better poised than India to address pollution and climate change.

Authoritarian governments can really get things done when they want to. Take the Olympics. The government relocated nearly 15,000 residents, some allegedly without their consent, just to build a few sports venues. India, with its raucous democracy and robust access to the court system, struggled not to embarrass itself when hosting the considerably lower-profile Commonwealth Games.

So if the Chinese Communist Party ever decides the country is going to clean up its act environmentally, it's likely to happen. (The closest thing India has to an environmental dictator is its Supreme Court, which unilaterally capped the number of auto rickshaws in Delhi in 1997 and then forced them to switch to clean natural gas by 2002 to clear the capital's air.)

China has also made massive investments in clean energy. The country increased its wind-power output more than 20-fold between 2003 and 2008 and plans to increase that by eightfold again by 2020. India just doesn't have the cash for initiatives like that. Its per-capita GDP is less than half of China's, and it is growing more slowly: 6.4 percent in 2009 compared with China's 8.7 percent.

Economists are closely watching the environmental policies of both rising powers, because they represent test cases of the controversial environmental Kuznets curve, which hypothesizes that environmental improvements in a country will occur after per-capita income increases.

Early proponents of the theory in the 1990s argued that economic development is a prerequisite for responsible environmental stewardship. In the coming years, we'll find out whether the race for Asian economic supremacy is a race to the bottom or to the top for the environment.

http://www.washingtonpost.com/wp-dyn/content/article/2010/12/10/AR2010121005991.html

Experts count on China to tackle climate change

Hong Kong - Delegates at a conference in Hong Kong on Wednesday speak highly of China's role in fighting against global climate change.

"The Chinese leadership is committed to reorienting its economy on a more sustainable, more equitable and more balanced path," said Martin Lees, former secretary general of the global think tank Club of Rome, and former senior adviser to the Chinese government on climate change and sustainable development.

"China intends to become the world's leader in clean energy and resource-efficiency technologies. They see these problems as an opportunity, not simply as a cost or a problem to be solved," Lees said at the opening ceremony of the Climate Dialogue conference in Hong Kong.

"China has a very crucial role in determining whether we can overcome the challenges we face to achieve prosperity and peace for future generations," Lees said.

China has the opportunity to lead the world on the right track in terms of acting against climate change and building a low-carbon economy, thanks to its enormous investments in carbon-free energy like solar, wind and nuclear power, says James E. Hansen, head of the NASA Goddard Institute for Space Studies.

The country is committed to cut its energy consumption per unit of GDP by 20 percent by the end of its 11th Five-year Plan (2006-2010), said Sun Zhen, deputy counsel of the climate change department of China's National Development and Reform Commission.

The world's second-largest economy has selected five provinces and eight cities across the country to act as pilots in the national program of building low-carbon provinces or cities, said Sun. It is also considering establishing a law against climate change, according to Sun.

China will continue developing renewable energy during its 12th Five-year Plan (2011-2015), Hu Tao, coordinator of the UN-China Climate Change Partnership Framework Program, said at the conference.

Hu added that the US should stop criticizing China for subsidizing its renewable energy industries. The US should, instead, act with China to develop in this sector, Hu said.

The four-day climate change conference, titled Climate Dialogue: Low Carbon Cities for High Quality Living, began in Hong Kong on Wednesday. It offers a platform for scientists and policy makers to share their views on tackling global climate change.

http://www.chinadaily.com.cn/china/2010cancunclimate/2010-11/19/content_11579180.htm

China pushes to develop green economy

November 23 (China Daily): Beijing - China invested a total of 2 trillion yuan ($301 billion) in plans to save energy and reduce emissions during the 11th Five-Year Plan (2005-2010).

The investment came as the world's second-largest economy made efforts to develop a green economy, a top official from the National Development and Reform Commission (NDRC) said on Monday.

The government allocated more than 200 billion yuan for energy conservation, emissions reduction, and environmental protection, which as a result, mobilized over 2 trillion yuan from all sectors of society to be pumped into related industries, said He Bingguang, deputy director of the environment and resources department of the NDRC.

The NDRC is laying out plans for China's green industry during the 12th Five-Year Plan (2011-2015), including energy saving and environmental protection, new energy development and ecological construction.

