The China Greentech Report 2009

THE CHINA
GREENTECH
REPORT 2009
™
Shanghai Water Resources Foundation
The China Greentech Initiative created by:
ELLEN G. CARBERRY and RANDALL S. HANCOCK
Managing Directors
Lead Report Writers:

CONSTANTIN CRACHILOV
RANDALL S. HANCOCK
GARY SHARKEY
Research Team Leader:

HERMES CHAOCHING SUN
Partner Outreach Leader:

CRAIG H. ADAMS
Initiative Project Manager:

ANNABELL CHARTRES
1
The China Greentech Initiative™ and The China Greentech Report™ are
trademarks of MangoStrategy, LLC.
While significant input was received in the creation of this report, with
the large number of participating organizations, by necessity this is not
a consensus deliverable. All opinions expressed herein are based on the
judgment of the China Greentech Initiative at the time of distribution, and
are subject to change without notice due to economic, political, industry
and firm-specific factors.
MangoStrategy, LLC, the China Greentech Initiative, and its partners

and strategic advisors make no representation or warranty, express
or implied, concerning the fairness, accuracy or completeness of the
information and opinions contained herein. While every effort has been
made to ensure the accuracy of the information supplied, MangoStrategy,
LLC, the China Greentech Initiative and its partners and strategic
advisors cannot be held responsible for any errors or omissions, and are
not liable for any loss arising from any use of this report or its contents.
This report may include case studies of partners, strategic advisors and
other organizations which the research team believes adds value to the
analysis. The report does not provide and should not be construed as
making any specific public policy recommendations.
Comments and suggestions about this report are welcome at feedback@

china-greentech.com.
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This license allows for the copying, distributing, transmitting and

adapting of the work for non-commercial purposes, provided that
new content is distributed using a comparable license, and this work is
attributed as: China Greentech Initiative, “The China Greentech Report™
2009,” September 2009, www.china-greentech.com. Permissions beyond
the scope of this license may be available at www.china-greentech.com.
Editors: Katie Howe and Siobhan Das Bachran

Report Design: Marianne Kaulima
Photography: All rights reserved © Julius Mak (www.juliusmak.net)
Printed by: Snap Printing, Shanghai, China
This publication is printed on paper sourced from sustainable forestry (FSC

and PEFC chain of custody certification), and produced with the highest
environmental standards in EMAS (Eco-Management and Auditing
Scheme) facilities.
2
CO-CREATED BY:
Ellen G. Carberry and Randall S. Hancock
RESEARCHED AND PRODUCED BY:
3
NAVIGATION GUIDE
REPORT STRUCTURE
The China Greentech Report 2009 is published in multiple editions in order for
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RECOMMENDED READING PRIORITIZATION

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4 THE CHINA GREENTECH REPORT 2009 www.china-greentech.com

CONTENTS
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INTRODUCTION 8
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www.china-greentech.com THE CHINA GREENTECH REPORT 2009 5

PREFACE
Dear reader,
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Ellen G. Carberry and Randall S. Hancock

Managing Directors, The China Greentech Initiative
September 2009
www.china-greentech.com THE CHINA GREENTECH REPORT 2009

INTRODUCTION
8
China’s market requirements for greentech solutions are
tremendous. Chinese government policies are positive
drivers for greentech market development and a wide
range of businesses are beginning to deploy greentech
solutions to address a broad spectrum of environmental
issues. While significant challenges remain,
stakeholders have clear opportunities to accelerate
market development and create a more environmentally
sustainable China.
THE CHINA GREENTECH REPORT 2009 IS THE CULMINATION of an open source,
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>OH[HYL[OLIPNNLZ[JOHSSLUNLZMHJPUN*OPUH»ZNYLLU[LJOTHYRL[Z&
/V^ TPNO[ Z[HRLOVSKLYZ V]LYJVTL [OLZL JOHSSLUNLZ PU VYKLY [V HJJLSLYH[L
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[OL*OPUH.YLLU[LJO0UP[PH[P]LOHZ\UKLY[HRLUHUK[OLPUMVYTH[PVUH]HPSHISL
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[LTWLYLKI`[OLJVTWSL_P[`VM*OPUH»ZTHYRL[ZHUK[OLZPNUPÄJHU[JOHSSLUNLZ[OH[T\Z[
ILV]LYJVTL
China’s greentech markets include a broad range of

sectors, segments and solutions
DEFINITIONS
;OL [LYT NYLLU[LJO YLMLYZ [V [LJOUVSVNPLZ WYVK\J[Z HUK ZLY]PJLZ [OH[ KLSP]LY
ILULÄ[Z[V\ZLYZVMLX\HSVYNYLH[LY]HS\L[OHU[OVZLVMJVU]LU[PVUHSHS[LYUH[P]LZ
ÔPSLSPTP[PUN[OLPTWHJ[VU[OLUH[\YHSLU]PYVUTLU[HUKTH_PTPaPUN[OLLMÄJPLU[HUK
Z\Z[HPUHISL\ZLVMLULYN`^H[LYHUKV[OLYYLZV\YJLZ;OL0UP[PH[P]LPKLU[PÄLKUPUL
NYLLU[LJOTHYRL[ZLJ[VYZMVJ\ZPUNVUZL]LUPU[OPZYLWVY[¶*SLHULY*VU]LU[PVUHS
,ULYN`9LUL^HISL,ULYN`,SLJ[YPJ7V^LY0UMYHZ[Y\J[\YL.YLLU)\PSKPUN*SLHULY
Transportation, Cleaner Industry and Clean Water.
Three decades of formidable economic growth have

transformed China into a colossal and resilient
economy, resulting in radical improvements in living
standards for many of its citizens
FORMIDABLE ECONOMIC GROWTH
*OPUH»ZLJVUVTPJ[YHUZMVYTH[PVUV]LY[OLSHZ[[OPY[``LHYZPZ\USPRLHU`[OPUN[OL
^VYSKOHZL]LYZLLU>P[OHUH]LYHNLHUU\HSNYV^[OYH[L*OPUHPZUV^[OL
[OPYKSHYNLZ[LJVUVT`HUKZLJVUKSHYNLZ[JVUZ\TLYVMLULYN`PU[OL^VYSK
RADICAL IMPROVEMENTS IN LIVING STANDARDS

,JVUVTPJ NYV^[O HJJVTWHUPLK I` THZZP]L \YIHUPaH[PVU OHZ KYP]LU YHKPJHS
PTWYV]LTLU[Z PU *OPUH»Z SP]PUN Z[HUKHYKZ KLJYLHZPUN [OL WLYJLU[HNL VM WLVWSL
SP]PUN PU WV]LY[` ]HZ[S` PTWYV]PUN SPML L_WLJ[HUJPLZ HUK MVZ[LYPUN HU LTLYNPUN
consumer market.

THE CHINA GREENTECH REPORT
RESILIENT ECONOMY
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HU`V[OLYSHYNLJV\U[Y`>P[O[OL^VYSK»ZSHYNLZ[MVYLPNUL_JOHUNLYLZLY]LZ[OL
NV]LYUTLU[»ZMV\Y[YPSSPVU`\HU<:IPSSPVULJVUVTPJZ[PT\S\ZWHJRHNL^HZ
[OLZLJVUKSHYNLZ[PU[OL^VYSK*OPUH»ZLJVUVT`NYL^PU[OLÄYZ[OHSMVM
HUKPZWYVQLJ[LK[VNYV^H[ PU
COLOSSAL SCALE
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WVW\SH[PVU VY ULHYS` [^PJL [OH[ VM [OL <: HUK >LZ[LYU ,\YVWL JVTIPULK
,PNO[LLUTPSSPVUWLVWSLTPNYH[LMYVTY\YHS[V\YIHUHYLHZPU*OPUHHUU\HSS`*OPUH
OHZTVYL[OHU[^PJL[OLI\PSKPUNÅVVYZWHJLHZ[OL<:HUKPUZ[HSSZTVYLLSLJ[YPJP[`
NLULYH[PVUJHWHJP[`LHJO`LHY[OHU[OL[V[HSJHWHJP[`VM[OL<2
Yet China’s economic development has come at

significant environmental cost
POLLUTED AIR
*OPUHPZUV^[OL^VYSK»ZSHYNLZ[LTP[[LYVMNYLLUOV\ZLNHZLZ./.ZYLZWVUZPISL
MVYV]LYVMHUU\HS*62LTPZZPVUZMYVT[OLI\YUPUNVMMVZZPSM\LSZHS[OV\NO
LTPZZPVUZ WLY JHWP[H HYL Z[PSS SV^ YLSH[P]L [V TVZ[ KL]LSVWLK JV\U[YPLZ ,PNO[`
WLYJLU[VM[OLZLLTPZZPVUZJVTLMYVTI\YUPUNJVHS*OPUH»ZWYLKVTPUHU[LULYN`
ZV\YJL*OPUH»ZHPYX\HSP[`HSZVZ\MMLYZMYVTV[OLYWVSS\[HU[ZZ\JOHZWHY[PJ\SH[L
TH[[LYÔPJOJSV\K[OLHPYHUKOH]LULNH[P]LOLHS[OLMMLJ[Z
STRAINED WATER RESOURCES

*OPUHMHJLZ[OLK\HSWYVISLTZVM^H[LYZJHYJP[`HUKWVSS\[PVU>P[OVM[OL
^VYSK»ZWVW\SH[PVU*OPUHOHZSLZZ[OHUVM[OL^VYSK»ZMYLZO^H[LYYLZV\YJLZ
;OLJV\U[Y`»Z^H[LYYLZV\YJLZOH]LKLJSPULKK\L[VOPNOKLTHUKPULMÄJPLU[\ZL
HUKKLJYLHZPUNUH[\YHSZ\WWSPLZ4VYLV]LY^H[LYWVSS\[PVUOHZZLYPV\ZS`PTWHJ[LK
^H[LYX\HSP[`[OYV\NOV\[[OLJV\U[Y`
LAND DEGRADATION
-VYJLZ KLNYHKPUN *OPUH»Z SHUK PUJS\KL KLZLY[PÄJH[PVU SHUK JVU[HTPUH[PVU MYVT
^HZ[LSHUKÄSSZHUKOHaHYKV\Z^HZ[L-VYL_HTWSLHSTVZ[OHSMVMVMÄJPHSSHUKÄSSZ
PUHYLJLU[Z[\K`^LYLMV\UK[VUV[JVTWS`^P[O*OPUH»ZLU]PYVUTLU[HSZ[HUKHYKZ
HUK L^HZ[L MYVT [OL YLJ`JSPUN HUK K\TWPUN VM \ZLK LSLJ[YVUPJ WYVK\J[Z PZ H
THQVYPZZ\L
A NEW ERA
>OPSL *OPUH»Z LU]PYVUTLU[HS PZZ\LZ HYL UV[ KPZZPTPSHY [V [OL PUK\Z[YPHSPaH[PVU
L_WLYPLUJLZVMV[OLYJV\U[YPLZ[OYV\NOV\[OPZ[VY`*OPUH»ZPTTLUZLZJHSLZWLLK
VMLJVUVTPJKL]LSVWTLU[HUK[OLZ[H[LVM[OL^VYSK»ZJSPTH[LHUKYLZV\YJLZTHRL
[OLLU]PYVUTLU[HSPTWHJ[VM*OPUH»ZKL]LSVWTLU[HUPZZ\LVMNSVIHSJVUJLYU
China’s economic development will become

environmentally sustainable out of necessity
ECONOMIC DEVELOPMENT OF EPIC PROPORTIONS
*OPUHPZL_WLJ[LK[VILJVTL[OL^VYSK»ZSHYNLZ[LJVUVT`^P[OPU[OLUL_[[V
`LHYZKYP]LUI`HNYV^[OYH[L[OH[^PSSJVU[PU\L[VV\[WHJL[OL^VYSKH]LYHNL
4HZZP]L\YIHUPaH[PVU^PSSJVU[PU\LV]LY[OLUL_[`LHYZJH\ZPUN[OLJV\U[Y`
[VKV\ISLP[ZI\PSKPUNZWHJLOH]LTVYL[OHUJP[PLZ^P[OHWVW\SH[PVUV]LYVUL
TPSSPVUWLVWSLHUKJVU[PU\L^P[O[OLSHYNLZJHSLKLWSV`TLU[VMPUMYHZ[Y\J[\YL
RESULTING SURGE IN RESOURCE DEMAND

*VU[PU\LK NYV^[O ^PSS KLTHUK O\NL PUJYLHZLZ PU LULYN` ^H[LY HUK TH[LYPHS
YLZV\YJLZ0M*OPUH^LYL[VTHPU[HPUP[ZOPZ[VYPJWYHJ[PJLZ[OLHKKP[PVUHSZ[YHPUVU
[OL LU]PYVUTLU[ ^V\SK IL \UZ\Z[HPUHISL -VY L_HTWSL H[ J\YYLU[ NYV^[O YH[LZ
China’s CO2LTPZZPVUZJV\SKYLWYLZLU[ULHYS`VM[OL^VYSK»Z[V[HSI`
^P[O JVHS J\YYLU[S` L_WLJ[LK [V JVU[PU\L [V HJJV\U[ MVY [OL THQVYP[` VM *OPUH»Z
LULYN`Z\WWS`MVYKLJHKLZ[VJVTL

INTRODUCTION
VISION FOR ENVIRONMENTAL SUSTAINABILITY

;OL*OPUH.YLLU[LJO0UP[PH[P]LILSPL]LZ[OH[*OPUH^PSSV\[VMULJLZZP[`LTIYHJL
LU]PYVUTLU[HSS` Z\Z[HPUHISL NYV^[O PU ÔPJO NYLLU [LJOUVSVNPLZ OH]L ILLU
KL]LSVWLK HUK KLWSV`LK UL^ I\ZPULZZ TVKLSZ LZ[HISPZOLK HUK JVTWSPHUJL
^P[O NV]LYUTLU[ YLN\SH[PVUZ IYV\NO[ \W [V H OPNO SL]LS ;OPZ ]PZPVU MVY HU
LU]PYVUTLU[HSS` Z\Z[HPUHISL *OPUH PUJS\KLZ ^PKLZWYLHK HKVW[PVU VM HS[LYUH[P]L
HUK JSLHULY JVU]LU[PVUHS LULYN` ZV\YJLZ J\Y[HPSLK NYV^[O PU ./. LTPZZPVUZ
YLK\J[PVUPUHPYHUK^H[LYWVSS\[PVUPTWYV]LK^H[LY\ZLLMÄJPLUJ`HUKTP[PNH[LKZVSPK
^HZ[LWYVISLTZ
China has laid the foundation for greentech market

growth, with the first signs of a green transformation
already appearing
LAYING THE FOUNDATION
*OPUH OHZ THKL PTWYLZZP]L WYVNYLZZ PU SH`PUN [OL MV\UKH[PVU MVY M\[\YL NYV^[O
PUNYLLU[LJOUVSVNPLZHUKPZLTLYNPUNHZHSLHKLYPUTHU`LU]PYVUTLU[HSHYLHZ
PUJS\KPUN ^PUK WV^LY HKVW[PVU :VSHY 7OV[V]VS[HPJ HUK /V[ >H[LY /LH[LY
THU\MHJ[\YPUN]LOPJSLM\LSLJVUVT`HUKLTPZZPVUZHUKLULYN`LMÄJPLUJ`*OPUH»Z
^PUKWV^LYJHWHJP[`MVYPUZ[HUJLOHZKV\ISLKMVYMV\YJVUZLJ\[P]L`LHYZZPUJL
^P[O*OPUHUV^YHURPUNMV\Y[OPU[OL^VYSKHUKYLWYLZLU[PUNVM[V[HS
installed capacity.
UNTAPPED POTENTIAL
;OLYLPZVWWVY[\UP[`[VKVTVYL*OPUHOHZZL[H[HYNL[VMKLYP]PUNVMLULYN`
MYVTYLUL^HISLZV\YJLZI`,]LUPMP[HJOPL]LZ[OPZHNNYLZZP]LNVHSVM
P[Z LULYN` ^V\SK Z[PSS IL KLYP]LK WYLKVTPUHU[S` MYVT JVHS >OPSL *OPUH»Z LULYN`
PU[LUZP[`VM.+7OHZKLJSPULKZPNUPÄJHU[S`P[PZZ[PSSHSTVZ[[OYLL[PTLZ[OH[VM[OL
<:HUKTVYL[OHUMV\Y[PTLZ[OH[VM1HWHU(UKLZ[PTH[LZZ\NNLZ[[OH[SLZZ[OHU
VMHSSÅVVYZWHJLL_WLJ[LK[VILI\PS[PU ^PSSILJLY[PÄLKI`HU`NYLLU
JLY[PÄJH[PVUZ[HUKHYK
UNIQUE MOMENT IN TIME

+LZWP[L[OLTHNUP[\KLVM*OPUH»ZLU]PYVUTLU[HSPZZ\LZ[OLÄYZ[ZPNUZVMHUL^
[YHUZMVYTH[PVU HYL WYVTPZPUN ^P[O NV]LYUTLU[ I\ZPULZZLZ UVUNV]LYUTLU[HS
VYNHUPaH[PVUZ HUK V[OLY Z[HRLOVSKLYZ HSPNUPUN HYV\UK [OL ]PZPVU VM H TVYL
LU]PYVUTLU[HSS`Z\Z[HPUHISL*OPUH
Guided by policy principles, China’s government

has already established plans and programs, laws and
standards, fiscal incentives and subsidies, industrial
promotion and price management policies that
positively impact the environment and enable
greentech markets
CHINA’S POLICY ENVIRONMENT

*OPUH»Z WVSPJ` LU]PYVUTLU[ PZ JVTWSL_ ^P[O H SHYNL U\TILY VM LU[P[PLZ L_LY[PUN
JVU[YVSH[ IV[O[OLUH[PVUHSHUKSVJHSSL]LSZ;OL0UP[PH[P]LPKLU[PÄLK KPMMLYLU[
UH[PVUHSNV]LYUTLU[HNLUJPLZ^P[OYLZWVUZPIPSP[PLZYLSH[LK[VNYLLU[LJOTHYRL[Z
4VZ[ VM [OLZL OH]L JVYYLZWVUKPUN IVKPLZ H[ SVJHS SL]LSZ [OH[ HYL PUÅ\LUJLK I`
IV[O[OLUH[PVUHSHUKSVJHSNV]LYUTLU[Z
GUIDING POLICY PRINCIPLES

*OPUH»ZNV]LYUTLU[\ZLZH]HYPL[`VMWVSPJ`WYPUJPWSLZ[VN\PKL[OLKL]LSVWTLU[VM
P[ZNYLLU[LJOWVSPJPLZ:WLJPÄJWVSPJ`WYPUJPWSLZPKLU[PÄLKI`[OL*OPUH.YLLU[LJO
0UP[PH[P]LHZPUÅ\LUJPUN*OPUH»Z NYLLU[LJO WVSPJPLZ PUJS\KL! :JPLU[PÄJ (WWYVHJO [V
+L]LSVWTLU[/HYTVUPV\Z:VJPL[`,X\HS,TWOHZPZVU4P[PNH[PVUHUK(KHW[H[PVU
,MÄJPLUJ` 0TWYV]LTLU[ HUK *VUZLY]H[PVU ,ULYN` :[Y\J[\YL 6W[PTPaH[PVU
,JVSVNPJHS7YLZLY]H[PVUHUK*VUZ[Y\J[PVU(NYPJ\S[\YHS7YVK\J[P]P[`,UOHUJLTLU[
HUK0UKPNLUV\Z0UUV]H[PVU

POLICYMAKING PRACTICES
*OPUH»Z NV]LYUTLU[ OHZ THKL ZPNUPÄJHU[ WYVNYLZZ PU [OL KL]LSVWTLU[ VM
NYLLU[LJOYLSL]HU[ WVSPJPLZ 7VSPJ` THRPUN WYVJLZZLZ VM[LU [HRL PU[V HJJV\U[
SLNHSWYHJ[PJLZVMSLNHSZ`Z[LTZV\[ZPKLVM*OPUHHUKTH`PUJS\KLKLSPILYH[PVUZ
PUZWLJPHSJVTTP[[LLZ\UKLY[OL5H[PVUHS7LVWSL»Z*VUNYLZZL_WLY[YV\UK[HISLZ
VYW\ISPJOLHYPUNZ
PLANS AND PROGRAMS

5H[PVUHSWSHUUPUNHJ[P]P[PLZHUKWYVNYHTZWYV]PKLMYHTL^VYRZMVY*OPUH»ZYLZWVUZL
[VLU]PYVUTLU[HSPZZ\LZHUKKL[LYTPULKL]LSVWTLU[[HYNL[Z;OLZLWSHUZPUJS\KL
UV[ VUS` [OL -P]L @LHY .\PKLSPULZ I\[ KL[HPSLK WSHUZ YLSLHZLK I` TPUPZ[YPLZ [V
N\PKL [OL KL]LSVWTLU[ VM ZWLJPÄJ WHY[Z VM [OL LJVUVT` 5H[PVUHS WYVNYHTZ
JVTWSLTLU[WSHUZI`WYV]PKPUNWVSPJ`KPYLJ[PVUZVYZWLJPÄJYLN\SH[PVUZHJYVZZH
YHUNLVMPTWSLTLU[PUNHNLUJPLZ*OPUH»Z[YPSSPVU`\HU<:IPSSPVULJVUVTPJ
Z[PT\S\ZWSHUHUUV\UJLKPU5V]LTILYPUYLZWVUZL[V[OLNSVIHSLJVUVTPJ
KVÛ[\YUHSSVJH[LZHWWYV_PTH[LS`[VNYLLU[LJOYLSH[LKHYLHZ
LAWS AND STANDARDS
*OPUH»ZNV]LYUTLU[OHZW\[PUWSHJLTHU`SH^ZHUKZ[HUKHYKZYLSL]HU[[VNYLLU[LJO
THYRL[Z0TWVY[HU[NYLLU[LJOYLSH[LKSH^ZPU*OPUHPUJS\KL[OL9LUL^HISL,ULYN`
3H^HUK[OL*PYJ\SHY,JVUVT`3H^*OPUH»Z(KTPUPZ[YH[PVUVM8\HSP[`
:\WLY]PZPVU0UZWLJ[PVUHUK8\HYHU[PUL(8:08PZYLZWVUZPISLMVYHKTPUPZ[LYPUN
Z[HUKHYKZPU[LJOUPJHSWYVK\J[X\HSP[`LU]PYVUTLU[HUKWYVK\J[ZHML[`
FISCAL INCENTIVES AND SUBSIDIES
*OPUHHSZV\ZLZÄZJHSHUKWVSPJ`HWWYVHJOLZ[VWYVTV[LNYLLU[LJOTHYRL[Z;H_
L_LTW[PVUZJVUZ\TW[PVUYLSH[LK[H_LZUH[\YHSYLZV\YJLYLSH[LK[H_LZHUKV[OLY
[H_ ILULÄ[Z WYVTV[L LU]PYVUTLU[HS HUK NYLLU[LJO HJ[P]P[PLZ ;OL NV]LYUTLU[
HSZV KPYLJ[S` Z\IZPKPaLZ NYLLU[LJO WYV]PKLYZ HUK HKVW[LYZ PU HYLHZ SPRL 5L^
,ULYN`=LOPJSLZ)\PSKPUN0U[LNYH[LK:VSHY7OV[V]VS[HPJ:`Z[LTZ>PUK;\YIPULZ
HUK)PVTHZZ7V^LY.LULYH[PVU7YV]PUJPHSHUKYLNPVUHSNV]LYUTLU[ZHSZVOH]L
WVSPJ`SL]LYZ[OL`JHU\ZL[VZ\WWVY[NYLLU[LJOKL]LSVWTLU[PU[OLPYQ\YPZKPJ[PVUZ
PUJS\KPUN [H_ OVSPKH`Z KPZJV\U[LK VMÄJL YH[LZ KPYLJ[ ÄUHUJPUN HZZPZ[HUJL ^P[O
JHWP[HSTHYRL[ZÄUHUJPUNHUKYLPTI\YZLTLU[ZMVYLTWSV`LL[YHPUPUN
INDUSTRIAL PROMOTION POLICIES
*OPUH»ZWVSPJ`THRLYZHSZVZ\WWVY[NYLLU[LJO[OYV\NOPUK\Z[YPHSWYVTV[PVUWVSPJPLZ
[OH[SL]LYHNLÄUHUJPHSPU[LYTLKPHYPLZ;OPZTH`PUJS\KLKPYLJ[PUNMH]VYHISLÄUHUJPUN
[V NYLLU[LJO ZLJ[VYZ YLX\PYPUN JVTTLYJPHS IHURZ [V PUJVYWVYH[L LU]PYVUTLU[HS
WLYMVYTHUJL JYP[LYPH PU[V SLUKPUN KLJPZPVUZ YLX\PYPUN LU]PYVUTLU[HS HUK LULYN`
KPZJSVZ\YLZ MYVT JVTWHUPLZ SPZ[PUN VU KVTLZ[PJ Z[VJR THYRL[Z HUK WYV]PKPUN
support for infrastructure construction.
PRICING MANAGEMENT
7YPJL JVU[YVSZ HSZV PUÅ\LUJL [OL KL]LSVWTLU[ VM *OPUH»Z NYLLU[LJO THYRL[Z
(S[OV\NO*OPUH»Z[YLUKPZ[V^HYKZHSSV^PUNWYPJLZ[VÅ\J[\H[L^P[OTHYRL[WYLZZ\YLZ
[OLNV]LYUTLU[JVU[PU\LZ[VL_LY[JVU[YVSV]LY[OLWYPJLZVMLSLJ[YPJP[`NHZKPZ[YPJ[
OLH[HUK^H[LY\[PSP[PLZ[VLUHISL[OLHMMVYKHIPSP[`VM[OLZLNVVKZMVY*OPUH»ZSV^
PUJVTLOV\ZLOVSKZ0UHWVZP[P]LKL]LSVWTLU[MVY9LUL^HISL,ULYN`[OL5H[PVUHS
+L]LSVWTLU[ HUK 9LMVYT *VTTPZZPVU PU 1\S` YLSLHZLK H UH[PVUHS MLLKPU
[HYPMMMVY^PUKWV^LYNP]PUNP[HZPNUPÄJHU[WYLTP\TV]LYJVHSNLULYH[LKWV^LY
International policy organizations, principles,

agreements and relationships also impact China’s
greentech markets
INTERNATIONAL POLICY ORGANIZATIONS
4HU` PU[LYUH[PVUHS VYNHUPaH[PVUZ HUK YLN\SH[VY` IVKPLZ HSZV PTWHJ[ [OL
KL]LSVWTLU[ VM *OPUH»Z NYLLU[LJO THYRL[Z PUJS\KPUN [OL <UP[LK 5H[PVUZ [OL
>VYSK;YHKL6YNHUPaH[PVU>;6[OL0U[LYUH[PVUHS4VUL[HY`-\UK04-[OL>VYSK
)HURHUK[OL(ZPHU+L]LSVWTLU[)HUR(+);OL<5[OYV\NOP[ZZWLJPHSPaLKHNLUJPLZ
Z\JOHZ[OL<UP[LK5H[PVUZ,U]PYVUTLU[7YVNYHTTL<5,7HUK[OL<UP[LK5H[PVUZ
+L]LSVWTLU[7YVNYHTTL<5+7OHZIYVHKPUÅ\LUJLHJYVZZTHU`LU]PYVUTLU[HS
HUKJSPTH[LJOHUNLPZZ\LZ

INTRODUCTION
INTERNATIONAL POLICY PRINCIPLES

0U[LYUH[PVUHSWVSPJ`WYPUJPWSLZHSZVL_LY[PUÅ\LUJLVU[OLKL]LSVWTLU[VM*OPUH»Z
NYLLU[LJOTHYRL[Z7LYOHWZ[OLTVZ[PTWVY[HU[VM[OLZLHYL[OLJVUJLW[ZVM
sustainable development and Common but Differentiated Responsibilities and Re-
spective Capabilities*I+99*
INTERNATIONAL AGREEMENTS
*LY[HPUPU[LYUH[PVUHSHNYLLTLU[ZJVTTP[*OPUH[VZWLJPÄJWVSPJ`HJ[PVUZYLSH[LK
[V [OL LU]PYVUTLU[ ;OL TVZ[ ^LSSRUVÛ VM [OLZL PZ [OL 2`V[V 7YV[VJVS
5LHYSÒHSMVMHSSJLY[PÄLKLTPZZPVUYLK\J[PVUJLY[PÄJH[LZ*,9ZYLNPZ[LYLK\UKLY
[OL 2`V[V 7YV[VJVS OH]L ILLU NLULYH[LK I` WYVQLJ[Z PU *OPUH )LJH\ZL [OL
PU[LYUH[PVUHSLTPZZPVUZYLK\J[PVUZ[HYNL[Z\UKLY[OL2`V[V7YV[VJVSL_WPYLPU
WHY[PLZ[V[OLHNYLLTLU[OVWL[VZ\JJLZZM\SSÙLNV[PH[LHZ\JJLZZVYHNYLLTLU[[V
ILZPNULKH[[OLth United Nations Climate Conference, scheduled for December
PU*VWLUOHNLU+LUTHYR
BILATERAL RELATIONSHIPS
+PYLJ[YLSH[PVUZOPWZ^P[OV[OLYJV\U[YPLZHUKLJVUVTPJISVJZHSZVPTWHJ[*OPUH»Z
NYLLU[LJO THYRL[Z ,_HTWSL WYVNYHTZ PUJS\KL [OL *OPUH<: :[YH[LNPJ HUK
,JVUVTPJ+PHSVN\L: ,+[OL*OPUH<::JPLUJLHUK;LJOUVSVN`(NYLLTLU[
HUK[OL,<*OPUH,ULYN`HUK,U]PYVUTLU[7YVNYHTTL
A wide range of businesses are beginning to deploy

existing and emerging greentech solutions to address a
broad spectrum of environmental issues
HUNDREDS OF EXISTING AND EMERGING GREENTECH SOLUTIONS
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SOLUTIONS EVALUATION APPROACH

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CONSIDERABLE ENVIRONMENTAL IMPACT

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impact potential compared to other sectors, because many of these solutions,
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VM[OLLTPZZPVUZHZZVJPH[LK^P[OMVZZPSM\LSI\YUPUN
ALREADY ATTRACTIVE GREENTECH SOLUTIONS
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LULYN` LMÄJPLUJPLZ HUK HSYLHK` LJVUVTPJHSS` MLHZPISL VU H SPML J`JSL IHZPZ
*SLHULY*VU]LU[PVUHS,ULYN`*SLHU>H[LYHUK9LUL^HISL,ULYN`ZVS\[PVUZYHUR
PU [OL TPKKSL [PLY KYP]LU I` H SHYNL U\TILY VM ZVS\[PVUZ [OH[ [LJOUVSVNPJHSS` HYL
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[LJOUVSVNPJHSTH[\YP[`

SIGNIFICANT MARKET SIZES

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HU LZ[PTH[L VM ÔH[ [OL THYRL[ JV\SK IL \UKLY ZWLJPÄJ JVUKP[PVUZ :VS\[PVUZ
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:VS\[PVUZPU*SLHU>H[LY*SLHULY0UK\Z[Y`HUK,SLJ[YPJ7V^LY0UMYHZ[Y\J[\YL^LYL
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MIXED MARKET ACCESSIBILITY
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some remain limited or restricted. Market accessibility for solutions in Cleaner
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,SLJ[YPJHS7V^LY0UMYHZ[Y\J[\YLPZJVU[YVSSLKI`[OLNV]LYUTLU[HUKWYVJ\YLTLU[
VM[LUMH]VYZSVJHSZ[H[LVÛLKLU[LYWYPZLZ[OV\NOL_JLW[PVUZL_PZ[
While China’s greentech market opportunities are

generally attractive, market, technology, financing and
regulatory challenges remain to be overcome
MARKET CHALLENGES
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[VKLSP]LYZ\JJLZZM\S[LJOUVSVNPLZWYVK\J[ZHUKZLY]PJLZHUKSPTP[THYRL[KLTHUK
MVYZ\JOZVS\[PVUZ3PTP[LKH^HYLULZZVM[OLH]HPSHIPSP[`HUKILULÄ[ZVMNYLLU[LJO
ZVS\[PVUZJH\ZLZHKVW[LYZHUKLUK\ZLYZ[VJVU[PU\L^P[OJVU]LU[PVUHSWYHJ[PJLZ
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I`Z[H[LVÛLKLU[LYWYPZLZTH`YLK\JLLMÄJPLUJ`HUKSPTP[PUUV]H[PVU
TECHNOLOGY CHALLENGES
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FINANCING CHALLENGES
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*OPUHMVYYHPZPUNKLI[VYLX\P[`JHWP[HSHJYVZZ[OLSPMLJ`JSLVMNYLLU[LJOZVS\[PVUZ
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REGULATORY CHALLENGES
>OPSL*OPUH»ZYLN\SH[VY`LU]PYVUTLU[PZHJSLHYWVZP[P]LKYP]LYMVYJOHUNLYLN\SH[VY`
JOHSSLUNLZYLTHPU;OLJVTWSL_WVSPJ`LU]PYVUTLU[PZVM[LUKPMÄJ\S[[V\UKLYZ[HUK,]LU
[OV\NO[OLV]LYHSSKPYLJ[PVUVMNYLLU[LJOPUJLU[P]LZPZWVZP[P]LWV[LU[PHSPZZ\LZYLSH[LK
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VML_PZ[PUNLU]PYVUTLU[HSWVSPJPLZPZHSZVHUPZZ\LLZWLJPHSS`NP]LU*OPUH»ZZPaLYLNPVUHS
]HYPH[PVUZHUKKÙHTPJHSS`JOHUNPUNLJVUVT`-PUHSS`THYRL[WHY[PJPWHU[ZVM[LUOH]L

INTRODUCTION
SPTP[LK]PZPIPSP[`PU[VWVSPJ`ZWLJPÄJZHUK[PTPUNJVTWSPJH[PUN[OLPYI\ZPULZZKLJPZPVUZ
Clear opportunities exist for stakeholders to accelerate

greentech markets in China
FIVE KEY STAKEHOLDER GROUPS
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HUK V[OLY Z[HRLOVSKLYZ OH]L ZPNUPÄJHU[ YVSLZ [V WSH` PU [OL HJJLSLYH[PVU VM
NYLLU[LJOTHYRL[ZPU*OPUH
OVERALL OPPORTUNITIES
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PU]VS]PUNL]LY`Z[HRLOVSKLYNYV\W;OLZLHYL[VYHPZLKLJPZPVUTHRLYH^HYLULZZ
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LU]PYVUTLU[HSJVZ[ZPU[VJVU]LU[PVUHSZVS\[PVUWYPJPUNLUOHUJLNYLLU[LJOZRPSSZ
HUKJHWHIPSP[PLZHUKLUJV\YHNLJVSSHIVYH[PVUIL[^LLUJVTTLYJPHSNV]LYUTLU[HS
HUKUVUNV]LYUTLU[HSZ[HRLOVSKLYZ
SOLUTION ADOPTERS
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SOLUTION PROVIDERS
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FINANCIAL INVESTORS
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GOVERNMENT REGULATORS
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OTHER STAKEHOLDERS
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^V\SKUV[KPZJV\U[[OLYLHSWVZZPIPSP[`[OH[*OPUHLTLYNLZHZHUPUUV]H[VYPUTHU`
NYLLU[LJOTHYRL[Z^P[OPU[OLUL_[ZL]LYHS`LHYZ

DEFINING
CHINA’S GREENTECH MARKETS

DEFINING CHINA’S GREENTECH MARKETS
This report refines the term ‘greentech,’ provides a

map of China’s greentech markets, and defines a set of
greentech market sectors and segments
AS GREENTECH MARKETS ARE BOTH EMBRYONIC AND RAPIDLY CHANGING, there are few
standardized terms in use today. For example, the term greentech is commonly
described with alternatives such as cleantech, alternative energy and sustainable
practices.
In order to ensure a common language throughout this report, the Initiative

YL]PL^LK L_PZ[PUN KLÄUP[PVUZ VM NYLLU[LJOYLSH[LK JVUJLW[Z NH[OLYLK [OL ]PL^Z
of industry experts and solicited feedback from its partners and advisors. The
YLZ\S[PUN KLÄUP[PVUZ WYLZLU[LK PU [OPZ JOHW[LY HYL [OVZL \ZLK I` [OL *OPUH
.YLLU[LJO0UP[PH[P]L(KKP[PVUHSKLÄUP[PVUZJHUILMV\UKPU[OL.SVZZHY`
DEFINITION OF GREENTECH Greentech refers to technologies, products and services that deliver
benefits to users of equal or greater value than those of conventional
alternatives, while limiting the impact on the natural environment
and maximizing the efficient and sustainable use of energy, water
and other resources
China Greentech Market Map

A CRITICAL ELEMENT OF DEFINING CHINA’S GREENTECH MARKETS for the purposes of the
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-PN\YL;OLTHWPZJVTWYPZLKVMUPULIYVHKS`KLÄULKTHYRL[ZLJ[VYZHUK
focused segments across three broad categories – energy supply, resource use
and other markets. This map provides a common language to describe greentech
THYRL[ZPU*OPUHHUKHZ[Y\J[\YL[OH[OHZN\PKLK[OLYLZLHYJOWYVJLZZHUK[OL
organization of this report.
Fig. 1: THE CHINA GREENTECH MARKET MAP

ENERGY SUPPLY RESOURCE USE OTHER MARKETS
SECTORS
Cleaner Renewable Electric Power Green Cleaner Cleaner Clean Waste Sustainable
Conventional Energy Infrastructure Building Transportation Industry Water Management Forestry and
Energy Agriculture
Cleaner Solar Transmis- Optimized Cleaner Optimized Water Waste Sustainable

Coal Energy sion Design Road Design Extraction Collection Forest
Management
Cleaner Wind Distribution Sustainable Cleaner Rail Sustainable Water Waste
Oil Power Materials Materials Treatment Recycling Sustainable
Land
Cleaner Bioenergy Energy Energy Cleaner Air Efficient Water Energy Management
Gas Storage Efficiency Processing Distribution from Waste
SEGMENTS
Recovery Sustainable
Nuclear Hydropower Demand Water Cleaner Water Farming
Power Management Efficiency Waterway Use Waste Communities
Treatment
Wave Power Supply Wastewater Optimized
Flexibility Treatment Sustainable Crops
Waste
Geothermal Disposal
Energy LEGEND
Sectors covered in the report
Segments covered in the report
Sectors and segments not covered in the report
DEFINITIONS
THIS REPORT FOCUSES ON SEVEN CHINA GREENTECH MARKET SECTORS:
Cleaner Conventional Energy
Renewable Energy
Electric Power Infrastructure
Green Building
Cleaner Transportation
Cleaner Industry
Clean Water
>P[OPU [OL 9LUL^HISL ,ULYN` HUK *SLHULY 0UK\Z[Y` ZLJ[VYZ H YLWYLZLU[H[P]L

range of segments are covered. This choice of focus was made based on input
from partners and advisors, an understanding of the market opportunities,
and consideration of the Initiative’s available time and resources. Sectors and
segments not covered in this report should by no means imply a judgment on their
environmental or commercial potential.
Greentech Sectors and Segments

DEFINITIONS FOR EACH SECTOR COVERED IN THE CHINA GREENTECH REPORT are presented
ILSV^+\L[V[OLWHY[PJ\SHYSÌYVHKZJVWLVM[OL*SLHULY*VU]LU[PVUHS,ULYN`
9LUL^HISL,ULYN`HUK*SLHULY;YHUZWVY[H[PVUZLJ[VYZKLÄUP[PVUZMVYZLNTLU[Z
within these three sectors are also included. The report has subsequently been
VYNHUPaLKHSVUN[OLZLZWLJPÄJZLNTLU[SPULZ
CLEANER CONVENTIONAL *SLHULY *VU]LU[PVUHS ,ULYN` PZ KLÄULK HZ LULYN` KLYP]LK MYVT UVUYLUL^HISL
fossil fuel sources (e.g. coal, oil and natural gas) in ways which minimize the nega
ENERGY tive impact on the natural environment. This sector also includes nuclear power.
*SLHULYJVHSPUJS\KLZZVS\[PVUZZ\JOHZ*VHS:JYLLUPUNHUK:JY\IIPUN0U[LNYH[LK

.HZPÄJH[PVU *VTIPULK *`JSL 0.** HUK *HYIVU *HW[\YL HUK :LX\LZ[YH[PVU
**:
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=LU[PSSH[PVU(PY4L[OHULHUK5H[\YHS.HZ*VTIPULK*`JSL5.**
*SLHULY VPS PZ THKL \W VM ZVS\[PVUZ Z\JO HZ ,MÄJPLU[ 6PS ,_[YHJ[PVU >H[LY

9LPUQLJ[PVUHUK6W[PTPaLK9LZLY]VPY4HUHNLTLU[[OH[HSSV^ZVPS[VILL_[YHJ[LK
in ways which minimize negative impact on the natural environment
5\JSLHY WV^LY PZ LULYN` KLYP]LK ]PH JVU[YVSSLK U\JSLHY ÄZZPVU VM YHKPVHJ[P]L

materials at nuclear power plants
RENEWABLE ENERGY
Renewable Energy is produced from sources that are naturally replenishing,
Z\JOHZ:VSHY3PNO[>PUK>H]LZ<UKLYNYV\UK/LH[:\YMHJL>H[LY-SV^ZHUK
Biomass.
>PUK WV^LY PZ KLÄULK HZ LSLJ[YPJ LULYN` NLULYH[LK MYVT ^PUK \ZPUN 7V^LY

Generation Turbines
Solar energy consists of thermal or electric energy derived from solar light using

7OV[V]VS[HPJ*LSSZ*VUJLU[YH[PUN:VSHY0UZ[HSSH[PVUZVY:VSHY>H[LY/LH[LYZ
Bioenergy is thermal or electric energy produced from biomass, and includes

ZVS\[PVUZZ\JOHZ)PVL[OHUVS)PVKPLZLS)PVNHZHUK)PVTHZZ*VTI\Z[PVU

DEFINING CHINA’S GREENTECH MARKETS
ELECTRIC POWER ,SLJ[YPJ 7V^LY 0UMYHZ[Y\J[\YL YLMLYZ [V ¸ZTHY[¹ LSLJ[YPJ NYPKZ HUK UL[^VYRZ
supported by IT applications, which deliver power to users on demand in an
INFRASTRUCTURE LMÄJPLU[HUKYLSPHISL^H`MYVTHIYVHKYHUNLVMNLULYH[PUNZV\YJLZ
GREEN BUILDING Green Building covers planning, building and operating solutions that are more
Z\Z[HPUHISL LMÄJPLU[ HUK OLHS[O` [OHU JVU]LU[PVUHS ZVS\[PVUZ MVY HU LX\P]HSLU[
level of comfort and service. Solutions include Integrated Design, Sustainable
4H[LYPHSZ,ULYN`,MÄJPLU[(WWSPHUJLZHUK)\PSKPUN(\[VTH[PVU
*SLHULY ;YHUZWVY[H[PVU PZ KLÄULK HZ ZVS\[PVUZ [OH[ PUJYLHZL LULYN` LMÄJPLUJ`
CLEANER TRANSPORTATION
reduce emissions and improve resource utilization to minimize the negative impact
of transportation on the environment.
*SLHULY YVHK [YHUZWVY[H[PVU PUJS\KLZ 4VYL ,MÄJPLU[ ,UNPULZ *SLHULY -\LSZ

Alternative Vehicle Energy Systems, as well as comprehensive road network
planning and development
*SLHULY YHPS [YHUZWVY[H[PVU YLMLYZ [V ,ULYN` ,MÄJPLU[ ;YHPUZ ,SLJ[YPÄJH[PVU VM

9HPS^H`ZHUK6W[PTPaLK9HPS^H`6WLYH[PVUZ4HUHNLTLU[
*SLHULY HPY [YHUZWVY[H[PVU PUJS\KLZ -\LS ,MÄJPLU[ (PYJYHM[ ^LSS WSHUULK HUK

JVUZ[Y\J[LKHPYWVY[PUMYHZ[Y\J[\YLHUK6W[PTPaLK(PY;YHMÄJ4HUHNLTLU[
*SLHULY^H[LY^H`[YHUZWVY[H[PVUJV]LYZ-\LS,MÄJPLU[:OPWZ^LSSWSHUULKHUK

JVUZ[Y\J[LK^H[LY^H`PUMYHZ[Y\J[\YLHUK6W[PTPaLK>H[LY;YHMÄJ4HUHNLTLU[
*SLHULY0UK\Z[Y`LUJVTWHZZLZWYHJ[PJLZ[OH[PUJYLHZLLULYN`LMÄJPLUJ`YLK\JLHPY
CLEANER INDUSTRY and water pollution and decrease the amount of solid waste produced by industrial
HJ[P]P[PLZ :VS\[PVUZ PUJS\KL VUZP[L *VTIPULK /LH[ HUK 7V^LY */7 ,ULYN`
,MÄJPLU[4V[VYZ-S\L.HZ+LZ\SM\YPaH[PVU-.+Z`Z[LTZHUK7YVJLZZ9LKLZPNU
CLEAN WATER *SLHU >H[LY PZ KLÄULK HZ [OL JVSSLJ[P]L Z\T VM HJ[P]P[PLZ ^P[OPU [OL LJVUVTPJ
water cycle – water extraction, water treatment, water distribution, water use and
wastewater treatment. Solutions include Water Treatment Technologies, Water
8\HSP[`4LHZ\YLTLU[HUK4VUP[VYPUN

CHINA’S
MARKET CONTEXT

MARKET CONTEXT
China’s three decades of dynamic economic growth

have created a colossal and resilient economy at
significant cost to the environment. However, as the
country increasingly adopts greentech solutions, the
signs of a green transformation are beginning to emerge.
THE UNPRECEDENTED SCALE OF CHINA’S ECONOMIC DEVELOPMENT over the past three
decades has resulted in both positive and negative consequences. While the living
standards of hundreds of millions of people have improved, China’s ecosystems
OH]LZ\MMLYLKMYVTZPNUPÄJHU[LU]PYVUTLU[HSKHTHNL-VY*OPUH[VJVU[PU\LVU
this path of rapid economic growth, it will need to take deliberate steps towards
improving the sustainability of its economic activities. There is ample evidence that
both national and international stakeholders are rallying to support opportunities
for this new transformation to an environmentally sustainable China.
China’s Three Decades of Transformation

IN JUST A LITTLE OVER 30 YEARS, since the Deng Xiaoping-led government adopted
“Reform and Opening Up” policies in December 1978, China has undergone an
economic transformation unlike anything the world has seen before. Economic
HUKWVSP[PJHSKL]LSVWTLU[ZK\YPUN[OPZWLYPVKOH]LZVSPKPÄLK*OPUH»ZZ[H[\ZHZH
major world power, particularly in trade and international affairs.
FORMIDABLE ECONOMIC GROWTH

China’s economic output (real GDP) has grown on average 10% annually since the
late 1970s. This led China to double the size of its economy every seven to eight
years and resulted in its current GDP being sixteen times the size it was in 1978.
China’s economy is currently the world’s third largest, behind the U.S. and Japan.
Most analysts predict that China will replace Japan as the world’s second largest
LJVUVT`ZLL-PN\YLPU[OLULHY[LYTM\[\YL
Section 1. CHINA’S THREE DECADES OF TRANSFORMATION

Fig .1: CHINA’S GROSS DOMESTIC PRODUCT (GDP)
China Real GDP, 1978-2008 Nominal GDP by Leading Countries, 2008
2005 Trillion US$, Official Exchange Rate Trillion US$, Official Exchange Rates
3.5
World Total 60.7
3.0
2.5 x2 United States 14.3
2.0 Japan 4.9
1.5 China 4.4
x2
1.0 Germany 3.7
x2 France 2.9
0.5
x2 United Kingdom 2.7
0.0
1980 1985 1990 1995 2000 2005 2010
Italy 2.3
Source: US Department of Agriculture,"International Macroeconomic Source: International Monetary Fund, "World Economic Outlook
Data Set" Database April 2009 Edition"

CHINA’S THREE DECADES OF TRANSFORMATION
The country’s rapid economic growth has been led by fast-paced industrialization,
starting with light industry (e.g., textiles, clothing and footwear) in the 1980s,
and propelled by heavy industry (e.g., metallurgy, chemicals and machinery)
V]LY[OLSHZ[KLJHKL;OLV\[W\[VM*OPUH»ZOLH]`PUK\Z[Y`HZPNUPÄJHU[WHY[VM
which is exported, has grown particularly fast since 2001, the year China joined
the World Trade Organization. This growth has resulted in China becoming the
world’s leading producer and consumer of a wide range of basic materials and
[YHKHISL JVTTVKP[PLZ -VY L_HTWSL *OPUH WYVK\JLZ V]LY OHSM VM [OL ^VYSK»Z
JLTLU[HUKVUL[OPYKVM[OL^VYSK»ZZ[LLSHUKHS\TPU\TZLL-PN\YL1 In terms
of consumption, China is the world’s largest consumer of rice, cotton, steel,
aluminum, copper, nickel and tin.
Fig .2: SELECTED INDUSTRIAL PRODUCTION BY CHINA AND LEADING COUNTRIES, 1980-2007, Megatons
Crude Steel Production Primary Aluminum Production
500 China 15
China
400
10
300
200 Japan
5 FSU/Russia
U.S.
100 U.S.
FSU/Russia
India India
0 0 Japan
1980 1985 1990 1995 2000 2005 1980 1985 1990 1995 2000 2005
Cement Production Ammonia Production
1,500
China
60
50 China
1,000
40
30
500 FSU/Russia
India 20
U.S. India
Japan 10 U.S.
0 FSU/Russia Japan
1980 1985 1990 1995 2000 2005 0
1980 1985 1990 1995 2000 2005
Source:Lawrence Berkeley National Laboratory, "China Energy Databook Version 7.0"
Not surprisingly, China’s economic growth has fueled its demand for energy.
Between 1978 and 2006, China’s primary energy consumption grew an average
of 6% per year, compared to the world average of 2%. This growth accelerated
after 2000, increasing to over 10% per year and doubling China’s primary energy
consumption between 2000 and 2006 alone.2,3 China is now the second largest
consumer of energy in the world, behind the U.S. In 2006, it was responsible for
VMNSVIHSLULYN`JVUZ\TW[PVUHÄN\YL[OH[JVU[PU\LZ[VNYV^ZLL-PN\YL0[
is the largest consumer of coal and the second largest consumer of crude oil.
RADICAL IMPROVEMENTS TO LIVING STANDARDS

This tremendous economic growth has led to radical improvements in the living
standards of Chinese citizens. Given that China’s population grew by only 35% in
the last three decades while its economy experienced a sixteen-fold increase in
overall GDP, per capita income increased ten-fold.
:PUJL[OL ZWV]LY[`PU*OPUHOHZILLUYLK\JLKZPNUPÄJHU[S`(JJVYKPUN[V
the World Bank, while 84% of China’s population lived on less than US$1.25 per
KH`PU [OPZU\TILYOHKMHSSLU[VI`ZLL-PN\YL4 Hundreds of
millions of people have been lifted out of poverty by China’s economic development
in half a generation.

