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 held “China Low Carbon Fuel Policy Recommendation Workshop”.

On March 29, 2010, iCET held “China Low Carbon Fuel Policy Recommendation Workshop” at the Presidential Hotel in Beijing. The workshop invited around 40 relevant stakeholders from governments, research institutes, academic organizations, multinational and domestic enterprises, as well as project sponsors, which included National Development and Reform Commission, Ministry of Environmental Protection, State Forestry Administration, Development Research Center of the State Council, Energy Research Institute, China National Institute of Standardization, China Automotive Technology & Research Center, Tsinghua University, Chinese Academy of Sciences, CNPC, Sinopec, CNOOC, General Motors, UK Strategic Program Fund, and Energy Foundation.

The workshop started with reporting project progress and achievements. Project partners - iCET, Development Research Center of the State Council and China National Institute of Standardization presented the project situation to audiences. Participators then discussed in groups on low carbon fuel policy development and how those policies would impact the fuel industry. The closing speech was given by Zhaoli, Jiang, the Director of International Cooperation of Climate Change Dept under NDRC. He appealed that it was significant that governments, research institutes, enterprises and NGOs made joint efforts to promote low carbon policies in order to mitigate the transportation climate change.

please download the conference summary and PPT on :

http://www.icet.org.cn/cn/Programs/Conferences/LCFS%202010%20workshop_cn.html

“The recommendation report for China Low Carbon Fuel Policy” will be revised based on opinions and comments collected at this workshop. It will be completed by the end of April and submitted as policy making reference to relevant governmental departments.

March 29, 2010, Participators gave opinions and comments on
“The recommendation report for China Low Carbon Fuel Policy” at the workshop.

iCET designed vehicle emission calculator for Ping An.

On March 24, China Ping An Insurance (Group) launched a press conference in Beijing to start “the low-carbon vehicle owner action”. This public welfare activity was organized jointly by China Ping An Insurance (Group), the Climate Group (TCG) and iCET, with the purpose of providing a platform for clients of Ping An as well as car consumers to calculate their vehicle greenhouse gas emissions and participate in tree planting donation through internet to offset their automobile carbon emissions.

The vehicle emission calculation platform was designed by iCET who also serves as the technical supporter. Through simply searching vehicle type and daily mileages in this system, users are able to calculate daily and yearly carbon emissions, as well as daily and yearly life-cycle carbon dioxide emissions of their own vehicles. Please visit the platform website for more information:

http://www.icetgreencar.org/pingan/CarbonQuery.aspx

iCET attended The Diesel Emissions Conference Asia 2010.

On March 23, The Diesel Emissions Conference Asia 2010 was taken place at the Westin Hotel in Beijing. This event brought together over 250 emissions stakeholders from Asia and worldwide to discuss and develop the optimum strategy for succeeding and profiting in this fast growing market. iCET Low Carbon Transportation Program Manager Mr. Robert Earley moderated the panel discussion entitled “Tackling Asia’s shortage of low sulphur content fuel”. This panel discussed the potential of biodiesel as an alternative for low sulphur content fuel and also considered what options and technologies were available for increasing fuel efficiency as an answer to the fuel quality problem. Executive Director Hang Zhu from Engine Research Institute of Chery Automobile Co., Giorgio Martini from Institute of Environment and Sustainability of European Commission, Executive Director Sophie Punte from CAI-Asia, and Deputy Chief Engineer Jianrong Zhang from The Research Institute of Petroleum Processing of Sinopec were panelists and discussed relevant issues.

On March 23, Mr. Robert Earley moderated the panel discussion entitled “Tackling Asia’s
shortage of low sulphur content fuel” at The Diesel Emissions Conference Asia 2010.

iCET supported the Automotive Forum 2010.

On March 8th – 9th, the Automotive Forum 2010 was taken place at the Grand Hyatt Hotel in Shanghai. Multinational and domestic carmakers, manufacturers & suppliers of auto components and industry analysts attended this event. Sessions of the conference mainly covered automotive Engineering & Technology, Logistic & Supply chain, Marketing & Product Diversification as well as Policy Adaptation and Development. iCET actively supported this event. Low Carbon Transportation Program Manager Mr. Robert Earley was invited to give a speech entitled “Developing a Lower Carbon Transport Fuel System in China”.

iCET interview: Saving energy and environment - Understanding “the greenhouse gas emissions calculation”.

On March 17, 2010, iCET Energy and Climate Registry program Research Analyst Ms. Xueyu Li was interviewed by Hudong.com. She presented the relevant knowledge regarding “the Greenhouse Gas Emissions Calculation” and “The Energy and Climate Registry”. During the interview, she initiated enterprises to pursue low-carbon development paths by conserving energy and reducing carbon emissions. She also proposed and encouraged individuals to take “the low-carbon lifestyle”. For more information, please visit: http://group.hudong.com/xinzhishe/doc/XRQBRCUcEWlZGb1ZG.html

On March 17, iCET Energy and Climate Registry program Research Analyst
Ms. Xueyu Li was interviewed by Hudong.com.

^{GENERAL ENERGY ISSUES}

China moves to boost energy saving.

March 11 (Xinhua) - The Chinese government will adopt stricter measures to boost energy conservation this year to meet the goal set by an important five-year plan, Xie Zhenhua, vice minister of the National Development and Reform Commission, said Wednesday.

"It's the last and decisive year for us to realize the goals set by our country's 11th Five-Year Plan," Xie said at a press conference on the sidelines of the annual session of the National People's Congress, China's top legislature.

"The current energy conservation situation lags far behind the goal set in our plan and our task is still formidable," said Xie, one of China's leading negotiators for climate change talks.

Under the 11th Five-Year Plan ending this year, China pledged to cut energy consumption per unit of gross domestic product (GDP) by 20 percent, or four percent each year, but consumption fell by a margin much smaller than the set target during the past four years.The per unit GDP energy consumption fell only 14.38 percent from the 2005 level.

Xie said the Chinese government will enact a series of measures this year to boost energy conservation, including the introduction of an accountability mechanism for provincial governments and tight control of projects of high energy consumption and high pollution.

China announced in November it aimed to reduce the intensity of carbon dioxide emissions per unit of GDP in 2020 by 40 to 45 percent compared with 2005 levels.

http://www.chinadaily.com.cn/bizchina/2010-03/11/content_9573344.htm

Green energy program drafted.

March 2 (China Daily) - BEIJING : The government has formulated a 10-year program under which clean energy will account for 15 percent of the total consumption mix by 2020, a top official has revealed.

To realize the goal, the government will invest billions in the construction of nuclear power stations, wind farms, solar power plants and research of renewable energy technologies, said Zhang Guobao, head of the National Energy Administration.

Zhang told China Daily that the program will soon be made public but did not specify a date.

He also said the National Energy Commission, the apex body set up in January to coordinate energy policy and headed by Premier Wen Jiabao, will hold its first meeting soon.

Zhang forecast a boom in the building of renewable energy infrastructure in the coming five years to meet the goal, which Wen pledged to global leaders at the Copenhagen climate change summit in"Power projects take a long time to be up and running, and we are basically allowed five years to complete them although it is a 10-year program," said Zhang. "Otherwise, the facilities cannot be put into use by 2020."

Official figures show that renewable energy accounted for 9.9 percent of total energy consumption last year, compared to 8.5 percent in 2008. Amid the global financial crisis, the government has decided to develop renewable energy as part of a stimulus package to keep the economy on the fast track.

Last year, groups of researchers, scientists and officials drafted the program under the supervision of Wen and Vice-Premier Li Keqiang.The National People's Congress, the top legislature, recently passed an amendment to the renewable energy law to require power grid companies to buy all the electricity produced by renewable energy generators.All these efforts reflect the strategic importance of the renewable energy industry, said Zhang, adding the policy will offer more opportunities for global partners.

"China and the United States have already strengthened cooperation in the regard by launching joint projects and research centers," said Zhang.US President Barack Obama, in his first State of the Union address, said that "there's no reason Europe or China should have the fastest trains, or the new factories that manufacture clean energy products"."I am quite happy the US has realized our competitiveness in the regard," said Zhang.However, Zhang is concerned about some disturbing trends.

Last year, China's total energy consumption reached 3.1 billion tons of standard coal equivalent, up 6.3 percent from 2008.This was in contrast with a previous downward trend when total energy consumption growth declined from 9.5 percent in 2005 to 4 percent in 2008.

But last year, China's economic growth, which stood at 8.7 percent, was the lowest during the past five years.

"It appears that some local governments approved energy-guzzling projects during economic crisis," said Zhang. "So only by fully implementing our energy saving regulations can we realize economic growth with less energy consumption."

http://www.chinadaily.com.cn/bizchina/2010-03/02/content_9523550.htm

Pew report: China leads green energy spending.

March 26 (China Daily) – SHANGHAI: China has taken the lead in investments in clean energy, spending nearly double what the US did in 2009, as it ramps up projects in both renewable and traditional energy, a report said Thursday.

China's investment and financing for clean energy rose to $34.6 billion in 2009, out of $162 billion invested globally, according to the report by the nonprofit Pew Charitable Trusts. US was ranked second in spending on renewable energy, at $18.6 billion, with European nations also recording strong growth.

