EcoHearth Environmental Website - Best ecology websites, environmental blogs, news, activism, green jobs, green products

Following the horrific Gulf oil spill, attention in the US seems to have returned to promoting green technology and sustainable development as the way to the future. However, while American legislators have dragged their feet in terms of putting together a real ecological stimulus package, the Chinese have quietly set themselves up as the world leader in green energy products and production.

This isn't a recent development; it’s been in the news since the end of 2009, when the media began to frame green tech as the new space race—a race China has been handily winning. One example of this dominance is in wind turbines. Former foreign company dominance of the Chinese wind-turbine market shrunk from around 80% in 2004 to under 25% of overall production coming into 2010. With the Chinese government’s strong support for new environmentally sound energy products and a desire to move away from oil, the industry is assured continued growth.

While decreasing its use of fossil fuels is a significant positive for the environment, Beijing's motivations may not be of the tree-hugging variety. Recent projections show China surpassing America as the world's largest oil importer in the next five years. Troublesome negotiations with oil producers, shipping hazards—including Somali pirate attacks—and  the overall rising price of oil have all brought Chinese leaders to set a goal of self-sufficiency, using whatever technologies that are available. Yes, that means more energy generated through wind, solar, biomass, nuclear and especially hydro plants, but it also means a continued reliance on coal—something of which China has an abundance. Currently four-fifths of Chinese energy production is from coal-burning power plants, and even with some reduction of that percentage, Chinese air quality is not likely to get much better, unless someone discovers a true 'clean coal' production method.

On the other hand, Chinese energy companies—unlike those in other countries—have one major incentive to use green technology: A lot of them are just starting up. Often the cost of setting up a new green energy network is cheaper than retrofitting an old non-green network. Also, the Chinese government has been offering tax incentives and subsidies to companies that produce alternative energy products—especially wind and solar—and to those entities (from cities to companies) that use them. Chinese governmental units and industries have been quick to take advantage. Growth of wind farms, for example, has been so rapid that many have not even been hooked up to the national grid yet, with the 'incentive' for infrastructure managers being a requirement to pay the new providers twice the value of the energy wasted because of no means of getting it to customers!

China has also found that alternative energy production is helping its economy to grow—despite the world recession. As developed countries have moved toward alternative energy, China has reaped the benefits, thanks to its low-priced labor. It has been very successful in selling its solar cells and wind turbines, particularly in Germany and Spain, whose governments have (until recent austerity measures forced them to cut back) provided massive incentives. The Obama administration, too, is pushing for governmental support for alternative energies as part of its climate bill.

What lessons should other countries, including the US, draw from this? Being green is no longer just the right thing to do for the sake of future generations and the stability of ecosystems; it's also an expedient way to get rid of dependence on foreign energy sources and spur economic growth. Plus, it is clear that the US and China are in a new technology race that may just determine who the economic giant of the 21st century will be.

Comments (0)

Show/Hide comments

Write comment