MARKET CONTEXT
Fig .3: PRIMARY ENERGY CONSUMPTION BY LEADING COUNTRIES, 2006

Quadrillion BTU
World Total 472
United States 100

China 74
Russia 30
Japan 23
India 18
Germany 15
Canada 14
Source: The World Bank, Poverty Data: A Supplement to World Development Indicators 2008
(Washington DC, U.S.: World Bank, 2008)
In addition to poverty reduction, overall living standards have improved markedly.

China’s United Nations Human Development Index (HDI), which is a measure of
health, education
Fig 3. PRIMARY and income, increased
ENERGY CONSUMPTION BY LESDING from 0.53 to 0.78 between 1975 and 2005,
HUPTWYV]LTLU[VMV]LYZLL-PN\YL0U
COUNTRIES,2006,MILLION TONS OIL EQUIVALENT [OPZZJVYLULHYS`X\HSPÄLK
*OPUH MVY [OL <5 KLÄUP[PVU VM ¸SV^ O\THU KL]LSVWTLU[¹ HZZPNULK [V YV\NOS`
one-third of the world’s countries with the lowest scores. In 2005, however, China
OHKJVTLJSVZL[V[OL<5»ZKLÄUP[PVUVM¸OPNOO\THUKL]LSVWTLU[¹HZZPNULK[V
roughly one-third of the world’s countries with the highest scores.
Between 1975 and 2005, China’s life expectancy at birth increased from 66
to 76 years and from 64 to 72 years, for females and males respectively.5 Public
spending on healthcare increased nearly fourteen-fold (constant dollars) between
1978 and 2006, and access to education (i.e. literacy rates and number of years in
school) has improved dramatically.6(Z[OL<UP[LK5H[PVUZ+L]LSVWTLU[7YVNYHT»Z
China Human Development Report 2007/08 points out, “China’s population is
wealthier, better educated and healthier than it has ever been.”7
Fig .4: IMPROVEMENT OF LIVING STANDARDS IN CHINA
Share of Population Living on Less than United Nations Human Development Index, 1975-2005
US$1.25 per Day (PPP 2005), 1981-2005, % Index
84%
0.78
69% 0.73
0.69
60% 0.63
0.60 + 47%
54% 54% 0.53 0.56
- 68%
36% 36%
28%
16%
1981 1984 1987 1990 1993 1996 1999 2002 2005 1975 1980 1985 1990 1995 2000 2005
Source: The World Bank, Poverty Data: A Supplement to World Development Source: United Nations Development Programme, Human Development
Indicators 2008 (Washington DC, U.S.: World Bank, 2008) Report 2007/2008 (New York, NY, USA: Palgrave Macmillan), 235
1
Lawrence Berkley National Laboratory, “China Energy Databook Version 7.0” Tables 9B.13-15
2
Energy Information Administration, "International Energy Annual 2006" Table E.1
3
At the time of writing this report, energy data as reported by the Energy Information Administration for 2006 was the latest available,
published in 2008; the update was scheduled to be released later in 2009
4
Measured on Purchasing Power Parity basis in 2005 US$
5
Watkins, Kevin, China Human Development Report 2007/08 (Beijing, China: United Nations Development Program and China Translation
and Publishing Group Corporation, 2008), 6
Fig .5: PROPORTION OF POPULATION IN URBAN AND RURAL AREAS IN CHINA, 1975-2005, %
CHINA’S THREE DECADES OF TRANSFORMATION
Fig .5: PROPORTION OF POPULATION IN URBAN AND RURAL AREAS IN CHINA, 1975-2005, %
100%
64% 60%
73% 69%
Rural 83% 80% 77%
36% 40%
27% 31%
Urban 17% 20% 23%
1975 1980 1985 1990 1995 2000 2005
Source: United Nations, "World Urbanization Prospects: The 2007 Revision Population Database"
One key factor driving the improvement of living standards in China has been
massive urbanization – the migration of people from rural to urban areas. Between
1975 and 2005, the percentage of the population that live in urban areas rose from
[VZLL-PN\YLL_WHUKPUN[OL\YIHUWVW\SH[PVUIÙLHYS`TPSSPVU
Cumulative household consumption has also grown dramatically across the

country, at a pace just under that of GDP growth – over 8% per year on average
for 30 years.8 China is quickly emerging as a major market for home appliances,
consumer electronics, mobile telecommunications, internet service, real estate,
air travel and private vehicles sales.
RESILIENT ECONOMY
,_WVY[SLKNYV^[OHUK[LTWLYLKÄZJHSWVSPJPLZOH]LHSSV^LK*OPUH[VHJJ\T\SH[L
[OLSHYNLZ[MVYLPNUL_JOHUNLYLZLY]LZPU[OL^VYSK(ZVM4H` *OPUHOHKV]LY
US$2,000 billion in reserves, representing nearly 30% of total foreign exchange
YLZLY]LZOLSK^VYSK^PKLZLL-PN\YL;OLZWLLKH[ÔPJO*OPUHHJJ\T\SH[LK
these reserves is equally astounding, as the total amount stood at less than
US$200 billion in 2000, merely one-tenth the present level.9
(Z [OL NSVIHS LJVUVTPJ JYPZPZ ILJHTL HWWHYLU[ PU [OL MHSS VM *OPUH»Z
government acted quickly, announcing a four trillion yuan (US$586 billion)
economic stimulus package in November to be spent over two years. This
became the second largest stimulus package in the world, following the US$787
IPSSPVU(TLYPJHU9LJV]LY`HUK9LPU]LZ[TLU[(J[(ZHWLYJLU[HNLVM.+7[OV\NO
China’s stimulus package was the largest in the world.
Fig .6: FOREIGN EXCHANGE RESERVES BY LEADING COUNTRIES, MAY 2009, Billion US$
World Total 7,471
China 2,132
Japan 1,057
European Union 685
Russia 401
Saudi Arabia 395
Taiwan 313
India 265
Source: Wikipedia, “List of Countries by Foreign Exchange Reserves,”

http://www.wikipedia.com/ (accessed on August 10, 2009)
6
Ibid., 15
7
Ibid., 1
8
National Bureau of Statistics of China, "China Statistical Yearbook 2008," The China Greentech Initiative analysis
9
The People’s Bank of China, “Gold and Foreign Exchange Reserves, 2000,” http://www.pbc.gov.cn/ (accessed on August 18, 2009)

MARKET CONTEXT
( JVTIPUH[PVU VM WVSPJPLZ HPTLK H[ Z[PT\SH[PUN [OL LJVUVT` HWWLHYZ [V
have helped China maintain fast economic growth this year, outperforming the
expectations of many analysts. China announced that the economy grew at 7.1%,
`LHYV]LY`LHYPU[OLÄYZ[OHSM 10([[OL[PTL[OL0U[LYUH[PVUHS4VUL[HY`-\UK
04-OHKMVYLJHZ[*OPUH»ZLJVUVT`[VNYV^PU[V[HSMVY ÔPSLHU[PJPWH[PUN
a worldwide contraction of 1%. China’s growth is projected to reach 9% in 2010
ZLL-PN\YL
Fig .7: REAL GDP GROWTH FORECASTS BY THE INTERNATIONAL MONETARY FUND FOR
SELECTED COUNTRIES, 2009-10, %
2009 2010
World -1% 3%
China 8% 9%
India 5% 7%
Brazil -1% 3%
United States -3% 1%
United Kingdom -4% 0%
Italy -5% -0%
Japan -6% 2%
Germany -6% -1%
Russia -7% 2%
Source: International Monetary Fund, "World Economic Outlook Update, July 2009"
Environmental Cost of China’s Economic Growth

CHINA’S RAPID ECONOMIC DEVELOPMENTOHZZPNUPÄJHU[S`PTWHJ[LK[OLLU]PYVUTLU[
FORMATION While this is not dissimilar to what has happened in other countries that have
undergone industrialization, the scale and pace at which it has happened in China
8: CHINA’S COLOSSAL SCALE has caused the rest of the world to take notice. China has the unenviable task of
ons China Generating Capacity Increase 2008 Compared
balancing improvements in the welfare and living standards of its people with the
to Total Capacity of Selected Countries, 2006, GW
need to protect and nurture the natural environment. Key natural resources (e.g.
air, water and land) are compromised by pollution and overuse, thereby impacting
China capacity human health
18.0 90.5 and jeopardizing renewal of resources. These results reveal the
increase, 2008 unsustainability of former practices and dramatically reinforce the urgent need for
rapid change.
.3 United Kingdom 78.7
Italy
POLLUTED
78.2
AIR
(Z JVUJLYUZ V]LY NSVIHS JSPTH[L JOHUNL OH]L PUJYLHZLK *OPUH OHZ ILJVTL H
Total capacity, 2006
Spain 71.2
MVJHSWVPU[MVYSLHKLYZPU[OLÄLSKVMLU]PYVUTLU[HSWYV[LJ[PVU0UMHYHOLHKVM
South Korea international
64.2 forecasts, China emerged as the world’s largest emitter of greenhouse
gases (GHGs), overtaking the U.S. (S[OV\NO*OPUH»ZWLYJHWP[H./.LTPZZPVUZHYL
Ukraine 53.5
still low relative to most developed countries, in aggregate, China is responsible
Mexico MVYV]LYVM[OL[V[HS./.ZYLSLHZLKPU[V[OLH[TVZWOLYLHUU\HSS`ZLL-PN\YL
51.1
Australia
9).11(ZPU[LYUH[PVUHSLMMVY[Z[VZSV^KVÛHUKL]LU[\HSS`YL]LYZL./.LTPZZPVUZ
49.5
increases continue, China is expected to play a central role.
Iran 44.4
Taiwan 41.8 On the surface, the magnitude of China’s GHG emissions may seem surprising,
particularly given the size of its economy, which is only one-third that of the United
Sources: States. However, key differences between China and the U.S., such as the role
ographical 1. Energy Information Administration, “InternationalPUK\Z[YPHS WYVK\J[PVU WSH`Z PU [OL LJVUVT` HUK LULYN` LMÄJPLUJ` SL]LSZ L_WSHPU
Energy Statistics”
2008) Table 6.4
sion
why. Industrial
2. Xinhua, "China's Installed Power Capacity Increase 10%,"
production, which is inherently more GHG intensive than services or
January 11, 2009, http://english.people.com.cn/ agriculture, accounts for over 50% of China’s GDP compared to just 25% in the U.S.
12
This is due in part to China’s role as the world’s leading producer of manufactured
goods, a large proportion of which is exported and consumed overseas. China also
OHZSV^LYLULYN`LMÄJPLUJ`[OHU[OL<:HJYVZZTVZ[PUK\Z[YPHSZLJ[VYZ
10
National Bureau of Statistics of China, “China's Economy Stabilized with a Better Performance Trend While Its Upturn Yet to
Consolidate,” July 17, 2009, http://www.stats.gov.cn/
11
Xinhua, "China's Installed Power Capacity Increases 10%," January 11, 2009, http://english.people.com.cn/
12
Energy Information Administration, "International Energy Annual 2006" Table 6.4

ENVIRONMENTAL COST OF CHINA'S ECONOMIC GROWTH Fig .7: REAL GDP GROWTH FOREC
SELECT
World
CHINA’S COLOSSAL SCALE
It is essential to understand the scale at which China operates China
India
Representing 7% of the world’s land mass by representing the largest building stock in the world. Brazil
HYLH*OPUHPZOVTL[VULHYS`VULÄM[OVM[OL^VYSK»Z ;OPZ PZ TVYL [OHU [^PJL [OL ÅVVY ZWHJL MV\UK PU [OL
United States
WVW\SH[PVU([Q\Z[V]LYIPSSPVUWLVWSLP[ZWVW\SH[PVU U.S.
United Kingdom
is nearly twice that of the United States and Western Economically, the output of just one of China’s
Italy -5
Europe combined. Six of China’s provinces are home provinces, Guangdong, is greater than that of Norway,
Japan -6%
to more than 65 million people each, making them :H\KP(YHIPHVY0UKVULZPH
Germany -6%
comparable in population to large European countries Each year, China installs electricity generation
Russia -7%
Z\JOHZ[OL<2-YHUJLHUK0[HS` capacity beyond the total capacity of countries such
HZ[OL<20[HS`VY:V\[O2VYLHZLL-PN\YL0UMHJ[
Source: International Monetary Fund, "W
Each year, more than 18 million people migrate from at the present pace of installation, it would take China
rural to urban areas in China, which is more than the just three years to build new capacity equivalent to
national population of Greece, Belgium or Portugal that which currently exists in Japan or Russia, two
ZLL-PN\YL VM [OL Ä]L SHYNLZ[ WV^LY NLULYH[PUN JV\U[YPLZ PU [OL
China maintains over 40 billion square meters of world.13,14
YLZPKLU[PHS JVTTLYJPHS HUK PUK\Z[YPHS ÅVVY ZWHJL
Fig .8: CHINA’S COLOSSAL SCALE
China Yearly Migration Ccompared to Populations China Generating Capacity Increase 2008 Compared
of Selected Countries, 2005, Millions to Total Capacity of Selected Countries, 2006, GW
China China capacity

18.0 90.5
migration, 2005 increase, 2008
Netherlands 16.3 United Kingdom 78.7

Greece 11.1 Italy 78.2
Total populations, 2005
Total capacity, 2006
Belgium 10.4 Spain 71.2

Portugal 10.5 South Korea 64.2
Sweden 9.0 Ukraine 53.5
Switzerland 7.4 Mexico 51.1
Israel 6.7 Australia 49.5
Singapore 4.3 Iran 44.4
New Zealand 4.1 Taiwan 41.8
Sources: Sources:
1. Chan, Kam Wing, Internal Labor Migration in China: Trends, Geographical 1. Energy Information Administration, “International Energy Statistics”
Distribution and Policies (Seattle, U.S.: University of Washington, 2008) Table 6.4
2. United Nations, "World Urbanization Prospects: The 2007 Revision 2. Xinhua, "China's Installed Power Capacity Increase 10%,"
Population Database" January 11, 2009, http://english.people.com.cn/
-PUHSS`*OPUHYLSPLZOLH]PS`VUJVHSHZP[ZWYPTHY`LULYN`ZV\YJL*VHSHJJV\U[ZMVY
over 70% of China’s primary energy supply, compared to the world average of less
[OHU HUK L]LU SLZZ MVY [OL <: ZLL -PN\YL *OPUH JVU[PU\LZ [V PUJYLHZL
P[ZJVHSÄYLKWV^LYNLULYH[PVUJHWHJP[Ì`HULX\P]HSLU[VM[^V4>WSHU[ZWLY
week.15 Coal is a highly GHG intensive fuel source, emitting nearly twice the CO2 of
natural gas and about one-third more than oil in delivering one unit of energy.16 In fact,
over 80% of China’s CO2 emissions from energy use come from burning coal.17
(WHY[MYVTNYLLUOV\ZLNHZLZ*OPUH»ZHPYX\HSP[`Z\MMLYZMYVTV[OLYWVSS\[HU[Z
[OH[OH]LTVYLPTTLKPH[LLMMLJ[ZVUO\THUOLHS[O(JJVYKPUN[V[OL>VYSK)HUR»Z
13
The statistics presented in the Figure accounts for CO2 emission from consumption of coal, oil and natural gas only and do not include
other GHG emissions, such as those from deforestation and industrial processes. This data is often used as proxy to analyze trends and
relative emissions between countries due to greater reliability and consistency.
14
Zhou, Nan, Energy Use in China: Sectoral Trends and Future Outlook (Oakland, CA, U.S.: Lawrence Berkeley National Laboratory, 2008),
10, 28
15
Energy Information Administration, "International Energy Annual 2006" Table 6.4t
16
BP, "BP Statistical Review of World Energy June 2009"
17
Ibid; The China Greentech Initiative analysis

MARKET CONTEXT
latest ranking of over 100 large cities by particulate matter pollution worldwide,
17 of the 25 most polluted cities in 2004 were located in China. Particulate matter
are small particles or liquid droplets suspended in the air, some of which are small
enough to pass through the human nose and throat into the lungs, and in large
quantities cause serious damage to the heart and lungs. Data in the same study,
sourced between 1995 and 2001, revealed that six of the world’s seven cities
with the highest sulfur dioxide air concentration were located in China. Sulfur
dioxide exacerbates human respiratory and heart illnesses and contributes to the
formation of acid rain, which can damage crops, buildings, soil and water.18,19
Section 2. ENVIRONMENTAL COST OF CHINA’S ECONOMIC GROWTH
Fig .9: CO EMISSIONS FROM COMSUMPTION OF COAL, OIL AND NATURAL GAS
2
China and the U.S., 1980-2008, Megatons per Year Leading Countries, 2008, Megatons per Year
8,000
World Total 31,578
7,000
United States
6,000
China 6,897
5,000
United States 6,371
4,000
China
Russia 1,690
3,000
India 1,419
2,000
Japan 1,391
1,000
Germany 858
0
1980 1985 1990 1995 2000 2005 2010 South Korea 664
Note: This statistics does not include CO2 emitted from sources other than coal, oil or natural gas and non-CO2 greenhouse gases
Source: BP, "BP Statistical Review of World Energy June 2009"
STRAINED WATER RESOURCES

In addition to air pollution, China faces the dual problem of water scarcity and
water pollution. China, with 20% of the world’s population, has less than 7% of the
world’s fresh water resources, which come from surface rivers and Fig .11b: INDUSTRIAL WATER PRO
groundwater
Fig .11: TOTAL WATER WITHDRAWAL BYsources
LEADING that are now
COUNTRIES, in decline.
2000, Billion m3
20
Driven
/ year predominantly by a large population,BillionitUS Dollars per Cub
PZ[OLZLJVUKSHYNLZ[^H[LYJVUZ\TLYPU[OL^VYSKILOPUK0UKPHZLL-PN\YL
(JJVYKPUN [V *OPUH»Z 5H[PVUHS )\YLH\ VM :[H[PZ[PJZ *OPUH»Z ^H[LY YLZV\YJLZ MLSS
World Total I`HZT\JOHZIL[^LLUHUKHSVULZLL-PN\YL;OPZPZK\LPU
3,810 India 3.4
part to the increased frequency of severe droughts, which some have attributed China 3.7
India
to changing climate
646
conditions. During the winter of 2004-2005, Southern China 9.7
United States
suffered from what local authorities called the worst drought in 50 years.21 Later,
Francein 14.5
China 617
the winter of 2008-2009, Beijing experienced its longest drought since 1971.22
United States 477 Brazil 22.5
Germany 23.4
Pakistan 169One of the main reasons China experiences such a high water demand is that
United Kingdom
[OL JV\U[Y` [LUKZ [V \ZL ^H[LY YLZV\YJLZ PULMÄJPLU[S` 5LHYS` [^V[OPYKZ VM HSS 47.3
Iran 93
Japan
water drawn in China is used in the agricultural sector, which is highly fragmented.
Japan 88
Denmark
0UTVZ[JHZLZPYYPNH[PVUZ`Z[LTZHYL]LY`PULMÄJPLU[^P[OVUS`VM[OL^H[LY
Thailand 87 drawn actually reaching the crops.23 Industry accounts for one-quarter of China’s
water withdrawal. Similarly, water productivity in China – which is a measure of the
Source: Food and Agriculture Organization of the United Nations, Aquastat Database, Source: 2. United Nations World Water Assessment Programm
http://www.fao.org (accessed August 2009)
]HS\LVMV\[W\[JYLH[LKWLYVUL\UP[VM^H[LY\ZLK¶^HZPUÄ]L[PTLZSV^LY
- The United National Water Development Report 2, 2006, 3
than that of Germany, and remarkably, nearly 30 times lower than that of Japan or
+LUTHYRZLL-PN\YL;OPZPZK\LUV[VUS`[V*OPUH»ZSV^LY^H[LYYLJ`JSPUNYH[L
HUKV]LYHSSSV^LY^H[LY\ZLLMÄJPLUJÌ\[HSZV[OLKVTPUHU[YVSLVMOLH]`PUK\Z[Y`
-\Y[OLYTVYL*OPUHMHJLZ[OLKPMÄJ\S[`VMNLVNYHWOPJKPZWHYP[`HZULHYS`VM
P[ZZ\YMHJL^H[LYYLZV\YJLZHYLJVUJLU[YH[LKPU[OL:V\[O(ZHYLZ\S[5VY[OLYU
China is faced with the issue of overexploited groundwater resources.
18
World Bank, World Development Indicators 2007 (Washington DC, U.S.: World Bank, 2008), 174-175
19
Environmental Protection Agency, "Six Common Air Pollutants" (accessed on August 18, 2009)
20
China Internet Information Center, "Efforts to Protect and Save Water Resources," March 23, 2009, http://www.china.org.cn/
21
United States Department of Agriculture, "Recent Rain Eases Drought in Southern China," March 10, 2005, http://www.fas.usda.gov/
22
China Economic Net, "No Rain in Beijing for 100 Days," February 4, 2009, http://en.ce.cn/
23
Xie, Jian, Addressing China's Water Scarcity: Recommendations for Selected Water Resource Management Issues
(Washington DC: U.S.: The World Bank, 2009)

ENVIRONMENTAL COST OF CHINA'S ECONOMIC GROWTH
Fig .10 CHINA’S PRIMARY ENERGY MIX COMPARED TO THE U.S. AND
WORLD TOTAL, 2007, % of Total Energy Consumption
Fig .11: TOTAL W

70.4%
Coal 24.0%
28.5% China World
19.5% U.S.
Oil 39.4% World
35.1%
5.9% United
Hydro 2.4% Pa
6.2%
3.4%
Gas 24.9% Th
23.6%
Source: Food and Agricul
0.8%
Nuclear 8.0%
5.5%
0.1%
Other 1.3%
1.1%
Note: “Other” includes electric power generated from geothermal, solar, wind, and wood
and waste sources
Sources:
1. BP, “BP Statistical Review of World Energy June 2009”
2. Energy Information Administration, “International Energy Annual 2006” Table F.8
3. The China Greentech Initiative analysis
Fig .11: TOTAL WATER WITHDRAWAL BY LEADING COUNTRIES, 2000

Billion Cubic Meters per Year
World Total 3,810
India 646
China 617
United States 479
Pakistan 169
Iran 93
Japan 88
Thailand 87
Source: Food and Agriculture Organization of the United Nations, "AQUASTAT"

MARKET CONTEXT

Fig .12: CHINA WATER RESOURCES, 2000-07, Billion Cubic Meters
Surface Water Resources Groundwater Resources
2,724 870
2,698
2,656 850
2,625 839
2,593 830
-9% 809 -10%
2,436 2,424
764 762
2,313 744
2000 2001 2002 2003 2004 2005 2006 2007 2000 2001 2002 2003 2004 2005 2006 2007
Note: Duplicated measurement between surface water and groundwater was not accounted for in this analysis
Source: National Bureau of Statistics of China, "China Statistical Yearbook 2008" Table 11-17
>H[LYWVSS\[PVUPZHULX\HSS`SHYNLJVUJLYU(JJVYKPUN[V.YLLUWLHJLVM
China’s rivers, lakes and reservoirs are seriously impacted by water pollution and
are “not safeFig .13: INDUSTRIAL
for humans WATER
to use.” 24
PRODUCTIVITY, 2001, Billion
Pollutants originate from US$
pointper Cubic Kilometer
sources, such
N IN CHINA’S RIVER BASINS BY GRADE, 2005, % as industrial and municipal discharges, as well as non-point sources, such as
fertilizers that seep into water reservoirs via the soil. Industrial and domestic water
5% 3%
14%
users discharge over 50 billionIndia 3.4
tons of wastewater annually into China’s rivers,
14% 17%
19% lakes and reservoirs.25 Pollution is
China a particularly
3.7 acute problem in China’s major
% 5% 16%
55% rivers in the North, such as the Hai, Huai and Liao rivers, where over one third of
18% United States 9.7
38% the water is so polluted it cannot be used for any purpose, including industrial or
6% 22% 14.5
%
45% France
HNYPJ\S[\YHS\ZLZZLL-PN\YL:[\KPLZOH]LZOVÛJSLHYSPURZIL[^LLU*OPUH»Z
8% level of water quality and the incidence
Brazil of human
22.5illness, such as diarrhea, typhoid,
13%
21% and cancer of the stomach, liver and bladder.26
12% 54% Germany 23.4
40%
32%
% 18%
19% LAND DEGRADATION
United Kingdom 27.3
6% 0% Land degradation and contamination is another environmental issue facing China.
Japan 119.6
ow Pearl Songhua Huai Hai Liao Between 1957 and 1990, the area of arable land in China was reduced by 35
er River River River River River Denmark
TPSSPVUOLJ[HYLZ;OPZPZLX\P]HSLU[[V[OLH]HPSHISLJYVWHYLHZVM+LUTHYR-YHUJL 138.6
des by Standard Application: Germany and The Netherlands combined.27 +LZLY[PÄJH[PVU PZ H THQVY MVYJL [OH[
continues to threaten arable land in China, particularly in the North, with deserts
odies and national nature reserves Source: United Nations Industrial Development Organization, Water: A Shared Responsibility (New York,
r centralized drinking supply (Class A)
already accounting for 18% of the country’s land area.28
NY, U.S.: United Nations Industrial Development Organization, 2006)
or centralized drinking supply (Class B)
r general industrial water supply (S[OV\NO*OPUHOHZ[HRLUZ^LLWPUNTLHZ\YLZ[VYH[PVUHSPaLHUKJVU[YVSZVSPK
aggricultural water supply
d for any purpose ^HZ[LTHUHNLTLU[P[YLTHPUZHRL`PZZ\L>HZ[LSHUKÄSSZHYLNYV^PUNH[HSHYTPUN
rates, resulting in land contamination and posing risks to human health. It is
Challenges (Nottingham, U.K.: The University of LZ[PTH[LK[OH[VMZVSPK^HZ[LPU*OPUHPZSHUKÄSSLK296MULHYS`VMÄJPHS
SHUKÄSSZ[OH[HYLJ\YYLU[S`PU\ZLVYHSYLHK`JSVZLKPU*OPUHHSTVZ[OHSM^LYLMV\UK
ity Management-Policy and Institutional Considerations
, 2006), 8
[VUV[JVTWS`^P[O*OPUH»ZVÛ,U]PYVUTLU[HS0TWHJ[(ZZLZZTLU[Z[HUKHYKZ30 In
YLZLHYJOLYZH[[OL<:,U]PYVUTLU[HS7YV[LJ[PVU(NLUJ`,7(LZ[PTH[LK
[OH[ VUS` VM *OPUH»Z SHUKÄSSZ ^LYL Z\MÄJPLU[S` ZHUP[HY` [V JVUMVYT [V <:
standards, nearly 40% did not conform to such standards and over 50% were
open dumps.31
0TWYVWLYS`THUHNLKSHUKÄSSZSLHK[VHYHUNLVMLU]PYVUTLU[HSWYVISLTZ;OL`
create groundwater pollution as dissolved solids, nitrate nitrogen, ammonia
24
Greenpeace, “China’s Water Crisis,” http://www.greenpeace.org/ (accessed on August 20, 2009)
25
National Bureau of Statistics of China, "Statistical Yearbook 2008;" The China Greentech Initiative analysis
26
Xie, Jian, Addressing China's Water Scarcity: Recommendations for Selected Water Resource Management Issues (Washington DC,
U.S.: The World Bank, 2009), 19
27
Global Environment Facility and International Fund for Agricultural Development, Tackling Land Degradation and Desertification (U.S.
and Italy: Global Environment Facility and International Fund for Agricultural Development, 2002), 2
28
The Walrus, “The Chinese Dust Bowl,” http://www.walrusmagazine.com/ (accessed on August 15, 2009)
29
Robinson, A. et al., Landfill Data from China: Addressing Information Needs for Methane Recovery (Washington DC, U.S.: Environmen-
tal Protection Agency, 2003), 1
30
中国低碳网, “全国仅57%垃圾填埋通过环评,” [China Low Emissions Website, “Only 57% of the National Landfill Passed Through
Environmental Impact Assessment”], July 3, 2009
31
Robinson, A. et al., Landfill Data from China: Addressing Information Needs for Methane Recovery (Washington DC, U.S.: Environmen-
tal Protection Agency, 2003), 1

een surface water and groundwater was not accounted for in this analysis
of China, "China Statistical Yearbook 2008" Table 11-17
ENVIRONMENTAL COST OF CHINA’S ECONOMIC GROWTH
Fig .13: INDUSTRIAL WATER PRODUCTIVITY, 2001, Billion US$ per Cubic Kilometer
%
India 3.4
China 3.7
United States 9.7
France 14.5
Brazil 22.5
Germany 23.4
United Kingdom 27.3
Japan 119.6
138.6
Fig .12: CHINA WATER RESOURCES, 2000-07, Billion Cubic Me
Denmark
Surface Water Resources Groundwa
Source: United Nations Industrial Development Organization, Water: A Shared Responsibility (New York,
NY, U.S.: United Nations Industrial Development Organization, 2006) 2,724 870
2,698
2,656 850
2,625 839
2,593Methane is released as
nitrogen and other pollutants seep through into aquifers. 830
organic matter decays, which is a potent greenhouse gas that contributes to global -9%
warming in addition to endangering inhabitants in the area due to its explosive
s UH[\YL3HUKÄSSZHSZVJHUILJVTLIYLLKPUNNYV\UKZMVYKPZLHZL]LJ[VYZZ\JOHZ 2,436 2,424
YH[ZHUKÅPLZ
2,313
:PTPSHYSÒHaHYKV\Z^HZ[LTHUHNLTLU[PZHJVUJLYU(S[OV\NOVUS`VMHSS
solid waste generated in China is hazardous,32 China’s government has invested
OLH]PS` PU YLN\SH[PVU HUK THUHNLTLU[ Z`Z[LTZ2000 2001
K\L [V [OL2002 2003 [OYLH[Z
ZPNUPÄJHU[ 2004 2005 [V 2006 2007 2000 2001 2002 2003
human and environmental health. While reports vary on the level of compliance
and treatment, a number of challenges are consistently recognized.
Note: Duplicated measurement Given
between thatwater and groundwater was not accounted for in this analysis
surface
^HZ[LNLULYH[VYZHYLYLX\PYLK[VÄUHUJL[OL[YLH[TLU[VM[OL^HZ[L[OLTZLS]LZ
Source: National Bureau of Statistics of China, "China Statistical Yearbook 2008" Table 11-17
and that the disclosure of the nature of their activities may lead to closer scrutiny
in the future, small to medium-sized enterprises tend to avoid using the formal
channels of managing hazardous waste.
Fig .13: INDUSTRIAL WATER PRODUCTIVITY,

Fig .14: WATER POLLUTION IN CHINA’S RIVER BASINS BY GRADE, 2005, %
100% 5% 3% India 3.4

7%
14% 17% 14%
19%
5% China 3.7
27% 16%
Grade I, II 56% 55% 9.7
38%
18% United States
6% 22% 14.5
34%
45% France
8%
Grade III 13% Brazil 22.5
20% 21%
Grade IV 7% 23.4
12% 54%
40%
Germany
Grade V 11% 2% 18% 32%
Grade V+ 11%
25% 19% United Kingdom
6% 0%
Japan
Yangtze Yellow Pearl Songhua Huai Hai Liao
River River River River River River River Denmark
Definition of Pollution Grades by Standard Application:
Grade I : Source of water bodies and national nature reserves Source: United Nations Industrial Development Organi
Grade II : Protected area for centralized drinking supply (Class A) NY, U.S.: United Nations Industrial Development Organ
Grade III : Protected area for centralized drinking supply (Class B)
Grade IV : Water bodies for general industrial water supply
Grade V : Water bodies for aggricultural water supply
Grade V+ : Cannot be used for any purpose
Sources:
1. Lee, Seungho, China’s Water Policy Challenges (Nottingham, U.K.: The University of
Nottingham, 2006), 7
2. Boerset, Erik et al., China Water Quality Management-Policy and Institutional Considerations
(Washington, DC, U.S.: The World Bank, 2006), 8
王琪, “工业固体废物处理及回收利用,” [Qi Wang, “Industrial Solid Waste Processing and Recycling”], (Beijing, China: Environmental
32
Science Publishing House, 2006), 24

MARKET CONTEXT
Electronic waste (e-waste) is a case in point. China harbors a booming e-waste

recycling industry which is under-regulated and almost entirely outside the control
VM [OL JLU[YHS NV]LYUTLU[ (U LZ[PTH[LK VM [OL ^VYSK»Z OPNO[LJO ^HZ[L
ÄUKZ P[Z ^H` [V *OPUH [OYV\NO MVYTHS HUK PUMVYTHS JOHUULSZ33 The majority of
it is processed in backyards and small workshops using manual disassembly,
^P[OHSTVZ[UVYLSPHUJLVUHK]HUJLK[LJOUVSVN`(M[LY]HS\LKJVTWVULU[ZOH]L
ILLUL_[YHJ[LK[OLYLTHPUZHYLLP[OLYKPZWVZLKVMPUVWLUÄYLZVYK\TWLK;OPZ
L_WVZLZO\THUZÅVYHHUKMH\UH[VOLH]`TL[HSZHUKV[OLY[V_PUZ0[PZVMNYLH[
concern that China’s own sum of discarded electronics and appliances is expected
[VPUJYLHZLZPNUPÄJHU[S`V]LY[OLJVTPUNKLJHKLZ34
Industrialization in China Compared to Other Countries

The environmental issues currently facing China are in many ways similar to those encountered by
today’s developed nations, on their own paths toward industrialization.
Commencing with the U.K., European countries in the 18th and 19th centuries found themselves having to cope
^P[OHT`YPHKVMLU]PYVUTLU[HSKPMÄJ\S[PLZPUJS\KPUNHPYWVSS\[PVU^H[LYZOVY[HNLZZHUP[H[PVUPZZ\LZHUKYLZV\YJL
L_OH\Z[PVU(PYWVSS\[PVUILJHTLHWLYZPZ[LU[WYVISLTPU[OL<2WHY[PJ\SHYS`PU3VUKVUÔLYLP[JVTIPULK^P[O
fog to become persistent smog. In Paris, sewage was deposited directly into rivers, causing sanitation issues
and having a devastating effect on river ecosystems and water stocks. The build up of sulfur dioxide in the
atmosphere, as a result of coal burning, resulted in acid rain, which led to the salinization of soil and underground
water sources. Deforestation was a major issue across most of Europe. The U.S. experienced similar challenges
on its path to industrialization.
*OPUH»ZZP[\H[PVUPZ\UPX\LPU[OYLLPTWVY[HU[^H`Z-PYZ[S`*OPUH»ZWHJLVMPUK\Z[YPHSPaH[PVUPZZPNUPÄJHU[S`MHZ[LY
[OHU [OH[ L_WLYPLUJLK I` V[OLY JV\U[YPLZ [OYV\NOV\[ OPZ[VY` (Z UV[LK PU H 7\SP[aLY 7YPaL^PUUPUN >HSS :[YLL[
Journal series, China has “condensed an entire Industrial Revolution into the span of a single lifetime.”35 Secondly,
the scale of China’s industrialization is unprecedented, with a greater proportion of China’s 1.3 billion people
LUNHNLK`LHYHM[LY`LHY-PUHSS`WYL]PV\ZUH[PVUHSL_WLYPLUJLZPUPUK\Z[YPHSPaH[PVUOH]LVJJ\YYLKK\YPUNHULYH
when the world’s natural environment was less stressed. There were fewer people, greater per capita resources
available, and climate change had not yet become a pressing issue.
While these differences create unique circumstances for China, they also encourage the country to address its
LU]PYVUTLU[HSKPMÄJ\S[PLZPUHTVYLLMÄJPLU[HUKYHWPKTHUULY[OHUV[OLYJV\U[YPLZ[OYV\NOV\[OPZ[VY`
China’s Future Development and the Need for

Sustainability
CHINA’S UNTAPPED POTENTIAL, ACCUMULATED MOMENTUM and the determination of its
people will ensure that the country continues to develop economically over the
JVTPUNKLJHKLZ>P[OLU]PYVUTLU[HSKPMÄJ\S[PLZHSYLHK`H[OHUK*OPUH^PSSULLK
[VZPNUPÄJHU[S`PTWYV]L[OLZ\Z[HPUHIPSP[`VMP[ZLJVUVTPJHJ[P]P[PLZ[VTHPU[HPUP[Z
economic growth.
ECONOMIC DEVELOPMENT OF EPIC PROPORTIONS

The fundamentals are in place for China to continue its path of rapid economic
development, accompanied by large-scale urbanization and the deployment of
infrastructure. China’s 2008 nominal GDP per capita was just over US$3,000,
compared to U.S. GDP per capita of nearly US$47,000 and Japan’s of above
US$38,000. This difference indicates China’s potential to boost the productivity of
its labor force through capital investments and education. Indeed, many analysts
expect China’s economy to continue to grow on average at 8% annually for at
least another decade. Economists at Goldman Sachs have forecast that China will
overtake the U.S. to become the largest economy in the world sometime before
33
World Watch Institute, “China’s E-Waste Problem: Facing Up to the Challenge,” May 4, 2006, http://www.worldwatch.org/
34
Shen, Xiaoyue et al, “Regional Economic Integration and E-Waste Management in China,” Policy Research Center for Environment and
Economy (presentation given at the Institute of Global Environmental Strategies, Yokohama Japan, March 26-28, 2008)
35
Steiger, Paul, “China’s Naked Capitalism: Raucous Industrial Revolution Echoes Era of America’s Robber Barons a Century Ago,” Wall
Street Journal, 2007

CHINA'S FUTURE DEVELOPMENT AND THE NEED FOR SUSTAINABILITY
Fig .16: CHINA’S URBAN POPUL

Fig .15: GDP PROJECTIONS FOR SELECTED COUNTRIES, 2006 Trillion US$
U.S. China 71
880
Japan becomes
world’s 756
China largest
607
economy 531
45
39
30
26
23
18
13 15 2005 2010 2020 2030
13
5 6 6 7
4 3 5 5
Source: United Nations, "World Urbanization Prospects: Th
2006 2010 2020 2030 2040 2050
Source: Goldman Sachs Economic Research Group, BRICs and Beyond

(New York, NY, U.S.: Goldman Sachs, 2007), 149
ZLL-PN\YL>OPSLV[OLYHUHS`Z[ZWYVQLJ[SV^LYNYV^[OYH[LZMVY*OPUH»Z
economy, it is widely acknowledged that China has the potential to become the
world’s largest economy prior to 2050.
China’s urbanization, while on a large scale, is low compared to other countries.