"Countries are jockeying for leadership. They know that investing in clean energy can renew manufacturing bases, and create export opportunities, jobs and businesses," Phyllis Cuttino, who directs the Pew Environment Group's Global Warming Campaign, said in a statement.

The report comes as China is clinching a slew of energy and resource-related deals meant to help ensure access to the commodities needed to keep its fast-growing economy booming.

On Wednesday, China's offshore oil and gas company CNOOC agreed to buy 3.6 million tons of liquefied natural gas a year, for 20 years, from an Australian energy project operated by BG Group PLC. Though a value for the deal was not released, Australian media reports estimated its worth at 80 billion Australian dollars ($73 billion), which is the country's biggest single company-to-company contract ever.

Natural gas is cleaner than the coal that now fuels about three-quarters of China's electricity generation. But Beijing also is throwing massive resources into nurturing renewable energy, both to counter environmental damage from fossil fuel emissions and to curb its soaring reliance on imports.

The US still leads the world in installed renewable energy, with 52.2 gigawatts of wind, small hydroelectric, biomass and waste generating capacity, the Pew report said.

But China is quickly closing the gap, as a doubling in wind energy capacity alone boosted its own installed renewable energy capacity to 49.7 gigawatts in 2009. Germany trails with 30.9 gigawatts, the report said.

It said much of the impact from $184 billion in stimulus spending earmarked for clean energy by governments of the Group of 20 industrial nations has yet to come. Of that amount, China is due to spend nearly $47 billion on improved energy efficiency, clean vehicles, installation of solar power and improvements to electricity grid.

Spending on clean energy is forecast at $200 billion for 2010, up about 25 percent.US spending on renewable energy fell 42 percent in 2009 from the year before, constrained by tight credit and the lack of a strong policy framework, the report said. But it is likely to rise faster this year, helped by the enactment in 2009 of production tax credits for wind energy and investment tax credits for solar power.

The report noted that the US still dominates venture financing and technology innovation for clean energy, but in manufacturing it lags behind China, which has become a powerhouse in production of both solar cells and wind turbines.

With climate change legislation stalled in the US Congress, the outlook for faster growth remains uncertain, the report noted.

In terms of clean energy investment relative to the size of its overall economy, China ranks third in the G20 at 0.39 percent, well behind Spain, which leads at 0.74 percent. The US, at 0.13 percent, was 11th, the report said.

"There are reasons to be concerned about America's competitive position in the clean energy marketplace. Relative to the size of its economy, the United States' clean energy finance and investments lag behind many of its G20 partners," the report said.

http://www.chinadaily.com.cn/opinion/2010-03/26/content_9648147.htm

China to ban sales of energy-wasting air conditioners.

March 3 (Xinhua) - BEIJING : China's top economic planner said Wednesday it would ban sales of energy-wasting air conditioners from June 1 by raising the market threshold based on their energy efficiency.

New standards will evaluate each model according to their coefficient of performance (COP), the efficiency ratio of the amount of heating or cooling provided by a heating or cooling unit to the energy consumed by the system. The higher the COP, the more efficient the system.

For air conditioners with a rated power output of up to 4.5 kilowatts, the most common model for household use, the lowest COP for market entry would be raised to 3.2 from the current 2.6, said the National Development and Reform Commission (NDRC) in a statement on its website.

The standards vary in accordance with an air conditioner's rated power output. The statement said the average COP level would be raised by 23 percent with the advent of the new standards.

The new system divides air conditioners into three categories with the lowest COP requirement being 3.0, the threshold for market entry. Currently, there are five categories with 2.6 being the lowest, and the top three categories with a COP level of at least 3.0 are deemed energy efficient, compared with the 3.4 level in the new system.

China is the world's biggest producer and market for air conditioners, which consume 100 billion kilowatt hours of electricity each year, and more than a third of the total power used in the peak summer time, according to the statement.

The new standards would result in 3.3 billion kilowatt hours of electricity saved each year, said the NDRC.

At present, more than half of air conditioners in the Chinese market are deemed energy efficient, which the NDRC attributed to government efforts to promote energy efficient home appliances through subsidies.

The NDRC said major producers in China already had the ability to make air conditioners in accordance with the new standards.

The standards were formulated by the NDRC in cooperation with China's quality control and standardization authorities as well as major home appliance producers.

http://www.chinadaily.com.cn/china/2010-03/03/content_9533819.htm

China environment worsening, could miss energy goals.

March 13 (Independent) : China's environment is "still deteriorating", a senior official said Wednesday, as the booming nation burnt record amounts of coal and lagged behind in meeting its energy-saving goals.

Following 30 years of explosive growth, China's is on track to overtake Japan as the world's second-largest economy, but that success has made it one of the most polluted nations in the world.

"Our environmental quality is only improving in certain areas, but overall the environment is still deteriorating," Vice Minister of Environmental Protection Zhang Lijun told journalists.

Coal burning is a major culprit, providing the nation with up to 70 percent of its energy needs, but city waste and run-off from agriculture is also severely fouling the nation's water supply.

Zhang said although China was fulfilling its 2006-2010 goals of cutting sulphur dioxide and chemical oxygen demand - major causes of air and water pollution, respectively - emissions of other pollutants were rising.

Efforts to remove sulphur from coal resulted in less sulphur dioxide pollution in China last year, he said, despite the nation burning over three billion tonnes of the fossil fuel in 2010, an annual record.

Xie Zhenhua, who represented China at international climate change talks in Copenhagen in December, said 2010 would be a "decisive year" for the country in terms of meeting its energy-saving targets.

China had reduced its energy consumption per unit of gross domestic product by just over 14 percent from 2006-2009, but needed to cut consumption by about six percent in 2010 to reach its five-year target, he said.

"There is still a large gap to reach our energy saving goals - the task will be difficult," admitted Xie, the vice chairman of the National Development and Reform Commission, China's top economic planning agency.

China, the world's top emitter of greenhouse gases, pledged in Copenhagen to reduce carbon intensity - the measure of greenhouse-gas emissions per unit of gross domestic product - by 40 to 45 percent by 2020 based on 2005 levels.

That goal is not legally binding.Beijing announced Tuesday it would back the deal sealed in the Danish capital, removing doubts that it was not fully on board.

Xie reconfirmed that decision at Wednesday's press conference.

http://www.independent.co.uk/environment/china-environment-worsening-could-miss-energy-goals-1920850.html

In search of the right energy efficiency.

March 4 (China Daily): Like many countries in the developing world, China faces a series of fundamental dilemmas related to energy and electricity use. Growing consumption of energy fuels and services not only bolsters the Chinese economy, but also exposes it to volatile prices and potential disruptions in supply. Providing electricity to rural villages alleviates energy poverty, but can also exacerbate environmental degradation and climate change.

From 2005 to 2009, the average price of retail electricity more than doubled in China, and for some particular regions, the National Development and Reform Commission (NDRC) has increased electricity prices from the equivalent of 1.7 cents more than 4 cents per kWh.

The energy policy and energy efficiency challenges are particularly stark for many Chinese provinces. In December 2007 and January 2008, for example, 17 provinces announced shortfalls in electricity supply because of a combination of rapidly rising industrial demand for electricity, severe weather, interruptions in shipment of coal, and rising price of crude oil. Many of these provinces curtailed electricity use by initiating rolling brownouts with grave consequences for economic development.

To better understand the challenges to promoting energy efficiency in China - one of the best, cheapest, and quickest options of response to increases in energy demand - the author and two of his colleagues collected data from a survey distributed to 600 Chinese households. The survey results reveal four troubling trends.

First, the results suggest general awareness and knowledge about electricity is low. More than 40 percent households did not know the size of their monthly electricity bills. Only 2 percent of the respondents said they had got information and brochures on energy saving and energy efficiency, or could describe ways to actually improve efficiency and reduce electricity use. About one-third said they did not know appliances still consumed electricity when turned off but plugged in. About 45 percent said they had never thought about conserving electricity or using energy efficiently before, and 10 percent (perhaps oddly) said they knew how to save electricity but had decided not to.

Broken down into types, only one-fifth of the households with children said they intended to save electricity or promote energy efficiency. For those who showed an interest in saving electricity, cost was the most important factor (accounting for more than 90 percent of responses) rather than environmental protection.

Second, about 38 percent of the respondents who live in urban areas said local regulators - property managers - do not allow solar water heaters to be installed. These officials believe that solar water heaters are subject to significant leakage and seepage that can damage and destroy roofs and homes. One-quarter of our own survey respondents said much of the same thing, that a majority of solar water heaters in the market are of poor quality and that companies do not test their products or offer decent warranties.

Complicating the matter further, many retailers remove the labels from solar water heaters, making it all but impossible to distinguish well manufactured ones from the dodgy. One example should suffice to prove the seriousness of the problem of deficient technology: About 100 brands of solar water heaters are sold in Liaoning province but no more than 30 are officially registered and certified.

Third, our survey data show 44 percent of the electricity consumed in households in 2008 was on electric appliances. To increase economic growth, the NDRC subsidizes new purchases of TV sets, refrigerators, washing machines, air conditioners and computers. In 2008, for example, buyers were eligible for a 10 percent discount on new appliances if they were used to offset older models, and the government's economic stimulus package had more than $2 billion in incentives, rebates, and subsidies for home appliances.