The country implemented a series of measures to meet the energy efficiency targets of the 11th Five-Year Plan. For example, more than 70 percent of coal-fired power stations have installed the Flue Gas Desulphurization (FGD) system, and the government has been encouraging clean-up efforts through a series of incentives for power generation companies, He said.

Other measures included a mechanism of targets evaluating energy efficiency and contract-based energy management implemented by local governments, according to He.

A total of 998 energy-consuming enterprises achieved their energy-saving goals, he added.

There is a huge potential to tap in the energy-saving market over the next Five-Year Plan, He said.

To further develop China's green economy, more foreign investment should flow into the country's eco-friendly industries, officials from the Ministry of Commerce said.

The government has been encouraging more international coordination in new energy fields, and is vigorously seeking cooperation and investment from abroad.

"The Chinese government will continue to create a fairer and more transparent investment environment for foreign businesses which will be accorded treatment equal to domestic ones," said Jiang Yaoping, vice-minister of commerce.

For the forthcoming 12th Five-Year Plan (2011-2015), the country's blueprint for economic development for the next five years, a series of policies will also be launched "to further open up China's market and deepen international cooperation in many high-tech fields, such as electric automobiles," Jiang added.

"In developing the electric automobile industry, China still has a lot to learn from companies in Japan, Europe and the United States, both in terms of advanced technologies and managerial expertise. We will encourage more cooperation between domestic companies and those from the countries mentioned," said Gao Dongsheng, a senior officer with the Ministry of Industry and Information Technology.

"The principle of transparency is essential to the implementation of these policies. This success rate (of foreign companies in public bidding) has illustrated China's achievement in providing a fair and transparent investment environment," Jiang said.

According to data released by the Ministry of Commerce, foreign companies participated in 8,863 public bids for the purchase of machinery and electronic products in 2009, and won 6,887 of those projects.

http://www.chinadaily.com.cn/usa/2010-10/06/content_11379895.htm

China sets up real-time air quality monitoring network

November 25 (Xinhua): BEIJING - China put into use Thursday its latest air quality monitoring system which provides hourly air quality information of the country's major cities.

According to a statement of the China National Environmental Monitoring Center (CNEMC), the new system provides air quality information on 113 key cities which will be accessed via the Internet, including indexes of sulfur dioxide, nitrogen dioxide and particulate matters.

The country started weekly air quality reports in 1998, and then daily reports in 2000. The report is published on www.cnemc.cn.

Currently, China has more than 2,000 air monitoring stations.

The new system will play a crucial role in air pollution prevention and control, the statement said.

The CNEMC marked the 30th anniversary of its founding on Thursday.

According to CNEMC head Luo Yi, in the past 30 years, the center has frequently upgraded its equipment, enabling monitoring of air, surface water, noise, industrial pollution sources, solid waste, soil, among other substances.

Luo said the center is currently developing new technology to monitor more environmental factors such as optical radiation and thermal radiation.

Luo expressed his hope that the country's environmental monitoring system would advance rapidly with the launch of two environment monitoring satellites.

Successfully launched in 2008, the two environment and disaster monitoring satellites can provide a global scan every two days, closely track natural disasters and provide quick assessments of damage to guide rescue and reconstruction work.

http://www.chinadaily.com.cn/usa/2010-10/06/content_11379895.htm

Low Carbon Development

Carbon emissions reduction likely to be binding

November 11 (Xinhua): KUNMING - China would strengthen its efforts in carbon emissions control and would make every effort to realize the goals for coping with climate change, a central government official said Thursday.

"A significant reduction in energy consumption intensity and carbon emissions intensity is likely to be a binding goal in China's new five-year program," said Gao Guangsheng, an official with China's National Development and Reform Commission (NDRC), at a conference in Southwest China's Kunming city, Yunnan province.

Gao's said the proposal for formulating the 12th Five-Year Program (2011-2015) on National Economic and Social Development, requires "effectively control" the country's greenhouse gas emissions.

The public are welcomed to submit their comments on the proposal, released by the Central Committee of the Communist Party of China in October, before its final revision in 2011.

China's previous Five-Year Program (2006-2010) set the goal of reducing energy consumption per GDP by 20 percent in five years before the end of 2010.

Over the five years, China has shut down inefficient thermal power plants with a capacity of 70 gigawatts, more than the total capacity installed in the UK.