In 2005, it reached 40%, while the 2007 world average for urbanization was 50%.
China’s future urbanization is expected to involve hundreds of millions of people
moving from villages to the cities. The United Nations forecasts that by 2050, it will
reach the level of today’s developed countries, which is approximately 75%.36 In
absolute terms, this implies the expansion of China’s urban population by nearly
TPSSPVUWLVWSLV]LY[OLUL_[`LHYZZLL-PN\YL
The McKinsey Global Institute estimates that this urban migration will require
*OPUH[VI\PSKHZT\JOHZIPSSPVUZX\HYLTL[LYZVMÅVVYZWHJLIL[^LLU
and 2025,37ULHYS`KV\ISPUN[OLJ\YYLU[ÅVVYZWHJL0U[OLZHTLZ[\K`4J2PUZL`
estimates that in 2025 China will have over 200 cities with a population over one
million. By comparison, Europe has only 35 such cities today.
This massive urbanization will be accompanied by large scale deployment

of infrastructure, such as power generation, water provision, sewage,
telecommunications and transportation systems (e.g., road, rail, air and waterway).
China is already planning the largest railway expansion in history, which will extend
the railway network from 78,000 kilometers to 120,000 kilometers by 2020 at a
cost of over one trillion US$.38
(ZPUKP]PK\HSPUJVTLZYPZLZV^PSSJVUZ\TW[PVU([[OLLUKVM*OPUH»ZJP]PS
]LOPJSLÅLL[Z[VVKH[V]LYTPSSPVUJHYZYLWYLZLU[PUNQ\Z[MV\Y]LOPJSLZWLY
people.39 Compared to the U.S., where there are over 80 passenger cars for every
100 people, or Japan with 45 cars per 100 people,40*OPUH»ZÅLL[VUHWLYJHWP[H
basis is small. The current growth in private car ownership, which has averaged
nearly 20% since 2005,41 will continue through the next several decades, albeit at
a slower pace. McKinsey estimates that China could become the nation with the
greatest number of vehicles, reaching over 300 million by 2030.42
36
United Nations, "World Urbanization Prospects: The 2007 Revision Population Database"
37
Woetzel, Jonathan et al., Preparing for China's Urban Billion (New York, NY, U.S.: McKinsey & Company, March 2008), 7
38
Wong, Julian and Andrew Light, China Begins Its Transition to a Clean-Energy Economy (Washington DC, U.S.: Center for American
Progress, June 2009), 6
39
National Bureau of Statistics of China, "Statistical Communique of the People's Republic of China on the 2008 National Economic and
Social Development," February 26, 2009, http://www.stats.gov.cn/; The China Greentech Initiative analysis
40
United States Bureau of Transportation "Statistics: Table 1-11," http://www.bts.gov/ (accessed on August 23, 2009); The Japan
Times, "Households Owning Fewer Cars," August 21, 2007, http://www.japantimes.co.jp/ (accessed on August 23, 2009); United Na-
tions, "World Urbanization Prospects: The 2007 Revision Population Database;" The China Greentech Initiative analysis
41
National Bureau of Statistics of China, "China Statistical Yearbook 2008" Table 15-26

MARKET CONTEXT
Fig .16: CHINA’S URBAN POPULATION, 2005-50, Millions

SELECTED COUNTRIES, 2006 Trillion US$
1,027
China 969
71
880
becomes
world’s 756 +94%
largest
607
conomy 531
45
39
30
26
23
13 2005 2010 2020 2030 2040 2050
6 6 7
Source: United Nations, "World Urbanization Prospects: The 2007 Revision Population Database"
2030 2040 2050
Group, BRICs and Beyond

RESULTING SURGE IN RESOURCE DEMAND
149 This anticipated economic growth will demand increased energy, water and
material resources. If China maintains its previous practices, even with ongoing
PTWYV]LTLU[Z PU YLZV\YJL \ZL LMÄJPLUJ` [OL HKKP[PVUHS Z[YHPU VU [OL UH[\YHS
environment will be colossal and in the long-term unsustainable, given the scale
of expected economic development.
(JJVYKPUN[V[OL0U[LYUH[PVUHS,ULYN`(NLUJ`0,(PU[OLYLMLYLUJLJHZLZJLUHYPV
¶ÔPJOLZZLU[PHSS`HZZ\TLZUVZPNUPÄJHU[WVSPJ`HUK[LJOUVSVN`JOHUNLZIL`VUK
what’s already anticipated, and moderate GDP growth – China’s energy demand
JV\SK NYV^ HIV\[ WLY `LHY VU H]LYHNL IL[^LLU UV^ HUK ZLL -PN\YL
([[OPZYH[L*OPUH^V\SKV]LY[HRL[OL<:HZ[OLSHYNLZ[JVUZ\TLYVMLULYN`
by 2015, and by 2030 would account for close to 25% of the world’s total energy
demand.43
While forecasts for China’s future energy mix vary greatly, some trends are
clear. China’s reliance on coal will persist for the foreseeable future, given the
JV\U[Y`»ZSHYNLPUZ[HSSLKJVHSÄYLKLSLJ[YPJP[`NLULYH[PVUJHWHJP[`HI\UKHU[JVHS
reserves and relatively stable and low coal prices. Oil demand is expected to
grow rapidly, driven by the increase in motor vehicles on the road and greater
proliferation of air, rail and domestic waterway transport. China’s reliance on oil
Fig .17: HISTORIC AND REFERENCE CASE PROJECTIONS FOR ENERGY CONSUMPTION Fig .18: HISTORIC AND REFERENCE CASE PROJECTIONS BY EIA FOR CO2 EMISSIONS
BY EIA, 1990-2006 ACTUAL, 2007-2030 PROJECTIONS, Quadrillion BTU FROM FOSSIL FUELS, 1990-2006 ACTUAL, 2007-2030 PROJECTIONS, Gigatons
China 12 China
160
140 10
120 United
States 8
100 United
80 6 States
60 Russia India
4
40 India Russia
Japan 2 Japan
20
Brazil Brazil
0 0
1990 1995 2000 2005 2010 2015 2020 2025 2030 1990 1995 2000 2005 2010 2015 2020 2025 2030
Sources: Sources:
1. Energy Information Administration, “International Energy Annual 2006” Table E1 1. Energy Information Administration, “International Energy Annual 2006” Table H.1CO2
2. Energy Information Administration, “Intenrational Energy Outlook 2009” Table A1 2. Energy Information Administration, “International Energy Outlook 2009” Table A10
3.The China Greentech Initiative analysis 3. The China Greentech Initiative analysis
42
Joerss, Martin et al., China's Green Opportunity (Beijing, China: McKinsey & Company, May 2009), 5
43
Energy Information Administration, "International Energy Outlook 2009" Table A1

Fig .17: CHINA BASELINE ENERGY DEMAND PROJECTIONS, 1990-2030, mtoe Fig .18: CHINA BASELINE CO2 EMISSIONS
3500 12,000
CHINA’S FUTURE DEVELOPMENT AND THE NEED FOR SUSTAINABILITY
3000
10,000
imports, which
2500 is currently close to half of its roughly seven million barrels of daily
JY\KLVPSJVUZ\TW[PVUPZL_WLJ[LK[VPUJYLHZL-VYLJHZ[ZMVYJVU[YPI\[PVUZMYVT
CHINA 8,000
US
hydroelectric
2000 power, natural gas, nuclear power and renewable energy sources,
such as wind andEUROPE*
solar, vary greatly, and depend on the view of individual 6,000
forecasters.
1500One certainty is that contributions from renewable energy sources, US
other than hydroelectricity, will remain low as a percent of total energy consumed
IEA FORECAST
unless China 2002 4,000 EUROPE*
1000actively drives the adoption and use of these technologies.
Given the500
uncertaintyJAPAN
associated with China’s long-term energy mix, it is equally 2,000
KPMÄJ\S[[VMVYLJHZ[*OPUH»Z./.LTPZZPVUZ5L]LY[OLSLZZHJJVYKPUN[V[OL0,(»Z
INDIA JAPAN
reference case0 scenario, China’s CO2 emissions from fossil fuel burning could 0
1990
1993
1996
1999
2002
2005
2008
2011
2015
2018
2021
2024
2027
2030
1974
1978
1982
1986
1990
1994
1998
grow on average at 3% annually until 2030, reaching 12 gigatons, which by that
[PTL^V\SKYLWYLZLU[ULHYS`VM[OL^VYSK»Z[V[HS./.LTPZZPVUZZLL-PN\YL44
Source: BP Statistical Yearbook 2006 , IEA WEO 2002 , IEA WEO 2006, Excludes biomass
If China indeed were to develop in line with the reference case scenario,
and waste. *Europe refers to OECD Europe.
Source: IEA data and forecasts from the IEA Wo
*Europe refers to OECD Europe.
international concerns
Source: Daniel Rosen andover
Trevorglobal warming
Houser, China Energy: would
A Guide forincreasingly be directed
the Perplexed, 2007 Source: Daniel Rosen and Trevor Houser, China
towards China. The pace and scale of the rise of GHG emissions in this scenario
could reduce the incentives for other countries to curtail their emissions. The
Fig .19: RIVER BASINS WATER AVAILABILITY PER CAPITA PROJECTIONS, 1997-2050, m3
South Total
North Total
34,001
32,524
-17%
27,082
8,059
7,013
5,800 -17%
1997 2010 2050
Source: The World Bank, China: Water Quality Management – Policy and
Institutional Considerations (Washington, DC, U.S.: The World Bank, 2006)
China Greentech Initiative actually expects China to do more to reduce its GHG
emissions than is projected in the reference case scenario, and explores this
throughout the rest of the report.
In addition to energy, water is a major resource that China will require to sustain
P[ZNYV^[O(ZKPZJ\ZZLKLHYSPLY*OPUH»Z^H[LYYLZV\YJLZHYLUV[VUS`ZJHYJLHUK
\UL]LUS` KPZ[YPI\[LK HJYVZZ [OL JV\U[Y` I\[ H SHYNL WYVWVY[PVU PZ ZPNUPÄJHU[S`
polluted. The World Bank forecasts that water resources per capita across China’s
both southern and northern river basins will decline by as much as 17% between
HUK-PN\YL .P]LU[OH[[OLWVW\SH[PVUPZL_WLJ[LK[VNYVÎ`VUS`
4% over the same period,45 this forecasted decline is due mostly to the decline in
actual water resources.
Economic growth also will demand increased material resources, such as metals
(e.g. steel and aluminum), cement, wood, textiles (e.g. cotton) and food (e.g.
sugar and rice). If unmediated, China’s soaring demand for these commodities
may put undue pressure on available supplies and further heighten international
competition for these resources.
44
Ibid, Table A10
45
United Nations, "World Urbanization Prospects: The 2007 Revision Population Database"

MARKET CONTEXT
A VISION FOR SUSTAINABILITY

The China Greentech Initiative believes that for China to continue its rapid
economic development, it cannot afford to maintain the status quo or proceed
along the reference scenario presented above. In fact, for China, embracing new
approaches to clean energy generation, stepping up its pollution mitigation efforts
HUKWYVTV[PUNYLZV\YJL\ZLLMÄJPLUJ`HYLVW[PTHS^H`Z[VWYLZLY]L[OLOLHS[OVM
its citizens, conserve the natural environment for future generations, solidify its
international status as a leading player and continue its stellar economic growth.
China’s future vision, therefore, must be one in which new technologies

focused on environmental sustainability must be developed and deployed, new
business models and modes of cooperation between consumers, businesses
and the government established, and compliance with government regulations
brought up to a high level. This will enable China to succeed on a broad range of
interconnected objectives:
Develop and deploy a wide range of alternative forms of energy, as well as

cleaner ways to use conventional energy sources, in order to meet its voracious
energy appetite sustainably
Curtail the growth in GHG emissions to slow global climate change, helping
[V TPUPTPaL [OL YPZRZ VM ZPNUPÄJHU[ HK]LYZL PTWHJ[ VU *OPUH HUK [OL YLZ[ VM
[OL^VYSKZ\JOHZYPZPUNZLHSL]LSZKLZLY[PÄJH[PVUL_[YLTL^LH[OLYHUKKPZY\W
tions in water supply
Reduce air and water pollution to improve health, quality of life and attractive-
ness of the country as a business and tourist destination
0TWYV]L^H[LY\ZLLMÄJPLUJ`Z[LW\WJVUZLY]H[PVULMMVY[ZHUKM\Y[OLYYH[PVUHSPaL
the administration of water resources to mitigate water shortages
(KKYLZZZVSPK^HZ[LPZZ\LZPUJS\KPUNOHaHYKV\Z^HZ[LHUKTHUHNL[OL^HZ[L
to increase recycling and reuse and to decrease the adverse impact of waste
treatment on the environment
>OPSL*OPUHMHJLZZPNUPÄJHU[LU]PYVUTLU[HSZ\Z[HPUHIPSP[Ò\YKSLZHZP[JVU[PU\LZ
to develop economically, the China Greentech Initiative believes that China has
the potential to innovate and lead the transformations required. The country’s
stable macroeconomic environment, systematic government planning, growing
pool of engineering and managerial talent, increasing investment in research,
and dynamic business environment are positioning China for cleaner and more
Z\Z[HPUHISL NYV^[O -VY[\UH[LS` [OL PUP[PHS ZPNUZ VM H NYLLU *OPUH OH]L HSYLHK`
emerged, indicating what the future may hold and how quickly it may arrive.
Promising Signs of China’s Greentech Future

REALIZING BOTH THE BENEFITS OF EMBRACING A CLEANER AND MORE SUSTAINABLE
FUTURE and the dangers of failing to do so, China is addressing a range of key
areas simultaneously. The nation has already achieved impressive growth across a
U\TILYVMYLUL^HISLLULYN`HUKYLZV\YJLLMÄJPLUJ`HYLHZ\ZPUNHUHWWYVHJO[OH[
combines government policy, private entrepreneurship and best practice transfer
that incorporates indigenous technological and commercial innovation.
While these efforts are still dwarfed by the magnitude of the issues faced, it
is important to remember that China is experiencing a situation unique to the
modern era – it must balance economic development with the need to protect
and sustain natural resources at an unprecedented scale. Today’s developed
countries did not have global environmental sustainability issues to contend with
PU[OL0UK\Z[YPHS(NL;OPZZP[\H[PVUWYLZLU[ZH\UPX\LZL[VMJOHSSLUNLZI\[HSZV
opportunities for collaboration and action by businesses, regulators, consumers
and other stakeholders.

PROMISING SIGNS OF CHINA'S GREENTECH FUTURE
LAYING THE FOUNDATION

China has made impressive progress in laying a foundation for the future growth of
green technologies and has rapidly emerged as one of the world’s leading providers
and consumers of renewable energy and cleaner modes of transportation. It is
HSZV[HRPUNZPNUPÄJHU[Z[LWZ[V\ZLLULYN`YLZV\YJLZTVYLLMÄJPLU[S`
China’s wind power market has been growing particularly fast, doubling the
PUZ[HSSLKJHWHJP[`MVYMV\YJVUZLJ\[P]L`LHYZYLHJOPUN.>PUZLL-PN\YL
20). In fact, China reached the original 2010 target of 5 GW, established in 2005,
three years ahead of schedule. This allowed the National Development and
Reform Commission (NDRC) to upgrade the target to 10 GW, which has also been
achieved ahead of schedule. Today, China ranks fourth in the world, behind the
U.S., Germany and Spain, in terms of total installed wind capacity, accounting
Section 4. PROMISING
for 10% of the world’s total.46 Recently, China has begun
SIGNS to OF
explore the country’s
CHINA’S GREENTECH FUTURE
offshore wind resource potential, which is estimated to be three times greater than
Sectionresources.
onshore 4. PROMISING
47
SIGNS OF CHINA’S GREENTECH Fig .20: FUTURE
CUMULATIVE INSTALLED WIND AND SOLAR CAPACITIES IN CHINA, 2000-2008
Wind Capacity, Gigawatts Solar Photovoltaic Capacity, Megaw
Fig .20: CUMULATIVE INSTALLED WIND AND SOLAR CAPACITIES IN CHINA, 2000-2008
Wind Capacity, Gigawatts Solar Photovoltaic Capacity, Megawatts
12.2
12.2
150
5.9 1
80
65 70
5.9 10 0
2.6 80 45
1.3 65 70 19
0.4 2.60.5 0.6 0.8 45
1.3 19
0.4 0.5 0.6 0.8 2001 2002 2003 2004 2005 2006 2007 2008 2000 2002 2004 2005 2006 20
Source: Pullen, Angelika et al., Global Wind 2008 Report Sources:
2001 2002 2003 2004 2005 2006
(Brussels, 2007
Belgium: 2008
Global 200025
Wind Energy Council, 2009), 2002 2004 2005 2006 et2007
1. Li, Junfeng 2008
al., China Wind Power Report (Beijing,
Environmental Science Press, 2007)
Source: Pullen, Angelika et al., Global Wind 2008 Report Sources: 2. Renewable Energy World, “China’s New Focus on So
(Brussels, Belgium: Global Wind Energy Council, 2009), 25 1. Li, Junfeng et al., China Wind Power
MayReport (Beijing,
22, 2009, China: China
http://www.renewableenergyworld.com/
Environmental Science Press, 2007)
2. Renewable Energy World, “China’s New Focus on Solar,”
May 22, 2009, http://www.renewableenergyworld.com/
Fig .21: CHINA RENEWABLE ENERGY CAPACITY TARGETS
Fig .21: CHINA RENEWABLE ENERGY CAPACITY TARGETS

TYPE 2005 ACTUAL 2010 TARGET 2020 TARGET
Energy from 7% 10% 20%(15%)

renewable sources
Hydropower 117 GW 190 GW 300 GW
Wind power 1.3 GW 10 GW (5 GW) 100 GW (30 GW)
Solar PV 0.07 GW 0.3 GW 20 GW (1.8 GW)
Solar water
heating capacity 80 million m2 150 million m2 300 million m2
Biomass power 2 GW 5.5 GW 30 GW

(agriculture/forestry)
Bioethanol 1 million tons 3 million tons 10 million tons
Biodiesel 0.05 million tons 0.2 million tons 2 million tons
Sources:
1. National Development and Reform Commission, Medium and Long Term Development Plan for
Renewable Energy in China (Beijing, China: NDRC, September 2007)
Development and Reform Commission, Medium and Long Term Development Plan for
e Energy in China (Beijing, China: NDRC, September 2007)
na Greentech Initiative analysis
46
Pullen, Angelika et al., Global Wind 2008 Report (Brussels, Belgium: Global Wind Energy Council, 2009), 9
47
China Internet Information Center, “Nation Eyes Offshore Wind Power,” December 10, 2007, http://www.china.org.cn/

MARKET CONTEXT
Solar photovoltaic (PV) capacity has also been growing steadily, although at a
ZPNUPÄJHU[S`SV^LYWHJLYLHJOPUN4>PUZLL-PN\YL;OPZPZ^PKLS`
expected to change with recently introduced government subsidies for building-
integrated photovoltaic and utility-scale solar power projects.48 In contrast to
the currently low photovoltaic capacity, which represents only 1% of the world’s
total, China is a leader in the manufacturing of photovoltaic cells. In 2007, China
accounted for nearly 30% of all PV cells manufactured in the world, led by large
local companies such as Suntech Power Holdings, Yingli Green Energy Holdings
and Trina Solar. Over 95% of the manufactured cells produced in 2008 were exported.
Recent success Figin

.23:the
ACTUAL ENERGY INTENSITIES
development OF GDP, 2008,
of the renewable energy industry and
Tons of Oil Equivalent per
heightened concerns about the reliance on fossil fuel US$1 million
have prompted China’s
regulators to upgrade the country’s 2020 targets for renewable energy. In the
most recent announcement, China plans to generate 20% of its electricity from
ty, 2001, renewable energy sources
South Africa by 2020, including large scale
477 hydropower. The most
meter recent targets include 100 GW for wind generating capacity, and 20 GW for solar
China 455
WOV[V]VS[HPJJHWHJP[ÌV[OVMÔPJOYLWYLZLU[ZPNUPÄJHU[PUJYLHZLZMYVT[OLLHYSPLY
30 GW and 1.8 GW targetsRussia respectively that were in place at the beginning of 2009
408
ZLL-PN\YL
India 358
In addition, China
Southplans
Korea to double its existing
253 power generating
x4.5 hydroelectric
capacity from about 150 GW to 300 GW by 2020 and to develop power-generating
United States 161
JHWHJP[`MYVTIPVTHZZJVTI\Z[PVU[V.>-\Y[OLYTVYLP[OHZKLÄULK[HYNL[Z
for bioethanol and biodiesel
Brazil production
145 that will help offset China’s reliance on
imported crude oil.
Japan 103
One area of renewable
United Kingdomenergy in 79which China has emerged as an unchallenged
119.6
leader is solar water heating. Currently, China boasts the world’s largest installed
base of solar water heaters, over 125 millions square meters, with one in ten
138.6 families
Sources: having adopted the technology.49,50 (UHS`Z[Z LZ[PTH[L [OH[ V]LY VM
JVYLZVSHY^H[LYOLH[PUN[LJOUVSVN`PZOLSKI`*OPULZLÄYTZZ\JOHZ/PTPU:VSHY
2. International Monetary Fund, “World Economic Outlook Database April 2009”
Shared Responsibility - The Energy Group.
3. The China China’s
Greentech annual
Initiative analysisproduction of solar water heaters in 2007 reached
SCO, 2006), 300
40 million square meters, accounting for two thirds of global output.51
Fig .22: STANDARDIZED COMPARISON OF INTERNATIONAL FUEL

ECONOMY STANDARDS, Miles per Gallon
U.S.
50 CALIFORNIA
ISTORIC TRENDS CANADA
EU EU
6, Index 1980=1 AUSTRALIA
45 JAPAN
JAPAN
CHINA
CHINA (Phase III)

40
Japan
AUSTRALIA CALIFORNIA
35
United
CANADA
States UNITED STATES
30 (Obama Plan)
China
25
20
0 2005 2010 2002 2004 2006 2008 2010 2012 2014 2016
Annual 2006” Table E.1g Note: Values are for CAFE test cycle; dotted lines represent proposed standards
Source: Feng An, Revised Charts for World Standards, 2009
48
Reuters, “China Offers Big Solar Subsidy,” July 21, 2009, http://www.reuters.com/
49
People’s Daily, “China Promotes New Energy,” April 15, 2009, http://english.peopledaily.com.cn/
50
Li, Junfeng et al., China: Prospect for Renewable Energy Development (London, U.K.: The Treasury of United Kingdom, 2006), 6
51
People's Daily, "New Energy Vehicle Pilot Programs Promoted in 13 Chinese Cities," February 2, 2009, http://english.peopledaily.com.cn/
www.china-greentech.com
45. THE CHINA GREENTECH REPORT 2009 37
PROMISING SIGNS OF CHINA’S GREENTECH FUTURE
Industry analysts expect that China will continue to support clean energy
development, as the government continues to roll out subsidies and incentive
packages to accelerate the adoption of new technologies. Recent announcements
indicate that China is planning an unprecedented package worth three trillion yuan
(US$444 billion) over multiple years focused on renewable energy alone, in addition
to the four trillion yuan (US$586 billion) stimulus package announced in 2008.52
In the road transportation segment, China has been progressively adopting

stricter fuel economy and pollution emission standards, and is emerging as a
leader in new energy vehicles. China has increased its fuel economy standards
on several occasions since 2000, bringing the overall average up to 32 miles per
gallon in 2008 and has announced plans to upgrade it further to nearly 40 miles per
NHSSVUI`;OPZTHRLZ*OPUH»ZM\LSLMÄJPLUJ`Z[HUKHYKZZPNUPÄJHU[S`Z[YPJ[LY
[OHU[OVZL\ZLKPU[OL<:*HUHKHVY(\Z[YHSPHZLL-PN\YL
0U *OPUH HKVW[LK P[Z ÄYZ[ ]LOPJSL LTPZZPVU JVU[YVS Z[HUKHYK LX\P]HSLU[
to the Euro 1 standard used in the European Union, and since then has been
upgrading it one level roughly every three years. Currently, China is implementing
[OL,\YVLX\P]HSLU[Z[HUKHYKUH[PVU^PKL-VSSV^PUNPTWSLTLU[H[PVUPU)LPQPUNPU
2008, regulators are targeting to roll out Euro 4 equivalent standard nationwide in
2010.53,54
-\Y[OLYTVYL *OPUH OHZ Z[YVUNS` Z\WWVY[LK [OL LSLJ[YPJ ]LOPJSL ,= JVUJLW[
9LJVNUPaPUN[OLILULÄ[Z[OH[,=ZVMMLY¶Z\JOHZHSSL]PH[PUNSVJHSWVSS\[PVUTP[PNH[PUN
the demand for oil, and the potential to reduce CO2 and other emissions associated
with fossil fuel burning – China’s government has announced pilot programs in a
number of major cities and plans to subsidize the adoption of electric vehicles.55
Many analysts have observed that China is establishing itself as a potential world
leader in the production and adoption of new energy vehicles. In December 2008,
)@+(\[VH*OPULZLTHU\MHJ[\YLYIHZLKPU:OLUaOLUSH\UJOLK[OL^VYSK»ZÄYZ[
THZZWYVK\JLKWS\NPUOÌYPK[OL-+4ZLKHU56 Other local manufacturers, such
HZ*OLY`.LLS`HUK-V[VUHYLKL]LSVWPUN[OLPYVÛTVKLSZHUKOH]LHUUV\UJLK
plans to enter the market. China aims to increase its annual production of hybrid
and electric vehicles to half a million by 2011, roughly 5% of total new vehicle
sales.57 The China State Grid has also announced plans to deploy networks of
charging stations for electric vehicles in major cities like Beijing and Shanghai.58
One early success in the adoption of battery technology for transportation is

the abundance of electric scooters and bicycles in China, currently estimated at
65 million – greater than the number of passenger vehicles on the road. China’s
yearly production has soared to over 22 million units from fewer than 200,000 eight
years ago.59 These electric two wheelers are usually powered by a 250-watt motor
HUK\ZLH3LHK(JPKIH[[LY`[OH[WYV]PKLZHKYP]PUNYHUNLVMRPSVTL[LYZ
between charges at speeds of up to 30 kilometers per hour.60 China accounts for
over 90% of worldwide electric scooter and bicycle sales and the average selling
WYPJLPZZPNUPÄJHU[S`SV^LY[OHUPUKL]LSVWLKJV\U[YPLZ
On the industrial front, China has been consistently increasing its energy
productivity. Since 1980, China’s energy intensity of GDP – the amount of energy
required to produce one unit of GDP – has fallen sharply, by roughly 70% (see
-PN\YL 5V V[OLY THQVY UH[PVU OHZ HJOPL]LK Z\JO H Z[LLW KLJSPUL PU Z\JO H
short timeframe. On average, energy intensity declined at nearly 5% per year
between 1980 and 2000, and apart from a notable increase in 2002 and 2003
52
Sina English, “China Plans 440 Billion Dollars Stimulus for Green Energy,” May 24, 2009, http://english.sina.com/
53
“Euro” in this context refers to mandatory non-CO2 fuel emission standards used in the European Union for new passenger vehicles. The
standard was introduced in 1997 and since then has been updated three times (Euro 1 through Euro 4), with two more updates (Euro 5
and Euro 6) planned – one in fall of 2009 and one in fall 2010
54
Clean Air Initiative, “Emissions Standard for New Light-Duty Vehicles, 2009," http://www.cleanairnet.org/ (accessed on August 20,
2009)
55
People's Daily, "New Energy Vehicle Pilot Programs Promoted in 13 Chinese Cities," February 2, 2009, http://english.peopledaily.com.
cn/
56
Bloomberg, “BYD Adds Plug-In as China Gets Edge on Toyota, GM,” December 15, 2008, http://www.bloomberg.com/
57
Xinhua, "China Aims to be World Pacemaker of New Energy Auto Production," September 17, 2008, http://news.xinhuanet.com/
58
China Daily, "Electric Vehicles Drive Closer to Reality," September 17,2009, http://www.chinadaily.com.cn/
59
MSNBC, "China Drives Electric Bike, Scooter Boom," July 27, 2009, http://www.msnbc.msn.com/
60
Parkash, Manmohan, Promoting Environmentally Sustainable Transport (Manila, Philippines: Asia Development Bank, 2008), 27

MARKET CONTEXT
(due to the rapid growth of heavy industry output in those years), has been on a
downward trajectory over the last three decades.
0U [OL [O -P]L@LHY .\PKLSPULZ61 China established a target of reducing the
LULYN`PU[LUZP[`VM.+7I`HUHKKP[PVUHSIL[^LLUHUK(JJVYKPUN
to a recent statement made by Sun Qin, the Deputy Director of the National
Fig .13:.+7
,ULYN` (KTPUPZ[YH[PVU Industrial
LULYN`Water Productivity,
PU[LUZP[` WVZ[LK2001,
H KLJSPUL VM PU [OL
Billion US Dollars per Cubic Kilometer
PTWSLTLU[H[PVUVM[OLÄYZ[[OYLL`LHYWSHUIL[^LLUHUK 62
China managed to achieve these reductions in part through centrally administered

India 3.4
WYVNYHTZ ;OL THQVY PUP[PH[P]L PU [OL J\YYLU[ -P]L@LHY .\PKLSPULZ OHZ ILLU [OL
China
Top-1000 Energy-Consuming 3.7
Enterprises Program, which was launched by Wen
1PHIHV 7YLTPLY VM *OPUH
United States PU 1\S`
9.7 0[ MVJ\ZLK VU YHPZPUN LULYN` LMÄJPLUJ`
across the 1000 largest industrial energy consumers which cumulatively account
France consumption
for 33% of China’s energy 14.5 and 43% of China’s CO2 emissions.63 This
program is modeled on voluntary 22.5
Brazil agreements used in some European countries
HUK 1HWHU HUK LZ[HISPZOLZ LULYN` LMÄJPLUJ` ILUJOTHYRZ MVY LU[LYWYPZLZ [V
Germany 23.4
HJOPL]L;OLZ\JJLZZVM[OPZWYVNYHT^PSSILPUÅ\LUJLKI`HUPUJLU[P]LZJOLTL
Unitedpolitical
which connects Kingdompromotion for enterprise
47.3 and local government leaders to
the achievement of these Japabenchmarks.
64
119.6
Denmark 138.6
(KKP[PVUHSS` *OPUH»Z NV]LYUTLU[ OHZ W\YZ\LK H Z[YH[LN` VM ZO\[[PUN KVÛ
ZTHSSLY ¶ SLZZ LMÄJPLU[ HUK TVYL WVSS\[PUN ¶ WV^LY NLULYH[PVU WSHU[Z +LW\[`
Source: 2. United Nations World Water Assessment Program, Water: A Shared Responsibility - The
+PYLJ[VY:\U8PUOHZJVUÄYTLK[OH[HZVM1\UL *OPUHOHKHSYLHK`JSVZLK
United National Water Development Report 2 (New York, NY, U.S.: UNESCO, 2006), 300
7,467 small scale generating units with total capacity of over 54 GW.
*OPUHOHZHSZVILLUKL]LSVWPUNUL^LULYN`LMÄJPLUJ`Z[HUKHYKZMVYI\PSKPUNZ
and major appliances, in addition to revising those already existing. Building
codes have been updated and the government is stepping up promulgation and
enforcement. China recently launced its own building rating system titled the
¸.YLLU)\PSKPUN3HILS¹HUKHÄYZ[IH[JOVMWYVQLJ[ZOH]LHSYLHKÌLLUHWWYV]LK65
Fig .24: ENERGY INTENSITY OF GDP HISTORIC TRENDS

FOR SELECTED COUNTRIES, 1980-2006, Index 1980=1
1.0
0.8 Japan
0.6 United
States
0.4 China
0.2
0.0
1980 1985 1990 1995 2000 2005 2010
Source: Energy Information Administration, “International Energy Annual 2006” Table E.1g
( UL^ TPUPT\T LULYN` WLYMVYTHUJL Z[HUKHYK 4,7: OHZ ILLU KL]LSVWLK MVY
over 40 different appliances, predominantly for residential and commercial use.
Initial analysis has shown that these measures are helping China reduce the
growth of consumer energy demand.66
61
Five-Year Guidelines are China’s development blueprints that set targets for a range of economic and other parameters for a five-year
period and are approved by the National People’s Congress. 11th Five-Year Guidelines cover the time period of 2005-2010. A more
detailed discussion of Five-Year Guidelines can be found in the “China’s Regulatory Response” chapter of this report.
62
北青网, "国家能源局副局长孙勤:'我国将在年内出台新兴能源发展规划'," 2009年8月10日［YNet, SunQin, Deputy Director of National
Energy Administration, “New Energy Development Plan Will Be Launched this Year,” Aug 10, 2009], http://dycj.ynet.com/
63
Price, Lynn et al., China's Top-1000 Energy-Consuming Enterprises Program: Reducing Energy Consumption of the 1000 Largest
Industrial Enterprises in China (Berkeley, CA, U.S.: Berkeley National Laboratory, 2008), 18
64
The Top-1000 Energy-Consuming Enterprises Program is discussed further in the China's Regulatory Response chapter
65
中国住房和城乡建设部,"关于公布2008年度第一批'绿色建筑设计评价标识'项目名单的公告," 2008年７月16日［Ministry of Housing
and Urban-Rural Development, "Announcement of 'Green Building Label' Project Names," July 16, 2008], http://www.mohurd.gov.cn/

PROMISING SIGNS OF CHINA’S GREENTECH FUTURE
Fig .23: ACTUAL ENERGY INTENSITIES OF GDP, 2008,

Tons of Oil Equivalent per US$1 million
South Africa 477
China 455
Russia 408
India 358
South Korea 253 x4.5
United States 161
Brazil 145
Japan 103
United Kingdom 79
Sources:
2. International Monetary Fund, “World Economic Outlook Database April 2009”
UNTAPPED POTENTIAL
The achievements
Fig .22:and progress made
STANDARDIZED by China
COMPARISON OF in improving the
INTERNATIONAL sustainability of
FUEL
its economic activities are remarkable.
ECONOMY While
STANDARDS, theper
Miles sustainability
Gallon of China’s ecological
Z`Z[LTPZHSHYNLYJOHSSLUNL[OLYLHYLZPNUPÄJHU[HYLHZVM\U[HWWLKWV[LU[PHSZ\JO
as renewable energy
U.S.
generation, new modes of transportation and green building.
50 CALIFORNIA
Regarding power
CANADA
supply, even if China were to achieve itsEUtarget of deriving 20%
EU
of energy fromAUSTRALIA
renewable sources by 2020, most of the non-renewable energy
45
would still be JAPAN
derived from coal. Given that the overallJAPAN capacity for electricity
CHINA
generation will potentially double between 2008 and 2020, greenhouse gas
CHINA (Phase III)
LTPZZPVUZ^PSSTVZ[SPRLS`JVU[PU\L[VPUJYLHZL(PYWVSS\[HU[ZZ\JOHZ:6
40 X
and NOX,
will continue to pose a danger to human health and the natural environment unless
[OLPY YLTV]HS
35 PZ LUMVYJLK TVYL Z[YPJ[S` -VY [OPZ YLHZVU [OLYL
AUSTRALIA PZ NYLH[ WV[LU[PHS
CALIFORNIA
to expand the role of renewable sources beyond the current targets and further
improve the sustainability of conventional
CANADA energy. UNITED STATES
30 (Obama Plan)
*OPUH»Z LULYN` PU[LUZP[` VM .+7 ÔPSL OH]PUN KLJSPULK ZPNUPÄJHU[S` V]LY [OL
past thirty
25 years, remains one of the highest in the world. In fact, China’s energy
intensity is nearly three times that of the U.S. and more than four times that of
1HWHUZLL-PN\YL67 ;OLPTWYV]LTLU[VMLULYN`LMÄJPLUJ`^PSSYLTHPUHRL`
20
focus of future
2002 development.
2004 Despite2008
2006 the development
2010 of a range
2012 2014 of new
2016hybrid
and fully electric vehicles, few have been embraced by the local market, which is
expected to purchase 10 million new gasoline and diesel vehicles this year alone.68
Note: Values are for CAFE test cycle; dotted lines represent proposed standards
TheSource:
market forAn,
Feng EVs is largely
Revised Chartsuntapped and the future
for World Standards, 2009 of the transportation industry
PZ`L[[VILKLÄULK
In regards to green buildings, estimates suggest that that only a tiny fraction,
SLZZ[OHUVMHSSÅVVYZWHJLL_WLJ[LK[VILI\PS[PU ^PSSILJLY[PÄLKHZ
NYLLUI`HU`JLY[PÄJH[PVUZ[HUKHYKÔL[OLYUH[PVUHSVYPU[LYUH[PVUHS;OLYLMVYL
the potential for new design and planning approaches, optimized construction
[LJOUPX\LZ Z\Z[HPUHISL TH[LYPHSZ HUK LMÄJPLU[ HWWSPHUJLZ PZ ]HZ[ WHY[PJ\SHYS`
considering the size of China’s plans for continued urbanization.
66
Fridley, David et al., Impacts of China’s Current Appliance Standards and Labeling Program to 2020 (Berkeley, CA, U.S.: Lawrence
Berkeley National Laboratory, 2007), 1
67
BP, "BP Statistical Review of World Energy June 2009;" International Monetary Fund, "World Economic Outlook Update, July 2009;"
China Greentech Initiative analysis
68
Gasgoo, "China Ups 2009 Vehicle Sales Target to 10.2 Million," May 11, 2009, http://autonews.gasgoo.com/

MARKET CONTEXT
A UNIQUE MOMENT IN TIME

The fundamentals are largely in place to drive China’s economic development for
decades to come and the importance of increased environmental sustainability is
ILJVTPUNTVYL^PKLS`YLJVNUPaLK;OLÄYZ[ZPNUZVM[YHUZMVYTH[PVUHYLWYVTPZPUN
as the government, private business and average citizens are motivated by the
vision of a China that is both economically and ecologically sustainable.
China’s government has already established policies and provided incentives

to stimulate green development. Businesses are adapting to the new operating
environment and are beginning to explore opportunities by developing new
[LJOUVSVNPLZWYVK\J[ZHUKI\ZPULZZTVKLSZ(IYVHKZWLJ[Y\TVMHKVW[LYZMYVT
individual consumers to large industrial players, are becoming increasingly aware
VM[OLILULÄ[ZVMNYLLU[LJOUVSVNPLZ¶[V[OLLU]PYVUTLU[I\ZPULZZZLJ[VYHUK
society. While the path to sustainable development will not be easy, it will be a
journey encouraged by international support and guided by strong government
leadership.

CHINA’S
REGULATORY RESPONSE

CHINA’S REGULATORY RESPONSE
China’s array of national and local regulators has

initiated a wide range of policies and regulations to
address environmental issues and promote greentech
markets. This policy environment is further influenced
by international policy principles, agreements and
relationships. While clear progress has already been
made, policy challenges remain.
CHINESE REGULATORS HAVE ALREADY TAKEN MANY CONCRETE STEPS to address

environmental issues and support the development of greentech markets. In fact,
when compared to other countries, both developing and developed, China appears
to be on the path of becoming a global greentech leader. Given the magnitude and
pace of environmental change, however, there are still many important regulatory
challenges that must be addressed.
The China Greentech Initiative, taking into account the critical role of government
in China, investigated four key questions related to the regulatory environment:
>OPJORL`*OPULZLYLN\SH[VY`HNLUJPLZL_LY[PUÅ\LUJLV]LY*OPUH»Z
greentech markets?
What principles guide their policies?
>OH[ZWLJPÄJHJ[PVUZOH]L[OL`[HRLU[VZ\WWVY[LU]PYVUTLU[HS
sustainability and greentech markets in China?
/VÔHZ[OLPU[LYUH[PVUHSWVSPJ`LU]PYVUTLU[PUÅ\LUJLKHUKPTWHJ[LK
*OPUH»ZNYLLU[LJOTHYRL[Z&
;OPZ JOHW[LY L_WSVYLZ [OLZL X\LZ[PVUZ H[ H OPNO SL]LS 4VYL ZLJ[VYZWLJPÄJ
details on the regulatory environment are provided in the sector chapters included
in the full version of the report.
China’s Policy Environment

CHINA’S POLICY ENVIRONMENT IS COMPLEX with a large number of entities exerting
control at national and local levels.
CHINA’S CENTRAL GOVERNMENT

*OPUH»ZUH[PVUHSNV]LYUTLU[ÔPJOKL]LSVWZ[HYNL[ZN\PKLSPULZHUKYLN\SH[PVUZ
concerning environmental, sustainability and greentech issues in China,
encompasses many different types of policy bodies.
;OL JV\U[Y`»Z OPNOLZ[ SLNPZSH[P]L IVK` PZ [OL 5H[PVUHS 7LVWSL»Z *VUNYLZZ 57*
YLZWVUZPISLMVYMVYT\SH[PUN*OPUH»ZSH^ZHZ^LSSHZHWWYV]PUNHUK[YHJRPUNPTWSLTLU[H[PVU
VM*OPUH»Z-P]L@LHY.\PKLSPULZMVY,JVUVTPJHUK:VJPHS+L]LSVWTLU[
;OL :[H[L *V\UJPS *OPUH»Z OPNOLZ[ L_LJ\[P]L IVK` [HRLZ KPYLJ[PVU MYVT [OL
5H[PVUHS 7LVWSL»Z *VUNYLZZ 0[Z YVSL PZ [V LUHJ[ YLN\SH[PVUZ [OH[ HJOPL]L [OL
NV]LYUTLU[»ZRL`KL]LSVWTLU[VIQLJ[P]LZHUKJVVYKPUH[L[OLHJ[P]P[PLZVM*OPUH»Z
]HYPV\ZTPUPZ[YPLZ-VYWHY[PJ\SHYS`PTWVY[HU[JYVZZZLJ[VYPZZ\LZ*OPUH»Z*LU[YHS
NV]LYUTLU[ ZVTL[PTLZ LZ[HISPZOLZ 3LHKLYZOPW .YV\WZ KPYLJ[S` \UKLY [OL :[H[L
*V\UJPS [V N\PKL WVSPJPLZ HUK WYPUJPWSLZ HJYVZZ [OL YLZ[ VM [OL NV]LYUTLU[ -VY
L_HTWSL PU 1\UL [OL 3LHKPUN .YV\W MVY 5H[PVUHS 9LZWVUZL [V *SPTH[L
*OHUNL ,ULYN` *VUZLY]H[PVU HUK ,TPZZPVU 9LK\J[PVU ^HZ LZ[HISPZOLK [V
JVVYKPUH[L Z[H[L LMMVY[Z ^P[O 7YLTPLY >LU 1PHIHV HZ [OL NYV\W SLHKLY HUK
TLTILYZPUJS\KPUNH=PJL7YLTPLY[OL:LJYL[HY`.LULYHSVM[OL:[H[L*V\UJPSHUK
heads of 27 central government ministries.
;OL *OPUH .YLLU[LJO 0UP[PH[P]L PKLU[PÄLK KPMMLYLU[ UH[PVUHS NV]LYUTLU[

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H\[OVYP[PLZV]LYZLLKPMMLYLU[HZWLJ[ZVM*OPUH»ZNYLLU[LJOTHYRL[Z0UZVTLZLJ[VYZ

CHINA’S POLICY ENVIRONMENT
Fig.1 Fig.1 : CHINA’S CENTRAL GOVERNMENT GREENTECH REGULATORS

GOVERNMENT ENTITY GREENTECH RESPONSIBILITIES
Highest national legislative body in China; enacts basic environment and energy laws
National People’s
,_HTPULZHWWYV]LZHUK[YHJRZ[OLPTWSLTLU[H[PVUVM[OL-P]L@LHY.\PKLSPULZMVYUH[PVUHS
Congress (NPC)
economic and social development
Chief administrative authority; top executive apparatus; coordinates activities of ministries

State Council (SC)
,UHJ[ZYLN\SH[PVUZ[VHJOPL]L[OLNVHSZZL[PU*OPUH»Z-P]L@LHY.\PKLSPULZHUKSH^Z
Administration of Quality 4PUPZ[LYPHSSL]LSVYNHUPUJOHYNLVMHKTPUPZ[LYPUN*OPUH»Z[LJOUPJHSWYVK\J[X\HSP[`LU]PYVUTLU[HS

Supervision, Inspection, and WYVK\J[ZHML[`HUKV[OLYZ[HUKHYKZHZ^LSSHZTHUHNPUN*OPUH»ZHJJYLKP[H[PVUHUKJLY[PÄJH[PVU
Quarantine (AQSIQ) activities
China Meteorological 9LZWVUZPISLMVYVYNHUPaH[PVUHUKTHUHNLTLU[VM*OPUH»ZUH[PVUHSTL[LVYVSVNPJHS^VYRPUJS\KPUN

Administration (CMA) monitoring and assessment of atmospheric signs of climate change
In charge of agriculture and rural economic development including long-term development

Ministry of Agriculture (MOA) planning, regulation and policy implementation
Ministry of Commerce 9LZWVUZPISLMVYMVYT\SH[PUNWVSPJ`VUMVYLPNU[YHKLL_WVY[HUKPTWVY[YLN\SH[PVUZMVYLPNUKPYLJ[

(MOFCOM) investments, consumer protection and market competition
Ministry of Environment 9LZWVUZPISLMVY*OPUH»ZV]LYHSSLU]PYVUTLU[HSTHUHNLTLU[

Protection (MEP) :L[ZWVSS\[PVUHZ^LSSHZLULYN`HUKYLZV\YJLLMÄJPLUJ`Z[HUKHYKZ
4VUP[VYZÄZJHSWVSPJPLZ"LUHJ[ZÄUHUJLZKPZ[YPI\[LZHUK[YHJRZZ\IZPKPLZ
Ministry of Finance (MOF)
*VU[YVSZPU[LYLZ[YH[LZHUK[OLÅV^VMJHWP[HSPU*OPUH»ZLJVUVT`
9LZWVUZPISLMVYPUMYHZ[Y\J[\YLKL]LSVWTLU[PUJS\KPUN^HZ[L^H[LY[YLH[TLU[HUKZVSPK^HZ[LTHUHNLTLU[
Ministry of Housing and Urban-
+YHM[ZI\PSKPUNJVKLZHUKLUMVYJLZJVTWSPHUJLPUJS\KPUNV]LYZPNO[VM*OPUH»Z¸.YLLU)\PSKPUN
Rural Development (MOHURD)
Label” standard
Ministry of Industry and 9LZWVUZPISLMVYHSSPUK\Z[Y`WYVQLJ[HWWYV]HSM\UJ[PVUZHZ^LSSHZYLN\SH[PVUHUKKL]LSVWTLU[VM

Information Technology (MIIT) information and communications technology regulations
Ministry of Land and Resources 9LZWVUZPISLMVY[OLWSHUUPUNHKTPUPZ[YH[PVUHUKWYV[LJ[PVUVMSHUKTPULYHSHUKTHYPULYLZV\YJLZ

(MOLR) *LY[PÄLZSHUKHWWYHPZHSHNLUJPLZJVUÄYTZSHUK\ZLWYPJLZL_HTPULZHWWSPJH[PVUZMVYSHUK\ZL
+YHM[ZHUKZ\WLY]PZLZ[OLL_LJ\[PVUVMKL]LSVWTLU[Z[YH[LNPLZZ[HUKHYKZYLN\SH[PVUZHUKWVSPJPLZ
Ministry of Railway (MOR)
NV]LYUPUN*OPUH»ZYHPS^H`PUK\Z[Y`
Ministry of Science and -VYT\SH[LZWVSPJLZHUKTLHZ\YLZVUZJPLUJLHUK[LJOUVSVN`KL]LSVWTLU[

Technology (MOST) +L]LSVWZWYVTV[LZHUKZ\WLY]PZLZUH[PVUHSIHZPJYLZLHYJOHUKOPNO[LJO9 +WYVNYHTZ
+L]LSVWZHUKVYNHUPaLZ[OLPTWSLTLU[H[PVUVMWSHUUPUNWVSPJPLZHUKZ[HUKHYKZMVY^H[LY^H`YVHK
Ministry of Transportation (MOT) and air transportation, and promotes convergence of the various modes of transport
Ministry of Water Resources 9LZWVUZPISLMVYV]LYHSS^H[LYYLZV\YJLTHUHNLTLU[ZVPSHUK^H[LYJVUZLY]H[PVUHUKÅVVKJVU[YVS

(MWR) Grants licenses for water extraction and water use
National Bureau of Statistics In charge of statistics and economic accounting in China including collection and publication of
(NBS) pollution, energy consumption and energy intensity statistics at national and local levels
4VZ[WV^LYM\STPUPZ[Y`SL]LSIVK`\UKLY[OL:[H[L*V\UJPS"WSH`ZHRL`YVSLPUKL]LSVWPUNHUK
National Development and PTWSLTLU[PUN-P]L@LHY.\PKLSPULZ
Reform Commission (NDRC) 6]LYZLLZ5H[PVUHS,ULYN`(KTPUPZ[YH[PVU5,(HUKYLSH[LKWVSPJ`M\UJ[PVUZ
State Administration of Taxation +YHM[Z[H_SH^ZHUKYLN\SH[PVUZ"MVYT\SH[LZPTWSLTLU[H[PVUY\SLZ