Because of these factors, more than 90 percent of the respondents said the more convenience appliances could offer the more units they would purchase (and the more energy households will consume).

Fourth, our study highlights some serious problems with the government-managed energy efficiency labeling and product identification program. Only 35 percent of the respondents believed that the energy efficiency labels accurately described how the products would perform, and 25 percent said they did not care about the label at all when selecting products.

The fact is that Chinese consumers believe that there are systematic errors among both manufacturers (that is, they lie to the government) and the governments (that is, they mismanage the program and are incompetent) in the supervision of the labeling process.

The energy efficiency policies have to swim upstream, too, against other incentives for consumer goods, manufacturing, appliance purchasing, and electricity generation. These other Chinese policies, especially NDRC subsidies for new electric appliances, may be working at cross purposes to energy efficiency goals.

These four problems suggest that government policies and programs need to be augmented and modified. Additional subsidies and rebates can help households find the capital needed to invest in energy efficient lights and appliances. Incandescent lamps and other inefficient devices could be taxed, phased out, or even banned outright. Targeted incentives could be designed to force stores to stock and sell more energy efficient products. Rigorous performance standards should be established for solar water heaters, and government regulators need to find ways to ensure that these standards are enforced. And education programs need to overcome resistance and lack of consumer awareness relating to electricity consumption and energy efficiency labels.

In essence, household energy efficiency gains can do much to alleviate many of the energy challenges being faced by China - but they will not occur automatically, and without changes in public policy.

http://www.chinadaily.com.cn/opinion/2010-03/04/content_9534908.htm

China to build 28 more nuclear power reactors by 2020.

March 23 (China Daily): China, the world's second-biggest energy user, approved the construction of 28 more nuclear power reactors under a revised target for 2020 to meet rising demand for clean energy and to accelerate development of the industry.

Each of the one-gigawatt reactors will cost as much as 14 billion yuan ($2.1 billion), Mu Zhanying, general manager of China Nuclear Engineering Group, said in an interview in Beijing today. One gigawatt is enough to power 800,000 average US homes.

Under the original plan announced in 2005, China was to spend 400 billion yuan to add 40 gigawatts of nuclear capacity by 2020 to help reduce reliance on more polluting coal and oil. The country's capacity will rise to more than 70 gigawatts by then under the revised plan, Wang Binghua, chairman of the State Nuclear Power Technology Corp, said on March 20.

Construction of 20 of the 28 reactors has already begun, Sun Youqi, vice president of China National Nuclear Corp, said at an industry exhibition in Beijing today. It would take 50 months to build one reactor, Mu said.

The country currently has 9 gigawatts of nuclear capacity in operation, the China Electricity Council said on Aug 14. Details of the government's revised plan will be announced this year, China National Nuclear's President Sun Qin said on March 5.

About 200 gigawatts of nuclear capacity is planned or being built worldwide as governments turn to non-fossil fuels to fight global warming, Nomura International said in a report in January. Currently, 372 gigawatts of nuclear power capacity is in operation, according to the World Nuclear Association.

http://www.chinadaily.com.cn/bizchina/2010-03/23/content_9629907.htm

^{Automobile and Transportation}

New energy car buyers to get subsidy.

March 9 (China Daily): China is considering offering a subsidy of as much as 60,000 yuan ($8,797) to consumers who buy a new energy vehicle, Li Yizhong, minister of Industry And Information Technology, said yesterday.

Giving a reason for the subsidy, Li said green vehicles are expensive because of the huge investment as the technology is still being developed.

"The subsidy won't be effective if it is less than several thousand yuan," Li said. "Without government support, it would be difficult for Chinese families to buy new energy vehicles."

Industry analysts estimated that green cars would normally be sold at a 50 percent premium over a traditional gasoline-powered model.

Last year, China expanded trial operations of new energy vehicles in 13 cities, including Shanghai, Beijing and Shenzhen.

The try-out, mainly limited to public service departments, included a subsidy of up to 420,000 yuan for the purchase of hybrid buses and up to 600,000 yuan for electric and fuel cell buses.

Encouraging individual consumers to buy green vehicles will be the top priority in the future, Li said.

China wants to have 500,000 green cars rolling on the streets within three years while improving infrastructure, such as recharging stations, for these vehicles.

http://www.chinadaily.com.cn/bizchina/2010-03/09/content_9560631.htm

City on road toward greener vehicles.

March 8 (China Daily) – Beijing: authorities have rolled out a bold plan to start running thousands of energy-saving, electric-powered vehicles later this year. But experts and consumers say the local market may not be ready for the drastic change from fuel to electricity.

The capital, which has a staggering 4.13 million vehicles citywide, has been anxious to participate in China's booming auto manufacturing industry. China became the world's top auto producer and consumer last year, making 9.8 million cars, and surpassing the United States.

Officials have said the central government will draw up favorable policies for car makers and authorities that encourage the production of hybrid or electric-powered vehicles.

"Electric-powered vehicles are the next growth opportunity for China's carmakers and electricity generators. The central government hopes a few cities will become the testing grounds before the model can be passed on to more cities in the country," Li Yizhong, minister of Industry and Information Technology, told reporters during the ongoing National People's Congress, China's annual legislative session.

The government's decision made an impression on Beijing deputies at the meeting, many of whom are decision-makers in the capital.

Ma Zonglin, chairman of the North China Grid Co Ltd, a major grid covering Beijing, told the session that his grid is ready to open 450 recharge stations this year for the upcoming surge in electric-powered cars in the capital.

"Our grid is revamping the system to make it more efficient and power-saving," the chairman told reporters on Saturday. "The recharge stations for upgraded automobiles will be located in more than 80 areas citywide, and we are planning to expand it in 2011."

Zhang Gong, director of the municipal commission of reform and development, the city's economic planner, also said the authorities are in discussions with more car producers to set up plants for electric-powered vehicles in Beijing.

The commission has revealed that it hopes about 15,000 electric-powered vehicles will be operating in Beijing this year. Most of them will be buses and sanitation vehicles and the authorities are hoping for more private car owners to "go electric".

Li Yunwei, chairman of the Beijing car owners' society, said he welcomed the green plan, but doubted whether car owners will be willing to pay more for an electric-powered vehicle. An electric-powered sedan on the local market is usually 30 percent more expensive than a conventional sedan.

"It is a brilliant idea to allow Beijing to march first to this environmental-friendly industry and I think most car owners love the idea," Li told METRO yesterday. "But until the government imposes more favorable policies or even provides special funding to car buyers, most of them are not willing to switch from fuel to electricity."

Professor Lin Cheng, an automobile researcher with the Beijing Institute of Technology, said he is also doubtful about Beijing's rush toward the new industry.

"Considering the impact of the Toyota recall incident, Beijing should be more careful with this relatively new technology in car making," Lin said.

"It is a good business opportunity and the central government is in favor of it, but car makers need more time to work out the best technology to produce electric-powered cars. And don't forget, consumers are looking for affordable and reliable vehicles," he added. http://www.chinadaily.com.cn/metro/2010-03/08/content_9552625.htm

Oil companies plan charging stations.

March 3 (China Daily) – BEIJING: Domestic oil companies have started developing charging stations for electric vehicles to cash in on the growth in clean energy.

Oil refiner Sinopec has already started to work with the Beijing municipal government to develop such stations. The company has set up a joint venture with a Beijing-based technology company for the stations, a company official said on Tuesday.

The new joint venture will have registered capital of 50 million yuan. It will upgrade some of Sinopec's existing gas stations in Beijing to electric vehicle charging stations, and also consider extending such stations to regions in Tianjin municipality and Hebei province.

Construction of electric car charging stations is part of the oil company's plans for clean energy development, the official said on condition of anonymity.

China's third largest oil company, CNOOC, has joined forces with domestic IT equipment manufacturer China Potevio Co Ltd to develop new energy vehicles and batteries, as well as power supply systems.

The company has also invested in Tianjin Lishen Battery Joint-Stock, a domestic firm that makes lithium batteries for electric vehicles. CNOOC is planning to build charging stations for electric vehicles as part of its strategy to support alternative energy, a company official said on Tuesday.

Charging stations for electric vehicles are new business opportunities for domestic oil companies, said Lin Boqiang, a professor at Xiamen University. "I believe it will be a very promising business."

Oil consumed by the transportation sector currently accounts for nearly 40 percent of the nation's total oil consumption, and the figure is expected to rise to 60 to 70 percent in 2020.

Development of new energy vehicles, including electric vehicles, will help reduce oil consumption, he said.

"At present over half of the crude oil we are using is imported. From that perspective, using clean energy to power automobiles would help ensure the country's energy security," he said.

Clean energy automobiles can also help China to achieve its target of reducing pollution, he said.

Echoing Lin's views that construction of more electric vehicle charging stations will further boost the clean energy vehicle industry, Jia Xinguang, an auto analyst in Beijing, said that companies should focus on building such stations at major parking lots, as the charging process always takes several hours.

The nation should also put forward an industry standard for building such stations for the healthy growth of the sector, he said.