But as the end of the year approaches, the reduction achieved so far is only 15.61 percent, and some Chinese cities are switching off electricity in a desperate bid to honor the commitment.

"We will keep our commitment and take necessary measures to realize the goals," said Gao.

Wang Tao, a senior official with WWF, said reductions by administrative orders could only work temporarily.

"In the long term, changes must be wrought in the mode of economic development and the lifestyle of average Chinese," said Wang.

According to the new five-year program proposal, China will make progressive efforts to boost energy efficiency, promote low-carbon technology, and establish carbon trade markets.

In August, China started a pilot program on low carbon economy in five provinces, including highly industrialized Guangdong and less developed Shaanxi.

China has promised, by the year 2020, to cut its carbon intensity by 40 to 45 percent compared with the 2005 level, a target Premier Wen Jiabao said would require "arduous efforts"

http://www.chinadaily.com.cn/china/2010-11/11/content_11537483.htm

China vows to control emissions in next 5 yrs

November 23 (Xinhua): BEIJING - China Tuesday underlined its position on climate change for the upcoming Cancun Conference, vowing to "effectively control" greenhouse gas emissions over the next five years.

China's pledge came in its Annual Report on Policies and Actions to Address Climate Change, which was published by the National Development and Reform Commission (NDRC) Tuesday, one week ahead of the the United Nations' Cancun Conference.

Chinese moves in emission reduction

In November 2009, China promised to reduce carbon dioxide emissions per unit of gross domestic product by 40 to 45 percent by 2020 from 2005 levels, while increasing the share of non-fossil fuels in primary energy consumption to around 15 percent by 2020.

At a press conference unveiling the report, Xie Zhenhua, deputy director of NDRC, China's top economic planner, said great effort has been made by China in energy-saving and greenhouse gas emission reductions in recent years.

During the 11th Five-Year (2005-2010) Plan period, China's investment in energy-saving and emission-reduction projects reached about 2 trillion yuan ($301 billion), more than 200 billion yuan of which came from the Chinese government, according to NDRC statistics.

Xie said it is likely China has cut emissions of carbon dioxide by about 1.5 billion tonnes because of energy-saving and emission-reduction investments during the period.

"The size of the emission reduction is greater than any other country in the world," Xie said. "This is China's contribution (to preventing global climate change)."

According to the climate change report, reductions in energy consumption and carbon-dioxide emission intensity will be binding targets for China to fulfil its commitment over the period.

"For the energy-saving and environmental-protection industries, the binding targets mean great market potential and opportunity for the green and low-carbon economy," Xie said.

Chinese position on Cancun Conference

In the report, the Chinese government reiterated its position on global climate change talks, as leaders and representatives of about 180 countries prepare for the Cancun Conference to be held Nov 29 to Dec 10 in the Mexican resort city.

UN member countries will try to reach a consensus at the conference to lay the foundation for a legally binding treaty to be agreed upon at next year's conference in South Africa.

Developed and developing nations, however, are divided on climate change arrangements in terms of mitigation, technology transfer and financial support.

"China opposes any draft that has not been fully discussed or recognized by member countries as the basis for negotiation at the upcoming Cancun Conference," said the report.

Xie, who is a member of the Chinese delegation to Cancun, noted after more than 20 years of talks, the world has achieved results on climate change, such as the UN Framework Convention on Climate Change, the Kyoto Protocol, the Bali Roadmap and the Copenhagen Accord.

The Cancun Conference should proceed with climate talks on the basis of consensus set by those documents, Xie said, adding that "we should step forward rather than walk backward."

He stressed the Cancun Conference must uphold the principle of "common but differentiated responsibilities," saying developed countries should take responsibility for their cumulative emissions and current high per capita emissions.

"The developed countries should take action first to mitigate climate change," he said.

Xie expressed hope the Cancun Conference can achieve tangible results on finance and technology transfer to help developing countries tackle climate change.

"China will continue to play a constructive role and work with other parties to achieve a successful outcome at the Cancun Conference," he added.

http://www.chinadaily.com.cn/china/2010-11/23/content_11598233.htm

Expert recommends early start to China's carbon trading

November 18 (Xinhua): BEIJING- A world leading meteorologist said Wednesday that it's in China's long-term interests to develop its domestic carbon-trading market.