(SAT) 9LZWVUZPISLMVYVYNHUPaPUNJVSSLJ[PVUHUKHKTPUPZ[YH[PVUMVYJLU[YHS[H_LZ
State-owned Assets Supervision 9LZWVUZPISLMVYTHUHNPUN*OPUH»ZZ[H[LVÛLKLU[LYWYPZLZPUJS\KPUNHWWVPU[PUN[VWL_LJ\[P]LZ

and Administration Commission and approving any mergers or sales of stock or assets, as well as drafting laws related to state-
(SASAC) owned enterprises
9LZWVUZPISLMVYYLN\SH[PVUVM[OLWV^LYZLJ[VY
State Electricity Regulatory +L]LSVWZHUKPTWSLTLU[ZRL`YLN\SH[PVUZLZ[HISPZOLZY\SLZMVYLSLJ[YPJP[`THYRL[VWLYH[PVUZHUK
Commission (SERC) issues business licenses
9LZWVUZPISLMVY[OLTHUHNLTLU[VMUH[PVUHSMVYLZ[ZHUKLJVSVNPJHSJVUZ[Y\J[PVUWYVQLJ[Z
State Forestry Administration 6YNHUPaLZJVVYKPUH[LZN\PKLZHUKZ\WLY]PZLZ[OL^VYRVMUH[PVUHSHMMVYLZ[H[PVU^L[SHUK
(SFA) WYV[LJ[PVUKLZLY[PÄJH[PVUJVU[YVSHUK[LYYLZ[YPHS^PSKSPMLYLZV\YJLWYV[LJ[PVU

Z\JO HZ YHPS^H` YLN\SH[PVU PUKP]PK\HS HNLUJPLZ SPRL [OL 4PUPZ[Y` VM 9HPS^H`Z OH]L
YLSH[P]LS`PUKLWLUKLU[H\[OVYP[`V]LYKLÄULKWVSPJ`HYLHZ0UV[OLYHYLHZHU\TILY
VMLU[P[PLZZOHYLYLN\SH[VY`YLZWVUZPIPSP[`-VYL_HTWSL[OL5H[PVUHS+L]LSVWTLU[
HUK9LMVYT*VTTPZZPVU5+9*5H[PVUHS,ULYN`(KTPUPZ[YH[PVU5,(4PUPZ[Y`VM
:JPLUJLHUK;LJOUVSVN`46:;:[H[L,SLJ[YPJP[`9LN\SH[VY`*VTTPZZPVU:,9*
and others all have responsibilities related to different aspects of energy policy.
LOCAL CHINESE POLICYMAKERS

7YV]PUJPHSHUKV[OLYSVJHSNV]LYUTLU[ZHSZVWSH`HUPTWVY[HU[YVSLPUYLN\SH[PUN
*OPUH»ZNYLLU[LJOTHYRL[ZTHRPUNP[PTWVY[HU[[V\UKLYZ[HUK[OLVM[LUJVTWSL_
relationships between national and local policymakers.Immediately below the
national-level agencies is the provincial level, which includes the provinces,
MV\Y WYV]PUJLSL]LS T\UPJPWHSP[PLZ )LPQPUN *OVUNXPUN :OHUNOHP HUK ;PHUQPU
Ä]L H\[VUVTV\Z YLNPVUZ Z\JO HZ ;PIL[ HUK 0UULY 4VUNVSPH HUK [OL ZWLJPHS
administrative regions of Hong Kong and Macau. Most central government
agencies have corresponding bodies at local levels that are commonly tasked
^P[OPTWSLTLU[PUN[OLWVSPJPLZVM[OLJLU[YHSYLN\SH[VYZ`L[HYLVM[LUPUÅ\LUJLK
by both central government agencies as well as entities within the provincial and
other local administrations.
)LULH[O [OL WYV]PUJLZ *OPUH PZ Z\IKP]PKLK PU[V WYLMLJ[\YLZ [OH[ HYL PU [\YU
usually subdivided into counties composed of multiple townships. This structure
PZV\[SPULKPU-PN\YL
Fig. 2 : CHINA’S ADMINISTRATIVE STRUCTURE
NATIONAL
PEOPLE’S CONGRESS
STATE COUNCIL
PROVINCES
MINISTRIES
PREFECTURES
LOCAL AUTHORITIES COUNTIES

TOWNSHIPS
VILLAGES
A Number of Key Policy Principles Guide China’s

Greentech Policies
CHINA’S DOMESTIC POLICY PRINCIPLES PLAY AN IMPORTANT ROLE in driving sustainability,
climate change and greentech markets policies and regulations. The China
.YLLU[LJO0UP[PH[P]LPKLU[PÄLKLPNO[RL`WYPUJPWSLZ[OH[KYP]L[OLKL]LSVWTLU[VM
*OPUH»ZNYLLU[LJOTHYRL[ZHZZOVÛPU-PN\YL
Fig. 3: KEY PRINCIPLES UNDERLYING CHINA’S SUSTAINABILITY,

CLIMATE CHANGE AND GREENTECH POLICIES
Scientific Approach to Development
Harmonious Society
Equal Emphasis on Mitigation and Adaptation
Efficiency Improvement and Conservation
Energy Structure Optimization
Ecological Preservation and Construction
Agriculture Productivity Enhancement
Indigenous Innovation

A NUMBER OF KEY POLICY PRINCIPLES GUIDE CHINA’S GREENTECH POLICIES
SCIENTIFIC APPROACH TO -PYZ[IYV\NO[MVY^HYKI`*OPUH»Z7YLZPKLU[/\1PU[HVPU[OPZWYPUJPWSLJHSSZ

DEVELOPMENT MVY ¸WLVWSLJLU[LYLK KL]LSVWTLU[ ÔPJO PZ JVTWYLOLUZP]L JVVYKPUH[LK HUK
sustainable, for the promotion of overall harmonic development of the economy,
ZVJPL[`HUKO\THUILPUNZ¹0[HSZVZ[YLZZLZ¸JVVYKPUH[LKKL]LSVWTLU[IL[^LLU
urban and rural areas, among different regions and between economic and social
development, harmony between human beings and nature and coordination of
domestic development and opening to the outside world” as means of pushing
forward reform and progress.;OLWYPUJPWSLVMH:JPLU[PÄJ(WWYVHJO[V+L]LSVWTLU[
^HZPUJVYWVYH[LKHZHUHTLUKTLU[[V[OL*VUZ[P[\[PVUVM[OL*VTT\UPZ[7HY[`VM
*OPUH*7*PU6J[VILY2
HARMONIOUS SOCIETY )\PS[VU[OLMV\UKH[PVUZVM[OL:JPLU[PÄJ(WWYVHJO[V+L]LSVWTLU[ZLLHIV]L

HUK PUJS\KLK PU [OL 6J[VILY HTLUKTLU[ [V [OL *7* *VUZ[P[\[PVU [OPZ
principle marks a transition from an overall national focus on economic growth
to a broader focus on greater social harmony and balance. This incorporates the
JYLH[PVUVMHULJVSVNPJHSJP]PSPaH[PVU[OH[^PSSILULÄ[MYVTLU]PYVUTLU[HSWYV[LJ[PVU
economic growth and social development.3,4
EQUAL EMPHASIS ON MITIGATION *OPUH»Z5H[PVUHS*SPTH[L*OHUNL7YVNYHTOPNOSPNO[Z[OLWYPUJPWSLVMWSHJPUNLX\HS

AND ADAPTATION emphasis on mitigating and adapting to climate change. This means that while
LULYN`LMÄJPLUJ`HUKHYLK\J[PVUPUNYLLUOV\ZLNHZLTPZZPVUZJVU[PU\LZ[VIL
H MVJ\Z VM *OPUH»Z TP[PNH[PVU LMMVY[Z TLHZ\YLZ Z\JO HZ LJVZ`Z[LT WYV[LJ[PVU
UH[\YHSKPZHZ[LYWYL]LU[PVUHUKPUMYHZ[Y\J[\YLKL]LSVWTLU[^PSSKL[LYTPUL*OPUH»Z
experience of adapting to climate change.5
ENERGY EFFICIENCY IMPROVEMENT 7YVTV[PUN LULYN` LMÄJPLUJ` HUK LULYN` JVUZLY]H[PVU OHZ ILLU H RL` KYP]LY VM
AND CONSERVATION LU]PYVUTLU[HS WVSPJ` MYVT HZ LHYS` HZ [OL WYVT\SNH[PVU VM *OPUH»Z ,ULYN`
*VUZLY]H[PVU 3H^ 0UK\Z[YPHS HUK I\PSKPUN LULYN` LMÄJPLUJ` HYL [^V RL` HYLHZ
of focus.6
ENERGY STRUCTURE ;VNL[OLY^P[OLULYN`JVUZLY]H[PVULULYN`Z[Y\J[\YLVW[PTPaH[PVUOHZILLUHRL`

OPTIMIZATION WYPUJPWSL\UKLYS`PUN*OPUH»ZJSPTH[LJOHUNLTP[PNH[PVUWVSPJPLZ;OLJVYLHPTVM
this policy principle is to increase the percentage of renewable energy and cleaner
JVU]LU[PVUHSLULYN`PU*OPUH»ZM\LSTP_7
ECOLOGICAL PRESERVATION This guiding principle is leading to important policies that support forestation
AND CONSTRUCTION HUK NYHZZSHUK YLOHIPSP[H[PVU HZ ^LSS HZ KYP]PUN [OL LMMVY[ [V TPUPTPaL VY L]LU
YL]LYZL[OLKLZLY[PÄJH[PVUVMHYHISLVYOHIP[HISLSHUKMYVTV]LY\ZLHUKJOHUNPUN
climate conditions.8(ZHUL_HTWSL*OPUH»Z^H[LY\ZHNLZ[H[PZ[PJZYLÅLJ[UV[VUS`
agricultural, domestic and industrial water use, but since 2003 they illustrate an
increasing trend of water being used for ecological protection and the reconstruction
or rehabilitation of natural water resources and wetlands.
AGRICULTURAL PRODUCTIVITY -VJ\ZLKVUPUJYLHZPUNHNYPJ\S[\YHSWYVK\J[P]P[`[OPZWYPUJPWSLOHZN\PKLKHU\TILY

ENHANCEMENT VM WVSPJPLZ [OH[ Z\WWVY[ [OL TVKLYUPaH[PVU VM *OPUH»Z HNYPJ\S[\YHS ZLJ[VY ;OLZL
LMMVY[Z LUJV\YHNL PUJYLHZLK TLJOHUPaH[PVU HUK LMÄJPLU[ PYYPNH[PVU KLJYLHZL
WVSS\[PVU JH\ZLK I` MLY[PSPaLY HUK WLZ[PJPKL Y\UVMM HUK Z\WWVY[ HNYPJ\S[\YHS
greenhouse gas capture.
INDIGENOUS INNOVATIION ;OL -PM[O 7SLUHY` :LZZPVU VM [OL [O *7* 5H[PVUHS *VUNYLZZ WYVWVZLK
[OH[Z[YLUN[OLUPUNPUKPNLUV\ZPUUV]H[PVUPZHRL`MV\UKH[PVUMVYWYVTV[PUN*OPUH»Z
ZJPLU[PÄJ KL]LSVWTLU[ This principle supports policies that target domestic
KL]LSVWTLU[VMNYLLU[LJOZVS\[PVUZPUJS\KPUNI\PSKPUN*OPUH»ZJHWHJP[`PUIHZPJ
research and original innovation.
1
People’s Daily Online, “Scientific Concept of Development Crucial to China’s Future Growth: Premier,” March 1, 2009, http://english.peopledaily.com.
cn/
2
Xinhua News Agency, “Major Previous Amendments to CPC Constitution,” October 21, 2007, http://news.xinhuanet.com/
3
China Council for International Cooperation on Environment and Development (CCICED), “Environment and Development for a Harmonious Society,”
(Beijing, China: CCICED, 2008)
4
A variety of definitions have been used for the term “social development.” In China, achievements classified as “social development” under the Program
of Action for Sustainable Development in the early 21st Century (2007) include that “the trend of excessive population growth has been checked;
science, technology and education have made positive headway; and remarkable progress has also been made in social security, poverty eradication,
disaster relief and prevention, medical care, and narrowing the regional gap in development.” National Development and Reform Commission (NDRC),
Program of Action for Sustainable Development in the early 21st Century, (Beijing, China: NDRC, February 5, 2007), http://en.ndrc.gov.cn/
5
National Development and Reform Commission (NDRC), National Climate Change Program, (Beijing, China: NDRC, June 2007)
6
Ibid

Greentech-Related Policies and Regulations

CHINA’S GOVERNMENT HAS MADE SIGNIFICANT STEPS in understanding the key
environmental issues facing the country and responding with greentech-related
WVSPJPLZ*OPUH»ZLUVYTV\ZNLVNYHWOPJHUKWVW\SH[PVUZJHSLPZM\UKHTLU[HS[V[OL
challenge of developing and implementing a coordinated set of central policies
ÔPSLHKKYLZZPUN[OLULLKZVMSVJHSTHYRL[JVUKP[PVUZ(ZHYLZ\S[*OPUH»ZWVSPJ`
environment represents a complex array of policy instruments. Among these are
national plans, programs, laws, standards, industry promotion policies and market
WYPJL JVU[YVSZ ¶ HSS RL` [VVSZ \ZLK I` *OPUH»Z NV]LYUTLU[ [V LUHISL HUK KYP]L
*OPUH»ZNYLLU[LJOTHYRL[Z-PN\YLWYV]PKLZHUV]LY]PL^VM[OLKPMMLYLU[SL]LSZVM
WVSPJPLZPUÅ\LUJPUN*OPUH»ZNYLLU[LJOTHYRL[Z
Fig .4: SCHEMATIC OVERVIEW OF CHINA’S KEY REGULATORY INSTRUMENTS
PUBLISHING
BODIES:
PRC CONSTITUTION
NATIONAL
PEOPLE’S
LAWS 5 YEAR
CONGRESS GUIDELINES
STATE STATE COUNCIL REGULATIONS

COUNCIL
MINISTERIAL AND NDRC REGULATIONS

MINISTRIES
MINISTERIAL AND NDRC MEASURES*
LOCAL
LOCAL** REGULATIONS AND MEASURES
AUTHORITIES
Note: *Ministerial measures include standards, circulars, implementation guidelines,

interpretations, rules, orders, ordinance, proposals, etc.
** Local includes provincial, municipal, city, prefecture/county levels
CHINA’S POLICYMAKING PRACTICES

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[OLJV\U[Y`»ZNYLLU[LJOTHYRL[KL]LSVWTLU[P[PZPTWVY[HU[[VIYPLÅ`V\[SPULZVTL
of the practices policymakers use to develop these policies.
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there are complex procedures for deliberation of the draft bill that can include,
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W\ISPJOLHYPUNZ9L]PZLK]LYZPVUZVMKYHM[IPSSZJHUIL]V[LKPU[VSHÎ`HZPTWSL
THQVYP[`HTVUNHWSLUHY`ZLZZPVUVM[OL57*0MHIPSSWHZZLZ*OPUH»ZWYLZPKLU[
issues a presidential order to promulgate the law.
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similarities to those used in the legislative process. A ministry or other sponsoring
regulatory agency commonly develops a draft regulation after considering
7
Ibid
8
Ibid
9
National Bureau of Statistics of China, “China Statistical Yearbook 2008”
10
National Development and Reform Commission, National Climate Change Programme (Beijing, China: NDRC, June 2007), 45
11
National Natural Science Foundation of China, Guide to Programmes 2006 (Beijing, China: NSFC, November 20, 2005)
12
There is a second option for China’s legislative process, often utilized between plenary sessions of the NPC, whereby draft bills are
submitted to, deliberated under, and voted on, by the Standing Committee of the NPC, a permanent committee with legislative powers
under the NPC.
13
Chenfeng Cai, Chunhua Li, The Legislative Process in China (Ontario, Canada: The Parliamentary Centre of Canada, 2006),5

GREENTECH-RELATED POLICIES AND REGULATIONS
international regulatory precedents, then invites feedback on the draft regulation

through a variety of channels. If the regulation addresses issues that cut across
separate ministerial mandates or involve fundamental issues, such as how a
WPLJLVMSLNPZSH[PVUPZ[VILPTWSLTLU[LK[OL:[H[L*V\UJPSVYWLYOHWZHNYV\W
VM TPUPZ[YPLZ ^PSS PZZ\L [OL YLN\SH[PVU 0M P[ PU]VS]LZ [OL Q\YPZKPJ[PVU VM VUS` VUL
ministry, that ministry alone may issue the regulation.
-VY IV[O SLNHS HUK YLN\SH[VY` TH[[LYZ NYLLU[LJO THYRL[ Z[HRLOVSKLYZ OH]L
opportunities to directly input feedback to the draft policies before they are
L]LU[\HSS`HKVW[LK(Z*OPUH»ZWVSPJ`THRLYZJVU[PU\L[VYLÄULTL[OVKZ[OYV\NO
which they are able to incorporate public input into their new policies, market
Z[HRLOVSKLYZ ZOV\SK OH]L VWWVY[\UP[PLZ [V PUÅ\LUJL *OPUH»Z NYLLU[LJO WVSPJ`
development.
CHINA’S PLANS AND PROGRAMS

*OPUH»Z NV]LYUTLU[ THRLZ Z\IZ[HU[PHS \ZL VM UH[PVUHS WSHUUPUN HJ[P]P[PLZ HUK
WYVNYHTZ[VWYV]PKLHWWYVWYPH[LMYHTL^VYRZMVY*OPUH»ZYLZWVUZL[VLU]PYVUTLU[HS
issues and to generate development targets. A summary listing of several key
VUNVPUNHUKM\[\YLNYLLU[LJOYLSL]HU[WSHUZPZJVU[HPULKPU-PN\YL
Fig .5: SUMMARY OF ISSUING AGENCIES AND TIME FRAMES OF SELECTED

CHINESE GOVERNMENT PLANS IMPACTING GREENTECH SECTORS
PLAN ISSUING AGENCY TIME FRAME
11th Five Year Guidelines for Economic and Social Development NPC 2006-2010
12th Five Year Guidelines for Economic and Social Development NPC 2011-2015
Five Year Plan for Energy Development NDRC 2006-2010
Five Year Plan for Coal Industry Development NDRC 2006-2010
Five Year Plan for Railway Development MOR 2006-2010
Five Year Plan for the Development and Utilization of Coal Bed Methane and NDRC 2006-2010
Coal Mine Methane
Five Year Plan for Sulfur Dioxide Treatment in Existing Coal-Fired Power Plants NDRC, MEP 2006-2010
Five Year Plan for Acid Rain and Sulfur Dioxide Pollution Control NDRC, MEP 2006-2010
Five Year Plan for Ecological Protection MEP 2006-2010
Medium and Long Term Science and Technology Development Plan State Council 2000-2020
Medium and Long Term Energy Development Plan State Council 2004-2020
Medium and Long Term Plan for the Oil Refining Industry State Council 2005-2020
Medium and Long Term Energy Conservation Plan NDRC 2006-2020
Medium and Long Term Plan for Renewable Energy Development NDRC 2007-2020
Medium and Long Term Rail Network Development Plan NDRC 2008-2020
Shipping Revitalization Plan State Council 2009-2011
Logistics Industry Revitalization Plan State Council 2009-2011
Equipment Manufacturing Revitalization Plan State Council 2009-2011
,]LY` Ä]L `LHYZ *OPUH»Z 5H[PVUHS 7LVWSL»Z *VUNYLZZ ]V[LZ

Sources: [V LUKVYZL UL^ “关于印发《国家酸雨和二氧化硫污染防治
9. 中华人民共和国环境保护部,
1. 中国人民共和国国务院办公厅,”
-P]L@LHY .\PKLSPULZ MVY ,JVUVTPJ ;OL th -P]L@LHY
HUK :VJPHS +L]LSVWTLU[“十一五”规划》的通知”,
国务院常务会议原则通过《能源中长期 2008年1月3日 [Ministry of Environmental
发展规划纲要》（草案）,” 2006年6月30日[The Central people’s Protection, PRC, “Notice of Issuing <Five Year Plan for Acid Rain and
Guidelines
YLWYLZLU[LKHKYHTH[PJZOPM[MYVTWYL]PV\ZWSHUZIV[OPU
Government, PRC,”On Issuing Medium and Long-Term Plan for Energy Sulfur Dioxide Pollution Control>,” January 3, 2008]
their new focus on
Development sustainable
(2004-2020), (Draft),”development, and in the importance
June 30, 2006], http://www.gov.cn/ they placed
10.中华人民共和国环境保护部, “国家发展改革委，国家环保总局关于印
(accessed on May 30, 2009) 发现有燃煤电厂二氧化硫“十一五”规划的通知”, 2008年4月10日 [Ministry
VU H OHYTVUPV\Z ZVJPL[` HUK
2. 中国国家发展和改革委员会,可再生能源中长期发展规划,2007年8月,
ZL]LYHS VM *OPUH»Z V[OLY RL` LU]PYVUTLU[HS HUK
of Environmental Protection, PRC, “Notice of Issuing <Five Year Plan for
climate[China
changeClimateprinciples.

Change Info-Net,This
Mediumlatest
and set of Guidelines
Long-Term Plan for contains key targets
Sulfur Dioxide Treatment toin Existing Coal-Fired Power Plants>,” April 10,
Renewable
KLJYLHZL *OPUH»ZEnergy Development
LULYN` (2007-2020)],
PU[LUZP[` (Beijing,
WLY \UP[ VM China:
.+7National 2008]
I` IL[^LLU HUK
Development and Reform Commission, August, 2007) 11. 环境保护部环境规划院, “全国“十一五”生态保护规划”, 2006年1月10日
>OPSLZWLJPÄJZOH]LUV[`L[ILLUW\ISPZOLKZVTLTHYRL[L_WLY[ZZ\NNLZ[
3.中国国家发展和改革委员会,”节能中长期专项规划,” 2004年11月25日, [Chinese Academy For Environmental Planning, “Five Year Plan for
th
[OH[[OL
[National-P]L@LHY.\PKLSPULZ^PSSW\[L]LUNYLH[LYLTWOHZPZVU
Development and Reform Commission, “Medium and Ecological Protection,” January 10, 2006]
Long-Term Plan for Energy Conservation,” November 25, 2004], 12.中国国家发展和改革委员会, 煤炭工业发展“十一五”规划, 2007年1月,
environmental and sustainability issues,
http://www.sdpc.gov.cn/ (accessed on May 30, 2009)and may even contain a national target for
[China Development Gateway, Five Year Plan for Coal Industry
carbon4.南阳市科技信息网,
emissions intensity.
“国家中长期科学技术发展纲领,” 1992年3月8日, Development, National Development and Reform Commission, January,
[NanYang Science and Information Website, “Medium and Long-Term 2007]
Plan for Science and Technology Development ,” March 3, 1992], 13. 中国煤炭网, “煤层气开发利用“十一五”规划书
14
http://www.nysti.ha.cn/
Note: After (accessed
the 10th Five-Year Plan (2001-2005), on Mayfive
subsequent 30,year
2009) http://www.ccoalnews.co)
plans have been renamed “Five Year Guidelines” accessed on August 11, 2009) [China Coal
15
Chinese Government’s Official Web Portal, “NPC Endorses 11th Five-Year Plan,” March 14, 2006, http://www.gov.cn/
5.中国国家发展和改革委员会,”国家发展改革委批准<<中长期铁路网规划 Net, “Five Year Plan for the Development and Utilization of Coal Bed
16
Financial Times, “Chinese Group Buys Voluntary Carbon Credits,” August 6, 2009, http://www.ft.com/
(2008年调整)>>,” 2008年10月, [National Development and Reform Methane and Coal Mine Methane”]
Commission, “On issuing Medium and Long-Term Plan for Rail Network 14. Sina, “National Energy Bureau: New Energy Revitalization Plan To be
Development<<2008 revision>>,” October, 2008], Issued Within ThisCHINA
THE Year,”GREENTECH
http://www.sina.com.cn/
REPORT 2009 (accessed on August
www.china-greentech.com
48
http://www.ndrc.gov.cn/ (accessed on May 30, 2009) 11, 2009)
6. 广州市发展和改革委员会, “炼油工业中长期发展专项规划,” 2005年12月 15. Sina, “Introduction of Shipping Revitalization Plan Details,”
[Guangzhou Municipal Development & Reform Commission, “Medium http://www.sina.com.cn/ (accessed on August 11, 2009)
and Long Term Plan for the Oil Refining Industry”, December, 2005] 16. 中华人民共和国人民政府, “国务院关于印发物流业调整和振兴规划的
;VZ\WWVY[[OL-P]L@LHY.\PKLSPULZMVY,JVUVTPJHUK:VJPHS+L]LSVWTLU[[OL
5+9*HUKV[OLYRL`TPUPZ[YPLZYLSLHZLKL[HPSLKWSHUZ[VN\PKL[OLKL]LSVWTLU[
VMZWLJPÄJWHY[ZVM[OLLJVUVT`V]LY[OLZHTLÄ]L`LHYWLYPVKZ;OL-P]L@LHY
,ULYN`7SHU[OL-P]L@LHY7SHUMVY*VHS0UK\Z[Y`+L]LSVWTLU[HUK[OL-P]L
@LHY7SHUMVY[OL+L]LSVWTLU[HUK<[PSPaH[PVUVM*VHS)LK4L[OHULHUK*VHS4PUL
Methane HYL[OYLLL_HTWSLZVMZ\WWVY[PUNÄ]L`LHYWSHUZK\YPUN[OLthÄ]L`LHY
WLYPVK^P[OYLSL]HUJLMVY*OPUH»ZNYLLU[LJOTHYRL[Z
¸4LKP\THUK3VUN;LYT7SHUZ¹HYLV[OLYWVSPJ`WSHUUPUN[VVSZ\ZLKI`*OPUH»Z
NYLLU[LJO YLN\SH[VYZ WYV]PKPUN JYVZZTPUPZ[Y` WVSPJ` N\PKHUJL MVY `LHY
WLYPVKZHUKJVTWSLTLU[PUN[OLTVYLKL[HPSLKÄ]L`LHYWSHUZ9LJLU[NYLLU[LJO
YLSL]HU[4LKP\THUK3VUN;LYT7SHUZOH]LILLUJYLH[LKMVY,ULYN`+L]LSVWTLU[
209LUL^HISL,ULYN`+L]LSVWTLU[,ULYN`*VUZLY]H[PVU
22 :JPLUJL HUK ;LJOUVSVN` +L]LSVWTLU[ 23 HUK 9HPS
5L[^VYR+L]LSVWTLU[24
4HU`4LKP\THUK3VUN;LYTWSHUZ[OLTZLS]LZJVU[HPUUH[PVUHSSL]LSWYVQLJ[Z
^P[O PTWVY[HU[ NYLLU[LJO PTWSPJH[PVUZ ;OL 4LKP\T HUK 3VUN;LYT ,ULYN`
*VUZLY]H[PVU7SHUMVYL_HTWSLSH`ZV\[HWYVNYHTVMRL`LULYN`
JVUZLY]H[PVU WYVQLJ[Z ÔPJO ZOV\SK JVSSLJ[P]LS` SLHK [V LULYN` JVUZLY]H[PVU
LX\P]HSLU[[VTPSSPVU[VUZVMJVHS(SPZ[PUNVM[OLZLRL`LULYN`JVUZLY]H[PVU
WYVQLJ[ZJHUILMV\UKPU-PN\YL25
Fig.6: THE TEN KEY ENERGY CONSERVATION PROJECTS IN CHINA’S MEDIUM

AND LONG TERM ENERGY CONSERVATION PLAN (2006-2020)
Coal-fired industrial boiler retrofit

District heating and power cogeneration
Residual heat and pressure utilization
Petroleum saving and substituting
Motor system energy saving
Energy system optimization
Building energy conservation
Green lighting projects
Government agency energy conservation
Energy saving monitoring and testing, and technology service
system building
Whereas Medium and Long-Term plans commonly focus on individual policy

[VWPJZ PUK\Z[Y` YL]P[HSPaH[PVU WSHUZ HYL [HYNL[LK H[ PUKP]PK\HS PUK\Z[YPLZ *OPUH»Z
NV]LYUTLU[OHZYLSLHZLKHU\TILYVMNYLLU[LJOYLSL]HU[PUK\Z[Y`YL]P[HSPaH[PVUWSHUZ
for industries such as new energy, shipping, logistics and equipment manufacturing.
(TVUN[OLRL`WYVQLJ[ZMVYYL]P[HSPaPUN*OPUH»ZLX\PWTLU[THU\MHJ[\YPUNPUK\Z[Y`
PU[OL9LZ[Y\J[\YPUNHUK9L]P[HSPaH[PVU7SHUMVY[OL,X\PWTLU[4HU\MHJ[\YPUN0UK\Z[Y`
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some of the many greentech areas highlighted as national priorities.26
17
中华人民共和国国家发展和改革委员会, 能源发展. “ 十一五. ” 规划, 2007年4月, [Beijing China: NDRC, “11th Five Year Energy Plan,”
April, 2007]
18
中华人民共和国国家发展和改革委员会, 煤炭工业发展“十一五”规划, 2007年1月, [Beijing China, NDRC: “11th Five Year Plan for Coal
Industry Development,” January, 2007]
19
中华人民共和国国家发展和改革委员会, “煤层气(煤矿瓦斯)开发利用“十一五”规划,” 2007年 >1'5&´WK)LYH<HDU3ODQIRUWKH
Development and Utilization of Coal Bed Methane and Coal Mine Methane,” April 2007]
20
中华人民共和国国务院办公厅,”国务院常务会议原则通过’能源中长期发展规划纲要’（草案）,” 2006年6月30日 [State Council General
Office, “On Issuing Medium and Long-Term Plan for Energy Development (2004-2020), (Draft),” June 30, 2006] http://202.123.110.3/
21
中华人民共和国国家发展和改革委员会,可再生能源中长期发展规划, 2007年8月, [China Climate Change Info-Net, “Medium and
Long-Term Plan for Renewable Energy Development (2007-2020), August 2007], (Beijing, China: National Development and Reform
Commission, August 2007)
22
中华人民共和国国家发展和改革委员会,”节能中长期专项规划,” 2004年11月25日, [National Development and Reform Commission,
“Medium and Long-Term Plan for Energy Conservation,” November 25, 2004], http://www.sdpc.gov.cn/
23
南阳市科技信息网, “国家中长期科学技术发展纲领,” 1992年3月8日, [NanYang Science and Information Website, “Medium and Long-
Term Plan for Science and Technology Development,” March 3, 1992], http://www.nysti.ha.cn/
24
中华人民共和国国家发展和改革委员会,”国家发展改革委批准中长期铁路网规划，<2008年调整〉,” 2008年10月, [National Develop-
ment and Reform Commission, “On issuing Medium and Long-Term Plan for Rail Network Development, ‘2008 revision’,” October 2008],
http://www.ndrc.gov.cn/ (accessed on May 30, 2009)
25
中华人民共和国国家发展和改革委员会,”节能中长期专项规划,” 2004年11月25日, [National Development and Reform Commission,
“Medium and Long-Term Plan for Energy Conservation,” November 25, 2004] http://www.sdpc.gov.cn/ (accessed on June 16, 2009)
26
中华人民共和国国务院, “装备制造业调整和振兴规划,” 2009年05月12日, [State Council, “Restructuring and Revitalization Plan for the
Equipment Manufacturing Industry,” May 12, 2009] http://www.gov.cn/

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catering to the compilation of emission inventory, collection of testing and monitoring
data for emission factors, methodologies for inventory quality control, assessment
VM JSPTH[L JOHUNL PTWHJ[ HUK HKHW[H[PVU WYVQLJ[PVU VM M\[\YL LTPZZPVUZ HUK [OL
development and management of national greenhouse gas emission database.”27
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industries: iron and steel, petroleum and petrochemicals, chemicals, electric power
generation, non-ferrous metals, coal mining, construction materials, textile and pulp
and paper.
)` LZ[HISPZOPUN LULYN` JVUZLY]H[PVU [HYNL[Z MVY *OPUH»Z OPNOLZ[ LULYN`

consuming enterprises, the program aims to reduce total energy consumption by
[OLLX\P]HSLU[VMTPSSPVU[VUZVMJVHSI`28
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IPSSPVU LJVUVTPJ Z[PT\S\Z WSHU >OPSL VUS` IPSSPVU `\HU <: IPSSPVU PZ
KPYLJ[S` LHYTHYRLK MVY NYLLU PU]LZ[TLU[Z H M\Y[OLY IPSSPVU `\HU <:
IPSSPVU^PSSILJOHUULSSLKPU[V[LJOUVSVN`\WNYHKLZHUKPUK\Z[YPHSYLZ[Y\J[\YPUNPU
*OPUH»ZLULYN`PU[LUZP]LMHJ[VYPLZIYPUNPUN[OL[V[HSWVY[PVUVM[OLZ[PT\S\Z\ZLK
MVYJ\[[PUNJHYIVULTPZZPVUZ\W[V ;OL/VUNRVUNHUK:OHUNOHP)HURPUN
*VYWVYH[PVU /:)* LZ[PTH[LZ [OH[ <: IPSSPVU VM [OL V]LYHSS WSHU PUJS\KPUN
grid, water and rail infrastructure investments, is greentech-related, making it the
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NYLLUHYLHZPU[OL<:30
LAWS AND STANDARDS

While principles, programs and development plans guide policies across a range
VMYLN\SH[VY`HNLUJPLZ*OPUH»ZSH^ZHUKZ[HUKHYKZHYL[OLMVYTHSYLX\PYLTLU[Z
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compliance are commonly included in the law or standard itself.
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HMMLJ[LK [OL KL]LSVWTLU[ VM [OL UH[PVU»Z NYLLU[LJO THYRL[Z ;OL 9LUL^HISL
,ULYN`3H^HUK*PYJ\SHY,JVUVT`3H^MVYL_HTWSLJVU[HPUUV[HISL
provisions for the promotion of renewable power generation to meet energy
ZLJ\YP[`HUKLU]PYVUTLU[HSVIQLJ[P]LZHUKMVY[OLKL]LSVWTLU[VMYLJ`JSPUNHUK
WVSS\[PVUYLK\J[PVUHJ[P]P[PLZYLZWLJ[P]LS`-PN\YLJVU[HPUZHUV]LY]PL^VMZL]LYHS
important greentech-related laws introduced over the last two decades.
:[HUKHYKZ HYL HUV[OLY PTWVY[HU[ JVTWVULU[ VM *OPUH»Z NYLLU[LJO WVSPJ`

LU]PYVUTLU[ *OPUH»Z (KTPUPZ[YH[PVU VM 8\HSP[` :\WLY]PZPVU 0UZWLJ[PVU HUK
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LU]PYVUTLU[ HUK WYVK\J[ ZHML[` Z[HUKHYKZ PU HKKP[PVU [V THUHNPUN *OPUH»Z
HJJYLKP[H[PVUHUKJLY[PÄJH[PVUHJ[P]P[PLZ
27
National Development and Reform Commission, National Climate Change Program, (Beijing, China: NDRC, June 2007),62
28
Price, Lynn et al., China’s Top-1000 Energy-Consuming Enterprises Program, Reducing Energy Consumption of the 1000 Largest
Industrial Enterprises in China (Berkeley, CA, U.S.: Lawrence Berkeley National Laboratory, June 2008), 6
29
China Daily, “Billions from Stimulus Tagged to Cut Emissions,” August 6, 2009, http://www.chinadaily.com.cn/
30
HSBC Bank plc, A Climate for Recovery: The Colour of Stimulus Goes Green (London, United Kindom: HSBC Bank plc, February 25,
2009), 3

Fig. 7 : SELECTED CHINA GREENTECH LAWS

LAW PROVISIONS
+LÄULZJPYJ\SHYLJVUVT`HZYLMLYYPUN[V[OLYLK\J[PVUYL\ZLHUKYLJ`JSPUNVMYLZV\YJLZPU
Circular Economy production, circulation and consumption
Promotion Law ,Z[HISPZOLZZ`Z[LTZMVYYLJ`JSPUNWSHUUPUNYLZV\YJLTHUHNLTLU[LTPZZPVUZJVU[YVSHUK
(2008) environmental monitoring and auditing
Water Pollution ,TWOHZPaLZHJJV\U[HIPSP[`VMSVJHSNV]LYUTLU[ZHUKLU[LYWYPZLZMVYWVSS\[HU[V]LYKPZJOHYNL"

Control Law increases penalties, removes penalty limits
(2008) 9LX\PYLZSVJHSNV]LYUTLU[Z[VLZ[HISPZOJLU[YHSPaLKT\UPJPWHS^HZ[L^H[LY[YLH[TLU[MHJPSP[PLZ
*VUÄYTZLULYN`JVUZLY]H[PVUHZHN\PKPUNZ[H[LWVSPJ`
Energy Conservation Law 3H`ZV\[WYLMLYLUJLMVYLULYN`LMÄJPLU[LX\PWTLU[HUKWYVK\J[ZPUW\ISPJWYVJ\YLTLU[
(Revised 2008) ,TWOHZPaLZYLZWVUZPIPSP[PLZMVYOPNOLULYN`JVUZ\TPUNLU[P[PLZ
6IQLJ[P]L[VZ[YLUN[OLU[OLHKTPUPZ[YH[PVUVMJP[`[VÛHUK[VÛZOPWWSHUUPUN
Urban-Rural Planning Law :WLJPÄLZJVTW\SZVY`LSLTLU[ZVM\YIHUHUKY\YHSWSHUZPUJS\KPUNLSLJ[YPJP[`^H[LY
(2007) transportation and communications infrastructure
Contains requirements for plans to address environmental and ecological protection
6IQLJ[P]LZPUJS\KLWYVTV[PUNLULYN`ZLJ\YP[`HUKWYV[LJ[PUN*OPUH»ZLJVSVNPJHSLU]PYVUTLU[
Renewable Energy Law Includes provisions on public funding for renewable energy development, discounted lending
(2005) HUK[H_WYLMLYLUJLZHUKJVUULJ[PVUVMYLUL^HISLNLULYH[PVU[V*OPUH»ZLSLJ[YPJP[`NYPK
Law on Prevention and Lays out guidelines on the prevention, supervision and administration of household and
Control of Environmental industrial solid waste
Pollution Caused by Solid Waste :WLJPHSWYV]PZPVUZVU[OLPTWVY[H[PVUVMZVSPK^HZ[LHUKVUOHaHYKV\Z^HZ[LTHUHNLTLU[
(Revised 2005) Includes a detailed schedule of penalties up to one million yuan for non-compliance
Cleaner Production 6IQLJ[P]L[VKLJYLHZLULNH[P]LPTWHJ[VMTHU\MHJ[\YPUNVUOLHS[OHUK[OLLU]PYVUTLU[

Promotion Law 3H`ZV\[VIQLJ[P]LZPTWSLTLU[H[PVUN\PKLSPULZHUKM\UKPUNWSHUZMVY*SLHULY7YVK\J[PVU
(2003) ,TWOHZPZPUJS\KLZTHUHNLTLU[PTWYV]LTLU[JSLHULULYN`\ZLHUKWVSS\[PVUYLK\J[PVU
(TLUKZ >H[LY3H^[VPUJS\KLNYLH[LYLTWOHZPZVU^H[LYZH]PUNTLHZ\YLZHUK
Water Law
technology and on balancing the water needs of municipal, agricultural and domestic users
(Revised 2002)
:WLJPÄLZTPUPZ[YPLZ»HUKWYV]PUJPHSNV]LYUTLU[Z»^H[LYYLZV\YJLTHUHNLTLU[YLZWVUZPIPSP[PLZ
Environmental Impact Outlines necessary environmental impact assessments to be provided to the Ministry of
Assessment Law ,U]PYVUTLU[HS7YV[LJ[PVUILMVYLWYVQLJ[JVUZ[Y\J[PVU
(2002) 7YV]PKLZMVYSLNHSSPHIPSP[`\W[V`\HUMVYUVUJVTWSPHUJL
Law on Prevention and ,TWOHZPaLZWYV[LJ[PVUVM[OLH[TVZWOLYPJLU]PYVUTLU[HZHJVTW\SZVY`LSLTLU[VM

Control of Atmospheric government planning at all levels
Pollution :L[Z\W[V[HSLTPZZPVUZJVU[YVSWVSS\[LYYLNPZ[YH[PVUSPJLUZPUNHUKKPZJOHYNLMLLZ`Z[LTZ
(Revised 2000) +L[HPSZ[YLH[TLU[VMLTPZZPVUZMYVTJVHSJVTI\Z[PVUHUKTV[VY]LOPJSLZ
:L[Z\WZ`Z[LTZMVYLU]PYVUTLU[HSZ[HUKHYKKL]LSVWTLU[HUKTVUP[VYPUNLU]PYVUTLU[HS
Environmental protection and pollution control management
Protection Law Imposes three types of non-compliance penalties: administrative sanctions, civil liability and
(Revised 1989) criminal liability
4HU`VM*OPUH»ZNYLLU[LJOZVS\[PVUZZ\JOHZ^H[LYWPWLTH[LYPHSZHUKPUK\Z[YPHS
THU\MHJ[\YPUN LX\PWTLU[ HYL Z\IQLJ[ [V PU[LYUH[PVUHS Z[HUKHYKZ \UKLY [OL
0U[LYUH[PVUHS :[HUKHYKZ 6YNHUPaH[PVU 0:6 VY [OL 0U[LYUH[PVUHS ,SLJ[YV[LJOUPJHS
*VTTPZZPVU0,*)V[O[OLZLIVKPLZHYLYLWYLZLU[LKPU*OPUHI`HIVK`\UKLY
[OL(8:08JHSSLK[OL:[HUKHYKPaH[PVU(KTPUPZ[YH[PVUVM*OPUH:(*
+VTLZ[PJZ[HUKHYKZMVY[OLTVZ[WHY[HYLKL]LSVWLKI`[OL:(*PUJVVYKPUH[PVU
^P[OHU\TILYVMHMÄSPH[LKVYNHUPaH[PVUZHUKPUK\Z[Y`ZWLJPÄJ[LJOUPJHSJVTTP[[LLZ
H[[OLUH[PVUHSSL]LS;OL:(*PZHSZVYLZWVUZPISLMVY[OLL_HTPUH[PVUHUKHWWYV]HS
VM WYVK\J[Z Z\IQLJ[ [V [OL UH[PVUHS Z[HUKHYKZ 4VYL KL[HPS VU ZLJ[VYZWLJPÄJ
standards is included in the sector chapters of the full version of this report.
FISCAL INCENTIVES AND SUBSIDIES

Aside from the laws and standards outlined above, China also uses an array of
ÄZJHSHUKWVSPJ`PUZ[Y\TLU[Z[VWYVTV[LKVTLZ[PJNYLLU[LJOTHYRL[Z