Wang Bin, president of Beijing Lithium Energy Investment Co, a domestic electric car and battery producer, said his company is keen on developing such stations in parking lots and areas adjacent to shopping malls and restaurants, but not in gas stations.

Wang's company is working with the State Grid on developing such stations.

The company has worked with local government in Tangshan in Hebei province to build several pilot stations, he said.

China's largest electricity distributor, State Grid plans to construct 75 charging stations across 27 cities this year, the company said earlier.

The company completed constructing its first electric car charging station last November. The station, covering 400 square meters, costs 5.08 million yuan, the company said on its website.

http://www.chinadaily.com.cn/bizchina/2010-03/03/content_9530533.htm

New hybrid green system planned for city minibuses.

March 25 (China Daily) – HONGKONG: Productivity Council launches two-year cutting-edge PHEV technology project

The city's Productivity Council Wednesday kicked off a project that will develop a Plug-in Hybrid Electric Vehicle (PHEV) system for green minibuses, to provide an environmentally-friendly technology at a time when electric vehicles are not yet fully developed.

"At this moment, vehicles driven only by electricity cannot run for a whole day without recharging, but the new PHEV system will solve this problem," said Wilson Fung, Executive Director of the Productivity Council.

Under the new system, green minibuses will be driven mainly by electricity. When the battery power drops to a certain level, an auxiliary fuel engine will start to work and charge the battery while the vehicle is in motion, so that the minibuses don't have to stop and find a place for recharging.

One charge will take five hours and can provide 150 km mileage.

Fung stated the new system was the best choice of transitional stage technology in the advance toward pure electric vehicles. "In the future, when the battery technology becomes more advanced and can significantly extend the operating distance with one charge, the fuel engine can be easily removed since it is only used to make up for the disadvantages of the battery," he said.

Compared with the hybrid electric vehicles that are already available in the market, the new system is more environmentally-friendly. "PHEV vehicles will consume 50 percent less energy than traditional engine-driven vehicles, and 20 percent less than hybrid electric vehicles," Fung said. He explained that the hybrid electric vehicles switch the drive power between electricity and fuel, depending on traffic demands; however, in the PHEV system the engine is used only for charging.

If 6,000 minibuses in Hong Kong, including private ones, all adopt the new system, they could reduce carbon emission by about 165,000 tons every year, which is equivalent to planting 7 million trees that could cover all of Hong Kong Island, Fung said.

The Productivity Council, together with three minibus companies that own nearly half of the green minibuses in Hong Kong, will design and assemble the new system for an experimental minibus, examine its functioning and safety, and also run tests under various road conditions. The whole process is expected to end by March, 2012.

The project will cost HK$10.8 million, 90 percent of which will come from the government's Innovation and Technology Fund, with the rest to be provided by several sponsoring enterprises in the industry.

Fung estimates that the new PHEV minibuses will be more expensive than traditional minibuses. However, he believes that each vehicle could generate fuel-cost savings of hundreds of Hong Kong dollars every year.

Chan Man-chun, the CEO of AMS Public Transport Holdings, maintains that the new system will be a "green and feasible solution".

He said his company introduced electric vehicles about 10 years ago but failed due to the need for frequent charging. Starting from last year, the company also tried EU IV environmental vehicles recommended by the government, but found them unsuitable for Hong Kong's road condition and minibuses' operating practices, which require frequent door opening and closing.

http://www.chinadaily.com.cn/hkedition/2010-03/25/content_9638117.htm

Changchun to raise auto output capacity to 3m units.

March 13 (Xinhua) : CHANGCHUN, Jilin - China's "auto city" Changchun plans to more than double vehicle production capacity to 3 million units in 2015, a local official said Friday.

largest carmaker headquartered in Changchun where the auto industry accounts for 70 percent of the city's industrial output.

At an industry conference, Zhou Yongze, deputy head of the provincial Industry and Information Technology Bureau, said the government will support China FAW Group to expand capacity and set up joint ventures to meet the target.

Currently several plants or expansion projects with a total capacity of 800,000 units are under construction.

Zhou added that the government will unveil preferential policies to boost research and development on new energy vehicles as the nation seeks to transform the development pattern of economy.

Established in 1953, China FAW Group produced China's first domestic model of truck, under the Jiefang (Liberation) brand in 1956 and later produced Hongqi (Red Flag) bulletproof sedans, which have been used by state leaders.

China, the only bright spot as the world auto industry struggles with the economic downturn, overtook the US as the world's largest auto market last year thanks to rural subsidies and tax cuts on purchases of smaller vehicles.

The China Association of Automobile Manufacturers announced on January 11 that new auto sales rose 46.15 percent year on year to 13.64 million units in 2009.

http://www.chinadaily.com.cn/bizchina/2010-03/13/content_9585126.htm

BYD, Daimler to Form Electric-Car Venture in China (Update2).

March 1 (Businessweek) – BLOOMBERG: Daimler AG and BYD Co., the Chinese carmaker backed by billionaire Warren Buffett, will jointly develop an electric vehicle to be sold in China, the world’s largest auto market.

Daimler, the world’s second-largest maker of luxury cars, and BYD signed an agreement to set up a “comprehensive” technology partnership to develop electric vehicles for the Chinese market, they said in a statement dated yesterday. The carmakers plan to develop a model that will be sold under a jointly owned new brand, they said.

BYD rose the most in almost three weeks in Hong Kong trading after the announcement. The Shenzhen, China-based battery maker entered the automobile market in 2003 and may benefit from Daimler’s experience in vehicle making, while Stuttgart, Germany-based Daimler plans to take advantage of BYD’s battery technology to help boost Chinese sales.

“The alliance will benefit from BYD’s expertise in batteries and Daimler’s strengths in traditional vehicles,” said Frank He, who rates BYD shares “buy” at BOC International in Hong Kong. Still, BYD’s electric-powered vehicle division isn’t expected to contribute significantly to company profits for at least two years, He said.

Daimler said last month it will focus on cleaner technologies to take global market share from rivals Bayerische Motoren Werke AG and Volkswagen AG’s Audi brand.

China Growth

BYD rose as much as 5.4 percent to HK$66.50 and traded at HK$65.25 as of 11:39 a.m. in Hong Kong.

The company was China’s sixth-biggest car manufacturer by sales last year. BYD, 10 percent owned by Buffett’s Omaha, Nebraska-based Berkshire Hathaway Inc., introduced a plug-in hybrid car in December 2008 and said in January it will sell an electric car in the U.S. this year.

China’s auto market grew to 13.6 million units in 2009, surpassing the U.S. for the first time. While overall passenger- car sales in the country grew 53 percent, BYD’s deliveries jumped 160 percent to about 450,000 vehicles, Chairman Wang Chuanfu said in January.

“China has the potential to be among the world’s largest markets for zero-emission vehicles,” Daimler’s Chief Executive Officer Dieter Zetsche and BYD’s Chuanfu said in the joint statement.

Daimler, founded in 1883, plans to introduce an all- electric version of its Mercedes Benz A-Class this year, according to today’s statement.

BYD signed a separate electric-vehicle agreement in May with Volkswagen, Europe’s largest automaker. Volkswagen and BYD will explore cooperation in areas including hybrid cars and lithium-battery powered electric vehicles, the Wolfsburg, Germany-based automaker said in a May 25 statement.

“It is a good strategy for BYD to have this rechargeable battery technology used by a full spectrum of car partners, from the low to high end, outside of China,” said Scott Laprise, an analyst at CLSA Asia Pacific Markets in Beijing. Laprise rates BYD “buy.”

http://www.businessweek.com/news/2010-03-01/buffett-backed-byd-daimler-to-form-china-electric-car-venture.html

Transport investment to go on: Construction boss .

March 7 (China.org.cn): In the wake of the financial crisis, China invested more than 1.8 trillion yuan (US$264 billion) in transport infrastructure. Economists predict the trend will continue in 2010.

Zhou Jichang, chairman of China Communications Construction Ltd., said that transportation construction is playing a key role in China’s economic recovery and the government will continue to step up investment in this field. Zhou is a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC).

In his March 5 government work report, Premier Wen Jiabao stated that China had implemented a plan to invest an additional 4 trillion yuan over two years. Central government public investment in 2009 amounted to 924.3 billion yuan. Of this, 23 percent was allocated to major infrastructure projects.

Zhou said: “Why does such big money go into transportation construction? It is because this field stimulates other related industries, such as steel, energy, tourism and so on.”

According to China’s 2009 Economic and Social Development plan, an additional 5,557 kilometers of railways and 98,000 kilometers of highways were opened to traffic, including 4,719 kilometers of expressways. A total of 35 civilian airports were built, upgraded or expanded.

“Thanks to the government’s stimulus package, infrastructure and basic industries have been strengthened,” Zhou said.

“For example, major railway projects, including the Beijing-Shanghai, Harbin-Dalian and Lanzhou-Urumqi trunk lines, progressed smoothly. Construction of the national expressway network proceeded in an orderly manner. The Hong Kong-Zhuhai-Macao Bridge project has been started,” he told China.org.cn.

Figures from a report on the Implementation of the Central and Local Budgets for 2009 indicated that expenditure on transportation amounted to 217.8 billion yuan, 115.4 percent of the budgeted figure, an increase of 60.7 billion yuan or 38.6 percent.