"The domestic carbon trade is an irresistible trend, and we should start early, so as to gain a bigger international voice," said Professor Chen Deliang, executive director of the International Council for Science (ISCU), at an international forum on climate change held in Beijing.

The three-day forum that started Wednesday was jointly organized by the Chinese Academy of Sciences (CAS), the Third World Academy of Sciences (TWAS) and the World Meteorological Organization, under the theme of climate and environmental challenges for developing countries.

"In the short-term, such policies will affect the profits of local carbon-intensive industries," said Chen, former science director of the National Climate Center.

"But it pushes Chinese enterprises to shake off their dependence on fossil fuels and adopt cleaner energy," he added.

The CTW Forum has been held annually since 2000, and is aimed at rallying high-level mathematicians, physicists, atmospheric and oceanic scientists for discussions on problems associated with climate change.

This year, experts from over 25 countries, mostly developing countries, convened in Beijing. Zeng Xiaodong, a researcher from the Institute of Atmospheric Physics of the Chinese Academy of Sciences, believes the forum is an important means for developing countries to exchange ideas before the Cancun International Climate Conference in Mexico, which will begin later this month.

"The forum is crucial, as developing countries can share their insights into climate change and how to deal with it," Zeng said.

Mohan Munasinghe, a professor of sustainable development at the University of Manchester, said: "The most effective approach is to integrate climate change policies into a national sustainable development strategy."

China has pledged to slice its carbon emissions per unit of GDP by 40 to 45 percent by 2020, from the 2005 level.

From 2006 to 2009, it successfully cut energy intensity by 15.6 percent.

In its latest carbon-reduction move, China announced to launch its domestic carbon trading programs during its next five-year plan starting 2011.

However, an official statement detailing the plan is yet to be released.

Last August witnessed China's first voluntary carbon trade, as a Shanghai-based auto insurance company bought 8,026 tons of carbon credits generated from a green computing campaign during the Beijing Olympics.

"China and other developing countries should strike a balance between carbon emission reduction and their national developments, as both targets are crucial," said Chen Deliang.

The upcoming UN climate conference is slated from Nov 29 to Dec 10 in Cancun, Mexico. "It will surely be an important meeting," said Chen. "I can see there will be tough negotiations between developing and industrial countries."

http://www.chinadaily.com.cn/bizchina/greenchina/2010-11/18/content_11571173.htm

China's Shenhua says CTL plant to begin storing carbon in '11

Shenhua's coal-to-liquid plant is the first of its kind to go into operation in China, and Gu said the company plans to produce 3 million tonnes of oil products from coal in 2015, up from 500,000 tonnes this year.

It also aims to produce 11 million tonnes of oil products and 18.3 billion cubic metres of gas from coal by 2020.

China started pushing for the widespread adoption of coal conversion technologies in 2006 to help cut dependence on expensive foreign oil. It allowed the construction of Shenhua's facility in Inner Mongolia to go ahead, and also permitted research to continue into another CTL plant in Ningxia, jointly invested by Shenhua and the South African energy giant Sasol.

Gu told reporters that the Ningxia plant, with a proposed annual capacity of 3 million tonnes, was still awaiting NDRC approval.

http://www.chinadaily.com.cn/bizchina/2010-11/30/content_11631026.htm

Growing emission credit market lures foreign partners

November 26 (China Daily): BEIJING - Global environmental exchange operators are seeking partnerships in China to assure a place in the fledgling carbon emission trading market as the nation heads toward becoming a world leader in the low-carbon sector.

NYSE Blue, a new joint venture of exchange operator NYSE Euronext and carbon trading market infrastructure provider APX, is responding to emerging market opportunities in China. It is setting its sights on voluntary market activity in the country.

It has undertaken a joint project with the China Beijing Environment Exchange - the voluntary Panda Standard, which NYSE Blue hopes can become mandatory in the future.

"A carbon trading market is taking shape here," said Brian Storms, NYSE Blue's chief executive officer.

By 2020, China intends to reduce carbon emissions per unit of gross domestic product by 40 to 45 percent from 2005 levels.