(ZPUV[OLYJV\U[YPLZ[H_ILULÄ[ZMVYZVS\[PVUWYV]PKLYZHUKHKVW[LYZHYLHRL`
HZWLJ[ VM *OPUH»Z NYLLU[LJO WYVTV[PVU WVSPJPLZ (S[OV\NO *OPUH OHZ UV Z[HUK
alone environmental tax regime, multiple tax exemptions, consumption-related
[H_LZ UH[\YHS YLZV\YJLYLSH[LK [H_LZ HUK V[OLY [H_ ILULÄ[Z LTILKKLK PU [OL
L_PZ[PUNÄZJHSZ`Z[LTHPT[VWYVTV[LLU]PYVUTLU[HSHUKNYLLU[LJOHJ[P]P[`
6UL UV[HISL HYLH ÔLYL [OLZL [H_ ILULÄ[Z OH]L ILLU HWWSPLK PZ PU *OPUH»Z
JVYWVYH[LPUJVTL[H_*0;WVSPJPLZ9L]LU\LLHYULKMYVTJLY[HPU[`WLZVM*SLHU
+L]LSVWTLU[4LJOHUPZT*+4LU]PYVUTLU[HSWYV[LJ[PVULULYN`JVUZLY]H[PVU
HUK^H[LYZH]PUNJVUZLY]H[PVUWYVQLJ[ZMVYL_HTWSLPZLSPNPISLMVYH[OYLL`LHY
L_LTW[PVUHUK[OYLL`LHYYLK\J[PVUVMJVYWVYH[LPUJVTL[H_LZ
;H_ JYLKP[Z HYL H ZLJVUK HWWYVHJO \ZLK [V Z\WWVY[ NYLLU[LJO PU *OPUH»Z *0;
Y\SLZ .YLLU[LJO HKVW[LYZ THRPUN PU]LZ[TLU[Z PU X\HSPÄLK LX\PWTLU[ \ZLK MVY
environmental protection, energy or water conservation may be eligible for a CIT
JYLKP[LX\HS[VVM[OLPU]LZ[TLU[]HS\L32
-PUHSS`[OLYLHYLZL]LYHSWYV]PZPVUZPU[OL*0;YLNPTL[OH[ÔPSLUV[ILPUNZWLJPÄJ
to the greentech sector, are favorable to greentech solution providers. One example
VM[OPZ[`WLVMY\SLPZ[OL/PNOHUK5L^;LJOUVSVN`,U[LYWYPZLZ/5;,WYV]PZPVUZ
whereby qualifying companies that meet a variety of criteria including spending
HTPUPT\TWLYJLU[HNLVM[OLPYYL]LU\LVU9 +MVY[LJOUVSVNPLZZLSLJ[LKI`[OL
government as being in priority areas, can be granted a reduction in corporate
income tax liability.33
=HS\LHKKLK [H_LZ =(; YLM\UKZ HUK L_LTW[PVUZ HYL HUV[OLY RL` [H_H[PVU [VVS
\ZLK[VZ\WWVY[NYLLU[LJOPU*OPUH-VYL_HTWSLZPUJL+LJLTILY[OLYLOHZ
ILLU =(; L_JS\ZPVU MVY WYVK\J[Z VY ZLY]PJLZ THRPUN H JVTWYLOLUZP]L \[PSPaH[PVU
VMYLZV\YJLZ¶MVYL_HTWSLTHRPUN\ZLVMLULYN`LMÄJPLU[WYVJLZZPUNVY\[PSPaPUN
waste heat, wastewater or different types of solid wastes as production inputs.
.YLLU[LJO ZVS\[PVUZ ZWLJPÄJHSS` LSPNPISL MVY [OPZ ILULÄ[ PUJS\KL I\PSKPUN TH[LYPHSZ
^P[O H[ SLHZ[ YLJ`JSLK JVU[LU[ 9LJSHPTLK >HZ[L^H[LY *VTIPULK /LH[ HUK
7V^LYZVS\[PVUZ:OHSL6PSHUKV[OLYWYVK\J[Z34 Another important area where VAT-
IHZLK [H_ WVSPJ` OHZ ZW\YYLK *OPUH»Z NYLLU[LJO KL]LSVWTLU[ OHZ ILLU *OPUH»Z
wind power sector, where importers of Wind Turbine Components and domestic
>PUK7V^LY,X\PWTLU[THU\MHJ[\YLYZIV[OYLJLP]LZPNUPÄJHU[=(;ILULÄ[Z35
(Z H ÄUHS L_HTWSL *OPUH \ZLZ L_[YHJ[PVU HUK UH[\YHS YLZV\YJL [H_LZ [V
manage many upstream activities like mining, oil and gas exploitation, and water
extraction and waste-related charges to control downstream waste and pollution
THUHNLTLU[(KQ\Z[PUN[OLMLLSL]LSZMVY[OL]HYPV\ZHJ[P]P[PLZJHUOH]LZPNUPÄJHU[
impacts on greentech companies involved in those areas.
(ZPKLMYVT[H_PUJLU[P]LZ*OPUH»ZNV]LYUTLU[HSZVKPYLJ[S`Z\IZPKPaLZWYV]PKLYZ
and adopters of several strategic greentech technologies, perhaps more than any
V[OLY JV\U[Y` :L]LYHS PTWVY[HU[ YLJLU[ NYLLU[LJO Z\IZPKPLZ HYL SPZ[LK PU -PN\YL
(U L_HTWSL VM *OPUH»Z NYLLU[LJO Z\IZPKPaH[PVU PZ ZLLU PU [OL [YHUZWVY[H[PVU
ZLJ[VYÔLYL[OL4PUPZ[Y`VM:JPLUJLHUK;LJOUVSVN`ZL[V\[UL^Z\IZPKPLZMVY
[OL HKVW[PVU VM /ÌYPK =LOPJSLZ ,SLJ[YPJ =LOPJSLZ HUK -\LS *LSSIHZLK =LOPJSLZ
PU -LIY\HY` 36 (KKP[PVUHSS` PU .YLLU )\PSKPUN [OL 4PUPZ[Y` VM /V\ZPUN HUK
<YIHU9\YHS+L]LSVWTLU[SHPKV\[PU4HYJO HWSHUMVYKPYLJ[Z\IZPKPaH[PVUVM
[OLPUZ[HSSH[PVUVM)\PSKPUN0U[LNYH[LK7OV[V]VS[HPJPUZ[HSSH[PVUZ37
31
中华人民共和国财政部, “国家税务总局关于中国清洁发展机制基金及清洁发展机制项目实施企业有关企业所得税政策问题的通知,”
2009年03月23日, [Ministry of Finance, “Tax Notice on China’s Clean Development Mechanism Fund and the Implementation of CDM
project-related Corporate Income Tax Policy Issues,” March 23, 2009],http://www.js-n-tax.gov.cn/
32
中国人民共和国国务院办公厅, “中华人民共和国国务院令第512号,” 2007年12月6日 [General Office of the State Council,“State Council
Circular 512,” December 6, 2007] http://www.gov.cn/
33
Ministry of Science and Technology, “Circular on Printing and Issuing of the Guidelines for the Administration of the Recognition of Hi-
tech Enterprises,” August, 12, 2008, http://english.mofcom.gov.cn/
34
[1]中华人民共和国财政部, “国家税务总局关于资源综合利用及其他产品增值税政策的通知,” 2008年12月09日[Ministry of Finance and
State Administration of Taxation, “Tax Policy on the Comprehensive Utilization of Resource and Other Products,” December 9, 2008]
http://www.js-n-tax.gov.cn/
35
Renewable Energy World, “China’s Wind Power Industry: Localizing Equipment Manufacturing,” July 18, 2009 http://www.renewableen-
ergyworld.com/
36
中华人民共和国科学技术部, “关于开展节能与新能源汽车示范推广试点工作的通知”，2009年2月11日 [Ministry of Science and
Technology, Provisional Measure on the Management of Government Subsidies for Energy-Saving and New Energy Vehicles, February
11, 2009] http://www.most.gov.cn/
37
中国人民共和国住房和城市建设部,”建筑节能：科技创新是重中之重,” 2008年3月17日[Ministry of Housing and Urban-Rural
Development,”Building Energy: Technology innovation is the most important,” March 17, 2008,] http://www.mohurd.gov.cn/

Fig.8 : SUMMARY OF SELECTED GREENTECH SUBSIDIES IN CHINA

SUBSIDY ANNOUNCEMENT DATE AMOUNT OF SUBSIDY DESCRIPTION OF ELIGIBILITY
t VMNYPKJVUULJ[- t 300 kW min capacity

1\S` ed solar investment t `LHYTH_JVUZ[Y\J[PVUWLYPVK
GOLDEN SUN t VMVMMNYPK7= t 20+ year operations requirement
power investment
t `\HUWLY^H[[ t Targets new construction

SOLAR ROOFS 4HYJO of capacity t 4PUPT\TLMÄJPLUJ`N\PKLSPULZ
t 50 kW min installation
t 28K-600K yuan per t 4PUPT\TM\LSZH]PUNMVYWHZZLU-

PHEV/EV/FC* 1HU\HY` vehicle ger and light commercial vehicles
t 4PUPT\TM\LSZH]PUNMVYI\ZZLZ
t 600 yuan per kW for t Only Chinese turbine manufacturers

[OLÄYZ[\UP[Z t ZWSP[IL[^LLUJVTWVULU[Z\W-
WIND TURBINE August 2008 pliers and turbine manufacturers
t 4>TPUPT\TJHWHJP[`
t Temporary electricity t Certain types of feedstock only

BIOMASS POWER July 2008 [HYPMMPUJYLHZLI` MVYLZ[ÄYLKHTWHUKZ[YH^
GENERATION `\HUR>O
t 0.2 yuan per cubic t Methane for consumer or chemical

COAL BED April 2007 meter industry sale only, not power
METHANE MINING generation
Source: China Greentech Initiative analysis
9LN\SH[VYZ OH]L ILLU WHY[PJ\SHYS` HJ[P]L PU [OL Z\IZPKPaH[PVU VM YLUL^HISL
LULYN` +VTLZ[PJ ^PUK [\YIPUL THU\MHJ[\YLYZ HUK ^PUK [\YIPUL JVTWVULU[
THU\MHJ[\YLYZ IV[O OH]L HJJLZZ [V Z\IZPKPLZ MYVT [OL 4PUPZ[Y` VM -PUHUJL38
)PVTHZZWV^LYNLULYH[PVUHUKIPVL[OHUVSWYVK\J[PVUHYLZ\IZPKPaLKPU*OPUH»Z
bioenergy sector. In addition to the building-integrated solar subsidy announced
PU4HYJO HZLJVUKTHQVYZ\IZPK`WYVNYHT·[OL.VSKLU:\UWYVNYHTMVY
\[PSP[`ZJHSLZVSHYPUZ[HSSH[PVUZ^HZHUUV\UJLKI`[OL5H[PVUHS+L]LSVWTLU[HUK
9LMVYT*VTTPZZPVUPU1\S` 40
>OPSL [OL HIV]L KPZJ\ZZPVU MVJ\ZLZ VU *OPUH»Z JLU[YHS NV]LYUTLU[ P[ PZ
PTWVY[HU[[VUV[L[OH[WYV]PUJPHSHUKYLNPVUHSNV]LYUTLU[ZHSZVOH]LZPNUPÄJHU[
WVSPJ`SL]LYZ[OL`JHU\ZL[VZ\WWVY[NYLLU[LJOKL]LSVWTLU[PU[OLPYQ\YPZKPJ[PVUZ
;OL @P_PUN 0UK\Z[YPHS 7HYR PU [OL JP[` VM >\_P PU 1PHUNZ\ WYV]PUJL MVY L_HTWSL
VMMLYZ IV[O [H_ OVSPKH`Z HUK ZPNUPÄJHU[ [H_ YLK\J[PVUZ MVY \W [V Ä]L `LHYZ MVY
greentech and other high-tech companies setting up business there. Other
WVSPJPLZ\ZLKI`*OPUH»ZSVJHSYLN\SH[VYZ[VLU[PJLNYLLU[LJOI\ZPULZZLZ[VZL[\W
PU[OLPYQ\YPZKPJ[PVUZPUJS\KLKPZJV\U[LKVMÄJLYH[LZKPYLJ[ÄUHUJPUNHZZPZ[HUJL
^P[OWYLWHYH[PVUZMVYPUP[PHSW\ISPJVMMLYPUNZ076ZYLPTI\YZLTLU[ZMVYLTWSV`LL
[YHPUPUNHUKV[OLYILULÄ[Z
38
CMS Cameron McKenna, “Renewable Energy Project Subsidies: What Has China To Offer?” http://www.mondaq.com/ (accessed on
August 5, 2009)
39
Institutue of Science in Society,”Biogas China,” http://www.i-sis.org.uk/ (accessed on April 28, 2009)
40
中华人民共和国财政部, “关于实施金太阳示范工程的通知”, 2009年07月16日 [Ministry of Finance, “Regarding the Golden Sun Policy,”
July 16, 2009] http://www.mof.gov.cn/
41
China Yixing Industrial Park for Environmental Science and Technology, “Policies and Regulations,” http://hky.gov.cn/ (accessed August
14, 2009)

INDUSTRIAL PROMOTION POLICIES

Whereas tax incentives and subsidies promote greentech in China by directly
PUÅ\LUJPUN YLSH[PVUZOPWZ IL[^LLU JVTWHUPLZ HUK [OL NV]LYUTLU[ *OPUH»Z
policymakers also support greentech through industrial promotion policies
SL]LYHNPUNÄUHUJPHSPU[LYTLKPHYPLZ
-VYPUZ[HUJLYLN\SH[VYZVM[LUKPYLJ[MH]VYHISLPU]LZ[TLU[ÄUHUJPUN[VNYLLU[LJO
ZLJ[VYZ]PH*OPUH»Z[OYLLWVSPJÌHURZ(NYPJ\S[\YHS+L]LSVWTLU[)HURVM*OPUH
*OPUH+L]LSVWTLU[)HURHUK0TWVY[,_WVY[)HURVM*OPUHHUK[OLMV\YSHYNLZ[
Z[H[LVÛLKIHURZ(NYPJ\S[\YHS)HURVM*OPUH)HURVM*OPUH*OPUH*VUZ[Y\J[PVU
)HURHUK0UK\Z[YPHSHUK*VTTLYJPHS)HURVM*OPUH-VYL_HTWSLI`[OLLUKVM
*OPUH+L]LSVWTLU[)HUROHKTVYL[OHU IPSSPVU`\HU<:IPSSPVU
in loans outstanding for environmental protection, energy conservation and
LTPZZPVUZYLK\J[PVUWYVQLJ[Z
(SZV PU [OL ÄUHUJPHS ZLJ[VY *OPUH»Z WVSPJ`THRLYZ OH]L \ZLK H ]HYPL[` VM
regulations to promote sustainability and the development of greentech markets.
(Z HU L_HTWSL *OPUH»Z .YLLU *YLKP[ WVSPJ` YLX\PYLZ JVTTLYJPHS IHURZ
to incorporate environmental performance criteria into their lending decisions.
-\Y[OLY*OPUH»Z.YLLU:LJ\YP[PLZWVSPJ`YLX\PYLZLU]PYVUTLU[HSHUKLULYN`
disclosures from heavy industry companies seeking to list on domestic stock
THYRL[Z )V[O [OLZL HUK V[OLY L_HTWSLZ PSS\Z[YH[L OV^ *OPUH»Z YLN\SH[VYZ HYL
\ZPUNHJJLZZ[VÄUHUJLHUKJHWP[HSHZ[VVSZ[VWYVTV[LLU]PYVUTLU[HSH^HYLULZZ
and greentech adoption.
0UHKKP[PVU[V[OLTHU`[H_ILULÄ[ZZ\IZPKPLZHUKMH]VYHISLSVHUZ[OH[*OPUH
WYVTV[LZ[VKL]LSVWP[ZNYLLU[LJOPUK\Z[YPLZ[OLYLPZHSZVZPNUPÄJHU[Z\WWVY[MVY
infrastructure construction. As noted earlier with respect to the economic stimulus
plan, electric power infrastructure and railway network development are two key
priorities of the government. Aside from these initiatives, China continues to develop
Fig. 9 : COMPARISON OF SELECTED PRICES BETWEEN

Fig .5: COMPARISON CHINA AND BETWEEN
OF PRICES THE UNITED STATES
CHINA AND THE UNITED STATES
CHINA UNITED STATES
CATEGORY AVERAGE PRICE AVERAGE PRICE
2008-09 2008-09
NATURAL GAS1,2 US$ 192.30 per US$ 455.70 per

thousand cubic meters thousand cubic meters
3,4
COAL US$ 91.85 per ton US$ 121.33 per ton
5,6
ELECTRICITY US$ 82.96 per MWh US$ 115.56 per MWh
WATER7 US$0.31 per ton US$ 0.74 per ton
Sources:
Exchange 1. Ningbo
rate is 1USDMunicipal People’s Government, China, “Natural Gas Price To Be Line
= 6.75 Yuan
With That in International Market,” March 15, 2009 / http://english.ningbo.gov.cn
2. Energy Information Administration, “Natural Gas Prices,” http://tonto.eia.doe.gov/
(accessed on Aug 15, 2009)
3. China Coal Resource, “Coal Prices Database” http://en.sxcoal.com/
(accessed on Aug 15, 2009)
4. Energy Information Administration, “Coal Prices,” April 14, 2009,
http://www.eia.doe.gov/
5. 中国电力, “电监会：2008年居民电价广东最高青海最低”, 2009 年4月24
[China Power, “State Electricity Regulatory Commission: Residential Electricity
Price in 2008 is the Highest in Guangdong, the Lowest in Qinghai,” April 24, 2009]
http://www.chinapower.com.cn/
6. Energy Information Administration, US Government, “Average Retail Price of
Electricity to Ultimate Customers by End-Use Sector, by State,”
http://www.eia.doe.gov/ (accessed on Aug 15, 2009)
7. The Wall Street Journal , “China Cities Raise Water Price in Bid to Conserve”,
http://online.wsj.com/ (accessed on August 15, 2009)
China Development Bank, “Overview of Operations,” http://www.cdb.com.cn/ (accessed on August 14, 2009)
42
Ministry of Environmental Protection (MEP), “Blacklist of Polluters Distributed,” August 6, 2007, http://english.sepa.gov.cn/
43
中华人民共和国环境保护部, “国家环境保护总局办公厅文件,” 2007年8月30日, [Ministry of Environmental Protection (MEP), “Circular on

44
Environmental Protection Verification of Highly Polluting Industries to Further Standardize the Production and Management of Companies
Applying for Public Listing or Refinancing,” September 30, 2007], http://www.mep.gov.cn/ (accessed on August 14, 2009

other multi-province infrastructure initiatives which can incorporate anything from

WPWLSPULZMVYSPX\LÄLKUH[\YHSNHZHUKJVHSILKTL[OHUL[VTHZZP]L^H[LYKP]LYZPVU
WYVQLJ[Z (Z THU` NYLLU [LJOUVSVNPLZ MVJ\Z VU THRPUN PUMYHZ[Y\J[\YL ºZTHY[LY»
HUKTVYLLMÄJPLU[[OLZLJVU[PU\LKPUMYHZ[Y\J[\YLWSHUZZOV\SKWYV]PKLZPNUPÄJHU[
opportunities for greentech solution providers.
(Z HIV]L PU [OL KPZJ\ZZPVU VM SVJHS [H_ HUK V[OLY ÄZJHS PUJLU[P]LZ \ZLK [V
Z\WWVY[*OPUH»ZNYLLU[LJOKL]LSVWTLU[SVJHSPUMYHZ[Y\J[\YLPU]LZ[TLU[JHUHSZV
WSH` H ZPNUPÄJHU[ YVSL 3VJHS YLN\SH[VYZ JHU HUK KV PUJVYWVYH[L LU]PYVUTLU[HS
considerations into their planning processes for public works infrastructure, and
PUZVTLHYLHZSPRL[OL:PUV:PUNHWVYL;PHUQPU,JVJP[`[OL`HYLZOV^PUNZPNUZVM
making such considerations an important part of their urban planning processes.
PRICING MANAGEMENT
(UV[OLY PTWVY[HU[ YLN\SH[VY` PUZ[Y\TLU[ [OH[ PUÅ\LUJLZ [OL KL]LSVWTLU[ VM
*OPUH»ZNYLLU[LJOTHYRL[ZPZWYPJPUNJVU[YVSZ(Z*OPUH»ZLJVUVTÒHZSPILYHSPaLK
V]LY [OL WHZ[ `LHYZ H U\TILY VM NVVKZ HUK ZLY]PJLZ WYL]PV\ZS` Z\IQLJ[ [V
WYPJPUNJVU[YVSZOH]LILLUWLYTP[[LK[VÅ\J[\H[L^P[OTHYRL[MVYJLZ
The low cost of converting natural resources into useable enery in China
compared to in other countries is a key factor enabling lower end-user costs. The
government continues to exert control over the prices of electricity, gas, district
heating and water utilities, in addition to commodities such as gasoline, to enable
[OL HMMVYKHIPSP[` VM [OLZL NVVKZ MVY *OPUH»Z SV^PUJVTL OV\ZLOVSKZ -PN\YL
gives some examples of the price differentials on these basic goods and service
IL[^LLU*OPUHHUK[OL<:
While less visible to end-users, upstream prices such as the feed-in tariffs for the
JVUULJ[PVUVMYLUL^HISLLULYN`[V*OPUH»ZLSLJ[YPJWV^LYNYPKZVYWYL[YLH[TLU[
^H[LYYLZV\YJLJVZ[ZHYLHSZVJVU[YVSSLKI`*OPUH»ZYLN\SH[VYZWHY[S`[OYV\NO[OL
taxation mechanisms described above, but also using other policy tools.
*OPUH»ZNV]LYUTLU[OHZILLUPUJYLHZPUN[OLÅL_PIPSP[`VMUH[\YHSYLZV\YJLHUK
\[PSP[`WYPJLZ[VÅ\J[\H[L^P[OTHYRL[MVYJLZHSSV^PUNWYV]PKLYZZVTLPUÅ\LUJLPU
ZL[[PUNMLLKPUWYPJLZPUZVTLJHZLZ)\[WV^LYWYPJPUNPZHJVTWSL_PZZ\LHUK
[OLZLTV]LZOH]LILLUZ\IQLJ[[VT\JOKLIH[LZVMLÛH[PVU^PKLWYPJPUNWSHUZ
have been unveiled.
(ZHUV[HISLL_JLW[PVU[OL5+9*PU1\S` YLSLHZLKHUH[PVUHSMLLKPU[HYPMM
MVY^PUKWV^LYNP]PUNP[HZPNUPÄJHU[WYLTP\TV]LY[OL[`WPJHSMLLKPUWYPJLMVYJVHS
power.45)LZPKLZ[OLULÛH[PVUHS^PUKWV^LYWYPJPUNZJOLTL[OLYLHYLHU\TILY
of pilot pricing programs in place in cities around China experimenting with new
models to raise prices in other greentech sectors while continuing to protect low-
PUJVTLJVUZ\TLYZ9LSL]HU[JOHSSLUNLZHUKVWWVY[\UP[PLZYLSH[LK[V[OLZLUL^
pricing schemes are discussed in more detail in later sections.
The International Policy Environment

INTERNATIONAL POLICY CONTEXT
>OPSL [OL *OPULZL NV]LYUTLU[ OHZ [OL TVZ[ PUÅ\LUJL HUK JVU[YVS V]LY *OPUH»Z
LU]PYVUTLU[HSZ\Z[HPUHIPSP[`PZZ\LZTHU`PU[LYUH[PVUHSVYNHUPaH[PVUZHUKYLN\SH[VY`
IVKPLZHSZVPTWHJ[[OLKL]LSVWTLU[VM*OPUH»ZNYLLU[LJOTHYRL[Z
;OL<UP[LK5H[PVUZ<5[OYV\NOP[Z]HYPL[`VMZWLJPHSPaLKHNLUJPLZ[OH[ZWVUZVY
international policy discussions related to the environment and climate change,
WYV]PKLZHNSVIHSJVU[L_[[V*OPUH»ZZ\Z[HPUHIPSP[`HUKJSPTH[LJOHUNLWVSPJPLZ;^V
RL`<5HNLUJPLZHKKYLZZPUNZ\Z[HPUHIPSP[`JSPTH[LJOHUNLHUKNYLLU[LJOPZZ\LZ
HYL[OL<UP[LK5H[PVUZ,U]PYVUTLU[7YVNYHTTL<5,7HUK[OL<UP[LK5H[PVUZ
+L]LSVWTLU[ 7YVNYHTTL <5+7 ,Z[HISPZOLK I` [OL >VYSK 4L[LVYVSVNPJHS
45
中华人民共和国国家发展和改革委员会, “关于完善风力发电上网电价政策的通知,” 2009年7月24日, [National Development and Reform
Commission, Notice on Improvements to the Wind Power Feed-In Pricing Policy, July 24, 2009]

THE INTERNATIONAL POLICY ENVIRONMENT
6YNHUPaH[PVU>46HUK<5,7[OL0U[LYNV]LYUTLU[HS7HULSVU*SPTH[L*OHUNL
07** PZ [HZRLK ^P[O L]HS\H[PUN [OL YPZRZ VM JSPTH[L JOHUNL JH\ZLK I` O\THU
HJ[P]P[` -PUHSS` V[OLY <5 HNLUJPLZ Z\JO HZ [OL 0U[LYUH[PVUHS *P]PS (]PH[PVU
6YNHUPaH[PVU0*(6HUK[OL0U[LYUH[PVUHS4HYP[PTL6YNHUPaH[PVU046HYLTVYL
accurately international regulators, setting standards and playing policy roles in
ZWLJPÄJNYLLU[LJOZLJ[VYZ
;OL>VYSK;YHKL6YNHUPaH[PVU>;60U[LYUH[PVUHS4VUL[HY`-\UK04->VYSK
)HUR HUK (ZPHU +L]LSVWTLU[ )HUR (+) HYL V[OLY PU[LYUH[PVUHS VYNHUPaH[PVUZ
ÔPJO L_LY[ PUÅ\LUJL V]LY [OL KL]LSVWTLU[ VM *OPUH»Z NYLLU[LJO THYRL[Z ]PH
their role in guiding trade relations between individual countries, managing the
global economy and promoting economic development.
:PUJLNYLLU[LJOUVSVNPLZJHUVM[LUOLSWZ\WWVY[[OLKL]LSVWTLU[VIQLJ[P]LZVM
PU[LYUH[PVUHSÄUHUJPHSPUZ[P[\[PVUZZVM[SVHUZ46 are often available from the World
)HUR (ZPHU +L]LSVWTLU[ )HUR HUK V[OLY KL]LSVWTLU[ HNLUJPLZ ;OL >VYSK
)HUROHZH[SLHZ[MV\YM\UKZ[OH[KPYLJ[ÄUHUJPUN[VNYLLU[LJOWYVQLJ[Z·[OL*SLHU
;LJOUVSVN`-\UK[OL:[YH[LNPJ*SPTH[L-\UK[OL*HYIVU7HY[ULYZOPW-\UKHUK[OL
-VYLZ[*HYIVU7HY[ULYZOPW-HJPSP[`47
INTERNATIONAL POLICY PRINCIPLES

(Z *OPUH»Z LJVUVT` OHZ NYVÛ ZV [VV OHZ P[Z YVSL PU PU[LYUH[PVUHS WVSPJ`
circles. In addition to the Chinese policy principles discussed above, a number
VM PU[LYUH[PVUHS WVSPJ` WYPUJPWSLZ HSZV L_LY[ PUÅ\LUJL VU [OL KL]LSVWTLU[ VM
*OPUH»ZNYLLU[LJOTHYRL[Z7LYOHWZ[OLTVZ[PTWVY[HU[VM[OLZLPZ[OLJVUJLW[
of sustainable development :\Z[HPUHISL KL]LSVWTLU[ PZ JVTTVUS` KLÄULK HZ
KL]LSVWTLU[¸TLL[PUN[OLULLKZVM[OLWYLZLU[^P[OV\[JVTWYVTPZPUN[OLHIPSP[`
of future generations to meet their own needs.”48*OPUH»ZNV]LYUTLU[»Z¸(NLUKH
¶>OP[L7HWLYVU*OPUH»Z7VW\SH[PVU,U]PYVUTLU[HUK+L]LSVWTLU[PU[OLZ[
*LU[\Y`¹SHPKV\[*OPUH»ZZ\Z[HPUHISLKL]LSVWTLU[WYPUJPWSLZHUKTVYLYLJLU[S`
P[Z ¸7YVNYHT VM (J[PVU MVY :\Z[HPUHISL +L]LSVWTLU[ PU *OPUH PU [OL ,HYS`
Z[*LU[\Y`¹PZHSZVHTVUN[OLTHU`YLMLYLUJLZ[V[OLWYPUJPWSLVMZ\Z[HPUHISL
development in Chinese policies.
As climate change becomes an increasingly important international policy area,

other principles have emerged to help guide countries in collectively addressing
[OPZPZZ\L;OLZLWYPUJPWSLZWSH`ZPNUPÄJHU[YVSLZPUVUNVPUNPU[LYUH[PVUHSJSPTH[L
JOHUNL ULNV[PH[PVUZ (U PTWVY[HU[ WYPUJPWSL MYLX\LU[S` YLMLYYLK [V I` *OPUH»Z
policymakers is *VTTVU I\[ +PMMLYLU[PH[LK 9LZWVUZPIPSP[PLZ HUK 9LZWLJ[P]L
Capabilities*I+99*;OL\UKLYS`PUNJVUJLW[PZ[OH[HSSJV\U[YPLZÔPSLZOHYPUN
a common responsibility to mitigate the impact of climate change, have unique
capabilities to do so that are directly related to their level of socioeconomic
development. Accordingly, the actions taken by each country, for example reducing
greenhouse gas emissions, should correlate with their individual capabilities as
KL[LYTPULKI`[OLPY\UPX\LZVJPVLJVUVTPJJVUKP[PVUZ*OPUH»Z5H[PVUHS*SPTH[L
*OHUNL 7YVNYHTTL L_WSPJP[S` UV[LZ [OH[ HJJVYKPUN [V *I+99*! ¸KL]LSVWLK
countries should take the lead in reducing greenhouse gas emissions as well as
WYV]PKPUN ÄUHUJPHS HUK [LJOUPJHS Z\WWVY[ [V KL]LSVWPUN JV\U[YPLZ ;OL ÄYZ[ HUK
overriding priorities of developing countries are sustainable development and
poverty eradication.”51
Another key principle in international climate change negotiations relates to

4LHZ\YHISL 9LWVY[HISL HUK =LYPÄHISL 49= HJ[PVUZ ;OL )HSP 9VHK 4HW
NLULYH[LK HZ H YLZ\S[ VM [OL +LJLTILY )HSP JSPTH[L JOHUNL ULNV[PH[PVUZ
JHSSLK MVY ¸TLHZ\YHISL YLWVY[HISL HUK ]LYPÄHISL WVSPJPLZ HUK HJ[PVUZ¹ MYVT
developing countries, and a strong commitment to reducing emissions from
developed countries. The plan also required developed countries to assess,
46
Soft loans are commonly loans provided at interest rates below market levels or with other concessionary terms
47
World Bank, The World Bank and Climate Change: An Operational Update (Beijing, China: World Bank, November 2008.)
48
United Nations, “General Assembly: Report of the World Commission on Environment and Development,” December 11th, 1987, http://
www.un.org/
49
The Administrative Center for China’s Agenda 21, “White Paper on China’s Population, Environment, and Development in the 21st
Century,” http://www.acca21.org.cn/ (accessed on August 14, 2009)
50
People’s Daily, “Program of Action for Sustainable Development in China in the Early 21st Century,” July 16, 2003 //english.peopledaily.
com.cn/
51
National Development and Reform Commission,National Climate Change Program,(Beijing,China: NDRC, June 2007),3

report and verify a range of support measures for developing countries, including
ÄUHUJPUN[LJOUVSVN`HUKHKHW[H[PVUHZZPZ[HUJL52
INTERNATIONAL AGREEMENTS
Going beyond these principles, certain international agreements commit China to
ZWLJPÄJ WVSPJ`HJ[PVUZHUKWSHJL*OPUH»ZWVSPJPLZPU[OL JVU[L_[ VMPU[LYUH[PVUHS
environmental efforts.
;OL 4VU[YLHS7YV[VJVSVU:\IZ[HUJLZ;OH[+LWSL[L[OL6aVUL3H`LYPZVM[LU
highlighted as an example of a successful international climate change agreement.
0[ ^HZ YH[PÄLK I` *OPUH HUK HSS V[OLY TLTILYZ VM [OL <UP[LK 5H[PVUZ L_JLW[
,HZ[ ;PTVY HUK OHZ SLK [V Z\IZ[HU[PHS YLK\J[PVUZ PU SL]LSZ VM VaVULKHTHNPUN
hydrocarbons in the global atmosphere.53,54-\SÄSSPUN*OPUH»ZJVTTP[TLU[Z\UKLY
[OL 4VU[YLHS 7YV[VJVS OHZ KYP]LU NYLLU[LJO PUUV]H[PVU PU [OL KL]LSVWTLU[ VM
UL^YLMYPNLYH[VYHUKHPYJVUKP[PVULY[LJOUVSVNPLZÔPJOHYLUV[YLSPHU[VUVaVUL
depleting chemicals.55
;OYLL`LHYZHM[LY[OLZPNUPUNVM[OL4VU[YLHS7YV[VJVS[OL <5,HY[O:\TTP[
PU9PVKL1HULPYVWYVK\JLK[OL<UP[LK5H[PVUZ-YHTL^VYR*VU]LU[PVUVU*SPTH[L
*OHUNL <5-*** ^P[O HU VIQLJ[P]L [V HJOPL]L ¸Z[HIPSPaH[PVU VM NYLLUOV\ZL
gas concentrations in the atmosphere at a level that would prevent dangerous
anthropogenic interference with the climate system.”56 *OPUH»Z KL]LSVWTLU[ VM
P[Z(NLUKHZ\Z[HPUHISLKL]LSVWTLU[Z[YH[LN`^HZHUV[OLYV\[JVTLVM[OL9PV
Conference.
0U [OLWHY[PLZ[V[OL<5-***LZ[HISPZOLK[OL2`V[V7YV[VJVS[VYLX\PYL
IPUKPUNJVTTP[TLU[ZMVY[OLYLK\J[PVUVMNYLLUOV\ZLNHZLZMYVTPUK\Z[YPHSPaLK
nations and other climate change-related commitments for all member countries.
6UL O\UKYLK LPNO[` MV\Y JV\U[YPLZ OHK ZPNULK HUK YH[PÄLK [OL 2`V[V 7YV[VJVS
I`1\S` 576]LYVM[OLJLY[PÄLKLTPZZPVUYLK\J[PVUJLY[PÄJH[LZ*,9Z
YLNPZ[LYLK \UKLY [OL 2`V[V 7YV[VJVS I` (\N\Z[ ^LYL NLULYH[LK MYVT
YLUL^HISLLULYN`HUKV[OLYLTPZZPVUZYLK\J[PVUWYVQLJ[ZPU*OPUH58
;OL2`V[V7YV[VJVS[HYNL[ZMVYLTPZZPVUZYLK\J[PVUZ^PSSL_WPYLPU;OYV\NO
HZLYPLZVMPU[LYUH[PVUHSTLL[PUNZPUJS\KPUNUV[HIS`[OLthHUKth<UP[LK5H[PVUZ
*SPTH[L *OHUNL *VUMLYLUJLZ )HSP 0UKVULZPH +LJLTILY HUK 7VaUH
7VSHUK+LJLTILYYLZWLJ[P]LS`[OLWHY[PLZ[V[OL<5-***HYLJ\YYLU[S`
involved in a series of high-level negotiations. They hope to come to accord on
HZ\JJLZZVYHNYLLTLU[[V[OL2`V[V7YV[VJVSH[[OLth<UP[LK5H[PVUZ*SPTH[L
*OHUNL*VUMLYLUJLZJOLK\SLKMVY+LJLTILY PU*VWLUOHNLU+LUTHYR
>OPSL*OPUH»ZVMÄJPHSWVZP[PVUVUPZZ\LZZ\YYV\UKPUNJSPTH[LJOHUNLPZJVU[PU\HSS`
ILPUNYLÄULK7YLTPLY>LU1PHIHVWYV]PKLKHJVUJPZLZ\TTH[PVUVM*OPUH»ZHWWYVHJO
[VPU[LYUH[PVUHSJSPTH[LJOHUNLPZZ\LZPUHZWLLJO0UH5V]LTILYZWLLJO!
First, climate change must be tackled through international cooperation…

Second, climate change must be tackled under the framework of
sustainable development… Third, the principle of “common but
differentiated responsibilities” must be followed… Fourth, the UN
Millennium Development Goals must be upheld… Fifth, climate change
must be tackled by relying on technological progress.59
China has actively been preparing for the Copenhagen meetings, engaging
in multiple high-level talks on the issue with other countries. In many public
52
World Resources Institute, Comment on the Chinese National Program and its Potential Connection to an MRV Approach in Comments on
China’s Policies and Actions Addressing Climate Change, 2009-03, (Beijing,China: Global Environmental Institute, 2009), 22
53
United National Environment Programme Ozone Secretariat, “Status of Ratification,” http://ozone.unep.org/ (Accessed on August 5,
2009)
54
Earth System Research Laboratory,“Twenty Questions and Answers About the Ozone Layer: 2006 Update,” http://www.esrl.noaa.gov/
(accessed on August 16, 2009)
55
United Nations Environment Programme, “China Closes Ozone Depleting Chemical Plants,” July 1, 2007, http://www.unep.org/
56
United Nations Framework Convention on Climate Change, “Full text of the Convention, Article 2,” http://unfccc.int/ (accessed on July
26, 2009)
57
United Nations Framework Convention on Climate Change, Kyoto Protocol Status of Ratification (Bonn, Germany: UNFCCC, July
08,2009)
58
Original Source: United Nations Framework Convention on Climate Change, “CDM: Issuance,” http://cdm.unfccc.int/ (accessed on
August 11, 2009)
59
Wen Jiabao, Strengthen International Technology Cooperation and Address Climate Change Actively, (Speech given at the Beijing High-
level Conference on Climate Change: Technology Development and Technology Transfer, Beijing, China, 7 November,2009)

THE INTERNATIONAL POLICY ENVIRONMENT
statements issued by key policymakers, China has reinforced its commitment to

[OLWYPUJPWSLVM*VTTVUI\[+PMMLYLU[PH[LK9LZWVUZPIPSP[PLZV\[SPULKHIV]L
While it is too early to speculate on the details of any agreement that might
come out of the Copenhagen meetings, it seems likely that all possibilities will
stress the importance of reducing global greenhouse gas emissions. In doing so,
it will present opportunities for continued greentech development both in China
and in other countries.
BILATERAL RELATIONSHIPS
(ZPKL MYVT [OL HJ[PVUZ VM PU[LYUH[PVUHS VYNHUPaH[PVUZ [YLH[PLZ HUK JVU]LU[PVUZ
KPYLJ[YLSH[PVUZOPWZ^P[OV[OLYJV\U[YPLZHUKLJVUVTPJISVJZHSZVPTWHJ[*OPUH»Z
NYLLU[LJOTHYRL[Z9LN\SH[VYZMYVTRL`[YHKPUNWHY[ULYZZ\JOHZ[OL<:[OL
,\YVWLHU<UPVUHUK1HWHUOH]LMYLX\LU[KPHSVN\LZ^P[O*OPUH»ZWVSPJ`THRLYZVU
NYLLU[LJOYLSL]HU[WVSPJ`PZZ\LZ-VYPUZ[HUJL*OPUHHUK[OL<:HYLLUNHNLKPU
HMVYTHSWYVNYHTJHSSLK[OL*OPUH<::[YH[LNPJHUK,JVUVTPJ+PHSVN\L: ,+
The program, designed to strengthen bilateral ties and expand cooperation on
THQVY PU[LYUH[PVUHS PZZ\LZ HUK ZOHYLK NSVIHS JOHSSLUNLZ OHZ WSHJLK ZPNUPÄJHU[
LTWOHZPZ VU JVTIH[PUN NSVIHS JSPTH[L JOHUNL KL]LSVWPUN JSLHU HUK LMÄJPLU[
energy, environmental protection and energy security.60
(UV[OLYNVVKL_HTWSLVMH:PUV(TLYPJHUHNYLLTLU[PZ[OL*OPUH<::JPLUJL
HUK;LJOUVSVN`(NYLLTLU[[OLÄYZ[HJJVYKZPNULKIL[^LLU*OPUHHUK[OL<:
HM[LY[OLUVYTHSPaH[PVUVMYLSH[PVUZPU <UKLY[OLMYHTL^VYRZL[\WI`[OL
HNYLLTLU[[OL<:+LWHY[TLU[VM,ULYN`+6,J\YYLU[S`THUHNLZPUKP]PK\HS
HNYLLTLU[Z^P[O*OPUHVUPZZ\LZPUJS\KPUNI\PSKPUNHUKPUK\Z[YPHSLULYN`LMÄJPLUJ`
clean vehicles, renewable energy, nuclear energy and science as well as biological
and environmental research.
6UL VM [OLZL HNYLLTLU[Z PZ H TLTVYHUK\T VM \UKLYZ[HUKPUN 4V< VU
JVVWLYH[PVU PU PUK\Z[YPHS LULYN` LMÄJPLUJ` (TVUN [OL T\S[PWSL JVVWLYH[P]L
HJ[PVUZ V\[SPULK PU [OPZ 4V< VUL WYVNYHT ^V\SK ZLSLJ[ LU[LYWYPZLZ MYVT
[OL;VW,ULYN`*VUZ\TPUN,U[LYWYPZLZ7YVNYHTHUKMVYLHJO
LU[LYWYPZLOH]LHQVPU[5+9*+6,[LHTJHYY`V\[HULULYN`H\KP[HUKOPNOSPNO[
VWWVY[\UP[PLZMVYPTWYV]LTLU[Z)\PSKPUNVU[OPZL_WLYPLUJL[OL5+9*^V\SK[OLU
be in a stronger position to replicate best practices across other large companies
PU[OL;VWWYVNYHT62
*VVWLYH[PVU HUK HNYLLTLU[Z IL[^LLU *OPUH HUK [OL ,\YVWLHU <UPVU HUK
IL[^LLU *OPUH HUK 1HWHU OH]L HSZV ILLU RL` KYP]LYZ VM *OPUH»Z NYLLU[LJO
THYRL[ KL]LSVWTLU[ 0UKP]PK\HS HNYLLTLU[Z Z\JO HZ [OL ,<*OPUH ,ULYN` HUK
,U]PYVUTLU[ 7YVNYHTTL HUK [OL ,<*OPUH +PHSVN\L VU ,ULYN` HUK ;YHUZWVY[
:[YH[LNPLZOH]LZ\WWVY[LKZ\JJLZZM\SJVSSHIVYH[PVUVUNYLLU[LJOPZZ\LZ63:PUV
Japanese greentech relations, such as cooperation in energy conservation and
LU]PYVUTLU[HSWYV[LJ[PVU[LJOUVSVNPLZHUKLX\PWTLU[HYLHZPNUPÄJHU[JVTWVULU[
VM[OL3VUN;LYT;YHKL(NYLLTLU[IL[^LLU*OPUHHUK1HWHU64
0UHKKP[PVULU]PYVUTLU[HSYLN\SH[PVUZPUV[OLYJV\U[YPLZJHUHSZVPTWHJ[*OPUH»Z
NYLLU[LJOTHYRL[ZLP[OLYKPYLJ[S`VYPUKPYLJ[S`-VYL_HTWSL[OL,<YLN\SH[PVUVU
[OL ZHML \ZL VM JOLTPJHSZ 9LN\SH[PVU *VUJLYUPUN [OL 9LNPZ[YH[PVU ,]HS\H[PVU
(\[OVYPZH[PVUHUK9LZ[YPJ[PVUVM*OLTPJHS:\IZ[HUJLZ9,(*/YLX\PYLZ*OPUH»Z
chemical companies to conduct detailed environmental, health and safety
HZZLZZTLU[ZVM[OLPYWYVK\J[ZMVYL_WVY[[V,\YVWL65
60
Washington Foreign Press Center, “Foreign Press Center Briefing with Senior Administration Officials: Preview of the First Joint-Meeting
of the U.S.-China Strategic and Economic Dialogue” July 23, 2009, http://beijing.usembassy-china.org.cn/ (accessed on August 14,
2009)
61
US Department of Energy, “US-China Clean Energy Research Center Announced,” July 15, 2009 http://www.energy.gov/
62
US Department of Energy, Memorandum of Understanding between the US DOE and the PRC NDRC Concerning Industrial Energy
Efficiency Cooperation (Washington D.C., U.S.: United States Department of Energy, 2007), 2
63
European Commission, “Environment-Climate Change-China,” http://ec.europa.eu/ (accessed on July 26, 2009)
64
British Broadcasting Corporation, “China, Japan Sign 2005-2010 Long-Term Trade Agreement,” December 12, 2005, http://www.
nautilus.org/ (accessed on August 14, 2009)
65
The European Parliament and The Council of the European Union, “Regulation (EC) No 1907/2006 concerning the Registration, Evalua-
tion, Authorisation and Restriction of Chemicals (REACH)”

Regulatory Challenges Still Hamper the Full Potential

of Greentech in China
RECOGNIZING CHINA’S NATURAL RESOURCE LIMITATIONS, increasingly pressing
environmental issues and vulnerability to the impacts of climate change, Chinese
and international policymakers have innovated a variety of approaches to support
the development of healthy Chinese greentech markets.
However, the ongoing challenge remains of having to develop and implement

LMMLJ[P]L WVSPJPLZ HJYVZZ *OPUH»Z ]HZ[ SHUK HYLH KP]LYZL JSPTH[L aVULZ HUK
large population, all the while continuing to support social stability and ongoing
economic development.
:WLJPÄJYLN\SH[VY`JOHSSLUNLZL_HTPULKSH[LYPU[OPZYLWVY[PUJS\KL[OVZLYLSH[LK[V!
*VVYKPUH[PUN[OLJVTWSL_HYYH`VMZ[HRLOVSKLYZHUKWVSPJPLZL_LY[PUNPUÅ\LUJL
on the greentech sector
Achieving uniform compliance with existing policies across geographies and
different types of market participants
7YV]PKPUNZ\MÄJPLU[[YHUZWHYLUJ`PU[OL[PTPUNHUKZWLJPÄJZVMUL^WVSPJPLZPU
order for participants to effectively build regulatory considerations into their
business models and respond to regulatory drivers
;OLYL PZ UV KLÄULK WH[O^H` [V TLL[ [OL ZJHSL JVTWSL_P[` HUK \YNLUJ` VM
*OPUH»ZJOHSSLUNLZ"NYLLU[LJOTHYRL[Z[HRLOVSKLYZHYL^VYRPUN[VZ\YTV\U[[OL
JOHSSLUNLZHUK[OLYLI`HSSL]PH[L*OPUH»ZLU]PYVUTLU[HSPZZ\LZ
The following chapters of this report look at the approaches commercial

JVTWHUPLZ HYL [HRPUN [V YLZWVUK [V *OPUH»Z Z\Z[HPUHIPSP[` HUK JSPTH[L JOHUNL
issues. They highlight the different challenges that are impeding progress and
identify opportunities all market stakeholders have in overcoming these hurdles
and in contributing to the acceleration of greentech in China.