The excess consisted mainly of increased spending on highway construction resulting from unexpectedly high vehicle sales tax revenue, which regulations require to be spent for this purpose.

The Ministry of Finance announced on March 5 that the government spent 76.5 billion yuan on the construction of the expressway network, passenger railway lines nationwide, and trunk railway lines in the western region.

Another 62 billion yuan was used to increase subsidies for rural highways in ethnic minority, border, and poverty-stricken areas in the central and western regions.

“I think China’s network of highways and expressways is almost complete. But as for the railways, the work is just starting,” Zhou told China.org.cn. “In the next few years, the government should open up the railway construction market step by step.”

Zhou predicted railway investment will increase. But he said the government should step up supervision of construction quality.

According to China’s 2010 Economic and Social Development Plan, the total length of railways and highways open to traffic will reach 91,000 kilometers and 3.927 million kilometers in 2010, up 5.8 percent and 2.6 percent respectively.

http://www.china.org.cn/china/NPC_CPPCC_2010/2010-03/07/content_19550456.htm

^{Climate Change}

China says moving to enforce greenhouse gas goals.

March 1 (China Daily) - BEIJING: China said on Sunday it will spell out greenhouse gas emissions goals and monitoring rules for regions and sectors in its next five-year plan, with monitoring to show it is serious about curbing emissions.

The Chinese government said in November it would reduce the amount of carbon dioxide, the main greenhouse gas from human activity, emitted to make each unit of national income by 40 to 45 percent by 2020, compared with 2005 levels.

That goal would let China's greenhouse gas emissions keep rising, but more slowly than its rapid economic growth.

The policy was a cornerstone of Beijing's position at the Copenhagen summit on climate change late last year when governments tried with limited success to agree on a new global treaty on fighting global warming.

The United States and other powers said China, the world's biggest emitter of greenhouse gases from industry and other human activities, should have offered to do more to bring its domestic "carbon intensity" goal into an international pact that would reassure other governments.

China said it and other poorer countries should not be obliged to take on internationally-binding emissions goals, and officials said Beijing would take steps to show the world it was serious about enforcing that goal.

Now the leading committee of China's national parliament has gone some way to showing how the government plans, saying officials will carry out an "inventory" of greenhouse gas emissions in 2005 and 2008, using that as a yardstick for setting emissions reductions goals across areas and sectors.

The Standing Committee of the National People's Congress, or parliament, said the government would put in place a "statistical monitoring and assessment system to ensure greenhouse gas emissions goals are met," Xinhua reported.

Those goals will be made part of the country's next five-year development plan, starting from 2011.

"Relevant departments and regions will form action plans and medium- and long-term plans to cope with climate change and mitigate greenhouse gas emissions, based on the targets and requirements set out by the State Council", or cabinet, the report said.

Scientists widely believe China has passed the United States as the world's top greenhouse gas emitter, but Beijing does not release any recent official emissions data.

China's most recent official inventory of emissions was submitted to a UN agency in 2004 and covered the year 1994.

http://www.chinadaily.com.cn/bizchina/2010-03/01/content_9519847.htm

China sticks to int'l climate cooperation.

March 5 (China Daily) - Reaching agreements on climate change will continue to be a key part of China's diplomatic work in 2010, said a government work report to be delivered by Premier Wen Jiabao on Friday morning at the convening of the annual National People's Congress.

"We will continue to carry out diplomatic work in climate change, energy and resource cooperation, and other areas, and play a constructive role in finding proper solutions to hot issues and global problems", said the work report, which was handed out at the Great Hall of the People, where the annual National People's Congress opened at 9am.

China will continue to use the G20 financial summit and other major multilateral activities as platforms to actively participate in the international community and safeguard the interests of developing countries, according to the government work report.

China said it will continue to promote further comprehensive development of its relations with major powers this year, though the bilateral ties between China and the United States have experienced some frictions since the beginning of this year.

http://www.chinadaily.com.cn/china/2010-03/05/content_9543131.htm

China and India Join Climate Accord.

March 10 (New York Times) – WASHINGTON: China and India formally agreed Tuesday to join the international climate change agreement reached last December in Copenhagen, the last two major economies to sign up.

The two countries, among the largest and fastest-growing sources of greenhouse gas emissions in the world, submitted letters to the United Nations agreeing to be included on a list of countries covered by the so-called Copenhagen Accord, a three-page nonbinding statement reached at the end of the contentious and chaotic 10-day conference.

China and India join more than 100 countries that have signed up under the accord, which calls for limiting the rise in global temperatures to no more than 2 degrees Celsius, or 3.6 degrees Fahrenheit, beyond pre-industrial levels.

The agreement also calls for spending as much as $100 billion a year to help emerging countries adapt to climate change and develop low-carbon energy systems, accelerated energy technology transfers to the developing world and steps to protect tropical forests from destruction.

The 192 nations gathered at the Copenhagen climate meeting did not formally adopt the accord but merely voted to “take note” of it. The inclusion of China and India in the accord has only a minor practical effect but will provide a boost for the agreement’s credibility.

“After careful consideration, India has agreed to such a listing,” Reuters quoted India’s environment minister, Jairam Ramesh, as telling Parliament on Tuesday. “We believe that our decision to be listed reflects the role India played in giving shape to the Copenhagen accord. This will strengthen our negotiating position on climate change.”

Mr. Ramesh confirmed India’s action in an e-mail message.

India sent a letter on Monday to the United Nations Framework Convention on Climate Change, the body responsible for international climate negotiations, stating its intent to join the Copenhagen accord.

China’s chief climate change negotiator, Su Wei, submitted a single-sentence letter saying that the United Nations “can proceed to include China in the list of parties” signed up under the accord.

Todd Stern, who leads the American climate change negotiating team, said he was pleased to see China and India sign on.

“The accord is a significant step forward, including important provisions on mitigation, funding, transparency, technology, forests and adaptation,” Mr. Stern said in an e-mail note.

“More than 100 countries have agreed to be among the list of countries, and that number is growing. Moreover, all of the world’s major economies, representing over 80 percent of greenhouse gas emissions, have submitted pledges to limit or reduce their emissions under the accord.”

Analysts who have studied the pledges find that they fall short of the overall goal of the agreement but would make a substantial dent in the greenhouse gas emissions that are heating the planet.

China has said it will try to voluntarily reduce its emissions of carbon dioxide per unit of economic growth — a measure known as “carbon intensity” — by 40 to 45 percent by 2020 compared with 2005 levels. India set a domestic emissions intensity reduction target of 20 to 25 percent by 2020 compared with 2005 levels, excluding its agricultural sector.

The United States pledged to reduce greenhouse gas emissions by about 17 percent by 2020 compared with 2005, contingent on Congress enacting climate change and energy legislation.

Negotiators are trying to write an enforceable global climate change treaty, but there is little expectation that such an agreement will be reached this year.

The European Union’s climate commissioner, Connie Hedegaard of Denmark, said Tuesday that nations should now aim to reach an agreement in 2011 at a United Nations conference in South Africa rather than this year in Mexico.

Speaking at the European Parliament in Strasbourg, France, Ms. Hedegaard said she had hoped to complete a treaty this year in Mexico, “but the signals coming out of various capitals of big emitters unfortunately do not make that likely.”

http://www.nytimes.com/2010/03/10/world/10climate.html

China needs more hydropower projects to fight climate change: lawmaker.

March 1 (Xinhua) - BEIJING : China should build more large hydropower projects so it can live up to its promise to the international community, Wang Shucheng, vice chairman of the Finance and Economic Committee under the National People's Congress (China's top legislature), said on Saturday.

China in 2007 promised to make renewable resources supply 15 percent of its total energy consumption by 2020, in a bid to reduce greenhouse gas emissions and promote sustainable economic growth.

To keep the promise, lower-cost hydropower is China's first choice as the country has abundant water resources and mature technology in this field, in comparison with nuclear, wind and solar power, said the former water resources minister at a forum discussing the functions of dams and reservoirs in fighting climate change.

However, out of environmental and migrant concerns, China in recent years has rarely approved any large-scale hydropower projects, he said.

To achieve the goal, China needs to raise the installed capacity of its hydropower to 300 million kilowatts (kW) by 2020 from 190 million kW at the end of 2009, he said.

The lawmaker asked the country to hurry up, as constructions of large and mid-sized hydropower projects usually take five to ten years.

http://www.chinadaily.com.cn/bizchina/2010-03/01/content_9519860.htm

China spends big to counter severe weather caused by climate change.

March 31 (Guardian) - Country invests heavily in warning systems and infrastructure to tackle effects of extreme temperatures, typhoons, fog and storms

Two women wearing facemasks walk along a street in Beijing this month. China warned residents across much of the country's north, including the capital, to avoid going outside as a sandstorm blanketed the area in fine yellow dust. Photograph: Liu Jin/AFP/Getty Images

China will tomorrow start ramping up preparations for typhoons, dust storms and other extreme weather disasters as part of a 10-year plan to predict and prevent the worst impacts of climate change.

Improved warning systems, new emergency drills and bolstered infrastructure will form the backbone of the new regulations, which are the country's most advanced measures yet to deal with natural disaster.