The country has also been pushing ahead with ambitious plans to build low-carbon businesses. Incentive-backed renewable energy goals helped China become the leading manufacturer of wind turbines last year. The nation is also expected to surpass the United States to take a leading role in installed wind power capacity.

China's top economic planner, the National Development and Reform Commission (NDRC), is proposing to build a mandatory domestic carbon trading system.

A draft regulation on voluntary emissions trading was "almost ready" and will be issued "as soon as possible," Wang Shu, an official with the NDRC's climate change department, said at the United Nations climate talks in Tianjin in October.

"China is getting aggressive in the low-carbon market," said Storms.

All of these factors have attracted NYSE Blue to China, where it is discussing partnerships with local companies to build software that measures greenhouse gases. These measurements would be used in emission reporting, an important part of the carbon trading market.

"China could be the largest carbon trading market, and we expect it to account for as much as half of our business," Storms said.

Meanwhile, Intercontinental Exchange, the parent of Chicago Climate Exchange which partners with China's Tianjin Climate Exchange, also wants to get a foothold in the market, providing technologies and platforms involved in carbon trading as well as practical experience in carbon trading market designs, according to Jeffrey Sprecher, its chairman, who recently made an introductory tour of China.

China now has a dozen environmental exchanges where companies can buy and sell pollution permits. This comes only a year after the first three were set up in Tianjin, Beijing and Shanghai.

The nation has played a large role in the Clean Development Mechanism (CDM) under the Kyoto Protocol. By September, the government had approved 2,685 CDM projects. A total of 953 of these projects were successfully registered at the United Nations' CDM Executive Board, accounting for 40 percent of all registered projects.

China is also the largest supplier of Certified Emission Reductions (CERs).

However, voluntary emissions trading in the domestic market is new to both the government and investors.

"All three major climate exchanges in China are facing the same problem - that we are trying to create a market out of nothing," said Jian Lin, CEO of the Shanghai Environment and Energy Exchange.

The market does not have enough products or demand, said Jian, and, more important, the legislation, policy and standards are not fully in place.

Jeff Huang, the Chicago Climate Exchange's vice-president in Asia, said that the next step is to "operationalize" existing central government policies and build a large-scale domestic carbon trading market pilot program to show how market mechanisms can be harnessed to help industrial emitters achieve carbon compliance targets at lower cost and remain competitive.

http://www.chinadaily.com.cn/bizchina/greenchina/2010-11/26/content_11614652.htm

Guangyuan to provide 10,000-ton carbon emission reduction quota

November 9 (China Daily) - In order to reduce and neutralize carbon emission generated by the travel of people during the Guangzhou Asian Games, Guangyuan city in Southwest China's Sichuan province will provide a quota of 10,000-ton carbon emission reduction.

The quota will be spent on the implementation of the Yangchengtong Low Carbon Commuting Card, said Zhang Jianyu who is in charge of the Green Commuting Project during the Guangzhou Asian Games.

Unlike ordinary commuting cards, each Yangchengtong card has a one-ton carbon emission trading quota, Zhang said.

Using this card means the reduction of one-ton carbon dioxide, he said during a ceremony held in Chengdu, capital of Sichuan, on Monday in which he and a representative of the Guangyuan municipal government signed the agreement to provide the carbon reduction quota to the Guangzhou Asian Games.

It is another step taken by Guangyuan to contribute to the reduction of carbon emission, Zhang said.

In April, Expo 2010 Shanghai worked with the Green Commuting Fund (GCF) under the China Association for NGO Cooperation to introduce the world's first low-carbon Commuting card in Shanghai.

The card, intended to promote the use of public transportation, costs 40 yuan ($5.97), with half the amount being allocated to green projects.

Card buyers can also check which projects their money has gone to by typing in the card number at the official website, cleanair.net.cn.

A quota of 20,000-ton carbon emission reduction from Guangyuan found its way into the card.

Located in the northernmost part of Sichuan, Guangyuan, an ecological screen in the upper reaches of the Yangtze River, was hard hit in the Wenchuan earthquake on May 12, 2008, which killed 69,000 and left 18,000 missing.

In its post-quake reconstruction, Guangyuan has made use of its amply supply of natural gas, solar energy and water and geothermal resources and stressed the reduction of carbon emission, said Luo Qiang, Party chief of Guangyuan.