EXISTING AND
EMERGING SOLUTIONS

EXISTING AND EMERGING SOLUTIONS
Businesses are delivering hundreds of existing and

emerging greentech solutions to China markets,
providing the potential for significant positive impact
on the environment. While these solutions are often
already attractive to adopters and represent tremendous
market opportunities, some areas are closed to foreign
and private entities.
CHINA’S TRANSFORMATION TO ENVIRONMENTAL SUSTAINABILITY requires solutions that

do not contribute to climate change, do not pollute the atmosphere or water and
KVUV[YLS`VUÄUP[LYLZV\YJLZZ\JOHZJVHSHUKVPS0[HSZVYLX\PYLZ[LJOUVSVNPLZ
[OH[LUHISL[OLLMÄJPLU[KLSP]LY`HUK\ZLVMLULYN`>H[LYZOVY[HNLZHUKWVSS\[PVU
land degradation, and the proliferation of hazardous and other waste all require
ZVS\[PVUZHZ^LSS-VY[\UH[LS`HUL_[LUZP]LU\TILYVML_PZ[PUNHUKLTLYNPUNNYLLU
[LJOUVSVNPLZHYLILPUNHWWSPLKPU*OPUH[VHKKYLZZ[OLZLJOHSSLUNLZ
( RL` VIQLJ[P]L VM [OL *OPUH .YLLU[LJO 0UP[PH[P]L ^HZ [V \UKLYZ[HUK ÔPJO
greentech solutions are likely to play key roles in the short to medium term as
*OPUHHKKYLZZLZ[OLZ\Z[HPUHIPSP[`VMP[ZNYV^[OHUK[OLYLSH[P]LHK]HU[HNLZHUK
KPZHK]HU[HNLZVMLHJO
The analysis carried out by the Initiative suggests:

(NYLH[U\TILYVMNYLLU[LJOZVS\[PVUZPU*OPUHOH]L[OLWV[LU[PHSMVYZPNUPÄJHU[
WVZP[P]LPTWHJ[VU[OLLU]PYVUTLU[
>OPSLHU\TILYVMZVS\[PVUZHYLZ[PSSPUKL]LSVWTLU[THU`HYLHSYLHK`
JVTTLYJPHSS`H]HPSHISLPU*OPUHHUKHYLH[[YHJ[P]L[VHKVW[LYZ
*OPUHPZNLULYHSS`HUH[[YHJ[P]LTHYRL[MVY[OLHWWSPJH[PVUVMNYLLU[LJO
ZVS\[PVUZNP]LUP[ZSHYNLZPaLHUKYHWPKNYV^[O"/V^L]LYZVTLTHYRL[Z
HYLJSVZLK[VWYP]H[LHUKMVYLPNUWHY[PJPWHU[Z
;OPZJOHW[LYWYLZLU[Z[OLHWWYVHJO[OL0UP[PH[P]LOHZ[HRLU[VPKLU[PM`HUKL]HS\H[L
NYLLU[LJOZVS\[PVUZPU*OPUHKLÄULZWYPVYP[PaLKZVS\[PVUZI`ZLJ[VYHUKWYV]PKLZ
RL`ÄUKPUNZMYVT[OLHZZLZZTLU[
Fig.1: PRIORITIZED GREENTECH SOLUTIONS EVALUATED BY THE CHINA GREENTECH INITIATIVE

Coal Oil Nuclear
Gas
CLEANER CONVENTIONAL ENERGY 12 3 1 2 18
Solar Wind Bio

RENEWABLE ENERGY 11 14 10 35
ELECTRIC POWER INFRASTRUCTURE 12

TOTAL
GREEN BUILDING 15 125
SOLUTIONS
Road Rail Waterway
Air
CLEANER TRANSPORTATION 9 3 3 3 18
CLEANER INDUSTRY 15
CLEAN WATER 12
Note: The number of solutions prioritized within each sector does not imply judgement on the environmental or commercial potential of the sector

EVALUATION APPROACH
Fig.2 DEFINITION OF CRITERIA IN THE SOLUTION EVALUATION FRAMEWORK
UNIT ENVIRONMENTAL IMPACT POTENTIAL SOLUTION ATTRACTIVENESS
Potential of the solution to abate negative impact on the Economic attractivenessVM[OLZVS\[PVU[VHKVW[LYZ¶PL

natural environment ÔPSLKLSP]LYPUNILULÄ[ZZPTPSHY[V HIPSP[`[VKLSP]LYL_WLJ[LKILULÄ[H[JVTWL[P[P]LJVZ[PZ
VYNYLH[LY[OHU[OLJVU]LU[PVUHSZVS\[PVU TLHZ\YLKVUSPMLIHZPZKYP]LUVYPUÅ\LUJLKI`!
-VJ\ZLZVUone target metric VMULNH[P]LPTWHJ[ – Lifecycle unit cost HNHPUZ[[OLHS[LYUH[P]L
LN:6_LTPZZPVU^H[LY\ZLLSLJ[YPJP[`\ZLVM[OL – Policies encouraging the adoption
JVU]LU[PVUHSZVS\[PVUHIH[LK[V[OLSHYNLZ[KLNYLL – Risk of not becoming industry standard in China
0Zmeasured in percent on unit basis¶PL[OLWV[LU[PHS All solutions mandated by the regulation are considered
[VHIH[LULNH[P]LPTWHJ[PUKLSP]LY`VMVUL\UP[VMILULÄ[ advantaged, regardless of actual penetration
LNTPSLZKYP]LU2ÔWYVK\JLK
VALUE DEFINITION VALUE DEFINITION
Very high: Advantaged:

7V[LU[PHS[VKLJYLHZLPTWHJ[VU[OLLU]PYVU 3V^LYJVZ[[OHUJVU]LU[PVUHSHS[LYUH[P]LZ0Z[OL
ment of the target metric by over 40% industry standard
0ZYLNHYKLKHZ[OLPUK\Z[Y`Z[HUKHYK
High:
7V[LU[PHS[VKLJYLHZLPTWHJ[VU[OLLU]PYVU Attractive:
ment of the target metric by 30%-40% *VZ[VUWHY^P[OJVU]LU[PVUHSHS[LYUH[P]LZ
On way to become industry standard in China
Medium:
7V[LU[PHS[VKLJYLHZLPTWHJ[VU[OLLU]PYVU Emerging:
ment of the target metric by 20%-30% 4VYLL_WLUZP]LI\[JVZ[KLJSPUPUN
(J[P]LJVTWL[P[PVUMYVTV[OLY[LJOUVSVNPLZ
Incremental-medium:
Disadvantaged:
7V[LU[PHS[VKLJYLHZLPTWHJ[VU[OLLU]PYVU
:PNUPÄJHU[S`TVYLL_WLUZP]L[OHUHS[LYUH[P]L
ment of the target metric by 10%-20%
No indication of becoming major industry force
Incremental: Unavailable:
7V[LU[PHS[VKLJYLHZLPTWHJ[VU[OLLU]PYVU Still a concept or in early research phase
ment of the target metric by under 10% /PNOYPZRVMW\YZ\PUN[OL[LJOUVSVN`
ADDRESSABLE MARKET SIZE MARKET ACCESSIBILITY
Annual sales of the solution if it were purchased by DegreeVMTHYRL[HJJLZZPIPSP[`MVYWYP]H[LMVYLPNUWSH`LYZ

100% of potential adopters that year 0ZKYP]LUVYPUÅ\LUJLKI`!
Adopters are organizations and individuals that pur- +LNYLLVMdirect state influenceV]LY[OLZLJ[VY
chase solutions LP[OLYJVU]LU[PVUHSVYNYLLU[LJOZVS\ Openness to foreign capital and ownership
[PVU\UKLYL]HS\H[PVU[VHJOPL]LJLY[HPUILULÄ[Z Preferential treatment of SOEs or local players
0ZTLHZ\YLKPU<:IPSSPVUIPSSPVU`\HUWLY`LHYHUK >OLYLHJJLZZPIPSP[`MVYWYP]H[LPZKPMMLYLU[[OHUMVYMVYLPNU
TH[OLTH[PJHSS`PZHWYVK\J[VM! WSH`LYZ[OLTVYLYLZ[YPJ[LK]HS\LPZ\ZLK
;V[HSnumber of potential adopters that year 0UJHZLZÔLYL[PLYL]HS\H[PVUPZ\ZLK[LYTZHWWSPLK
Price of current “standard” substitute are shown in parenthesis
VALUE DEFINITION VALUE DEFINITION
Very large: ! Fully open (Mostly open):

6]LY<:IPSSPVUIPSSPVU`\HUWLY`LHY Low to no state control of the sector
-\SS`VWLU[VWYP]H[LMVYLPNUJHWP[HSVÛLYZOPW
Large: Open with restrictions (Mostly open):

)L[^LLU<:HUK<:IPSSPVU .LULYHSS`VWLUI\[YLZ[YPJ[PVUZVU[OLKLNYLL
HUKIPSSPVU`\HUWLY`LHY VMWYP]H[LMVYLPNUVÛLYZOPWHWWS`
Medium: Partially limited (Limited):

)L[^LLU<:HUK<:IPSSPVUHUK Some parts of the sector are open while others are
IPSSPVU`\HUWLY`LHY YLZ[YPJ[LK[VWYP]H[LMVYLPNUVÛLYZOPW
Limited-medium: Limited (Limited):

)L[^LLU<:HUK<:IPSSPVUHUK .LULYHSS`Z[YVUNZ[H[LJVU[YVSVM[OLZLJ[VY
IPSSPVU`\HU<:+WLY`LHY 0UL_JLW[PVUZWYP]H[LMVYLPNUVÛLYZOPWHSSV^LK
Limited: Restricted (Restricted):

<UKLY<:IPSSPVUIPSSPVU`\HUWLY`LHY -\SSZ[H[LJVU[YVSVM[OLZLJ[VY
7YP]H[LVYMVYLPNUVÛLYZOPWPZUV[HSSV^LK

Evaluation Approach
;OL *OPUH .YLLU[LJO 0UP[PH[P]L KL]LSVWLK HU PUP[PHS ZL[ VM V]LY NYLLU[LJO
ZVS\[PVUZ HJYVZZ ZL]LU ZLJ[VYZ ÔPJO ^LYL [OLU WYPVYP[PaLK PU[V H SPZ[ VM
ZVS\[PVUZ ZLL -PN\YL IHZLK VU LU]PYVUTLU[HS PTWHJ[ HUK JVTTLYJPHSPaH[PVU
WV[LU[PHS ,HJO WYPVYP[PaLK ZVS\[PVU ^HZ [OLU L]HS\H[LK \ZPUN [OL :VS\[PVU
,]HS\H[PVU-YHTL^VYRKL]LSVWLKI`[OL0UP[PH[P]L
;OL :VS\[PVU ,]HS\H[PVU -YHTL^VYR :,- ^HZ KL]LSVWLK [V HZZLZZ ZVS\[PVUZ
PUHJVTWYLOLUZP]LJVUZPZ[LU[YPNVYV\ZHUKÅL_PISLTHUULY;OL:,-WYV]PKLZ
H Z[Y\J[\YL PU ÔPJO [V JHW[\YL YLSL]HU[ H]HPSHISL X\HSP[H[P]L HUK X\HU[P[H[P]L
information, apply judgment in a structured way and compare results both within
HUKHJYVZZZLJ[VYZ
;OL:,-L]HS\H[LZZVS\[PVUZHJYVZZMV\YKPTLUZPVUZ!unit environmental impact

potential, solution attractiveness, addressable market size and market accessibility.
;OLSHZ[[OYLLJYP[LYPHJVSSLJ[P]LS`YLWYLZLU[[OLV]LYHSSJVTTLYJPHSWV[LU[PHSVM[OL
ZVS\[PVUPU*OPUH(ZKLZJYPILKPU-PN\YLLHJOKPTLUZPVUTH`[HRLVUVULVM
Ä]LKPZ[PUJ[]HS\LZ=PZ\HSS`H/HY]L`)HSSPZ\ZLK[VL_WYLZZ[OLYH[PUN^P[OHU
LTW[ÌHSSYLWYLZLU[PUN[OLSV^LZ[HUKHM\SSIHSSYLWYLZLU[PUN[OLOPNOLZ[]HS\L
:VS\[PVUZ^LYLL]HS\H[LKHJJVYKPUN[V[OYLL[PTLWLYPVKZ!:OVY[\UKLYVUL`LHY
4LKP\T`LHYZHUK3VUN`LHYZ;OLHUHS`ZPZPU[OPZJOHW[LYMVJ\ZLZVU
[OL4LKP\T[LYTL]HS\H[PVUZ
+\L[V[OLUH[\YLVM[OL:,-[OL0UP[PH[P]LWHY[ULYZHUKHK]PZVYZZVTL[PTLZOHK
KPMMLYLU[]PL^ZVUOV^[VL]HS\H[LNP]LUZVS\[PVUZ:PNUPÄJHU[H[[LTW[Z^LYLTHKL
[V]HSPKH[LHUKYLJVUJPSLKPMMLYPUNWLYZWLJ[P]LZ"OV^L]LY\S[PTH[LS`[OL0UP[PH[P]L
YLZLHYJO[LHT\ZLKP[ZQ\KNTLU[[VKL[LYTPUL[OL]HS\LMVYLHJOJYP[LYPVU.P]LU
[OH[[OL:,-PZVUS`H[VVSTLHU[[VMHJPSP[H[L[OLL]HS\H[PVUVMNYLLU[LJOZVS\[PVUZ
as with any framework, it has limitations and its results should be interpreted
HJJVYKPUNS`
UNIT ENVIRONMENT IMPACT POTENTIAL

<UP[LU]PYVUTLU[HSPTWHJ[WV[LU[PHSLU]PYVUTLU[HSPTWHJ[L_WYLZZLZ[OLHIPSP[`
VM VUL \UP[ VM [LJOUVSVN` LN VUL ZVSHY WHULS VUL Å\L NHZ KLZ\SWO\YPaH[PVU
Z`Z[LTVYVUL^H[LY[YLH[TLU[Z`Z[LT[VHIH[LHWHY[PJ\SHYWVSS\[HU[LNZ\SM\Y
KPV_PKL HTTVUPH VY ZVSPK ^HZ[L VY PUJYLHZL LMÄJPLUJ` VM H WHY[PJ\SHY YLZV\YJL
LNLULYN`^H[LYVYTH[LYPHSMLLKZ[VJRJVTWHYLK[V[OLJVU]LU[PVUHSZVS\[PVU
\ZLK VY UV ZVS\[PVU H[ HSS ;OL TL[YPJ \ZLK PZ H WLYJLU[HNL ÔPJO YLÅLJ[Z [OL
WYVWVY[PVUVMWVSS\[PVUHIH[LKVYLMÄJPLUJ`NHPULKI`\ZPUNHWHY[PJ\SHYZVS\[PVU
This consistent metric makes it possible to compare greentech solutions based on
[OLPYLU]PYVUTLU[HSPTWHJ[^P[OPUHUKHJYVZZZLNTLU[ZHUKZLJ[VYZ
Fig.3: DISTRIBUTION OF SECTORS BY ENVIRONMENTAL DIMENSIONS TARGETED BY PRIORITIZED SOLUTIONS
AIR / ENERGY
SECTOR NAME ABBREVIATIONS LEGEND:
EPI
RE CCE - Cleaner Conventional Energy
CT
CCE RE - Renewable Energy
GB EPI - Electric Power Infrastructure
CI
GB - Green Building
CW
S
CT - Cleaner Transportation
IAL
WA
TER
TER
CI - Cleaner Industry
MA
CW - Clean Water

EVALUATION APPROACH
-PN\YL KLTVUZ[YH[LZ [OL KPZ[YPI\[PVU VM *OPUH»Z NYLLU[LJO ZLJ[VYZ HTVUN

[OYLL KPTLUZPVUZ VM LU]PYVUTLU[HS PTWHJ[ HIH[LTLU[! (PY,ULYN` >H[LY HUK
4H[LYPHSZ(PYHUKLULYN`HYLJVTIPULKPU[VVULKPTLUZPVUILJH\ZL[OLTHQVYP[`
of air pollution and CO2 emissions in China comes from fossil fuels, which can
IL HIH[LK [OYV\NO PTWYV]LK LULYN` LMÄJPLUJ` HUK PUJYLHZLK \ZL VM YLUL^HISL
LULYN`ZV\YJLZ-VYLHJOWYPVYP[PaLKNYLLU[LJOZVS\[PVU[OLKPTLUZPVUVUÔPJO
[OLNYLH[LZ[\UP[LU]PYVUTLU[PTWHJ[HIH[LTLU[JV\SKILKLSP]LYLK^HZJOVZLU
;OPZ NYHWOPJ ZOV^Z [OH[ [OL 9LUL^HISL ,ULYN` ,SLJ[YPJ 7V^LY 0UMYHZ[Y\J[\YL
HUK*SLHULY;YHUZWVY[H[PVUZLJ[VYZWYPTHYPS`PTWHJ[[OLLU]PYVUTLU[I`YLK\JPUN
atmospheric emissions, including CO2 HUK PTWYV]PUN LULYN` LMÄJPLUJ` *SLHU
>H[LYZVS\[PVUZMVJ\ZVUHKKYLZZPUNJOHSSLUNLZHZZVJPH[LK^P[O[OLZOVY[HNLHUK
WVSS\[PVU VM ^H[LY *SLHULY *VU]LU[PVUHS ,ULYN` ZVS\[PVUZ HIH[L LU]PYVUTLU[HS
PTWHJ[VUIV[OHPYHUK^H[LY.YLLU)\PSKPUNHUK*SLHULY0UK\Z[Y`PUJS\KLZVS\[PVUZ
[OH[HKKYLZZHSS[OYLLLU]PYVUTLU[HSKPTLUZPVUZ
<UP[LU]PYVUTLU[HSPTWHJ[WV[LU[PHSHZKLÄULKI`[OL:VS\[PVU,]HS\H[PVU-YHTL^VYR
KVLZ UV[ YLWYLZLU[ [OL WV[LU[PHS VM H ZVS\[PVU [V HIH[L H ZWLJPÄJ WVSS\[HU[ VY
PUJYLHZL YLZV\YJL \ZL LMÄJPLUJ` MVY H WHY[PJ\SHY YLZV\YJL MVY *OPUH HZ H ÔVSL
The consideration of the scale of impact is included under the addressable market size
KPTLUZPVU
SOLUTION ATTRACTIVENESS
:VS\[PVUH[[YHJ[P]LULZZHPTZ[VJHW[\YL[OL]HS\LVMHKVW[PUNHNYLLU[LJOZVS\[PVU
JVTWHYLK[VHS[LYUH[P]LZMVJ\ZPUNVU[OLHIPSP[`VM[OLZVS\[PVU[VKLSP]LYILULÄ[Z
[VHKVW[LYZH[JVZ[ZLX\HS[VVYSV^LY[OHUZ\IZ[P[\[LZVUHSPMLJ`JSLIHZPZLN
LULYN`ZH]PUNZMYVT[OL\ZLVMH*VTIPULK/LH[HUK7V^LY*/7Z`Z[LTVYHU
,ULYN`,MÄJPLU[4V[VY
*VZ[ JVTWL[P[P]LULZZ NLULYHSS` PZ JVYYLSH[LK ^P[O [LJOUVSVNPJHS TH[\YP[` -VY

PUZ[HUJL[OLJVZ[VMLSLJ[YPJP[`NLULYH[LK\ZPUNZVSHYWOV[V]VS[HPJ7=[LJOUVSVN`
PZJ\YYLU[S`T\JOOPNOLY[OHU[OH[VMLSLJ[YPJP[`NLULYH[LK\ZPUN[OLYTHSJVHSÄYLK
WV^LYWSHU[Z+\L[V[OLZLOPNOLYJVZ[Z[OL:,-KVLZUV[X\HSPM`:VSHY7=MVYH
rating of attractive, but rather emerging;OPZYH[PUNYLÅLJ[Z[OLMHJ[[OH[ZVSHY7=
[LJOUVSVN`PZJ\YYLU[S`\UKLYYHWPKKL]LSVWTLU[HUKHZ[LJOUVSVN`TH[\YLZP[^PSS
SPRLS`HJOPL]LJVZ[WHYP[`^P[OJVU]LU[PVUHSLULYN`ZV\YJLZSPRLJVHSH[ÔPJO[PTL
it would be rated attractive
:VS\[PVUZ[OH[HYLTHUKH[LKPU*OPUHZ\JOHZ-S\L.HZ+LZ\SWO\YPaH[PVU+L
:6_HUK-S\L.HZ+LUP[YH[PVU+L56_Z`Z[LTZHYLYH[LKHZadvantaged;OPZ
HZZ\TLZ[OH[UVUJVTWSPHUJLHTVUNZVS\[PVUHKVW[LYZ^P[O*OPUH»ZYLN\SH[PVUPZ
HZOVY[[LYTWOLUVTLUVUHUK[OH[PU[OLSVUNY\UP[^PSSILHUL_JLW[PVU
ADDRESSABLE MARKET SIZE

(KKYLZZHISLTHYRL[ZPaLPKLU[PÄLZ[OLWV[LU[PHSZJHSLH[ÔPJOHWHY[PJ\SHYZVS\[PVU
JV\SK IL HWWSPLK PU *OPUH 0[ PZ HU LZ[PTH[L VM [OL [V[HS YL]LU\LZ H WHY[PJ\SHY
ZVS\[PVUL_WYLZZLKPU<:VY`\HUJV\SKHJOPL]LPMP[^LYLadvantaged in terms of
ZVS\[PVUH[[YHJ[P]LULZZ[VKH`;OPZPZHO`WV[OL[PJHSU\TILYTLHU[[VKPMMLYLU[PH[L
[LJOUVSVNPLZ YH[OLY [OHU MVYLJHZ[ THYRL[ [YLUKZ 0U V[OLY ^VYKZ HKKYLZZHISL
market size helps differentiate between power plants, turbines used in power
plants and blades used in turbines, as the latter are components of the former and
[OLYLMVYLOH]LZTHSSLYHKKYLZZHISLTHYRL[ZPaLI`KLÄUP[PVU
=HS\LZ^LYLLZ[PTH[LKI`[OL*OPUH.YLLU[LJO0UP[PH[P]LYLS`PUNVUPUMVYTH[PVU
NH[OLYLKI`[OLYLZLHYJO[LHTHUKMLLKIHJRMYVTWHY[ULYZHUKHK]PZVYZ
MARKET ACCESSIBILITY
;OLVIQLJ[P]LVM[OLTHYRL[HJJLZZPIPSP[`JYP[LYPHPZ[VKPMMLYU[PH[LIL[^LLUTHYRL[Z
[VÔPJOMVYLPNUHUKWYP]H[LWSH`LYZOH]LHJJLZZHUK[OVZL[OH[HYLYLZ[YPJ[LKK\L
[VYLN\SH[PVUZVYV[OLYIHYYPLYZMostly openTHYRL[ZHYLUV[ZWLJPÄJHSS`YLZ[YPJ[LK
I` [OL *OPULZL NV]LYUTLU[ ,_HTWSLZ VM mostly open markets include home
appliances, machinery equipment and components, and select technologies that
*OPUH PZ PU[LYLZ[LK PU KL]LSVWPUN Limited access markets are those that China
controls and allows partial access to, such as construction design, wind power

v Fig. 4: SECTOR EVALUATION BY CRITERIA

AVERAGE SOLUTION UNIT ENVIRONMENTAL IMPACT POTENTIAL AVERAGE SOLUTION ATTRACTIVENESS (1-5 YEARS)
RELATIVELY Renewable Energy RELATIVELY *SLHULY0UK\Z[Y`

HIGHER Cleaner Transportation HIGHER .YLLU)\PSKPUN
*SLHULY*VU]LU[PVUHS,ULYN`

MIDDLE *SLHULY*VU]LU[PVUHS,ULYN`
.YLLU)\PSKPUN MIDDLE
*SLHU>H[LY
Renewable Energy
*SLHULY0UK\Z[Y`
RELATIVELY
*SLHU>H[LY ,SLJ[YPJ7V^LY0UMYHZ[Y\J[\YL
LOWER RELATIVELY
,SLJ[YPJ7V^LY0UMYHZ[Y\J[\YL Cleaner Transportation
LOWER
AVERAGE: 3.6 AVERAGE 3.5
AVERAGE SOLUTION ADDRESSABLE MARKET SIZE (1-16 YEARS) AVERAGE SOLUTION MARKET ACCESSIBILTY
RELATIVELY Cleaner Transportation RELATIVELY *SLHULY0UK\Z[Y`

LARGER Renewable Energy HIGHER .YLLU)\PSKPUN
.YLLU)\PSKPUN Renewable Energy

MIDDLE
*SLHULY*VU]LU[PVUHS,ULYN` MIDDLE *SLHULY*VU]LU[PUHS,ULYN`
*SLHU>H[LY
RELATIVELY *SLHU>H[LY
SMALLER *SLHULY0UK\Z[Y` Cleaner Transportation
RELATIVELY
,SLJ[YPJ7V^LY0UMYHZ[Y\J[\YL ,SLJ[YPJ7V^LY0UMYHZ[Y\J[\YL
LOWER
AVERAGE: 3.1 AVERAGE 3.5
Note: Three tiers of sectors on each dimension and tier labels are used to facilitate discussion about relative position of the sector and not absolute.
KL]LSVWTLU[ HUK JVU]LU[PVUHS WV^LY NLULYH[PVU Restricted markets are those

[OH[ *OPUH UVYTHSS` KVLZ UV[ HSSV^ MVYLPNU HUKVY WYP]H[L WSH`LYZ [V WHY[PJPWH[L
PUZ\JOHZHPY[YHMÄJJVU[YVSHUK[OLJVUZ[Y\J[PVUHUKVWLYH[PVUVMLSLJ[YPJHSNYPK
UL[^VYRZ
Cross-Sector Findings
-PN\YL ZOV^Z [OL H]LYHNL ]HS\LZ NP]LU [V ZVS\[PVUZ ^P[OPU LHJO VM [OL ZL]LU
NYLLU[LJOZLJ[VYZHJYVZZ[OLMV\YL]HS\H[PVUKPTLUZPVUZPU[YVK\JLKHIV]L;OL
ZLJ[VYZHYLYHURLKMYVTOPNOLZ[[VSV^LZ[ZVS\[PVUH]LYHNLVULHJOKPTLUZPVUHUK
JH[LNVYPaLKPU[V[OYLL[PLYZ;OLSHILSZ\ZLK[VKLZJYPIL[OL[PLYZWYV]PKLHYLSH[P]L
HZZLZZTLU[VMZLJ[VYZPUJVTWHYPZVU[V[OLV[OLYZLJ[VYZ-VYL_HTWSL[OL relatively
higher label applied to the Renewable Energy and Cleaner Transportation sectors
VU[OL¸(]LYHNL:VS\[PVU<UP[,U]PYVUTLU[HS0TWHJ[7V[LU[PHS¹KPTLUZPVUYLÅLJ[Z
[OH[ ZVS\[PVUZ PU [OLZL [^V ZLJ[VYZ VU H]LYHNL OH]L OPNOLY \UP[ LU]PYVUTLU[HS
PTWHJ[[OHUZVS\[PVUZPU[OLV[OLYÄ]L
UNIT ENVIRONMENTAL IMPACT POTENTIAL

(ZOPNOSPNO[LKHIV]L9LUL^HISL,ULYN`HUK*SLHULY;YHUZWVY[H[PVUZVS\[PVUZVU
H]LYHNL OH]L relatively higher LU]PYVUTLU[HS PTWHJ[ JVTWHYLK [V V[OLY ZLJ[VYZ
;OPZPZILJH\ZLTHU`VM[OLZLZVS\[PVUZZ\JOHZZVSHYWOV[V]VS[HPJZ^PUK[\YIPULZ
HUKUL^LULYN`]LOPJSLZOH]L[OLWV[LU[PHSVUHWLY\UP[IHZPZ[VHIH[L\W[V
VM[OLLTPZZPVUZHZZVJPH[LK^P[OMVZZPSM\LSI\YUPUN
*SLHULY 0UK\Z[Y` *SLHU >H[LY HUK ,SLJ[YPJ 7V^LY 0UMYHZ[Y\J[\YL ZVS\[PVUZ OH]L
VUH]LYHNLrelatively lower\UP[LU]PYVUTLU[HSPTWHJ[JVTWHYLK[VV[OLYZLJ[VYZ
;OPZ PZ THPUS` K\L [V [OL PUJYLTLU[HS PTWYV]LTLU[ PU LMÄJPLUJ` HUK HIH[LTLU[
[OH[THU`VM[OLZLTVK\SHYZVS\[PVUZVMMLY

CROSS-SECTOR FINDINGS
;OLH]LYHNLVMZVS\[PVUZPU[OL*SLHULY*VU]LU[PVUHS,ULYN`HUK.YLLU)\PSKPUN
sectors falls in the middle [PLY;OPZPZKYP]LUI`HJVTIPUH[PVUVMZVS\[PVUZ^P[Ohigh
HUK]ery highLU]PYVUTLU[HSPTWHJ[PULHJOZLJ[VYZ\JOHZ*HYIVU*HW[\YLHUK
:LX\LZ[YH[PVU**:HUK+L:6_PU*SLHULY*VU]LU[PVUHS,ULYN`^P[OZVS\[PVUZ
[OH[KLSP]LYincremental to mediumLU]PYVUTLU[HSPTWHJ[
SOLUTION ATTRACTIVENESS
*SLHULY 0UK\Z[Y` HUK .YLLU )\PSKPUN OH]L relatively higher H]LYHNL ZVS\[PVU
H[[YHJ[P]LULZZ [V HKVW[LYZ 4HU` ZVS\[PVUZ PU [OLZL ZLJ[VYZ MVJ\Z VU LULYN`
LMÄJPLUJ` HUK HYL HSYLHK` LJVUVTPJHSS` MLHZPISL VU H SPML J`JSL IHZPZ [VKH`
*SLHULY0UK\Z[Y`HSZVPUJS\KLZZVS\[PVUZZ\JOHZ+L:6_HUK+L56_ÔPJOHYL
THUKH[LKI`YLN\SH[PVUPUJLY[HPUPUK\Z[YPLZ
,SLJ[YPJ 7V^LY 0UMYHZ[Y\J[\YL HUK *SLHULY ;YHUZWVY[H[PVU ZVS\[PVUZ HYL YHURLK

relatively lower, due to the fact that many of these solutions are in the early stages
VM[LJOUVSVNPJHSTH[\YP[`LN*VTWVZP[L4H[LYPHS*HISLZHUK(K]HUJLK4L[LYPUN
0UMYHZ[Y\J[\YLPU[OLMVYTLYHUK)H[[LY`,SLJ[YPJ=LOPJSLZHUK*SLHULY(PYJYHM[-\LSZ
PU[OLSH[[LY
*SLHULY*VU]LU[PVUHS,ULYN`*SLHU>H[LYHUK9LUL^HISL,ULYN`ZVS\[PVUZWSHJL
in the middle JH[LNVY`KYP]LUI`HSHYNLU\TILYVMZVS\[PVUZ[OH[[LJOUVSVNPJHSS`
HYLYLSH[P]LS`TH[\YLVYYHWPKS`LTLYNPUNI\[UV[`L[LJVUVTPJHSS`JVTWL[P[P]LPU*OPUH
ADDRESSABLE MARKET SIZE

:VS\[PVUZPU*SLHULY;YHUZWVY[H[PVUHUK9LUL^HISL,ULYN`VUH]LYHNLYLJLP]LK
[OLOPNOLZ[L]HS\H[PVUZ;OLZLZLJ[VYZPUJS\KLTHU`ZVS\[PVUZ^P[O large [V]LY`
large HKKYLZZHISL THYRL[ ZPaLZ Z\JO HZ 5L^ ,ULYN` =LOPJSLZ HUK (K]HUJLK
(PYJYHM[PU*SLHULY;YHUZWVY[H[PVUHUK:VSHY7OV[V]VS[HPJ*VUJLU[YH[PUN:VSHYHUK
)PVTHZZ*VTI\Z[PVU:VS\[PVUZPU9LUL^HISL,ULYN`
*SLHU>H[LY*SLHULY0UK\Z[Y`HUK,SLJ[YPJ7V^LY0UMYHZ[Y\J[\YLYHURLKSV^LZ[
due to the fact that solutions in these sectors are more specialized and are often
PUKP]PK\HSJVTWVULU[ZVMSHYNLYZ`Z[LTZ
.YLLU )\PSKPUN HUK *SLHULY *VU]LU[PVUHS ,ULYN` ZVS\[PVUZ HYL WVZP[PVULK PU
the middle VM [OL YHURPUN 0U MHJ[ H U\TILY VM ZVS\[PVUZ PU [OLZL ZLJ[VYZ ^LYL
L]HS\H[LK [V OH]L SHYNL HUK very large addressable market size, but fewer than
[OVZLPU[OL[VW[^VZLJ[VYZ
MARKET ACCESSIBILITY
4HYRL[HJJLZZPIPSP[`MVYZVS\[PVUZPU*SLHULY0UK\Z[Y`HUK.YLLU)\PSKPUNZLNTLU[Z
PZ VU H]LYHNL relatively higher JVTWHYLK [V ZVS\[PVUZ PU V[OLY ZLJ[VYZ 4HU` VM
[OLZL ZVS\[PVUZ HYL TVK\SHY I` UH[\YL ^P[O H SHYNL U\TILY VM WYP]H[L I\ZPULZZ
WYV]PKLYZIV[OKVTLZ[PJHUKMVYLPNUHSYLHK`VWLYH[PUNPU*OPUH
*SLHULY ;YHUZWVY[H[PVU HUK ,SLJ[YPJ 7V^LY 0UMYHZ[Y\J[\YL HYL THYRL[Z ^P[O

relatively lower HJJLZZPIPSP[`PU*OPUH*SLHULY;YHUZWVY[H[PVUPUJS\KLZZVS\[PVUZPU
[OLYHPS^H`HUKHPY[YHUZWVY[ZLNTLU[ZÔLYLHJJLZZ[VTHU`]HS\LJOHPULSLTLU[Z
is restricted;OL,SLJ[YPJ7V^LY0UMYHZ[Y\J[\YLTHYRL[PZHYLNPVUHSPaLKTVUVWVS`
JVU[YVSSLK I` [OL NV]LYUTLU[ >OPSL L_JLW[PVUZ L_PZ[ ZVS\[PVU WYVJ\YLTLU[
NLULYHSS`MH]VYZSVJHSZ[H[LVÛLKLU[LYWYPZLZ
9LUL^HISL ,ULYN` *SLHULY *VU]LU[PVUHS ,ULYN` HUK *SLHU >H[LY ZVS\[PVUZ

place in the middle(S[OV\NOTHYRL[ZMVYHU\TILYVMZVS\[PVUZPU[OLZLZLJ[VYZ
are mostly openHSHYNLU\TILYVMZVS\[PVUZHYLHWWSPJHISL[VTHYRL[Z[OH[OH]L
limited accessibility, and in some cases, markets that are restricted, which is the
JHZL^P[O<UKLYNYV\UK*VHS.HZPÄJH[PVU*VTIPULK*`JSLPU*SLHULY*VU]LU[PVUHS
,ULYN`HUK,_[YHJ[PVU:VS\[PVUZPU*SLHU>H[LY
CROSS-SECTOR AVERAGE SOLUTION EVALUATION MATRIX

-PN\YLWYLZLU[ZH]LYHNLZLJ[VYÄUKPUNZPUHTH[YP_MVYTH[\ZPUN[^VH_LZHUK
[OLZPaLHUKJVSVYVM[OLIHSS[VPUJVYWVYH[LYLSH[P]LL]HS\H[PVUVMZLJ[VYZVUHSSMV\Y
JYP[LYPHMVY[OLTLKP\T[LYT[PTLMYHTLVM`LHYZ)HZLKVU[OPZHUHS`ZPZMV\Y
NYV\WZVMZLJ[VYZLTLYNL!

Fig.5: CROSS-SECTOR AVERAGE SOLUTION EVALUATION MATRIX

AVERAGE SOLUTION UNIT ENVIRONMENTAL IMPACT POTENTIAL
RELATIVELY HIGHER
BALL SIZE AND COLOR INTERPRETATION LEGEND:
Renewable
Size of the ball indicates relative average addressable
Cleaner
Transportation Energy market size of solutions in the sector:
MIDDLE
Cleaner RELATIVELY LARGE MIDDLE RELATIVELY SMALLER

*VU]LU[PVUHS,ULYN`
Color of the ball indicates relative average market
accessibility of solutions in the sector:
RELATIVELY LOWER
Electric Power Clean Cleaner

0UMYHZ[Y\J[\YL >H[LY 0UK\Z[Y`
RELATIVELY LOWER MIDDLE RELATIVELY HIGHER RELATIVELY HIGHER MIDDLE RELATIVELY LOWER
AVERAGE SOLUTION ATTRACTIVENESS (1-5 YEARS)
Cleaner Transportation and Renewable Energy - sectors in which solutions

VUH]LYHNLOH]Lrelatively higherLU]PYVUTLU[HSPTWHJ[relatively larger addressable
market size, while being in the relatively lower or in the middle category in terms of
ZVS\[PVUH[[YHJ[P]LULZZ[VHKVW[LYZHUKM\UJ[PVUPUNPUTHYRL[Z[OH[YHURrelatively
lower or in the middle on accessibility, compared to other sectors
Green Building and Cleaner Industry ZVS\[PVUZ VU H]LYHNL OH]L relatively
higher H[[YHJ[P]LULZZ [V HKVW[LYZ ^P[O relatively higher market accessibility,
ÔPSL VMMLYPUN LU]PYVUTLU[HS PTWHJ[ [OH[ YHURZ relatively lower or in the middle
and addressable market size that ranks in the middle or in the relatively smaller
category, compared to solutions in other sectors
Cleaner Conventional Energy and Clean WaterZVS\[PVUZYHURPU[OL middle

PU [LYTZ VM YLSH[P]L H[[YHJ[P]LULZZ [V HKVW[LYZ HUK THYRL[ HJJLZZPIPSP[` WYLZLU[
LU]PYVUTLU[HS PTWHJ[ [OH[ YHURZ PU [OL relatively lower or the middle categories
and addressable market size that ranks in the middle or the relatively smaller tiers,
compared to other sectors
Electric Power infrastructure ZVS\[PVUZ VU H]LYHNL OH]L relatively lower

LU]PYVUTLU[HSPTWHJ[relatively lowerH[[YHJ[P]LULZZ[VHKVW[LYZHUKrelatively smaller
addressable market size with relatively lower accessibility, compared to other sectors
TWO DISTINCT INSIGHTS RESULT FROM THIS ANALYSIS:

Correlation of solution attractiveness with market accessibility: Sectors
^P[OTVYLH[[YHJ[P]LZVS\[PVUZNLULYHSS`L_PZ[PUTHYRL[Z[OH[HYLTVYLVWLUPU[OL
TLKP\T[LYT`LHY[PTLMYHTL;OL[^VZLJ[VYZ^P[OZVS\[PVUZ[OH[VUH]LYHNL
HYLMV\UK[VOH]Lrelatively higherH[[YHJ[P]LULZZ[VHKVW[LYZ.YLLU)\PSKPUNHUK
*SLHULY0UK\Z[Y`HWWLHY[VOH]LTHYRL[Z^P[Orelatively higher accessibility than
V[OLYZLJ[VYZ6U[OLV[OLYOHUK[OL[^VZLJ[VYZ^P[OZVS\[PVUZ[OH[VUH]LYHNL
OH]Lrelatively lower H[[YHJ[P]LULZZ*SLHULY;YHUZWVY[H[PVUHUK,SLJ[YPJ7V^LY0U
MYHZ[Y\J[\YL[LUK[VOH]LTHYRL[Z[OH[YHURrelatively lower VUHJJLZZPIPSP[`
Correlation of solution unit environmental impact potential with addres-

sable market size: :LJ[VYZ ÔPJO JVU[HPU ZVS\[PVUZ ^P[O OPNOLY H]LYHNL
LU]PYVUTLU[HS PTWHJ[ HSZV OH]L NYLH[LY H]LYHNL HKKYLZZHISL THYRL[ ZPaL -VY
instance, the two sectors that fall into relatively higher [PLYVU\UP[LU]PYVUTLU[HS
PTWHJ[WV[LU[PHS*SLHU;YHUZWVY[H[PVUHUK9LUL^HISL,ULYN`HSZVOH]Lrelatively
larger HKKYLZZHISLTHYRL[ZPaLJVTWHYLK[VV[OLYZLJ[VYZ;OPZPZWHY[PHSS`K\L[V
[OLJVUJLU[YH[LKUH[\YLVMZVS\[PVUZPU[OLZLZLJ[VYZZ\JOHZ]LOPJSLZHPYJYHM[
SVJVTV[P]LZHUK:VSHY7OV[V]VS[HPJZYH[OLY[OHUTVK\SHYVYJVTWVULU[VYPLU[LK
ZVS\[PVUZHZPZ[OLJHZLPUV[OLYZLJ[VYZ

CLEANER CONVENTIONAL ENERGY SOLUTIONS
KEY FINDINGS FROM THE CLEANER CONVENTIONAL ENERGY SOLUTION EVALUATION ANALYSIS INCLUDE:
OVER HALF OF ALL SOLUTIONS HAVE VERY HIGH UNIT ENVIRONMENTAL IMPACT POTENTIAL.
;OPZPUJS\KLZHSSJVHSWVZ[JVTI\Z[PVUZVS\[PVUZ¶-S\L.HZ+LZ\SM\YPaH[PVU+L:6_-S\L.HZ+LUP[YH[PVU+L56_
7HY[PJ\SH[L4H[[LY749LTV]HSHUK*HYIVU*HW[\YLHUK:LX\LZ[YH[PVU**:ZVS\[PVUZ,HJOVM[OLZLPZHISL[V
JHW[\YLHUKHIH[L\W[V VM[OL[HYNL[LKHPYWVSS\[HU[(KKP[PVUHSS`JSLHULYVPSHUKU\JSLHYWV^LYZVS\[PVUZVMMLY
very highLU]PYVUTLU[HSPTWHJ[5LHYS`HSSV[OLYZVS\[PVUZVMMLYSV^LY[OV\NOZPNUPÄJHU[LU]PYVUTLU[HSPTWHJ[(U
L_JLW[PVUPZ*VHS3PX\LMHJ[PVUÔPJOKVLZUV[WYLZLU[HIH[LTLU[WV[LU[PHSK\L[V[OLOPNOLULYN`PU[LUZP[`VM[OL
SPX\LMHJ[PVUWYVJLZZI\[PZJVUZPKLYLKMVYP[ZZ[YH[LNPJLULYN`ZLJ\YP[ÌLULÄ[Z
A MAJORITY OF SOLUTIONS ARE CONSIDERED TO BE ATTRACTIVE OR ADVANTAGED TO ADOPTERS.