China has a long history of devastating floods and droughts, but officials said the problems were intensifying.

"It is necessary to respond to the new situation under climate change to avoid and mitigate the losses caused by meteorological disasters," said Gao Fengtao, deputy director of the state council's legislative affairs office, as he unveiled the new policy.

In recent years, he said, disasters were characterised by "sudden occurrence, wider variety, greater intensity and higher frequency in the context of global warming".

Officials warned this posed a threat to human life and a huge challenge to China's sustainable development.

Zheng Guoguang, head of China's meteorological administration, said natural disasters caused economic losses each year of up to 300bn yuan (£29bn), equivalent to about 2% of the country's gross domestic product.

He cited the unusually severe snow storms that engulfed southern China in 2008 and the worst drought in a century that is now afflicting Yunnan, Guangxi and Sichuan provinces.

The new regulations for the prevention of and preparedness for meteorological disasters will establish a legal framework for disaster response, risk assessment, evacuation measures and public education.

They will cover terrestrial phenomena – such as extreme temperatures, dust and sand storms, lightning strikes, fog, typhoons – and "space weather", such as solar storms.

Officials said the move was part of a 10-year national plan that clarified the government's response to climate change and stipulated what measures regional and local governments should take in terms of infrastructure investment, reporting mechanisms and disaster drills.

But it was unclear how much the central government would spend on the programme and the proportion of the costs it would bear. Local authorities in poor areas often neglect Beijing directives that they cannot afford to implement.

Despite its developing nation status, China has an advanced meteorological monitoring system, using weather satellites and a global network of 158 radar stations.

Zheng said the government has invested 10bn yuan in the system in recent years, with the budget rising 15% annually.

"The large sums that China invests in its meteorological infrastructure are rarely seen in the world," he said.

http://www.guardian.co.uk/environment/2010/mar/31/china-announces-extreme-weather-measures

China racing ahead on the winds of green change.

March 27 (China Daily) - China, one of the key parties in the Copenhagen Accord, is moving fast to work on the climate problem and has outperformed competitors in the wind and solar power market, according to asset management company Schroders.

The firm also believes the effects of climate change will provide attractive investment opportunities for investors.

During a media briefing introducing the group's new fund, Simon Webber, fund manager of the Schroder ISF, advised investors to focus on companies benefiting or likely to benefit from efforts to mitigate or adapt to climate change.

He said as low carbon economic transition plans develop, policy intensity and complexity, energy prices and capital intensity are all likely to increase, which will lead to intense competition among investors to develop leadership in low carbon industries.

The economics of climate change will also alter the companies' behavior. Expenditures on mitigation and adaptation will rise, and financial implications will only increase, leading to greater dispersion of valuation.

"Clean energy, low-carbon fossil fuels, energy efficiency, environmental resources and sustainable transport - the 5 key themes are within a 'predictable revolution'," said Webber.

Webber said video-conferencing is a hugely compelling investment, as it reduce costs and emissions, which, in turn, can provide new business opportunities.

Moreover, he said climate change will increase disruption of food production, countering which will require significant improvement in agricultural productivity. Several countries in the world, including China, have carried out subsidy schemes for electrified vehicles. The challenges in the development of rechargeable batteries also underscores great potential in technology.

On the other hand, the renewable energy sector, Webber said, has been left reeling of late. "It is striking to look back over the last three years and see how things have changed for the flagship renewable stocks. Despite significant volume growth in industries such as wind and solar energy, pricing has come under significant pressure from new low-cost entrants in Asia."

"Chinese companies are doing a good job in both innovation and lowering costs in the wind and solar power technology. If their competitors cannot reform themselves fast enough, they will be left farther behind," said Webber.

"I am turning more positive on the renewable energy sector now, as more government climate policy targets will drive the growth of renewable energy, and with the improvement of financing conditions slowly improving, valuations of their funds will become attractive again," Webber added.

http://www.chinadaily.com.cn/hkedition/2010-03/27/content_9650953.htm

Building a better world, one emissions-free step at a time.

March 1 (China Daily) : China's ZED project to debut at the Shanghai Expo will leave no carbon footprint behind to show the world its commitment to battling climate change

Imagine a 'green' utopia where people go about their daily lives ingesting the very utensils used to eat their meals so as not to disturb Mother Nature with even a morsel of waste.

That is the ideal being presented with a brand new building that has never before been constructed in China.

With restaurants that will serve food in bowls made of biscuit, the Zero Fossil Energy Development (ZED) project being erected as a pair of joint houses within the Urban Best

Practices Area of the Shanghai Expo will stand as the nation's first-ever emissions-free public structure come May.

"The ZED pavilion will essentially be a collection of humankind's efforts in fighting climate change, and it will display our achievements in the endeavor," said Chen Shuo, who is coordinating efforts of the ZED project.

"Lowering carbon footprints should not just be the theme of the Shanghai Expo," he added. "It should be pursued beyond the May 1 to Oct 31 party."

With clay and beige-colored tones claiming its outer layer, the country is working to ensure the world that its environmental interests are not feigned inside the 2,500-sq-m structure set to showcase some of the most highly advanced green technologies.

Cathartically freeing it from a power-dependence on harmful pollutants like oil, the building has been designed to run on natural energies that will be derived from a combination of solar-driven power systems.

Twenty-two wind caps dotting the structure's rooftop will provide the building with ventilation to ensure visitors a comfortable stay during their tour.

Additionally, a special insular layer made from recycled materials will help lower the building's energy consumption levels. The insulation will help keep the building's indoor temperatures cooler during the summer while heat will be locked in during cold months.

Meanwhile, rainwater will be collected for irrigation and used for the building's washroom facilities.

'Green' rush

Emulating Britain's Beddington Zero Energy Development (BedZED) model completed in 2002 with the intention of creating a self-sufficient, sustainable community powered renewable onsite energy resources generated on site, the Shanghai Expo's ZED project could not be timelier for China.

In recognizing that low-carbon-producing economies are gaining momentum in the political arena, the country could not be more aware of the multifaceted benefits afforded to countries that respond favorably to global warming.

Last year during the Copenhagen talks on climate change, Beijing, for the first time, vowed firmly to reduce its greenhouse gas emissions. It promised to lower its emissions by 40 to 45 percent per unit of economic output by 2020.

While the Chinese effort is a far cry from London's plan to slash carbon emissions from residential housing to nearly zero by 2050, it has been credited as a step in the right direction for China, a country eager to show it is on board with the rest of the world's response to global warming.

Adding to that, President Hu Jintao late last month echoed the country's ongoing commitment to combating climate change, emphasizing that his leadership stop at short of nothing in realizing this end.

But, the 'green' parade is not simply an act of top-down rhetoric being exchanged amongst China's high-level leaders. Just as in other countries, celebrities, too, are playing their role, speaking out loudly on the issue, persuading ordinary people to do their part in lowering the world's carbon footprint.

In a dutiful bid, aimed at convincing others to think more consciously about the impact of their actions, Chinese film star Zhou Xun purchased 238 trees last May to offset the 19.5 tons of carbon dioxide emissions generated by her air travels in 2008.

Meanwhile, Ma Yun, founder, chairman and chief executive officer of Alibaba Group, acted in similar fashion when he planted trees near his hometown Hangzhou in an effort to counterbalance emissions produced by a swelling number of vehicles on the roads.

Big business

It seems that no one can escape China's latest wave of 'green' fever. Corporate suits, too, are invested in the matter.

In fact, it was the sponsorship of 30 domestic and international companies that advocate sustainable living in urban areas which made the ZED project's cost-feasibility possible. Subsequently, these companies will take the opportunity to unveil their newest developments when the doors open to China's first building of its kind mere months from now.

Such highlights are expected to include Greece-based NanoPhos SA's latest in nanotechnology. Like the insulation being used for the ZED building, its product is designed to aid in achieving desired indoor temperatures while reducing dependency on energy consumption.

Meanwhile, Synesthesia Phostech Corporation in Hong Kong will introduce its research findings in phosphor powder, a substance that enables plants to maximize its carbon dioxide-eradicating ability during photosynthesis.

http://www.chinadaily.com.cn/m/hangzhou/e/2010-03/01/content_9517790.htm

^{Low Carbon Development}

China to develop low-carbon economy: top economic planner.

March 1 (Xinhua): BEIJING -- China's top economic planning body has confirmed the government will take concrete actions to develop a low-carbon economy after it pledged to substantially reduce carbon intensity at last year's Copenhagen Conference.

China would include the low-carbon targets in the 12th five-year plan for national economic development (2011-2015) to build an energy-saving, ecologically friendly society, the National Development and Reform Commission said in a report to the Standing Committee of the 11th National People's Congress (NPC).

The report said the government would launch a series of technological and fiscal support policies to promote the use of non-fossil, renewable energies including wind, solar, biomass, geothermal and nuclear power, aiming to increase its proportion of primary energy consumption to about 15 percent by 2020 from 9.9 percent at the end of last year.

China's installed wind power capacity reached 15 million kilowatts, with 10 million kilowatts under construction at the end of June 2009, while nuclear power under construction, installed hydro-electric power capacity and solar heating collection areas were the highest in the world, it said.