It has built more than 60,000 wooden houses with the light steel structure in its post-quake reconstruction, which means each household has reduced the use of 25,000 bricks, all the houses have reduced the use of 392,000 tons of coal and the emission of 977,000 tons of carbon dioxide, Luo said.

A total of 317 enterprises in the city have given up coal and use natural gas instead. All the taxis and 96 percent of the buses in Guangyuan now use natural gas as fuel.

Thanks to its efforts, Guangyuan has been named as one of the first cities in China contributing greatly to low-carbon development, Luo said

http://www.chinadaily.com.cn/regional/2010-11/09/content_11524703.htm

Nation spurs development of new, green technologies

November 15 (China Daily): SHANGHAI - With its fast urbanization and unequivocal commitment to a low-carbon economy, China has a major role to play in the international race toward a "green" society and is helping to drive the development of new technologies and products to meet the growing demand for ecological solutions.

"We're having a green race going on... about which country is to be the leading supplier of solutions in a world that is going to be resource- and carbon-constrained. China is in a position to lead the world in that race," said Bjorn Stigson, president of the World Business Council for Sustainable Development (WBCSD), a coalition of some 200 companies dealing exclusively with business and sustainable development.

With China's 12th Five-Year plan (2011-2015) set to build up the long-term competitiveness of Chinese energy industry in the international market, it would pave the way for the country to become "a leading exporter" of green technologies and products, said Stigson, who co-chaired the Low Carbon Economy Task Force under the China Council for International Cooperation on Environment and Development, a high-level advisory body conducting research and providing policy recommendations to the Chinese government.

Although the energy plan for 2011 to 2015 will not be published until March next year at the earliest when the National People's Congress meets in an annual session, Stigson, whose job within the task force offered the opportunity of input into the plan, said it sets very ambitious targets for renewable energy and would help drive demand in the home market and build competence if China achieves the targets being discussed.

The world's top user of carbon-intensive coal has already said it wants to raise the proportion of non-fossil fuels in total energy use to 15 percent by 2020 from less than 9 percent last year. It also promised to cut carbon intensity per unit of gross domestic product (GDP) by 40 to 45 percent by 2020 from 2005 levels.

"In China, as in other Asian countries, we see a growing awareness of the business opportunities in green growth," said Stigson. "China is one place where the green economic growth and business opportunities are occurring faster than perhaps anywhere else on earth.

"Just three years ago, China had only three percent of the global solar market. Today, it has captured 50 percent. From 2008 to 2009, China doubled its wind generation capacity, and in 2009 it overtook the United States in new installations and manufacturing of wind turbines."

For Michael Morris, president and chief executive officer of American Electric Power (AEP), China is "a very, very advanced technological base" in the energy sector from where AEP can gain advantage by technology interchange. The company has launched joint ventures and entered into memorandums of understanding (MOUs) with a number of Chinese companies.

"The MOUs and joint intellectual exchanges are important to us. We think it's a mutual learning opportunity where hopefully we have much to offer and in turn will receive much as well from the technological advancement China has here," said Morris.

Overseas utilities such as AEP, facing possible CO2 abatement bills at home, are counting on China to lead the global effort to develop carbon capture and storage (CCS).

"China is moving forward in CCS, and ultimately might well be a vendor of that technology to companies like ours and others as well," he said.

But the two biggest challenges for China in realizing targets about energy efficiency and reduced carbon emissions are buildings and transport, as is pointed out by Stigson. China is on a fast track to urbanize the population, a task that will involve increasing demand for housing and energy.

China is going to double the number of people that currently live in cities by 2050 - a level of urbanization beyond anything that has ever existed. In the next 15 years alone, more than 400 million people will be brought from rural areas to cities in the country to sustain its fast economic growth.

But China's annual primary energy consumption must be kept to below 4.2 billion metric tons of standard coal equivalent by 2015 in order to achieve 2020 emission and clean-energy goals, Jiang Bing, head of the development and planning department under the National Energy Administration, said in October.

"The number of buildings that China has to build over the next few decades is enormous. If they are built according to today's standards, there is no chance China can reach its targets.

"There have to be correct building codes and a push for energy efficiency in buildings," said Stigson.

http://www.chinadaily.com.cn/bizchina/GSLF2010/2010-11/15/content_11565132.htm