;OLZLZVS\[PVUZHYLLP[OLYTHUKH[LKI`YLN\SH[PVUZ\JOHZ+L:6_+L56_HUK749LTV]HSZ`Z[LTZVYHYL
LJVUVTPJHSS` MLHZPISL VU H SPML J`JSL IHZPZ TVZ[S` K\L [V [OL LULYN` LMÄJPLUJ` NHPUZ [OL` VMMLY Z\JO HZ *VHS
)SLUKPUN*VTIPULK/LH[HUK7V^LY*/7<S[YH:\WLYJYP[PJHS7V^LY.LULYH[PVU<:7.HUK-JSHZZ.HZ;\YIPUL
*HYIVU *HW[\YL HUK :LX\LZ[YH[PVU **: <UKLYNYV\UK *VHS .HZPÄJH[PVU *VTIPUL *`JSL <*.** HUK -HZ[
5L\[YVU9LHJ[VYHYLJ\YYLU[S`\UKLYKL]LSVWTLU[HUKNP]LU[OLJVZ[ZHUKYPZRZPU]VS]LKHYL`L[disadvantaged in
[LYTZVMH[[YHJ[P]LULZZ[VHKVW[LYZ*VHS3PX\LMHJ[PVUPZdisadvantagedK\L[VP[ZOPNOVWLYH[PUNJVZ[Z
WHILE MOST PRIORITIZED SOLUTIONS OFFER LIMITED-MEDIUM TO MEDIUM ADDRESSABLE MARKET SIZE, A NUMBER OF
SOLUTIONS HAVE LARGE TO VERY LARGE ADDRESSABLE MARKETS.
;OYLL[LJOUVSVNPLZOH]Lvery largeHKKYLZZHISLTHYRL[Z¶0U[LNYH[LK.HZPÄJH[PVU*VTIPULK*`JSL0.**<:7.
HUK **: ;OPZ L]HS\H[PVU PZ KYP]LU I` [OL J\YYLU[ THYRL[ ZPaL VM *OPUH»Z UL^ JVHS [OLYTHS JHWHJP[` ÔPJO PZ
LZ[PTH[LKH[V]LY<:IPSSPVUIPSSPVU`\HUHUU\HSS`<*.**+L:6_HUK+L56_ZVS\[PVUZHYL]PL^LK[V
OH]L largeHKKYLZZHISLTHYRL[ZPaL5LHYS`HSSZVS\[PVUZPU*SLHULY.HZHUK5\JSLHY7V^LYZLNTLU[ZOH]LZTHSSLY
HKKYLZZHISLTHYRL[ZPaLTHPUS`K\L[V[OLSPTP[LKJHWHJP[`VMNHZÄYLKHUKU\JSLHYWV^LYWSHU[ZIYV\NO[VUSPUL
L]LY``LHYLZWLJPHSS`ÔLUJVTWHYLK[V*OPUH»ZJVHSJHWHJP[`
WHILE SOME MARKETS ARE RESTRICTED, OVER HALF OF THE ANALYZED SOLUTIONS HAVE MARKETS THAT ARE MOSTLY OPEN.
*VHS 3PX\LMHJ[PVU HUK <*.** THYRL[Z HYL restricted [V MVYLPNU HUK WYP]H[L PU]LZ[VYZ HUK WYLKVTPUHU[S` KYP]LU
I`:6,Z4HYRL[ZMVYZVTLRL`ZVS\[PVUZZ\JOHZ**:0.**5.**HUK<:7.HYLZLLUHZlimited due to the
NLULYHSS` OPNO KLNYLL VM JVU[YVS L_LYJPZLK I` [OL NV]LYUTLU[ /V^L]LY THYRL[Z MVY THU` V[OLY ZVS\[PVUZ HYL
mostly openPUWHY[KYP]LUI`*OPUH»ZPU[LYLZ[PUPU[LYUH[PVUHSJVSSHIVYH[PVUVUKL]LSVWPUN[OLT;OLZLPUJS\KL-HZ[
5L\[YVU9LHJ[VY-JSHZZ.HZ;\YIPULHUK*HW[\YLHUK<ZLVM*VHS4PUL=LU[PSH[PVU(PY4L[OHUL
Fig.6: CLEANER CONVENTIONAL ENERGY SECTOR SOLUTION EVALUATION MATRIX (1-5 Years)
MHTGCR Advanced Coal Mining Equipment
CCS De-SOx PM Removal

De-NOx
>H[LY
-59 Reinjection
*HW[\YLHUK<ZLVM
5.** Coal Screening
*VHS4PUL=LU[PSH[PVU(PY
Methane and Scrubbing
<*.** 0.** CHP
Ultra Supercritical
-*SHZZ
Coal Liquefaction Coal Blending
UNAVAILABLE DISADVANTAGED EMERGING ATTRACTIVE ADVANTAGED
SOLUTION ATTRACTIVENESS (1-5 YEARS)
BALL SIZE AND COLOR INTERPRETATION LEGEND: Color of the ball indicates market
Size of the ball indicates addressable market size: accessibility:
VERY LARGE LARGE MEDIUM LIMITED MEDIUM LIMITED MOSTLY OPENED LIMITED RESTRICTED

Cleaner Conventional Energy Solutions

THE CHINA GREENTECH INITIATIVE PRIORITIZED 18 CLEANER CONVENTIONAL ENERGY SOLUTIONSMVYKL[HPSLKL]HS\H[PVUMYVT[OH[
^LYLVYPNPUHSS`PKLU[PÄLKHZHYLZ\S[VMYLZLHYJOHUKWHY[ULYMLLKIHJR:VS\[PVUZ^LYLJOVZLUMYVTHJYVZZMV\YZLNTLU[Z!
*SLHULY*VHS*SLHULY.HZ*SLHULY6PSHUK5\JSLHY7V^LY
;OLWYPTHY`MVJ\Z^HZVUJSLHULYJVHSZVS\[PVUZK\L[V*OPUH»ZOLH]`YLSPHUJLVUJVHSHZHWYPTHY`LULYN`ZV\YJL
JSLHULY JVHS ZVS\[PVUZ ^LYL VYNHUPaLK PU[V [OYLL JH[LNVYPLZ! 7YL*VTI\Z[PVU *VU]LYZPVU HUK *VTI\Z[PVU 7VZ[
CVTI\Z[PVUZVS\[PVUZ
CLEANER COAL - Ü Advanced Coal Mining Equipment – Coal mining equipment that is more
PRE-COMBUSTION LULYN`LMÄJPLU[HUKLUHISLZOPNOLYL_[YHJ[PVUYH[LZ[OHUJVU]LU[PVUHSLX\PWTLU[
Ü Coal Blending¶7YVJLZZVMJVTIPUPUN]HYPV\Z[`WLZVMW\S]LYPaLKJVHS[V
[HRLHK]HU[HNLVM[OLPYKPMMLYLU[JVTI\Z[PVUHUKLTPZZPVUWYVWLY[PLZ
Ü Coal Screening and Scrubbing – Processes that reduce impuritities, such
as ash and sulfur, contained in coal prior to burning, normally carried out at
or close to the coal mine
CLEANER COAL - CONVERSION Ü Coal Liquefaction¶7YVJLZZ[OH[JVU]LY[ZJVHSPU[VSPX\PKM\LSZ

AND COMBUSTION Ü F-Class Gas Turbine¶(K]HUJLK[LJOUVSVN`NHZ[\YIPULÔPJOPZHYV[HY`
LUNPUL[OH[L_[YHJ[ZLULYN`MYVTHÅV^VMJVTI\Z[PVUNHZH[[OLYTHSWV^LY
plants
Ü Integrated Gasification Combined Cycle (IGCC) – System that turns coal
into synthesis gas which is then combusted in gas turbines to generate
LSLJ[YPJP[`"[OL^HZ[LOLH[PZJHW[\YLKHUKWHZZLK[VHZ[LHT[\YIPULZ`Z[LT
MVYLULYN`YLJV]LY`
Ü Ultra Supercritical Power Generation (USPG)¶*VHSÄYLKWV^LYWSHU[[OH[
VWLYH[LZH[]LYÒPNO[LTWLYH[\YLZHUK\ZLZHK]HUJLKZ[LHTJ`JSLZ[OH[
YLZ\S[PUOPNOLYOLH[LMÄJPLUJPLZHUKSLZZLTPZZPVUZ[OHUJVU]LU[PVUHSJVHS
power plants
Ü Underground Coal Gasification Combined Cycle (UCGCC) – Process by
ÔPJOJVHSPZJVU]LY[LKPU[VHWYVK\J[NHZ\UKLYNYV\UKHUK[OLUJVTI\Z[LK
HIV]LNYV\UK[VNLULYH[LLSLJ[YPJP[`PUJVTI\Z[PVUZ`Z[LTZ[OH[JHW[\YLHUK
utilize waste heat
Ü Carbon Capture and Sequestration (CCS) – System that captures carbon

CLEANER COAL - POST- KPV_PKLMYVTMVZZPSM\LSLP[OLYWYPVY[VVYHM[LYJVTI\Z[PVUHUKZLX\LZ[LYZP[
COMBUSTION for long term storage underground
Ü Flue Gas Denitration (De-NOx)¶:`Z[LT[OH[YLTV]LZUP[YVNLUV_PKLZMYVT
Å\LNHZ
Ü Flue Gas Desulfurization (De-SOx)¶:`Z[LT[OH[YLTV]LZZ\SM\YV_PKLZ
MYVTÅ\LNHZ
Ü Particulate Matter (PM) Removal¶:`Z[LT[OH[YLTV]LZWHY[PJ\SH[LTH[[LY
¶OHYTM\SÄULWHY[[JSLZ¶MYVTÅ\LNHZ
Ü Capture and Use of Coal Mine Ventilation Air Methane – Capture and use
CLEANER GAS VMTL[OHULJVU[HPULKPU[OLL_OH\Z[HPYMYVT\UKLYNYV\UKJVHSTPULZ
Ü Combined Heat and Power (CHP) – System that simultaneously generates
electricity and usable heat by capturing heat that would normally be lost
Ü Natural Gas Combined Cycle (NGCC) – System that generates electricity
using gas turbines, and then captures waste heat to generate steam and
additional electricity using a steam turbine
Ü Water Reinjection¶9LPUQLJ[PVUVM^H[LYYLJV]LYLKH[.HZ6PS:LWHYH[PVU
CLEANER OIL 7SHU[Z.6:7ZIHJRPU[VVPSYLZLY]VPYZHZHTL[OVKVM,UOHUJLK6PS
9LJV]LY`,69
Ü Fast Neutron Reactor (FNR) – Type of nuclear reactor that can utilize
NUCLEAR POWER U\JSLHY^HZ[LMYVTJVU]LU[PVUHSU\JSLHYYLHJ[VYZHZMLLKZ[VJRHUKVWLYH[L
H[OPNOLYLMÄJPLUJPLZ
Ü Modular High-Temperature Gas-Cooled Reactor (MHTGCR) – Type
VMU\JSLHYYLHJ[VY[OH[PZZHMLYHUKOHZOPNOLYLMÄJPLUJ`JVTWHYLK[V
JVU]LU[PVUHSU\JSLHYYLHJ[VYZ

RENEWABLE ENERGY SOLUTIONS
Renewable Energy Solutions

THE CHINA GREENTECH INITIATIVE EVALUATED 35 RENEWABLE ENERGY SOLUTIONS. These
ZVS\[PVUZHYLZWSP[ULHYS`LX\HSS`HJYVZZ[OYLLZLNTLU[Z!:VSHY>PUKHUK)PVLULYN`
>OPSL [OL 9LUL^HISL ,ULYN` ZLJ[VY PZ KLÄULK [V PUJS\KL O`KYVLSLJ[YPJP[` ^H]L
HUKNLV[OLYTHSZLNTLU[Z[OLZLZVS\[PVUZHYLUV[JV]LYLKPU[OPZYLWVY[
+\L [V [OL HI\UKHUJL VM ZVS\[PVUZ PU [OPZ ZLJ[VY [OL` OH]L ILLU NYV\WLK PU[V
[LUHYLHZ[VMHJPSP[H[LHUHS`ZPZ;OL:VSHYZLNTLU[PUJS\KLZ[OYLLZVS\[PVUHYLHZ!
7OV[V]VS[HPJ *VUJLU[YH[PUN HUK >H[LY /LH[LYZ >PUK 7V^LY LUJVTWHZZLZ
MV\YHYLHZ!;\YIPULZ+L]LSVWTLU[4HPU[LUHUJLHUK,ULYN`Z[VYHNL;OL[OYLL
)PVLULYN`ZVS\[PVUHYLHZHYL!,SLJ[YPJP[`/LH[HUK-\LSZ
<USPRLV[OLYZLJ[VYZKPZJ\ZZLKPU[OPZJOHW[LY[OL]HS\LZZOVÛVU[OL9LUL^HISL
,ULYN`L]HS\H[PVUTH[YP_YLWYLZLU[[OLH]LYHNL]HS\LZMVY[OLZVS\[PVUHYLHZKLÄULK
HIV]LUV[PU]PK\HSZVS\[PVUZ;OPZPZK\L[V[OLU\TILYVMZVS\[PVUZHUHSàLK
KEY FINDINGS FROM THE RENEWABLE SOLUTIONS EVALUATION ANALYSIS INCLUDE:
NEARLY ALL AREAS HAVE VERY HIGH AVERAGE SOLUTION UNIT ENVIRONMENTAL IMPACT POTENTIAL. This is based mainly
VU[OLHIPSP[`VMYLUL^HISLLULYN`ZV\YJLZWHY[PJ\SHYS`:VSHYHUK>PUK[VJVTWSL[LS`HIH[L*62 and other air
LTPZZPVUZ HZZVJPH[LK ^P[O MVZZPS M\LS JVTI\Z[PVU PU NLULYH[PUN LSLJ[YPJP[` ;OL [^V L_JLW[PVUZ HYL ^P[OPU [OL
^PUKZLNTLU[HUKPUJS\KL>PUK¶+L]LSVWTLU[HUK>PUK¶4HPU[LUHUJLHYLHZÔPJOOH]Lincremental-medium
to mediumWV[LU[PHS;OLZL[^VHYLHZMVJ\ZVUKPZJYL[LWHY[ZVM[OL^PUK]HS\LJOHPUHUKVMMLYLMÄJPLUJ`NHPU
PTWYV]LTLU[Z YH[OLY [OHU KPYLJ[ LTPZZPVUZ HIH[LTLU[ )PVLULYN`,SLJ[YPJP[` OHZ OPNO LU]PYVUTLU[HS PTWHJ[
VYTVYL[OHUHIH[LTLU[;OPZPZZPNUPÄJHU[ILJH\ZL[OPZHYLHPUJS\KLZ)PVTHZZ*V-PYPUNZVS\[PVU[OH[
normally abates less than 40% of CO2LTPZZPVUZK\L[V[OLMHJ[[OH[IPVTHZZPZUVYTHSS`*V-PYLK^P[OJVHS
WHILE SOLAR–WATER HEATERS ALREADY ARE ADVANTAGED FROM THE ADOPTER PERSPECTIVE, SOLUTIONS IN MOST AREAS
ON AVERAGE ARE BETWEEN EMERGING AND ATTRACTIVE.>PUK¶+L]LSVWTLU[HUK>PUK¶4HPU[LUHUJLHYLHZPUJS\KL
solutions that are either attractive or advantagedÔPJOKL[LYTPULK[OLPYWVZP[PVUIL[^LLU[OL[^VL]HS\H[PVUZ
)PVLULYN`,SLJ[YPJP[` HUK )PVLULYN`/LH[ IV[O YLS` VU IPVTHZZ JVTI\Z[PVU HUK HYL MV\UK [V IL IL[^LLU
emerging and attractive ;OL HUHS`ZPZ Z\NNLZ[Z [OH[ HTVUN :VSHY >PUK 7V^LY HUK )PVM\LSZ ZVS\[PVUZ TVZ[
H[[YHJ[P]LHYL>PUK;\YIPULZZVS\[PVUZMVSSV^LKI`:VSHY7OV[V]VS[HPJHUK[OLUI`)PVLULYN`-\LSZZVS\[PVUZ
;OPZYHURPUNWHYHSSLSZ[OL[LJOUVSVNPJHSTH[\YP[`VMZVS\[PVUZ^P[OPU[OLZLZLNTLU[Z>PUK7V^LYPZHWWYVHJOPUN
JVZ[WHYP[`^P[OLSLJ[YPJP[`NLULYH[LK\ZPUNJVU]LU[PVUHSZV\YJLZZ\JOHZJVHSHUKUH[\YHSNHZÔPSLNLULYH[PUN
WV^LY\ZPUN:VSHY7OV[V]VS[HPJZVS\[PVUZPZZ[PSSJVUZPKLYHIS`TVYLL_WLUZP]L(S[OV\NOHU\TILYVM)PVLULYN`
-\LSZ ZVS\[PVUZ HYL [LJOUVSVNPJHSS` TH[\YL [OL \UYLSPHIPSP[` VM MLLKZ[VJR Z\WWS` ZPNUPÄJHU[S` KLJYLHZLZ [OLPY
H[[YHJ[P]LULZZ[VHKVW[LYZ
THE ADDRESSABLE MARKET SIZE IS ESTIMATED TO BE LARGEST FOR SOLUTIONS IN SOLAR–PHOTOVOLTAIC AND SOLAR–
CONCENTRATING AREAS. ;OPZ PZ H YLÅLJ[PVU VM [OL HIPSP[` VM ZVS\[PVUZ PU [OLZL HYLHZ [V JVTWL[L MVY H ZOHYL VM
*OPUH»ZMVYLJHZ[LKPUJYLHZLPUWV^LYNLULYH[PVUJHWHJP[`HNHPUZ[JVU]LU[PVUHSWV^LYZV\YJLZLZWLJPHSS`JVHS
ÄYLKJHWHJP[`HZZ\TPUN[OL`YLHJO[LJOUVSVNPJHSTH[\YP[`HUKJVZ[WHYP[`V]LY[OLTLKP\T[LYT[PTLMYHTL(
U\TILYVMV[OLYZVS\[PVUHYLHZOH]LlargeHKKYLZZHISLTHYRL[ZPaLZZ\JOHZ>PUK¶,ULYN`:[VYHNL:VSHY>H[LY
/LH[LY HUK HSS [OYLL )PVLULYN` HYLHZ (WHY[ MYVT [^V VMMNYPK ZVS\[PVUZ PUJS\KLK PU [OL >PUK;\YIPULZ HYLH
ZVS\[PVUZ[OLYLHSZVOH]LlargeHKKYLZZHISLTHYRL[ZPaLZ:VS\[PVUZPU>PUK4HPU[LUHUJLHUK>PUK+L]LSVWTLU[
HYLHZVUH]LYHNLVMMLYYLSH[P]LS`ZTHSSLYTHYRL[ZPaLZTHPUS`K\L[VOV^ZWLJPHSPaLK[OLZLZVS\[PVUZHYL
ON MARKET ACCESSIBILITY, SOLUTION AREAS ARE SPLIT HALFWAY BETWEEN MOSTLY OPEN AND LIMITED. 5V[HIS`[OLÄ]L
ZVS\[PVUHYLHZ[OH[YHURSV^LYVUZVS\[PVUH[[YHJ[P]LULZZHYLZLLUHZlimited in terms of market accessibility due to
IV[OMVYTHSHUKPUMVYTHSYLZ[YPJ[PVUZ;OLZLHYLHZPUJS\KL>PUK;\YIPULZ:VSHY7OV[V]VS[HPJ)PVLULYN`-\LSZ
>PUK¶,ULYN`:[VYHNLHUK:VSHY¶*VUJLU[YH[PUN(U\TILYVMHYLHZOV^L]LYJVU[HPUZVS\[PVUZ[OH[VUH]LYHNL
OH]L THYRL[Z [OH[ HYL mostly open Z\JO HZ :VSHY>H[LY /LH[LYZ >PUK4HPU[LUHUJL >PUK+L]LSVWTLU[
)PVLULYN`,SLJ[YPJP[`HUK)PVLULYN`/LH[
A more detailed analysis of each individual solution can be found in the

Renewable Energy chapter in the full version of The China Greentech Report

Fig.7: RENEWABLE ENERGY SECTOR SOLUTION AREAS EVALUATION MATRIX (1-5 Years)
)PVLULYN`/LH[
>PUK,ULYN`:[VYHNL
:VSHY*VUJLU[YH[PUN
:VSHY>H[LY/LH[LYZ
)PVLULYN`-\LSZ
>PUK;\YIPULZ
:VSHY7OV[V]VS[HPJ
>PUK+L]LSVWTLU[
)PVLULYN`,SLJ[YPJP[`
>PUK4HPU[LUHUJL
SOLAR - PHOTOVALTAIC Ü Amorphous Silicon Thin Film Photovoltaic Cell (a-Si PV) – Type of thin
ÄSTZVSHYJLSSIHZLKVUHTVYWOV\ZZPSPJVUJOLTPJHSJVTWV\UK
Ü Building Integrated Photovoltaic (BIPV) ¶(WWSPJH[PVUVMZVSHYWOV[V]VS[HPJ
TH[LYPHSZÔL[OLYJY`Z[HSSPULVY[OPUÄSTPU[VHJ[\HSI\PSKPUNZ[Y\J[\YLZ
UVYTHSS`YLWSHJPUNJVU]LU[PVUHSI\PSKPUNTH[LYPHSZPUWHY[ZVM[OLI\PSKPUN
LU]LSVWLZ\JOHZ[OLYVVMZR`SPNO[ZVYMHJHKLZ
Ü Cadmium Telluride Thin Film Photovoltaic Cell (CdTe PV) – Type of thin
ÄSTZVSHYJLSSIHZLKVUJHKTP\T[LSS\YPKLJOLTPJHSJVTWV\UK
Ü CIGS Thin Film Photovoltaic Cell (CIGS PV)¶;`WLVM[OPUÄSTZVSHYJLSS
based on copper iridium gallium selenide chemical compound
Ü Crystalline Silicon Photovoltaic Cell (cSi PV) – Type of solar cell made
MYVTHZPUNSLJY`Z[HSVYHWVS`JY`Z[HSSPULZSPJLVMZPSPJVU[OH[^HZ[OLÄYZ[[`WL
to be widely commercialized
SOLAR - CONCENTRATING Ü Concentrating Photovoltaic (CPV)+L]PJL[OH[JVUJLU[YH[LZZ\USPNO[

VU[VWOV[V]VS[HPJZ\YMHJLZ[VWYVK\JLLSLJ[YPJP[`
Ü Fresnel Mirror – Solar thermal energy collector that consists of a series of
SVUNUHYYV^ZSPNO[S`J\Y]LKTPYYVYZ[OH[MVJ\Z[OLSPNO[VU[VSPULHYYLJLP]LYZ
WVZP[PVULKHIV]L[OLTPYYVYZ[VILL]LU[\HSS`JVU]LY[LKPU[VLSLJ[YPJP[`
Ü Parabolic Dish Stirling Engine¶+L]PJL[OH[JVUJLU[YH[LZZ\USPNO[H[H
ZPUNSLMVJHSWVPU[]PHHWHYHIVSPJKPZO[VWYVK\JLLSLJ[YPJP[`HUK[OH[JHU
[YHJR[OLZ\UHSVUN[^VH_LZI`H\[VTH[PJHSS`HKQ\Z[PUN[OLKPYLJ[PVUVM[OLKPZO
Ü Parabolic Trough – Solar thermal energy collector that consists of a long
WHYHIVSPJTPYYVYHUKH+L^HY[\ILY\UUPUNP[ZSLUN[OH[[OLMVJHSWVPU[[OH[
HIZVYIZLULYN`MYVT[OLZ\USPNO[ÔPJZÔPZJVU]LY[LKPU[VLSLJ[YPJP[`
Ü Power Towers – Type of solar power plant that uses a tower and a high
OLH[JHWHJP[`JVTWVULU[[VYLJLP]L[OLZ\USPNO[MVJ\ZLK
I`HUHYYH`VMÅH[TV]HISLTPYYVYZHUKJVU]LY[P[PU[VLSLJ[YPJP[`
SOLAR - WATER HEATERS Ü Solar Water Heater (SWH) – System that heats water by absorbing energy
MYVTZ\USPNO[UVYTHSS`JVUZPZ[PUNVMZVSHY[OLYTHSJVSSLJ[VYZÅ\PKZ`Z[LTZ
to transport the heat and a water tank where water is heated and stored
WIND - TURBINES Ü Offgrid / <1 MW / Horizontal ¶/VYPaVU[HS^PUK[\YIPUL^P[O\UKLY4>

capacity that generates electricity to be used locally and does not require
connection to the power grid

RENEWABLE ENERGY SOLUTIONS
WIND -TURBINES Ü Offgrid / <1 MW / Vertical ¶=LY[PJHS^PUK[\YIPUL^P[O\UKLY4>JHWHJP[`

that generates electricity to be used locally and does not require connection to
the power grid
Ü Ongrid / 1-3 MW / Onshore¶/VYPaVU[HS^PUK[\YIPUL^P[OJHWHJP[ÌL[^LLU
HUK4>[OH[PZSVJH[LKVUZOVYLHUKMLLKZ[OLNLULYH[LKLSLJ[YPJP[`VU[V[OL
power grid
Ü Ongrid / >3 MW / Onshore ¶/VYPaVU[HS^PUK[\YIPUL^P[OJHWHJP[`V]LY4>
that is located onshore and feeds the generated electricity onto the power grid
Ü Ongrid / >3 MW / Offshore¶/VYPaVU[HS^PUK[\YIPUL^P[OJHWHJP[`V]LY4>
that is located offshore and feeds the generated electricity onto the power grid
Ü Micrositing¶*VUZPKLYH[PVUVMHUHYYH`VMMHJ[VYZYLSH[LK[V^PUKÅV^[LYYHPU
WIND DEVELOPMENT SVJHSWV^LYKLTHUKLU]PYVUTLU[HSHUKSHUK\ZLPZZ\LZJHYYPLKV\[K\YPUNZP[L
ZLSLJ[PVUMVY^PUK[\YIPULZ[VTH_PTPaL^PUKMHYT»ZVWLYH[PVUHSLMÄJPLUJ`HUK
economics
Ü Wind Assessment – Process of assessing the quality of wind at a particular
location for the purpose of estimating future potential energy production of a
wind farm if it were to be installed at that location
WIND MAINTENANCE Ü Control System¶:`Z[LT[OH[TVUP[VYZHUKJVU[YVSZ[OLILOH]PVYVMV[OLY

KL]PJLZVYZ`Z[LTZ[VLUZ\YLVW[PTHSVWLYH[PVUVM[OL^PUK[\YIPUL
Ü Conversion Technology¶+L]PJL[OH[JVU]LY[ZLSLJ[YPJP[`YLJLP]LKMYVTHZL[
of wind turbines to the standard required by the power grid before feeding the
electricity onto the grid
Ü Maintenance¶:L[VMPUZWLJ[PVUZYLWHPYZVYTVKPÄJH[PVUZVMPUKP]PK\HS^PUK
turbines or wind farms to ensure optimal operation
Ü Standard Operating Procedures (SOPs) – Set of prescriptions for employees,
VM[LUTHUKH[LKVUOV^[VL_LJ\[LZWLJPÄJ[HZRZVY[VYLHJ[[VJPYJ\TZ[HUJLZ
PU[OLTVZ[LMÄJPLU[HUKLMMLJ[P]L^H`Z

WIND ENERGY STORAGE Ü Battery Storage – Electrochemical cells that can be used to store energy and
be charged using electricity and discharged to produce electricity
Ü Compressed Air Energy Storage (CAES¶:`Z[LT[OH[JHUZ[VYLLULYNÌ`
JVTWYLZZPUNHPYPUHJVTWHY[TLU[Z\JOHZHPY[PNO[\UKLNYV\UKJH]LYUHUK
then generate electricity by releasing the air from storage through a combustion
turbine
Ü Pumped Hydro Storage – Method under which energy can be stored by
W\TWPUN[OL^H[LY[VHOPNOYLZLY]VPYHUK[OLUYLSLHZLKIHJRPU[VHSV^LY
YLZLY]VPY[VNLULYH[LLSLJ[YPJP[`ÔLUWHZZPUN[OYV\NOWV^LYNLULYH[PUN
turbines
BIOENERGY - ELECTRICITY Ü Biomass Co-Firing – Combining biomass with coal to be burned to generate
electricity at a power plant
Ü Biomass Combustion – Burning of biomass to generate electricity at a power
plant
BIOENERGY - HEAT Ü Civil Heat ¶)\YUPUNVMIPVTHZZ[VNLULYH[LOLH[[VIL\ZLKMVYJP]PSW\YWVZLZ

Ü Industrial Heat – Burning of biomass to generate heat to be used for industrial
purposes
BIOENERGY - FUELS Ü Cassava Bioethanol¶)PVL[OHUVSWYVK\JLKMYVTJHZZH]HJYVW

Ü Cellulosic Bioethanol – Bioethanol produced from wood, grasses or other
plants
Ü Jatropha Diesel – Biodiesel produced from jatropha crop
Ü Mircoalgae Diesel¶+PLZLSWYVK\JLKMYVTTPJYVHSNHLÔPJOHYL
photosynthetic organisms that can be farmed in water
Ü Sweet Sorghum Bioethanol – Bioethanol produced from sweet sorgum crop
Ü Waste Vegetable Oil Biodiesel¶)PVKPLZLSWYVK\JLKMYVT^HZ[L]LNL[HISLVPS

Electric Power Infrastructure Solutions

THE CHINA GREENTECH INITIATIVE PRIORITIZED 12 ELECTRIC POWER INFRASTRUCTURE
SOLUTIONS MVYKL[HPSLKL]HS\H[PVUMYVTHUVYPNPUHSZL[VM;OLZLZVS\[PVUZHYL
VYNHUPaLK PU MV\Y HYLHZ! 3VZZ 9LK\J[PVU :THY[ .YPK ,ULYN` :[VYHNL HUK .YPK
(JJLZZZVS\[PVUZ
KEY FINDINGS FROM THE ELECTRIC POWER INFRASTRUCTURE SOLUTIONS EVALUATION ANALYSIS INCLUDE:
TWO-THIRDS OF ANALYZED SOLUTIONS OFFER INCREMENTAL UNIT ENVIRONMENTAL IMPACT POTENTIAL. This is due to the focus of
[OLZL ZVS\[PVUZ Z\JO HZ +PNP[HS :\IZ[H[PVUZ *VTWVZP[L 4H[LYPHSZ *HISLZ HUK >PKL (YLH 4HUHNLTLU[ :`Z[LT >(4:
VU [YHUZTPZZPVU HUK KPZ[YPI\[PVU SVZZ YLK\J[PVU ÔPJO YLWYLZLU[Z SLZZ [OHU VM [VKH`»Z V]LYHSS LSLJ[YPJP[` NLULYH[PVU
PU *OPUH ;OL ILULÄ[ [OLZL ZVS\[PVUZ KLSP]LY PU PTWYV]PUN [OL YLSPHIPSP[` VM [OL UL[^VYR PZ UV[ JHW[\YLK PU [OPZ L]HS\H[PVU
/V^L]LY[OL[^VLULYN`Z[VYHNLHUK[^VNYPKHJJLZZZVS\[PVUZYLWYLZLU[very high LU]PYVUTLU[HSPTWHJ[;OPZTLHUZ[OL`
HYLHISL[VHIH[LV]LYVMULNH[P]LLU]PYVUTLU[HSPTWHJ[ÔPJOPU[OPZJHZLHYL*62 emissions from power generation
\[PSPaPUN *OPUH»Z J\YYLU[ M\LS TP_ 9H[OLY [OHU KLSP]LYPUN KPYLJ[ PTWHJ[ [OLZL ZVS\[PVUZ LUHISL [OL JVSSLJ[P]L Z`Z[LT
ÔPJO PZ JVTWYPZLK VM WV^LY NLULYH[PVU Z[VYHNL [YHUZTPZZPVU KPZ[YPI\[PVU HUK HWWSPJH[PVU [V HJOPL]L HIH[LTLU[
HALF OF THE SOLUTIONS ARE STILL DISADVANTAGED OR EMERGING, WHILE HALF ARE ALREADY ATTRACTIVE. -YVT [OL HKVW[LY
WLYZWLJ[P]LTHU`ZVS\[PVUZHYLZ[PSSdisadvantaged or emergingZ\JOHZ*VTWVZP[L4H[LYPHSZ*HISLZ(K]HUJLK4L[LYPUN
0UMYHZ[Y\J[\YL(40HUK,SLJ[YPJ(\[V=LOPJSL,(=*OHYNPUN:`Z[LT(S[OV\NOHSSVM[OLZL[LJOUVSVNPLZOVSKNYLH[WYVTPZL
J\YYLU[S`[OL`HYLPUYLSH[P]LS`LHYS`Z[HNLZVM[LJOUVSVNPJHSTH[\YP[`0UJVTWHYPZVU<S[YH/PNO=VS[HNL</=;YHUZTPZZPVU
HUK[OL[^VLULYN`Z[VYHNLZVS\[PVUZ^LYLL]HS\H[LKHZattractive7HY[PJ\SHYS`PU[OLHYLHVM</=;YHUZTPZZPVU*OPUHOHZ
PU]LZ[LKOLH]PS`PUI\PSKPUNZ[YVUNKVTLZ[PJL_WLY[PZLHUK[VKH`WVZLZZLZ^VYSKJSHZZ[LJOUVSVN`
ALL SOLUTIONS, WITH THE EXCEPTION OF ENERGY STORAGE, HAVE LIMITED TO MEDIUM ADDRESSABLE MARKET SIZE.;OPZPZKYP]LUPU
WHY[I`[OLUH[\YLVMZVS\[PVUZ[OH[^LYLWYPVYP[PaLKÔPJOYLWYLZLU[PUKP]PK\HSNYPKJVTWVULU[ZYH[OLY[OHUJVTWYLOLUZP]L
Z`Z[LTZ ,ZWLJPHSS` PU JHZLZ Z\JO HZ +PNP[HS :\IZ[H[PVU HUK >(4: [OLZL ZVS\[PVUZ OH]L ]LY` UHYYV^ HWWSPJH[PVU HUK
VUJLPUZ[HSSLKOH]LSVUNSPMLZWHUZUV[YLX\PYPUNYLWSHJLTLU[Z;OPZJVUZ[YHPUZ[OL`LHYS`HKKYLZZHISLTHYRL[ZPaLVM[OLZL
[LJOUVSVNPLZ;OL[^VLULYN`Z[VYHNLZVS\[PVUZOV^L]LY5H:)H[[LY`HUK=HUHKP\T9LKV_)H[[LYÒH]Llarge addressable
THYRL[ZPaLHZ[OL`JV\SKILKLWSV`LK[VZ[VYLLSLJ[YPJP[`NLULYH[LKK\YPUNUVUWLHR[PTLZPUWSHJLVMPUJYLTLU[HSWLHR
WV^LYNLULYH[PUNJHWHJP[`HUK\ZLK[VTP[PNH[LWV^LYZ\WWS`HUKKLTHUKÅ\J[\H[PVU</=;YHUZTPZZPVUPZLZ[PTH[LK[V
OH]LTLKP\THKKYLZZHISLTHYRL[ZPaLKYP]LUI`*OPUH»ZVUNVPUNPU]LZ[TLU[PU[OLZLJ[VY
THE MAJORITY OF MARKETS HAVE EITHER LIMITED OR RESTRICTED ACCESS. 0U[OLJHZLVM</=;YHUZTPZZPVUHUK>(4:*OPUH

OHZTHKLZPNUPÄJHU[PU]LZ[TLU[PU[OLZLZVS\[PVUZHUK[OLNV]LYUTLU[PZMVJ\ZPUNVUKLWSV`PUN[OLTPUKLWLUKLU[S`-VY
V[OLY [LJOUVSVNPLZ ¶ Z\JO HZ (40 07)HZLK (\[VTH[PJ 4L[LY 9LHKPUN (49 HUK ,(= *OHYNPUN :`Z[LT ¶ THYRL[Z HYL
]PL^LK[VILYLSH[P]LS`TVYLVWLUHSILP[Z[PSS limitedK\L[V[OLNV]LYUTLU[VÛLKYLNPVUHSPaLKTVUVWVS`YLZWVUZPISLMVY[OL
JVUZ[Y\J[PVUHUKTHUHNLTLU[VM*OPUH»ZLSLJ[YPJNYPK
Fig.8: ELECTRIC POWER INFRASTRUCTURE SECTOR SOLUTION EVALUATION MATRIX (1-5 Years)
,(=*OHYNPUN:`Z[LTZ
9LUL^HISL,ULYN`(JJLZZ-(*;: NaS Battery
=HUHKP\T9LKV_)H[[LY`
(40 +PNP[HS:\IZ[H[PVUZ Transformers with Amorphous Core
07IHZLK(49
</=;YHUZTPZZPVU
Composite Materials Cables >(4:
9LHS;PTL0UMVYTH[PVU7YVJLZZPUN

ELECTRIC POWER INFRASTRUCTURE SOLUTIONS
LOSS REDUCTION Ü Composite Materials Cables – Transmission and distribution line cables made
MYVTJVTWVZ[P]LTH[LYPHSZ[OH[HYLZWLJPÄJHSS`LUNPULLYLK[VYLK\JLSVZZLZ
Ü Transformers with Amorphous Core – (S[ULYUH[P]L[YHUZMVYTLYZ[OH[HYLTVYL
LULYN`LMÄJPLU[HUKLU]PYVUTLU[HSS`MYPLUKS`[OHUJVU]LU[PVUHS
Ü Ultra High Voltage (UHV) Transmission – Power transmission lines with
]VS[HNLZVMR=VYOPNOLYMVYHS[LYUH[PUNJ\YYLU[VYR=VYOPNOLYMVY
direct current that allow power to be transmitted at greater distances with lower
SVZZLZ[OHUSV^LY]VS[HNL[YHUZTPZZPVUSPULZ
SMART GRID Ü Advanced Metering Infrastructure (AMI) ¶0U[LNYH[LKZ`Z[LT[OH[TLHZ\YLZ

collects, stores and analyzes utility usage, such as electricity, gas or water
\ZHNL"PZHIYVHKLYJVUJLW[[OHU(4907IHZLKZVS\[PVU
Ü Digital Substation ¶(\[VTH[LKHUKJVTW\[LYPaLKZ\IZ[H[PVU[OH[WYV]PKLZ
NYLH[LY[YHUZWHYLUJÒPNOLYYLSPHIPSP[`HUKLMÄJPLUJ`VMVWLYH[PVUZ
Ü IP-Based Automatic Meter Reading (AMR) – Solutions that automatically
NH[OLYKH[HMYVTLULYN`TL[LYPUNKL]PJLZHUK[YHUZTP[[VHJLU[YHSWYVJLZZPUN
facility where billing is handled and consumption patterns are analyzed
Ü Real-Time Information Processing – Solutions that enable real time
communication between core nodes in the electric network, inlcuding customer
WYLTPZLHUKHSSVÎL[[LYTHUHNLTLU[VMKLTHUKPTWYV]LKYLSPHIPSPP[`HUK
ÅL_PIPSP[`VM[OLUL[^VYR
Ü Wide Area Management System (WAMS)¶0U[LNYH[LKZ`Z[LT[OH[TVUP[VYZ
HUKJVU[YVSZLSLTLU[ZVM[OLLSLJ[YPJHSWV^LYNYPK[VLUZ\YLH]HPSHIPSP[`HUK
PTWYV]LYLSPHIPSP[`HUKLMÄJPLUJ`VM[OLUL[^VYR
ENERGY STORAGE Ü NaS Battery ¶:VKP\TZ\SWO\YIH[[LY`^P[OOPNOLULYN`KLUZP[`HUKOPNO

LMÄJPLUJ`VMJOHYNLKPZJOHYNL[OH[YLX\PYLZOPNOVWLYH[PUN[LTWLYH[\YLZ
Ü Vanadium Redox Battery¶-SVÎH[[LY`^P[OKLLWJ`JSPUNSPML[OH[JHUIL
TLJOHUPJHSS`YLM\LSLKHUKOHZSVÛLNH[P]LLU]PYVUTLU[HSPTWHJ[
GRID ACCESS Ü Electric Auto Vehicle (EAV) Charging System ¶:`Z[LT[OH[HSSV^ZMVYWS\N

PULSLJ[YPJ]LOPJSLZ[VILJOHYNLK\ZPUNWV^LYMYVT[OLNYPK
Ü Renewable Energy Access - Flexible Alternating Current Trasmission
System (FACTS¶:`Z[LTJVTWYPZLKVMZ[H[PJLX\PWTLU[\ZLKMVY[OL
alternating current transmission that is meant to enhance controllability and
increase power transfer capability of the network
Green Building Solutions

THE CHINA GREENTECH INITIATIVE PRIORITIZED 15 GREEN BUILDING SOLUTIONS for detailed
L]HS\H[PVU MYVT HU VYPNPUHS SPZ[ VM ULHYS` 7YPVYP[PaLK ZVS\[PVUZ MHSS PU[V MV\Y
JH[LNVYPLZ! ,ULYN` ,MÄJPLUJ` >H[LY ,MÄJPLUJ` 6W[PTPaLK 4H[LYPHSZ HUK *YVZZ
(YLHZVS\[PVUZ
KEY FINDINGS FROM THE GREEN BUILDING SOLUTIONS EVALUATION ANALYSIS INCLUDE:
HALF OF ALL SOLUTIONS HAVE HIGH TO VERY HIGH UNIT ENVIRONMENTAL IMPACT POTENTIAL.
Solutions that offer very highLU]PYVUTLU[HSPTWHJ[PUJS\KL(K]HUJLK,U]LSVWL)\PSKPUN0U[LNYH[LK/LH[HUK7V^LY
7HZZP]L+LZPNU0U[LNYH[LK+LZPNUHUK:\Z[HPUHISL<YIHU7SHUUPUN,HJOÔLUHWWSPLKZLWHYH[LSÒHZ[OLWV[LU[PHS
[VPTWYV]LHI\PSKPUN»ZLULYN`LMÄJPLUJÌ`VYTVYL;OL[OYLLWSHUUPUNHUKKLZPNUZVS\[PVUZOH]L[OLWV[LU[PHS
[VLUZ\YLHI\PSKPUN»ZZ\Z[HPUHIPSP[`LHYS`PU[OLKL]LSVWTLU[WYVJLZZÔLUP[PZZ[PSSWVZZPISL[VHWWS`H^PKLYHUNLVM
VW[PTPaH[PVU[LJOUPX\LZPUJS\KPUNI\PSKPUNSVJH[PVUJVUZ[Y\J[PVUTH[LYPHSZ\ZLKHUKZ`Z[LTZPU[LYNYH[LK:VS\[PVUZ
with high LU]PYVUTLU[HSPTWHJ[PUJS\KL.YL`^H[LY:`Z[LTZ3V^0TWHJ[4H[LYPHSZHUK9LJ`JSLK4H[LYPHSZ(SSV[OLY
ZVS\[PVUZHYLLZ[PTH[LK[VOH]LHincremental-medium to mediumLU]PYVUTLU[HSPTWHJ[
THE MAJORITY OF GREEN BUILDING SOLUTIONS ARE ATTRACTIVE TO ADOPTERS.

3V^-SV^ -P_[\YLZ HYL JVUZPKLYLK [V IL advantaged HZ [OL` KLSP]LY VWLYH[PVUHS ZH]PUNZ ÔPSL [OLPY PUP[PHS JVZ[ PZ
JVTWHYHISL[VJVU]LU[PVUHSHS[LYUH[P]LZ(K]HUJLK,U]LSVWL)\PSKPUN0U[LNYH[LK/LH[HUK7V^LY*VTPZZPVUPUN
HUK,MÄJPLU[6WLYH[PVUZ9LZV\YJL:LY]PJL*VTWHUPLZHUK[OL[OYLLKLZPNUHUKWSHUUPUNZVS\[PVUZHYLJVUZPKLYLK
to be attractiveHZ[OL[LJOUVSVNPLZHYLTH[\YLHUK[OLZH]PUNZKLSP]LYLKK\YPUN[OLVWLYH[PVUWHY[VM[OLI\PSKPUN
SPMLJ`SLV\[^LPNOHKKP[PVUHS\WMYVU[JVZ[Z/V^L]LYILJH\ZLVM[OLULJLZZHY`HKKP[PVUHSPU]LZ[TLU[HUKSHJRVM
HSPNUTLU[VMPU[LYLZ[PU[OL]HS\LJOHPUIL[^LLUKL]LSVWLYZHUK\ZLYZVMI\PSKPUNZ[OLZLZVS\[PVUZHYLUV[`L[^PKLS`
HWWSPLKPU*OPUH

SOLUTIONS VARY BY ADDRESSABLE MARKET SIZE AND ONE THIRD OF ALL SOLUTIONS HAVE LARGE TO VERY LARGE MARKETS.
(K]HUJLK,U]LSVWL3V^0TWHJ[4H[LYPHSZHUK9LJ`JSLK4H[LYPHSZ^LYLHSSL]HS\H[LK[VOH]Lvery large addressable
THYRL[ZKYP]LUI`[OLSHYNLHTV\U[VMULÎ\PSKPUNJVUZ[Y\J[PVU[OH[[HRLZWSHJLPU*OPUHL]LY``LHY([[OLZHTL
[PTL)\PSKPUN0U[LNYH[LK/LH[HUK7V^LYHUK9LZV\YJL:LY]PJL*VTWHUPLZZVS\[PVUZ^LYLLZ[PTH[LK[VOH]Llarge
HKKYLZZHISLTHYRL[ZPaLÔPJOPZKYP]LUI`[OLYHWPKS`NYV^PUNÅVVYZWHJLPU*OPUHHUK[OLSV^L_PZ[PUNWLUL[YH[PVU
VM[OLZLZVS\[PVUZ4VZ[V[OLYZVS\[PVUZ^LYLL]HS\H[LK[VOH]LTLKP\THKKYLZZHISLTHYRL[ZPaL
EXCEPT FOR PLANNING AND DESIGN SOLUTIONS, NEARLY ALL GREEN BUILDING SOLUTIONS MARKETS ARE VIEWED AS MOSTLY OPEN.
*OPUHJ\YYLU[S`SPTP[Z[OLZJVWLVMVWLYH[PVUZVMMVYLPNUI\PSKPUNKLZPNUÄYTZI`YLX\PYPUN[OLPU]VS]LTLU[VMSVJHS
HYJOP[LJ[\YLKLZPNUHUKWSHUUPUNI\YLH\ZPUKLZPNUHWWYV]HSHUKKVLZUV[WLYTP[MVYLPNUJVUZ[Y\J[PVUÄYTZ;OPZ
ZHPK L_JLW[ MVY 3VJHS :V\YJPUN HUK 9LZV\YJL :LY]PJL *VTWHUPLZ THYRL[Z MVY HSS V[OLY ZVS\[PVUZ HYL ]PL^LK HZ
mostly open MVYMVYLPNUHUKWYP]H[LWHY[PJPWHU[Z0UWHY[PJ\SHY.YLLU+L]PJLZHUK:THY[)\PSKPUNZHTVUNV[OLYZHYL
JVUZPKLYLK[VILHYLHZ^P[O[OLOPNOLZ[THYRL[HJJLZZPIPSP[`
Fig.9: GREEN BUILDING SECTOR SOLUTION EVALUATION MATRIX (1-5 Years)

0U[LNYH[LK+LZPNU
(K]HUJLK,U]LSVWL
VERY HIGH
)\PSKPUN0U[LNYH[LK/LH[HUK7V^LY :\Z[HPUHISL<YIHU7SHUUPUN
3V^0TWHJ[ 4H[LYPHSZ 7HZZP]L+LZPNU
INCREMENTAL MEDIUM HIGH
.YL`^H[LY:`Z[LTZ
*VTTPZZPVUPUNHUK,MÄJPLU[6WLYH[PVUZ
Recycled Materials
.YLLU+L]PJLZ
3V^-SV^-P_[\YLZ
)\PSKPUN0U[LNYH[LK9HPU^H[LY*VSSLJ[PVU
9LZV\YJL:LY]PJL*VTWHUPLZ
Smart Buildings Local Sourcing

INCREMENTAL
ENERGY EFFICIENCY SOLUTIONS Ü Advanced Envelope¶0UJS\KLZPUZ\SH[PVU^PUKV^ZYVVÄUNHUKV[OLY

WHZZP]LZVS\[PVUZLP[OLYPUZ[HSSLKTVYLHJJ\YH[LS`[OHU*OPUH»ZTHYRL[
JVU]LU[PVUVYJVTIPULK^P[OHJ[P]LZ`Z[LTZZ\JOHZTVPZ[\YLVY
temperature sensors to enable reduced heat gain or loss
Ü Building-Integrated Heat and Power – Combination of heating and power
generation solutions that could be integrated into a building, such as solar
WOV[V]VS[HPJJLSSZ^PUK[\YIPULZHUKZVSHY^H[LYOLH[LYZ
Ü Green Devices¶,SLJ[YVUPJKL]PJLZ\ZLKPUZPKLI\PSKPUNZPUJS\KPUNSPNO[PUN
solutions, appliances and consumer electronics that are more energy
LMÄJPLU[[OHUJVU]LU[PVUHSHS[LYUH[P]LZ
Ü Smart Buildings¶)\PSKPUNZ[OH[YLS`VUPU[LNYH[LK0;IHZLKYLZV\YJL\ZL
TLHZ\YLTLU[HUKTVUP[VYPUNPU[LSSPNLU[HUHS`ZPZVM[OLPU[LYUHSLU]PYVUTLU[HS
and performance data, and automation of connected building systems
WATER EFFICIENCY SOLUTIONS Ü Building-Integrated Rainwater Collection – System that collects and

ELECTRIC POWER INFRASTRUCTURE SOLUTIONS
stores rainwater from the rooftop of a building to be used locally

Ü Greywater Systems – Systems for the reuse of water generated from
domestic processes such as dish washing, laundry and bathing for either indoor
use or in irrigation
Ü Low-Flow Fixtures¶-H\JL[ZHUKV[OLY^H[LY\ZLZ`Z[LTZ[OH[\ZLSLZZ
^H[LY[OHUJVU]LU[PVUHSZ`Z[LTZI\[KLSP]LY[OLZHTLVYNYLH[LYILULÄ[[V[OL\ZLY
OPTIMIZED MATERIALS Ü Local Sourcing – Procurement and sourcing of building materials within the
SOLUTIONS NLVNYHWOPJHSWYV_PTP[`VM[OLPYPU[LUKLK\ZL
Ü Low-Impact Materials – Building materials produced using less resources
HUK[OH[NLULYH[LSLZZWVSS\[PVUJVTWHYLK[VJVU]LU[PVUHSI\PSKPUNTH[LYPHSZ
V]LY[OLPYSPMLJ`JSL
Ü Recycled Materials – Building materials manufactured from materials that
OH]LILLUYLJ`JSLK
CROSS-AREAS SOLUTIONS Ü Comissioning and Efficient Operations – Assuring that all systems in a
building are installed, tested, operated and maintained as originally intended
Ü Integrated Design – Approach that brings together all the stakeholders
PU[OLI\PSKPUNWYVJLZZH[HULHYS`Z[HNL[VTH_PTPaLI\PSKPUNJVTMVY[HUK
usability while minimizing resource use
Ü Passive Design¶)\PSKPUNKLZPNU[OH[[HRLZHK]HU[HNLVM[OLSVJHSJSPTH[L
[VWYV]PKLZVTLVYHSSVM[OLOLH[PUNJVVSPUNSPNO[PUNHUK]LU[PSH[PVUULLKZ
of the occupants
Ü Resource Service Companies ¶7YVMLZZPVUHSZLY]PJLJVTWHUPLZPUJS\KPUN
,ULYN`:LY]PJL*VTWHUPLZ,:*6Z[OH[WYV]PKLWYVQLJ[THUHNLTLU[
JVUZ\S[PUNLUNPULLYPUNÄUHUJPUNVWLYH[PVUHUKTHPU[LUHUJLZLY]PJLZ[OH[
reduce energy and water use in buildings
Ü Sustainable Urban Planning ¶<YIHUWSHUUPUN[OH[VW[PTPaLZ[OL\ZLVM
[OLI\PS[LU]PYVUTLU[[YHUZWVY[H[PVUZ`Z[LTLULYN`^H[LYHUKSHUKÔPSL
HPTPUN[VTPUPTPaL[OLULNH[P]LPTWHJ[VM[OLJVTT\UP[`VU[OLUH[\YHS
LU]PYVUTLU[