The commission was also planning to compile an emissions inventory of greenhouse gases in an effort to build a monitoring and checking system to cut carbon emissions.

The economic planner decided to curb redundant construction and industries with surplus production capacities, such as steel, cement and electrolytic aluminum, to promote the energy efficiency and environmental protection.

Another NDRC report on the transformation of the economic development pattern delivered to the standing committee called for optimizing the financial expenditure structure to increase input in public welfare and step up efforts to expand the social security coverage.

The government had drafted a plan on regional development to transfer industries in affluent eastern areas to central and western regions.

The commission said in a report that China would maintain a proper lending scale under the guidance of the Central Bank to avoid credit fluctuations and establish 1,300 rural financial institutions to encourage lending in rural areas.

The State Council announced in November that China would reduce the intensity of carbon dioxide emissions per unit of GDP in 2020 by 40 to 45 percent compared with the level of 2005.

http://news.xinhuanet.com/english2010/china/2010-03/01/c_13193015.htm

China to build industrial system of low-carbon emissions.

March 5 (Xinhua) - China will build an industrial system and consumption pattern with low carbon emissions, Premier Wen Jiabao said in the government work report delivered at the parliament's annual session Friday.

The country will work hard to develop low-carbon technologies as well as new and renewable energy resources to actively respond to climate change, Wen told deputies to the National People's Congress (NPC), adding that the development of smart power grids should be intensified.

Other measures to combat climate change include increasing forest carbon sinks and expanding China's forests by at least 5.92 million hectares in 2010.

He promised that China will participate in international cooperation to address climate change and work for further progress in the global cause.

Wen also addressed energy conservation, environmental protection and the development of a circular economy.

"We will increase our energy-saving capacity by an equivalent of 80 million tons of standard coal," he said.

For developing a circular economy, Wen said China will utilize mineral resources, recycle industrial waste, use by-product heat and pressure to generate electricity, and transform household solid waste into resources.

A draft plan for China's national economic and social development submitted to the NPC Friday also pledged that the country would formulate and implement policies to meet its action targets for limits on greenhouse gas emissions by 2020, and to promote international talks on countering climate change.

"Both Wen's work report and the draft plan showcased China's strong determination to improve energy conservation and reduce greenhouse gas emission," said Chen Ying, a researcher at the Research Center for Sustainable Development under the Chinese Academy of Social Sciences.

Noticing Wen spoke at length of China's economic restructuring and the transformation of economic growth pattern in his work report, Chen said the two issues were both of "decisive importance" to China's goals of energy conservation and low carbon emission.

"Technological advancement alone cannot achieve these goals. Not without changes to the economic growth pattern," she said.

Energy conservation and greenhouse gas emission reduction have become issues of wide public concern in China in the past few years.

In November, the Chinese government announced a "voluntary action" before the Copenhagen Conference, to reduce the intensity of carbon dioxide emissions per unit of GDP in 2020 by 40 to 45 percent compared with 2005 levels, in order to address global climate change.

On March 1, the National Development and Reform Commission also confirmed the government would take concrete actions to develop a low-carbon economy.

The country would include the low-carbon targets in the 12th five year plan for national economic development (2011-2015) to build an energy-saving, ecologically friendly society, the commission said.

It would launch a series of technological and fiscal support policies to promote the use of non-fossil, renewable energies including wind, solar, biomass, geothermal and nuclear power, aiming to increase its proportion of primary energy consumption to about 15 percent by 2020 from 9.9 percent at yearend 2009.

But Chen admitted it was too early to rest assured.

"According to the 11th five year plan (2006-2010), China's per unit GDP energy consumption should be reduced by 20 percent at yearend 2010 compared with 2005 levels," she said.

However, according to Premier Wen's work report, from 2006 to 2009, energy consumption per unit of GDP fell only 14.38 percent, she said.

"China's goal in cutting carbon dioxide emissions by 2020 is very challenging," Chen said, "We do indeed need to step up our efforts."

Her view was echoed by Jiang Xiangmei, chief engineer of the Jiangxi Academy of Forestry, who said China's energy consumption structure and its need for economic development all posed challenges for its goal of low carbon emissions.

"China's abundant coal resources and shortage of natural gas and petroleum have made the country to base its energy consumption structure on coal, thus leading to relatively high carbon emissions," said Jiang, who is also an NPC deputy.

She said the Chinese government has attached increasing importance to environmental protection in recent years, and has aimed to meet its commitment of limiting greenhouse gas emission and its own need for sustainable development, by transforming its economic growth pattern.

"The targets of energy conservation and greenhouse gases emission reduction put forth in the government work report showed China's willingness to shoulder international responsibilities," she said.

http://www.china.org.cn/china/NPC_CPPCC_2010/2010-03/05/content_19527060.htm

Low-carbon equities ride high on advisers' proposals.

March 4 (China Daily): SHANGHAI - Low-carbon companies' stocks have fared well for two consecutive days, riding high on political advisers' proposals on propelling the transition to a green economy.

Shenzhen Desay Battery Technology Co, a medium-sized primary lithium battery maker listed in Shenzhen, surged to its daily limits at the opening in the past two trading days. It closed at 12.77 yuan on Wednesday.

Jiangsu Sunshine Co, a manufacturer of polysilicon used in solar-power panels listed in Shanghai, surged 10 percent to 6.86 yuan in Wednesday's trading, while the benchmark Shanghai Composite Index edged up 0.78 percent.

A proposal by the Central Committee of the Jiu San Society - one of China's eight non-Communist parties - about developing the low-carbon economy was listed as the "No 1 proposal" to the Third Session of the 11th Chinese People's Political Consultative Conference (CPPCC) which opened on Wednesday, Securities Times reported, without elaborating.

"The 'No 1 proposal' has triggered market speculation that the government will make curbing carbon intensity a top priority at the upcoming legislative meetings," said Zhang Xiang, an analyst at Guodu Securities.

In addition, several other parties, including the China Zhi Gong Dang, have also proposed that the country make every effort to build a green economy.

The low-carbon sector advanced 2.54 percent on average on Wednesday. Shanghai Electric Group Co, a manufacturer of wind power equipment, also jumped to the 10 percent daily limit to close at 12.1 yuan.

Renewable energy related industries such as wind power and lithium-ion batteries will be the biggest beneficiaries as more policies to spur green tech are introduced, said Zhang Zhaowei, a senior analyst at Hua An Securities.

China vowed to cut its CO2 emissions per unit of gross domestic product by as much as 45 percent through 2020 at the Copenhagen Climate Summit held in December.

According to Xinhua News Agency, the government will include low-carbon targets in the 12th Five-Year Plan (2011-15) to build a more environmentally friendly society.

However, analysts expressed concerns that the recent bullish run, in particular in relatively small caps, may become lackluster when the speculative fever starts to lose steam.

"Generally speaking, concept-related stocks saw corrections after the legislative sessions since 2000, as market expectations were realized during the meetings," said Zhang from Hua An Securities.

Shenzhen Desay Battery's earnings per share were minus 0.29 yuan in 2009, when revenue from the core business declined 1.18 percent to 596 million yuan from a year earlier. The company's debt ratio was as high as 74.6 percent, indicating cash flow concerns.

http://www.chinadaily.com.cn/bizchina/2010-03/04/content_9536416.htm

China builds first low-carbon R&D center in Shanghai.

March 29 (People’s Daily) - The stone-laying ceremony of China's first low-carbon technology research, development and promotion center was held in the Shanghai International Energy Conservation and Environmental Protection Park in the Baoshan District of Shanghai on March 29.

The center is jointly funded by the China Energy Conservation and Environmental Protection Group, Shanghai Yidian Holding Company and Baoshan District.

The center consists of China's first energy conservation and environmental protection diagnosis center, an energy conservation and environmental protection technology R&D base, and an energy conservation and environmental protection training base. It will provide a platform on which hundreds of enterprises specializing in energy conservation and environmental protection will display thousands of categories of energy-efficient and environmentally-friendly new products, technologies and techniques. At the same time, it will reap annual operating revenue of 10 billion yuan through technology transfers, product marketing and comprehensive services.

http://english.peopledaily.com.cn/90001/90778/90860/6933490.html

Low on carbon, high on development.

March 18 (China Daily) - Cities should be the prime focus for low carbon development. Eventually they will house most of the world's population and therefore whatever happens in cities will, more generally, have a huge impact on low carbon energy use. Cities often provide the stimulus for innovation and improved living conditions, and become the source of most consumption.

These factors can provide the demand side for improved standards in transportation and building quality and efficiency for linking health, environment and quality of life concerns that form an essential part of the low carbon message, and for good planning and design.

But cities also can become toxic, unsafe places - the exact opposite of low carbon urban areas. They can turn into sprawling places that are inefficient and corrupt in their decision-making, rely heavily on private vehicles, have poor basic services such as water supply and waste management, and comprise isolated areas for wealthy citizens while most of the residents suffer in poverty.

Many cities in the world lie between these extremes, and therefore offer considerable potential for development - or, in many cases, redevelopment to become sustainable, low carbon habitats.

China has some remarkable advantages in this area, though it is not without its share of difficulties. The first challenge for China is its rapid rate of urbanization and huge absolute numbers. A study conducted by China Council of International Cooperation on Environment and Development (CCICED) shows 300 million farmers will move to cities in the next three decades.

The second problem is the huge demand for material inputs. Almost everything, from steel girders and cement to aluminum and other products needed to build urban infrastructure and houses is produced with a high carbon footprint. And though this problem can be tackled to some extent, there is a high embedded carbon level in China's urban development.

The third difficulty China faces is its commitment to private vehicle ownership. One look at Beijing or Shanghai is enough to understand the magnitude of the problem. And to get an idea about how grave the problem would be 10 or 20 years from now, take the number of vehicles, roads being constructed and kilometers driven at present and extrapolate them to the total number of large and small cities in other parts of China during that period.

Finally, the emerging energy consumption patterns pose a challenge. CCICED's task force on urbanization found that only a small percentage of China's urban population now consumes energy and possibly many other resources at a level similar to people in Western cities. If this percentage grows to become the majority, then the low carbon goals may be very difficult to achieve.

Another significant challenge is the urgent need for strict enforcement of standards consistent with low carbon economy in design, construction and management of urban infrastructure of all types. This means new thinking not only on the part of contractors, but also all those involved in the entire chain, including city administrators and planners, architects and engineers, and material suppliers and manufacturers.

It should be emphasized that money is not the key challenge, although often an important one. A low carbon city depends on smart design, planning and implementation, which often will lead to savings.

Chinese citizens still have a mindset that includes thrift and a concern for matters such as spending as little as possible on energy and other material needs, while in many Western cities the problem is how to drastically reduce the level of consumption. China is building at a density that is often much higher than sprawling cities, especially those in the United States. It is vital to maintain modest material expectations, while emphasizing public goods that will provide high quality life, and ensure that people have easy access to these public goods.

But China needs to be wary of importing architectural designs and planning for its cities that do not pass an extreme low carbon design test.Instead, it should set rigorous low carbon standards for design and operations of buildings, transportation, district heating including co-generation benefits, and recovery of waste heat from power plants and from sewage water among other sources, and a range of other low carbon standards. This will transform the possibilities for Chinese and international urban innovators to create cities in the country that are likely to perform better than most Western low carbon cities, since China has a number of advantages in its decisionmaking and ability to provide lower cost solutions.

The signals from the central government are definitely important, and China is fortunate in these signals are quite clear, and are followed up.

At local levels, there is a great need for learning through what is working well elsewhere, either in China or outside. Practical experience with low carbon solutions is worth a lot. The world's best people in urban development are flocking to China, and it is vital that they not simply stop in the big cities such as Shanghai and Beijing, or in other major coastal cities. Provincial governments in particular need to have strong low carbon strategies and the ability to set good and achievable targets for local officials. They then need to set in place the training, incentives and regulatory framework to make it happen.

Most of China's urban development still lies in the future. So the decisions taken during this decade will have a profound effect on whether China is successful in creating the conditions needed for low carbon cities.

The author is the international chief advisor to China Council of International Cooperation on Environment and Development, a high level think tank of the Chinese Government.

http://www.chinadaily.com.cn/opinion/2010-03/18/content_9606936.htm

Carbon intensity a faulty gauge.

March 10 (China Daily) - Globally accepted indicator limited in scope and poor in representing an economy's carbon performance

China is the world's second largest energy consumer after the United States, and has one of the world's fastest growing energy sectors. While energy fuels economic growth and poverty reduction, inefficient energy use depletes resources at a faster rate and severely damages the environment. It is hard to reconcile continued growth of energy consumption while protecting the environment.

The Chinese government has made some strides in improving energy efficiency and reducing carbon dioxide (CO2) emissions. The 11th Five-Year Plan (2006-2010) mandates a 20 percent reduction in energy intensity (the amount of energy consumed per unit of GDP) by 2010. The order applies to all provinces and municipalities.

But despite the continuing debate on climate change, little attention has been given to precisely examine the carbon performance of any particular economy. Currently, the most commonly used measure of carbon performance is carbon intensity. Carbon intensity, a simple ratio between carbon emissions and GDP, is easy to understand and use, but it has serious limitations.

Sure, the government has made strong political commitments to develop a low-carbon economy. Ten key industries have also been earmarked as sectors that need to save more energy, and 1,000 enterprises that use energy intensively are now under tight supervision.

In November, the government said it would reduce the carbon intensity of its economy in 2020 by 40-45 percent compared with the 2005 level.

But let's examine the faults of carbon intensity as a performance yardstick. First, it does not incorporate multidimensional features of an economy's carbon performance. As stipulated in the opening paragraph of the Copenhagen Accord, combating climate change needs to be considered "on the basis of equity and in the context of sustainable development". In most countries, most CO2 emissions come from consumption of fossil energy.

Energy alone, however, cannot produce any output and it must be combined with other production factors, such as capital and labor, to produce physical output. Countries are at different development stages and have different natural resources and production factors. They all take different development paths. The many facets of different development paths cannot be explained by a simple ratio of carbon intensity.

The second thing that's wrong with using carbon intensity is that it cannot measure the substitution effects between energy and other factors. Carbon intensity of an economy, for example, may increase solely because energy is substituting for labor, rather than any underlying deterioration in emissions technology.

This can happen in any modernization process for any economy. Other factors, such as a change in energy mix and in the focus shift of sectors in an economy, can also cause movements in carbon intensity but cannot be properly reflected. In some circumstances, the faults with carbon intensity make it meaningless to compare mitigation and adaptive actions across countries.

All of these imply that the traditional carbon intensity indicator is too simple to be a proper indicator closely related to economic development, and there is a need to carefully re-examine the theory and find other indicators for carbon performance across an economy.

An approach that encompasses a wide range of factors could be considered. Besides CO2 emissions, other factors, such as energy and non-energy inputs need to be included in the discussion. We can assume that to produce a certain amount of GDP, a carbon-efficient economy consumes the minimum level of energy and non-energy inputs, and emits the minimum level of CO2. Based on this idea, a new carbon performance model is built using the provincial level data of China in 2005.

Results show that, first, a region's carbon performance can be significantly different from what traditional carbon intensity indicator suggests, and is heavily affected by its resource endowments, such as capital stock, energy supply and its mix, and labor force.

Second, many regions had great carbon reduction potentials in 2005. As all regions in China are benchmarked on best practices, this means that China can achieve this carbon reduction using domestically available technologies. This implies the importance of spreading carbon efficient technologies and modern approaches to management on economic operations across regions.

Third, as a region's carbon performance is closely linked to its economic development, so the issue of carbon reduction is in essence still an issue of economic development. When talking about an economy's carbon performance, we cannot just talk about this as if we were discussing a technical issue without putting it in a broader context of economic development.

Fourth, the carbon intensity indicator exaggerates China's carbon reduction potential. Our results show that if the national average of carbon performance in 2020 could be as efficient as the leading regions in 2005 (such as Shanghai and Beijing), then only about one-third of our carbon intensity can be reduced. Considering the huge development gap between the eastern and western regions in China, where there is a wide gap in GDP per capita, realizing this one-third reduction will be very difficult. Apparently, a 40-45 percent reduction target needs even more extra investments in hardware and software involving carbon reduction.

In the newly published World Energy Outlook 2009, the International Energy Agency foresees a 55 percent carbon intensity reduction for China for the period. This leads to an argument that China only commits to business-as-usual, and does not entertain any measures beyond those considered as baselines. But results from a total factor production model are totally different from what carbon intensity tells.

Combating climate change requires the international community to work together to reduce CO2 emissions globally, stabilize its atmospheric concentration to a safe level and prevent nations, cities and people from further damaging the environment. Achieving this requires greatly improving the carbon performance of all economies.

An economy's carbon efficiency is not only closely related to its economic development but also linked to its international competitiveness and energy security. For policymakers, a sound CO2 reduction target cannot be reached if regional resource endowments are not taken into consideration. This is something worth stressing here.

The author is an energy expert with the Asian Development Bank.

http://www.chinadaily.com.cn/opinion/2010-03/10/content_9564841.htm

Chinese companies push for low carbon development.

March 30 (Xinhua) – BEIJING : Chinese companies were behind the development of the

low carbon economy, said a senior official of the China Business Council for Sustainable Development (CBCSD) at its annual meeting held here Tuesday.

Wang Jiming, executive president of the CBCSD, said that Chinese companies wanted to know "how to reduce carbon emissions in practice." That was why the CBCSD was creating carbon dioxide emissions standards for the different industries.

The standards for carbon dioxide emissions in petrochemical industry had been completed by the CBCSD, but have yet to be authorized by the country's Standardization Administration, said Wang.

"It will fill the gap in petrochemical industry of China by providing a standard calculation method," said Wang. The standards for carbon dioxide emissions in the cement production sector were also presently being decided.

The CBCSD accepted five new members at the meeting, including Ernst & Young (China) Advisory Limited, increasing its member companies to 75.

"We want to provide better consulting services to our clients on low carbon development. By joining the CBCSD, we can get more information since it bridges the government and companies," said Zhang Youwei, a manager from Ernst & Young (China).

http://www.chinadaily.com.cn/china/2010-03/30/content_9664326.htm