Cleaner Transportation Solutions

THE CHINA GREENTECH INITIATIVE SELECTED 18 CLEANER TRANSPORTATION SOLUTIONS for
KL[HPSLKL]HS\H[PVU:VS\[PVUZ^LYLPKLU[PÄLKHJYVZZMV\YZLNTLU[Z!*SLHULY9VHK
Transportation, Cleaner Rail Transportation, Cleaner Air Transportation and Clean
LY>H[LY^H`;YHUZWVY[H[PVU
KEY FINDINGS FROM THE CLEANER TRANSPORTATION SOLUTIONS EVALUATION ANALYSIS INCLUDE:
A LARGE MAJORITY OF SOLUTIONS HAVE VERY HIGH UNIT ENVIRONMENTAL IMPACT POTENTIAL AND SEVEN OF THESE ARE
SIMULTANEOUSLY ATTRACTIVE TO ADOPTERS. (K]HUJLK.HZVSPULHUK+PLZLS0*,=LOPJSLZ*VTWYLZZLK5H[\YHS.HZ*5.
HUK)PVL[OHUVS,HS[LYUH[P]LM\LSZ,SLJ[YPJ;^V>OLLSLYZ,>HUK(K]HUJLK+PLZLSHUK,SLJ[YPJ3VJVTV[P]LZ
HSSOH]L[OLWV[LU[PHS[VHIH[L*62HUKV[OLYHPYWVSS\[PUNLTPZZPVUZYLSH[LK[V[OLJVTI\Z[PVUVMMVZZPSM\LSZI`V]LY
VUHWLY\UP[IHZPZ;OL`HYLH[[YHJ[P]L[VHKVW[LYZHZJVZ[ZHYLLP[OLYJVTWHYHISL[VVYSLZZ[OHUJVU]LU[PVUHS
HS[LYUH[P]LZ*5.MVYL_HTWSLVY[OLM\LSZH]PUNZKLSP]LYLK[OYV\NOLMÄJPLUJ`NHPUQ\Z[PÄLZ[OLOPNOLY\WMYVU[JVZ[
ALTHOUGH HALF OF ALL SOLUTIONS ARE ATTRACTIVE TO ADOPTERS, MANY ARE STILL EMERGING OR DISADVANTAGED 0U
HKKP[PVU[VZVS\[PVUZKLZJYPILKHIV]L6W[PTPaLK(PY;YHMÄJ4HUHNLTLU[HUK6W[PTPaLK>H[LY^H`6WLYH[PVUZHYL
attractive-VY[OLZLZVS\[PVUZJVZ[ZH]PUNZMYVTM\LSLMÄJPLUJ`NHPUZKLSP]LYLKI`[OLPTWYV]LKTHUHNLTLU[UVYTHSS`
V\[^LPNO [OL PU]LZ[TLU[ YLX\PYLK MVY P[Z VW[PTPaH[PVU ([ [OL ZHTL [PTL (K]HUJLK (PYJYHM[ (K]HUJLK :OPWZ HUK
(K]HUJLK:OPW-\LSZHYLJVUZPKLYLK[VILemerging(U\TILYVMWYVTPZPUNZVS\[PVUZZ\JOHZ-\LS*LSS=LOPJSLZ
-*=)H[[LY`,SLJ[YPJ=LOPJSLZ),=HUK*SLHULY(PYJYHM[-\LSZHYLZ[PSSdisadvantaged;OPZPZWYPTHYPS`K\L[V[OL
LHYS`[LJOUVSVNPJHSTH[\YP[`HUKZ[PSSYLSH[P]LSÒPNOJVZ[VM[OLZLZVS\[PVUZ
THE ADVANCED GASOLINE ICE VEHICLES AND THE THREE NEW ENERGY VEHICLE SOLUTIONS (BEV, FCV, HEV) HAVE VERY LARGE
ADDRESSABLE MARKET SIZE. ;OPZPTWSPLZHKKYLZZHISLTHYRL[ZPaLVMV]LY<:IPSSPVUIPSSPVU`\HUWLY`LHYHUK
PZKL[LYTPULKI`*OPUH»ZTV[VY]LOPJSLZTHYRL[ÔPJOPZVULVM[OLSHYNLZ[PU[OL^VYSKI`[OLU\TILYVM\UP[ZZVSK
HUKPZNYV^PUNYHWPKS`(U\TILYVMZVS\[PVUZ^LYLLZ[PTH[LK[VOH]Lmedium addressable market size in China, as
^P[O(K]HUJLK(PYJYHM[(K]HUJLK:OPWZHUKJSLHULYM\LSZZVS\[PVUZMVYHPYHUK^H[LY^H`[YHUZWVY[
WHILE MARKETS FOR NEARLY ALL ROAD SOLUTIONS ARE MOSTLY OPEN, IN THE CASE OF RAIL, AIR, AND WATERWAY
TRANSPORTATION THE MAJORITY OF SOLUTIONS FACE LIMITED TO RESTRICTED MARKET ACCESSIBILITY. The majority of markets
MVYYHPS^H`LX\PWTLU[HYLVWLU[VMVYLPNUWHY[PJPWH[PVU[OYV\NOQVPU[]LU[\YLZÔPSLPUJHZLVM,SLJ[YPJ3VJVTV[P]LZ
HUK 4\S[PWSL <UP[ ;YHPUZ *OPUH PZ W\YZ\PUN [OL KL]LSVWTLU[ VM PUKPNLUV\Z [LJOUVSVNPLZ HUK L_LYJPZLZ H NYLH[LY
PUÅ\LUJL ;OL )PVL[OHUVS , THYRL[ PZ JVUJLU[YH[LK \UKLY ZL]LYHS :[H[L 6ÛLK ,U[LYWYPZLZ :6,Z HUK [OL
NV]LYUTLU[THPU[HPUZZ[YVUNJVU[YVS;OPZPZWHY[PHSS`K\L[VJVUJLYUZV]LY[OLKPZY\W[PVUVM[OLMVVKZ\WWS`JOHPUPM
[OLTHYRL[MVY)PVL[OHUVSMLLKZ[VJRPZUV[THUHNLK
Fig.10: CLEANER TRANSPORTATION SECTOR SOLUTION EVALUATION MATRIX (1-5 Years)

*SLHULY:OPW-\LSZ (K]HUJLK.HZVSPUL0*,=LOPJSLZ
-*= ),=
,>
VERY HIGH
Battery (K]HUJLK+PLZLS3VJVTV[P]L
*SLHULY(PYJYHM[-\LSZ
*5.
E10
INCREMENTAL MEDIUM HIGH
/,= (K]HUJLK+PLZLS0*,=LOPJSLZ
(K]HUJLK:OPWZ
(K]HUJLK(PYJYHM[ ,SLJ[YPJ3VJVTV[P]L
4<;YHPUZ 6W[PTPaLK>H[LY^H`6WLYH[PVUZ
INCREMENTAL
6W[PTPaLK(PY;YHMÄJ4HUHNLTLU[

CLEANER TRANSPORT SOLUTIONS
CLEANER ROAD Ü Advanced Diesel Internal Combustion Engine (ICE) Vehicle¶=LOPJSL

TRANSPORTATION - ^P[OKPLZLS0*,[OH[PZTVYLM\LSLMÄJPLU[HUKWYVK\JLZSLZZLTPZZPVUZ[OHU
JVU]LU[PVUHSTVKLSZ\ZLKPU*OPUH
ADVANCED ICES
Ü Advanced Gasoline Internal Combustion Engine (ICE) Vehicle¶=LOPJSL
^P[ONHZVSPUL0*,[OH[PZTVYLM\LSLMÄJPLU[HUKWYVK\JLZSLZZLTPZZPVUZ
[OHUJVU]LU[PVUHSTVKLSZ\ZLKPU*OPUH
CLEANER ROAD Ü Bioethanol (E10) ¶(TP_[\YLVMNHZVSPUL^P[OL[O`SHSJVOVSHWL[YVSL\T

substitute produced from certain agricultural crops through a microbial
TRANSPORTATION - Z\NHYMLYTLU[H[PVUWYVJLZZPUHJVTIPUH[PVUÔLYL PZNHZVSPULHUK
ALTERNATIVE FUELS 10% is ethyl alcohol
Ü Compressed Natural Gas (CNG)¶-VZZPSM\LSZ\IZ[P[\[LMVYNHZVSPULKPLZLS
or propane made by compressing natural gas which is then stored in special
compressed gas cylinders
Ü Battery – Combination of electrochemical cells that store electric energy

CLEANER ROAD Ü Battery Electric Vehicle (BEV)¶=LOPJSL[OH[JVTWSL[LS`YLSPLZVULSLJ[YPJP[`
TRANSPORTATION - Z[VYHNLIH[[LYPLZHZHWV^LYZV\YJLHUKPZKYP]LUI`HULSLJ[YPJTV[VY
NEW ENERGY VEHICLE Ü Electric Two Wheelers (E2W) – Bikes and scooters equipped with a
rechargeable battery and an electric motor used for propulsion
SOLUTIONS Ü Fuel Cell Vehicle (FCV)¶=LOPJSLWYVWLSSLKI`HULSLJ[YPJTV[VY\ZPUN
electricity generated through a chemical process within a fuel cell, which
YLX\PYLZO`KYVNLUM\LSHUKV_`NLUMYVT[OLHPYHZMLLKZ[VJR
Ü Hybrid Electric Vehicle (HEV)¶=LOPJSL[OH[JVTIPULZHUPU[LYUHS
JVTI\Z[PVULUNPUL^P[OHULSLJ[YPJTV[VY[VKYP]L[OL]LOPJSLHUKYLSPLZVU
gasoline or diesel and electricity storage batteries as power sources
Ü Advanced Diesel Locomotive ¶+PLZLSSVJVTV[P]L[OH[PZTVYLM\LSLMÄJPLU[

CLEANER RAIL HUKWYVK\JLZSLZZLTPZZPVUZ[OHUJVU]LU[PVUHSTVKLSZ\ZLKPU*OPUH
TRANSPORTATION SOLUTIONS Ü Electric Locomotive ¶3VJVTV[P]LWV^LYLKI`HULSLJ[YPJLUNPULÔPJO
\ZLZHULSLJ[YPJP[`ZV\YJLZ\JOHZHUV]LYOLHKSPUL[OPYKYHPSVYHUVU
IVHYKLSLJ[YPJP[`Z[VYHNLKL]PJLYH[OLY[OHUMVZZPSM\LS[VTLL[P[ZLULYN`
requirements
Ü Multiple Unit (MU) Train¶;YHPU[OH[YLSPLZUV[VUHSVJVTV[P]LI\[HZLYPLZ
VMZLSMWYVWLSSPUNJHYYPHNLZJVU[YVSSLKMYVTVULJHIPUMVYP[ZWYVW\SZPVU
CLEANER AIR TRANSPORATION Ü Advanced Aircraft¶(PYJYHM[[OH[HYLTVYLM\LSLMÄJPLU[HUKWYVK\JLSLZZ

LTPZZPVUZ[OHUJVU]LU[PVUHSTVKLSZ\ZLKPU*OPUH
SOLUTIONS
Ü Cleaner Aircraft Fuels – Aircraft fuels that produce considerably less air
LTPZZPVUZ[OHUJVU]LU[PVUHSHPYJYHM[M\LSZÔPSLKLSP]LYPUNLX\HSVYIL[[LY
performance
Ü Optimized Air Traffic Management ¶:L[VMWYVJLZZLZ[VHJOPL]L[OL
OPNOLZ[WVZZPISLWYVK\J[P]P[`VM[OLHPYÅLL[HUKNYV\UKMHJPSP[PLZI`
VW[PTPaPUNÅPNO[WSHUUPUNSVNPZ[PJZHUKHPY[YHMÄJTHUHNLTLU[ÔPSL
LUZ\YPUNZHML[`HUKJVU]LUPLUJLHUKTPUPTPaPUN[OLULNH[P]LPTWHJ[VU[OL
LU]PYVUTLU[
CLEANER WATERWAY Ü Advanced Ships ¶:OPWZ[OH[HYLTVYLM\LSLMÄJPLU[HUKWYVK\JLSLZZ

TRANSPORTATION SOLUTIONS
Ü Cleaner Ship Fuels – Ship fuels that produce less air emissions than
JVU]LU[PVUHSZOPWM\LSZÔPSLKLSP]LYPUNLX\HSVYIL[[LYWLYMVYTHUJL
Ü Optimized Wasterway Operations ¶:L[VMWYVJLZZLZ[VHJOPL]L[OL
OPNOLZ[WVZZPISLWYVK\J[P]P[`VMZOPWZHUKYLSH[LKMHJPSP[PLZZ\JOHZWVY[Z
I`VW[PTPaPUN^H[LY[YHMÄJWSHUUPUNSVNPZ[PJZHUK[YHMÄJTHUHNLTLU[ÔPSL
LUZ\YPUNZHML[`HUKJVU]LUPLUJLHUKTPUPTPaPUN[OLULNH[P]LPTWHJ[PVU[OL
LU]PYVUTLU[

Cleaner Industry Solutions

FROM THE 75 CLEANER INDUSTRY SOLUTIONS ORIGINALLY IDENTIFIED, [OL*OPUH.YLLU[LJO
0UP[PH[P]L WYPVYP[PaLK MVY KL[HPSLK L]HS\H[PVU ;OL WYPVYP[PaLK ZVS\[PVUZ HWWS` [V
T\S[PWSLPUK\Z[YPLZPUJS\KPUNOLH]`HUKSPNO[PUK\Z[YPLZHUKJHUILJH[LNVYPaLK
PU[V MV\Y HYLHZ! ,ULYN` ,MÄJPLUJ` (PY >H[LY 7VSS\[PVU 4P[PNH[PVU :VSPK >HZ[L
4HUHNLTLU[HUK*YVZZ(YLHZVS\[PVUZ
KEY FINDINGS FROM THE CLEANER INDUSTRY SOLUTIONS EVALUATION ANALYSIS INCLUDE:
UNIT ENVIRONMENTAL IMPACT POTENTIAL VARIES GREATLY ACROSS SOLUTIONS. *VTIPULK/LH[HUK7V^LY*/7-S\L.HZ

+LZ\SM\YPaH[PVU+L:6_-S\L.HZ+LUP[YH[PVU+L56_7HY[PJ\SH[L4H[[LY749LTV]HSHUK*HYIVU*HW[\YLHUK
:LX\LZ[YH[PVU**:ZVS\[PVUZ^LYLPKLU[PÄLK[VOH]L[OLOPNOLZ[LU]PYVUTLU[HSPTWHJ[*/7TH`WYV]PKLHNHPUPU
LULYN`LMÄJPLUJ`VMV]LYHUK[OLYLTHPUPUNZVS\[PVUZOH]L[OLWV[LU[PHS[VHIH[LV]LYVM[OLWVSS\[HU[Z[OL`
[HYNL[6U[OLV[OLYOHUKZVS\[PVUZZ\JOHZ)HSHUJLVM7SHU[-\LS:^P[JOPUNHUK*VTPZZPVUPUNYLJLP]LKHUincremental
mediumL]HS\H[PVUK\L[VSV^LYHS[OV\NOZ[PSSJVUZPKLYHISLLU]PYVUTLU[HSPTWHJ[PTWYV]LTLU[Z[OL`VMMLY
MOST SOLUTIONS ARE ATTRACTIVE TO ADOPTERS. +L:6_HUK+L56_Z`Z[LTZHYLTHUKH[LK[OYV\NOYLN\SH[PVUPU
OLH]`PUK\Z[YPLZHUK[OLYLMVYL^LYLHZZPUNLK[OLL]HS\H[PVUVMHK]HU[HNLK4HUHNLTLU[[LJOUPX\LZZ\JOHZ:[HUKHYK
6WLYH[PUN7YVJLK\YLZ:67Z;YHPUPUNHUK-LLKIHJRHYLZ[HUKHYKWYHJ[PJLHS[OV\NOUV[`L[HWWSPLK\UP]LYZHS`PU
*OPUHHUK^LYLHSZVL]HS\H[LKHZ HK]HU[HNLK,ULYN`LMÄJPLUJ`ZVS\[PVUZZ\JOHZ*/7,ULYN`,MÄJPLU[4V[VYZ
and Balance of Plant are technologically mature and economically feasible on life cycle basis, despite higher upfront
JVZ[ZJVTWHYLK[VJVU]LU[PVUHSHS[LYUH[P]LZHUKHYLJVUZPKLYLKattractive
CCS AND CHP SYSTEMS ARE ESTIMATED TO HAVE THE LARGEST ADDRESSABLE MARKET SIZE. ;OPZ PZ KYP]LU I` [OL SHYNL
HTV\U[ VM UL^ PUK\Z[YPHS JVUZ[Y\J[PVU [OH[ PZ WYVQLJ[LK [V [HRL WSHJL PU *OPUH HZ ^LSS HZ [OL WV[LU[PHS [V YL[YVÄ[
L_PZ[PUNMHJPSP[PLZ;OLZL[^VZVS\[PVUZHYLMVSSV^LKI`TVZ[UV[HIS`+L:6_+L56_HUK749LTV]HSZ`Z[LTZ
ÔPJOOH]LmediumHKKYLZZHISLTHYRL[ZPaL;OPZPZKL[LTPULKI`[OLTHU`PUK\Z[YPHSZP[LZ[OH[HYLYLX\PYLK[VPUZ[HSS
[OLZLZVS\[PVUZHUK[OLPYJ\YYLU[YLSH[P]LS`SV^THYRL[WLUL[YH[PVU(U\TILYVMZVS\[PVUZ^LYLL]HS\H[LK[VOH]L
SPTP[LK[VSPTP[LKTLKP\THKKYLZZHISLTHYRL[ZPaL
MARKETS FOR NEARLY ALL SOLUTIONS ARE CONSIDERED TO BE MOSTLY OPEN TO PRIVATE AND FOREIGN PLAYERS. The four
THYRL[ZWLYJLP]LK[VOH]LlimitedHJJLZZPIPSP[`K\L[VNYLH[LYNV]LYUTLU[JVU[YVSHYL7YVJLZZ9LKLZPNU-VZZPS-\LS
:^P[JOPUN0UK\Z[YPHS>HZ[L^H[LYHUK**:0[PZUV[L^VY[O`[OH[K\L[VLHYS`TH[\YP[`VM**:[OLYLHYLML^VMÄJPHS
WVSPJPLZVUÔL[OLYPU[LYUH[PVUHSJVVWLYH[PVU^PSSILLUJV\YHNLKVYYLZ[YJ[LK/V^L]LYNP]LU[OLPTWVY[HUJLHUK
ZHML[`JVUJLYUZHZZVJPH[LK^P[O**:[OL[LJOUVSVN`^PSSSPRSL`YLTHPU\UKLYJSVZLNV]LYUTLU[Z\WLY]PZPVUPU*OPUH
Fig.11: CLEANER INDUSTRY SECTOR SOLUTION EVALUATION MATRIX (1-5 Years)
*VTIPULK/LH[HUK7V^LY +L56_+L:V_
VERY HIGH
CCS 749LTV]HS
0UK\Z[YPHS>HZ[L^H[LY
HIGH
>HZ[L:LWHYH[PVU6MM[HRL
INCREMENTAL INCREMENTAL MEDIUM
,ULYN`,MÄJPLU[4V[VYZ Process Redesign
Commissiong
MEDIUM
-VZZPS-\LS:^P[JOPUN ,4:0;
:67Z;YHPUPUN-LLKIHJR
0UJPULYH[PVU Balance of Plant

CLEANER INDUSTRY SOLUTIONS
EFFICIENT ENERGY Ü Balance of Plant 6W[PTPaH[PVUVMHWSHU[»ZLX\PWTLU[HPTLKH[TH_PTPaPUN

SOLUTIONS LULYN`HUK^H[LYLMÄJPLUJ`HUKTPUPTPaPUNWVSS\[PVUHUK^HZ[L
Ü Combined Heat and Power (CHP) :`Z[LT[OH[ZPT\S[HULV\ZS`NLULYH[LZ
electricity and usable heat by capturing heat that would normally be lost
Ü Energy Efficient Motors ,SLJ[YPJTV[VYZ[OH[HYLTVYLLULYN`LMÄJPLU[[OHU
JVU]LU[PVUHSTVKLSZJ\YYLU[S`\ZLKPU*OPUH
Ü Carbon Capture and Sequestration (CCS) :`Z[LT[OH[JHW[\YLZJHYIVU

AIR AND WATER
KPV_PKLMYVTMVZZPSM\LSLP[OLYWYPVY[VVYHM[LYJVTI\Z[PVUHUKZLX\LZ[LYZP[
POLLUTION MITIGATION for long term storage underground
SOLUTIONS Ü Flue Gas Denitration (De-NOx) :`Z[LT[OH[YLTV]LZUP[YVNLUV_PKLZMYVT
Å\LNHZ
Ü Flue Gas Desulferization (De-SOx) :`Z[LT[OH[YLTV]LZZ\SM\YV_PKLZ
MYVTÅ\LNHZ
Ü Fuel Switching (IPSP[`[VTHRL\ZLVMHS[LYUH[P]LM\LSZLP[OLYI`\ZPUN
multiple fuels simultanously or by switching between fuels
Ü Industrial Wastewater System :`Z[LTZ\ZLKH[PUK\Z[YPHSZP[LZ[V[YLH[
^H[LYHM[LY\ZLWYPVY[VLP[OLYYL\ZLVYYLSLHZLPU[V[OLUH[\YHSLU]PYVUTLU[
Ü Particulate Matter (PM) Removal System (:`Z[LT[OH[YLTV]LZ
WHY[PJ\SH[LTH[[LY¶OHYTM\SÄULWHY[[PJSLZ¶MYVTÅ\LNHZ
SOLID WASTE Ü Incineration Energy Recovery >HZ[L[VLULYN`ZVS\[PVU[OH[NLULYH[LZ

MANAGEMENT power from the combustion of solid waste
Ü Waste Separation and Off-take :VY[PUNVMZVSPK^HZ[LH[[OLPUK\Z[YPHS
SOLUTIONS MHJPSP[`[VHZZPZ[P[ZL_JOHUNLYLJ`JSPUNPUJPULYH[PVUVYKPZWVZHS
CROSS-AREA Ü Commissioning 7YVJLZZVMHZZ\YPUN[OH[HSSZ`Z[LTZH[[OLPUK\Z[YPHS

object are installed, tested, operated and maintained as originally
SOLUTIONS
intentended
Ü Environmental Management System (EMS) and IT Systems
*VTWYLOLUZP]LZ`Z[LTH[PJKVJ\TLU[LKTHUHNLTLU[VMHUVYNHUPaH[PVU»Z
LU]PYVUTLU[HSWYVNYHTZ[OH[YLS`VU0;ZVS\[PVUZMVYLMMLJ[P]LVWLYH[PVU
Ü Process-Redesign 9LKLZPNUVM[OLVWLYH[PVU^P[O[OLW\YWVZLVM
PUJYLHZPUNYLZV\YJL\ZLLMÄJPLUJ`HUKTPUPTPaPUNWVSS\[PVU
Ü Standard Operating Procedures (SOPs), Training, Feedback - Collection
VMTHUHNLTLU[[VVSZKLZPNULK[VPTWYV]L[OLLMÄJPLUJ`VMLTWSV`LLZHZ
^LSSHZ[OLLMMLJ[P]LULZZVM[OLTHUHNLU[H[HUPUK\Z[YPHSZP[L

Clean Water Solutions

THE CHINA GREENTECH INITIATIVE PRIORITIZED 12 SOLUTIONS FOR DETAILED EVALUATION
FROM AN ORIGINAL LIST OF 75. 7YPVYP[PaLK ZVS\[PVUZ MHSS PU[V MV\Y IYVHK JH[LNVYPLZ!
>H[LY:\WWS`>H[LY7VSS\[PVU;YLH[TLU[>H[LY<ZL,MÄJPLUJ`HUK4\S[P<ZLZV
S\[PVUZ
KEY FINDINGS FROM THE CLEAN WATER SOLUTIONS EVALUATION ANALYSIS INCLUDE:
SOLUTIONS COVER A WIDE RANGE OF UNIT ENVIRONMENTAL IMPACT POTENTIAL. 7YPTHY`;YLH[TLU[HUK0TWYV]LK0YYPNH[PVU

ZVS\[PVUZ OH]L [OL OPNOLZ[ L]PYVUTLU[HS PTWHJ[ ;OPZ PZ K\L [V [OLPY YVSL PU YLTV]PUN [OL OPNOLZ[ WLYJLU[HNL VM
WVSS\[PVUMYVT[OL^H[LYPU[OL[YLH[TLU[WYVJLZZ[V[OLPYHIPSP[`[VZPNUPÄJHU[S`JVUZLY]L^H[LYPUPYYPNH[PVUÔPJO
WYLZLU[Z HU HYLH VM NYLH[ PTWYV]LTLU[ WV[LU[PHS PU *OPUH 0U JVTWHYPZVU ;LY[PHY` ;YLH[TLU[ ;LJOUVSVNPLZ HUK
(K]HUJLK+PZ[YPI\[PVU4H[LYPHSZHUK*VTWVULU[ZZVS\[PVUZOH]LJVTWHYH[P]LS`SV^LYLU]PYVUTLU[HSPTWHJ[K\L[V
[OLPYYLSH[P]LS`PUJYLTLU[HSI\[UL]LY[OLSLZZZ[PSSPTWVY[HU[YVSLPUTP[PNH[PUNULNH[P]LPTWHJ[VU[OLLU]PYVUTLU[
HALF OF THE ANALYZED SOLUTIONS ARE ATTRACTIVE TO ADOPTERS. ,_[YHJ[PVU :VS\[PVUZ :LJVUKHY` ;YLH[TLU[ 3V^
-SV^ -P_[\YLZ 7VPU[VM<ZL :VS\[PVUZ 4VUP[VYPUN HUK 4LHZ\YLTLU[ (K]HUJLK +PZ[YPI\[PVU 4H[LYPHSZ HUK
*VTWVULU[ZHUK0UK\Z[YPHS>H[LY9L\ZLHYLHSSJVUZPKLYLKattractive(SSVM[OLZLZVS\[PVUZLP[OLYJVUZLY]LZ\MÄJPLU[
HTV\U[ VM ^H[LY V]LY [OL SPML J`JSL [V Q\Z[PM` [OL \WMYVU[ PU]LZ[TLU[ VY KLSP]LY ILULÄ[Z H[ YLHZVUHISL JVZ[Z MVY
HKVW[LYZ[VHJ[P]LS`ZLLR[OLTV\[7YPTHY`;YLHTLU[PZJVUZPKLYLK[VILadvantaged due to its standard use in the
PUK\Z[Y`PU*OPUH
ONE THIRD OF THE SOLUTIONS HAVE LARGE ADDRESSABLE MARKET SIZE. +LZHSPUH[PVU 7YPTHY` ;YLH[TLU[ :S\KNL
;YLH[TLU[HUK+PZWVZHSHUK0UK\Z[YPHS>H[LY9L\ZLZVS\[PVUZHYLLZ[PTH[LK[VOH]LlargeHKKYLZZHISLTHYRL[Z;OL
HKKYLZZHISLTHYRL[ZPaLPZKYP]LUI`[OLULLKMVYYLSPHISLZV\YJLZVM^H[LYPU[OLJHZLVM+LZHSPUH[PVUHUKI`*OPUH»Z
J\YYLU[Z[YH[LN`[VKLWSV`^H[LY[YLH[TLU[MHJPSP[PLZ[OYV\NOV\[[OLJV\U[Y`PU[OLJHZLVM[OLV[OLY[OYLLZVS\[PVUZ
6U[OLV[OLYOHUK;LY[PHY`;YLH[TLU[;LJOUVSVNPLZHYLLZ[PTH[LK[VOH]LH limited addressable market size due to
[OLMHJ[[OH[ML^MHJPSP[PLZYLX\PYLZ\JO[YLH[TLU[
COMPONENT SOLUTIONS FACE MOSTLY OPEN AND SYTEMS SOLUTIONS FACE LIMITED ACCESSIBILITY MARKETS. Component
ZVS\[PVUZZ\JOHZ3V^-SV^-P_[\YLZ4VUP[VYPUNHUK4LHZ\YLTLU[:VS\[PVUZHUK(K]HUJLK+PZ[YPI\[PVU4H[LYPHSZ
and Components, face markets that are considered mostly open[VWYP]H[LHUKMVYLPNUWSH`LYZ4VZ[VM[OLV[OLY
ZVS\[PVUZHYLZ`Z[LTZZVS\[PVUZZ\JOHZ+LZHSPUH[PVU7YPTHY`;YLH[TLU[HUK:S\KNL;YLH[TLU[HUK+PZWVZHSMVY
ÔPJOTHYRL[ZHYLJVUZPKLYLK[VOH]L limited HJJLZZPIPSP[`K\L[VZPNUPÄJHU[NV]LYUTLU[JVU[YVSHUKZ[YVUNWYLZLUJL
VM :6,Z PU [OL ZLJ[VY ;OL ,_[YHJ[PVU :VS\[PVUZ THYRL[ PZ JVUZPKLYLK [V IL restricted HZ [OL NV]LYUTLU[ JSVZLS`
YLN\SH[LZP[PUWHY[K\L[V[OLYPZRVMTPZTHUHNPUN\UKLYNYV\UK^H[LYYLZLY]VPYZ

CLEAN WATER SOLUTIONS
Fig.12: CLEAN WATER SECTOR SOLUTION EVALUATION MATRIX (1-5 Years)
VERY HIGH
UNIT ENVIRONMENTAL IMPACT POTENTIAL 0TWYV]LK0YYPNH[PVU Primary Treatment
0UK\Z[YPHS>H[LY9L\ZL 3V^-SV^-P_[\YLZ
INCREMENTAL INCREMENTAL MEDIUM HIGH
:S\KNL;YLH[TLU[HUK+PZWVZHS Secondary Treatment

+LZHSPUH[PVU 7VPU[VM<ZL:VS\[PVUZ
MEDIUM
,_[YHJ[PVU Monitoring of Measurement
(K]HUJLK+PZ[YPI\[PVU
Tertiary Treatment Materials and Components
SUPPLY SOLUTIONS Ü Extraction Solutions :VS\[PVUZ[OH[OLSWSVJH[LHJJLZZHUKL_[YHJ[^H[LYMYVT\UKLY

ground sources
Ü Desalination 7YVJLZZ[OH[YLTV]LZZHS[HUKV[OLYTPULYHSZMYVTZHSPUL^H[LYZ\JOHZ
sea water, in order to make it suitable for human consumption or irrigation
POLLUTION Ü Secondary Treatment Solutions :VS\[PVUZ[OH[Z\IZ[HU[PHSS`YLTV]L[OLIPVSVNPJHS

JVU[LU[VMZL^HNLPUJS\KPUNKLYP]H[LZVMO\THU^HZ[LMVVK^HZ[LZVHWZHUKKL[LYNLU[
TREATMENT Ü Sludge Treatment and Disposal :VS\[PVUZPUJS\KPUNKL^H[LYPUNSHUKÄSSZ[VYHNLHUK
SOLUTIONS MLY[PSPaLYJVU]LYZPVU[OH[[YLH[ZS\KNLNLULYH[LKMYVT^HZ[L^H[LY[YLH[TLU[[VYLTV]L
usable substances and properly dispose of residual wastes
Ü Tertiary Treatment Solutions:VS\[PVUZ[OH[WYV]PKLHÄUHS[YLH[TLU[[VYHPZL[OL
LMÅ\LU[X\HSP[`VM[OL^H[LYILMVYLP[PZKPZJOHYNLKPU[V[OLYLJLP]PUNLU]PYVUTLU[
WATER-USE Ü Improved Irrigation 0YYPNH[PVUZVS\[PVUZZ\JOHZZWYPURSLYVYKYPWPYYPNH[PVU[OH[\ZL

EFFICIENCY ^H[LYTVYLLMÄJPLU[S`[OHU*OPUH»ZJVU]LU[PVUHSPYYPNH[PVUTL[OVKZ^P[OLX\HSVYNYLH[LY
ILULÄ[[V[OL\ZLY
SOLUTIONS Ü Low-Flow Fixtures -H\JL[ZHUKV[OLY^H[LY\ZLZ`Z[LTZ[OH[\ZLSLZZ^H[LY[OH[
JVU]LU[PVUHSZ`Z[LTZI\[KLSP]LY[OLZHTLVYNYLH[LYILULÄ[[V[OL\ZLY
MULTI-USE SOLUTIONS Ü Advanced Distribution Materials and Components 7PWLZ]HS]LZHUKUVaaSLZ[OH[

are used to transport water, primarily between treatment plants and usage points that
HYLOPNOLYX\HSP[`HUKVYHYLTVYLZVWOPZ[PJH[LKHUKYLWYLZLU[SV^LYYPZRVMSLHRHNL[OHU
JVU]LU[PVUHSTVKLSZ
Ü Industrial Water Reuse 7YVJLZZÔLYLI`JLY[HPUWVSS\[HU[ZHYLYLTV]LKMYVTPUK\Z[YPHS
wastewater so that the water can be recycled for further uses at the same site
Ü Monitoring and Measurement Solutions :VS\[PVUZ[OH[[YHJR[OLJVTWVZP[PVUVY]VS\TLZ
VM^H[LYÅV^ZPUUH[\YHS^H[LYZV\YJLZ^H[LYKPZ[YPI\[PVUZ`Z[LTZ^H[LY[YLH[TLU[WSHU[ZVY
\ZLYWYLTPZLZÔPJOHYLVM[LUPU[LNYH[LK^P[O0;HUKVY.7:[LJOUVSVNPLZ
Ü Point-of-Use Solutions >H[LYTVUP[VYPUNVY[YLH[TLU[ZVS\[PVUZ[OH[HYLPUZ[HSSLKH[
the point where water is actually used, such as apartments, commercial and industrial
facilities
Ü Primary Treatment Solutions :VS\[PVUZ\ZLKWYPTHYPS`H[[OLZLKPTLU[H[PVUZ[HNL
where the solids are separated from the wastewater stream

83
CHINA’S
GREENTECH DEVELOPMENT
CHALLENGES

CHINA’S GREENTECH DEVELOPMENT CHALLENGES
While China’s greentech market opportunities are

attractive, there are still hurdles that must be addressed
in order to achieve the vision of an environmentally
sustainable China.
THE CHINA GREENTECH INITIATIVE’S PARTNERS AND STRATEGIC ADVISORS believe that
greentech markets in China represent attractive opportunities, and are optimistic
that market conditions will become even more favorable over time. In the spirit
VM\UJV]LYPUNNYLLU[LJOZVS\[PVUZ[OL0UP[PH[P]LPKLU[PÄLKRL`THYRL[JOHSSLUNLZ
ÔPJOPMV]LYJVTL^V\SKLUHISLHUKHJJLSLYH[L[OL]PZPVUVMHULU]PYVUTLU[HSS`
Z\Z[HPUHISL *OPUH 4HU` VM [OLZL HYL ZPTPSHY [V [OVZL VM V[OLY JV\U[YPLZ ÔPSL
ZVTLHYL*OPUHZWLJPÄJ;OPZJOHW[LYV\[SPULZÔH[[OLZLJOHSSLUNLZHYLÔPSL
the following chapter highlights opportunities stakeholders have to accelerate
greentech markets in China.
In order for China to continue its rapid economic development while preserving
the health of its citizens, conserving the natural environment for future generations
HUK ZVSPKPM`PUN P[Z Z[H[\Z HZ HU PU[LYUH[PVUHS SLHKLY P[ OHZ [OL VWWVY[\UP[` [V
LTIYHJL UL^ HWWYVHJOLZ [V JSLHU LULYN` NLULYH[PVU WVSS\[PVU TP[PNH[PVU HUK
[OLLMÄJPLU[\ZLVMYLZV\YJLZ;OL0UP[PH[P]LPKLU[PÄLKJOHSSLUNLZ[OH[T\Z[IL
HKKYLZZLKVYNHUPaLKPU[VMV\YTHQVYJH[LNVYPLZ¶THYRL[[LJOUVSVN`ÄUHUJPUN
HUK YLN\SH[VY` ¶ HZ ZOVÛ PU -PN\YL >OLYL ZWLJPÄJ JOHSSLUNLZ JVYYLZWVUK
[VT\S[PWSLJH[LNVYPLZ[OLÒH]LILLUWSHJLKPU[OLJH[LNVY`[OH[TVZ[JSVZLS`
describes their impact on China’s greentech market development.
(KL[HPSLKHUHS`ZPZVM[OLJOHSSLUNLZMHJPUNPUKP]PK\HSNYLLU[LJOZLJ[VYZPZPUJS\KLK
in the full report.
Fig.1: CHINA’S KEY GREENTECH DEVELOPMENT CHALLENGES
Inadequate awareness about greentech solutions

MARKET Underdeveloped value chains
Highly-concentrated markets
More expensive than conventional alternatives

TECHNOLOGY Lacks adaptation to China’s specific market requirements
Intellectual property and technology transfer issues
Fewer financing options

FINANCING Financing practices lack synergy with greentech requirements
Complex regulatory environment

REGULATORY Developing policy incentives
Uneven compliance with existing policies
Limited policy visibility

MARKET CHALLENGES
Market Challenges
MARKET CHALLENGES IN CHINA CONSTRAIN THE ABILITY OF SOLUTION PROVIDERS to deliver
green products and services, and limit market demand for greentech solutions.
INADEQUATE AWARENESS ABOUT GREENTECH SOLUTIONS

3PTP[LK RUV^SLKNL VM [OL H]HPSHIPSP[` HUK ILULÄ[Z VM NYLLU[LJO ZVS\[PVUZ JH\ZLZ
HKVW[LYZHUKLUK\ZLYZPU*OPUH[VJVU[PU\L\ZPUNJVU]LU[PVUHSWYHJ[PJLZSHYNLS`
K\L[VTPZJVUJLW[PVUZHIV\[NYLLU[LJOILULÄ[Z,UK\ZLYZVM[LUZ[PSSZLLNYLLU[LJO
HZHUPUJYLTLU[HSJVZ[YH[OLY[OHUHWV[LU[PHSILULÄ[HUKTHÙV[\UKLYZ[HUKOV^
[OLPYJVUZ\TW[PVUVMJVU]LU[PVUHSHS[LYUH[P]LZPTWHJ[Z[OLLU]PYVUTLU[,SLJ[YPJP[`
consumers, for example, do not realize the connection between their consumption
HUK*OPUH»ZJVHSIHZLKLSLJ[YPJP[`NLULYH[PVUHUK[OLHZZVJPH[LKNYV^PUNSL]LSZVM
air pollution, related illnesses and long-term climate change risks.
7V[LU[PHSHKVW[LYZTH`HSZVILSPL]L[OH[NYLLU[LJOUVSVNPLZJVZ[TVYL[OHU[OL`
HJ[\HSS`KVHZWLYJLW[PVUZHYLIHZLK\WVUOPZ[VYPJHSYH[OLY[OHUJ\YYLU[WYPJLZ
-VY L_HTWSL JVZ[Z [V HKVW[ ZVSHY WV^LY [LJOUVSVNPLZ OH]L MHSSLU ZPNUPÄJHU[S`
PUYLJLU[`LHYZK\L[VPUJYLHZLKJVTWL[P[PVUTHU\MHJ[\YPUNZJHSLHUKWYVJLZZ
PUUV]H[PVU"OV^L]LYI\`LYZZ[PSSWLYJLP]LWYPJLZHZWYVOPIP[P]L:VTLNYLLU[LJO
ZVS\[PVUZHYLL]LUILJVTPUNJVZ[ULNH[P]LV]LY[OLPYSPMLJ`JSLZWHY[PJ\SHYS`PM[OL
HZZ\TW[PVUVMYPZPUN\[PSP[`JVZ[ZPZPUJS\KLKPU[OLW\YJOHZLHUHS`ZPZ
Another aspect of the awareness challenge is the limited knowledge adopters

OH]L VM *OPUH»Z NYLLU[LJO KPZ[YPI\[PVU JOHUULSZ -VY L_HTWSL ÔPSL WV[LU[PHS
HKVW[LYZTHÌLH^HYLVMHUKKLZPYLNYLLU[LJOZVS\[PVUZ[OL`VM[LUKVUV[RUV^
where to purchase them.
UNDERDEVELOPED VALUE CHAINS

<UKLYKL]LSVWLK ]HS\L JOHPUZ HJYVZZ THU` VM *OPUH»Z NYLLU[LJO THYRL[Z YLZ\S[
PU KPZJVUULJ[Z IL[^LLU NLVNYHWOPLZ HUK Z[HRLOVSKLYZ SPTP[PUN [OL HIPSP[` VM
ZVS\[PVUWYV]PKLYZHUKHKVW[LYZ[VLU[LYPU[VT\[\HSSÌLULÄJPHSHNYLLTLU[Z[O\Z
restricting greentech solution penetration.
6UL HYLH VM KPZJVUULJ[ PZ K\L [V THU` VM *OPUH»Z LULYN` YLZV\YJLZ ILPUN
SVJH[LKNLVNYHWOPJHSS`MHYH^H`MYVT[OLJV\U[Y`»ZKLTHUKJLU[LYZ-VYL_HTWSL
70% of China’s large natural gas reserves are located in western China or offshore
ÄLSKZMHYYLTV]LKMYVTWVW\SH[PVUJLU[LYZ;OLSHJRVM[YHUZTPZZPVUSPULZMYVT
[OLZLYLZLY]LZ[V[OLKLTHUKJLU[LYZHSVUN^P[O*OPUH»ZYLSH[P]LS`ZJHYJLUH[\YHS
NHZYLZV\YJLZHYLHTVUN[OLTHPUYLHZVUZÔ`PUUH[\YHSNHZHJJV\U[LK
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:PTPSHYS`JVHSPZJ\YYLU[S`[YHUZWVY[LKV]LYSVUNKPZ[HUJLZMYVTÔLYLP[
PZTPULK[VJVHSI\YUPUNLSLJ[YPJP[`WSHU[ZSVJH[LKULHYTHQVYJP[PLZ.LVNYHWOPJ
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ÔPJOYLX\PYLZPNUPÄJHU[NYPK\WNYHKLZ[V[YHUZTP[LSLJ[YPJP[`SVUNKPZ[HUJLZ
;OL ZLWHYH[PVU VM JVZ[Z HUK ILULÄ[Z HJYVZZ WHY[PJPWHU[Z PU]VS]LK PU KPMMLYLU[
WHY[ZVMNYLLU[LJOZVS\[PVUSPMLJ`JSLZPZHUV[OLY[`WLVMKPZJVUULJ[(ZHUL_HTWSL
WYVWLY[` KL]LSVWLYZ [`WPJHSS` PUJ\Y [OL \WMYVU[ JVZ[Z VM V\[Ä[[PUN I\PSKPUNZ ^P[O
NYLLU [LJOUVSVNPLZ Z\JO HZ 0U[LNYH[LK /LH[ 7V^LY .LULYH[PVU HUK .YL`^H[LY
:`Z[LTZ;LUHU[ZVU[OLV[OLYOHUKYLJLP]L[OLRLÌLULÄ[ZVM[OLZL[LJOUVSVNPLZ
[OYV\NOYLK\JLKOLH[LSLJ[YPJP[`VY^H[LYJVZ[ZÔPSL[OL`VJJ\W`[OLI\PSKPUNZ
V]LY[PTL+L]LSVWLYZHYLTVYLSPRLS`[VILH[[YHJ[LK[VNYLLU[LJOZVS\[PVUZÔLU
[OL`JHUILULÄ[KPYLJ[S`[OYV\NOOPNOLYWYVWLY[`]HS\LZHUKPUJYLHZLKYLU[Z
HIGHLY-CONCENTRATED MARKETS
;OLOPNOSL]LSZVMJVUJLU[YH[PVUPUZVTLVM*OPUH»ZNYLLU[LJOTHYRL[ZYLZ\S[PU
KLJYLHZLKJVTWL[P[PVUÔPJOJHUWV[LU[PHSS`KLJYLHZLLMÄJPLUJ`HUKPUUV]H[PVU
HTVUNZ[ JVTWHUPLZ .YLLU[LJO THYRL[Z MYLX\LU[S` PKLU[PÄLK HZ OPNOS`
concentrated or state-dominated include, for example, China’s electrical power
NYPKZZVTL[`WLZVMJVU]LU[PVUHSHUKYLUL^HISLWV^LYNLULYH[PVUHUKJLY[HPU
elements of the railroad transportation value chain.
1
National Bureau of Statistics of China, “China Energy Statistical Yearbook, 2007”
2
BP, “BP Statistical Review of World Energy 2009”

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NYLLU[LJOTHYRL[Z:PUJLLULYN`ZLJ\YP[`PZHRL`WVSPJ`JVUJLYUWVSPJ`THRLYZ
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*OPUH[VILJVUJLYULKHIV\[ÔVOHZHJJLZZ[VLULYN`Z\WWS`NLULYH[PVUHUK
PUMYHZ[Y\J[\YL4HYRL[L_WLY[ZZ\NNLZ[[OH[ZVTLWVSPJ`THRLYZHSZVHYLILNPUUPUN
[V X\LZ[PVU [OL ZLJ\YP[` PTWSPJH[PVUZ VM ^PKLZWYLHK MVYLPNU PU]VS]LTLU[ PU [OL
operation of China’s water infrastructure.
(UV[OLYMYLX\LU[S`JP[LKYH[PVUHSLMVYZ\WWVY[PUNOPNOS`JVUJLU[YH[LKTHYRL[Z
PU*OPUHHUKLSZLÔLYLPZ[OLPKLH[OH[THU`NYLLU[LJOTHYRL[ZYLWYLZLU[UH[\YHS
TVUVWVSPLZ ÔLYL OPNO JHWP[HS VY PU[LYVWLYHIPSP[` YLX\PYLTLU[Z YLX\PYL Z[YVUN
ÄYTZVWLYH[PUNH[ULHY\UP]LYZHSZJHSLZ0UMYHZ[Y\J[\YLTHYRL[ZOH]L[YHKP[PVUHSS`
ILLUPKLU[PÄLKHZUH[\YHSTVUVWVSPLZHUK[OPZYH[PVUHSLOHZILLU\ZLKPU*OPUH
with respect to transportation infrastructure, electrical power grids and large-scale
water diversion projects.
:PTWSPÄLK YLN\SH[VY` JVTWSPHUJL TVUP[VYPUN HUK LUMVYJLTLU[ PZ HU HYN\TLU[

MVYJVUJLU[YH[LKTHYRL[Z^P[OZ[YVUN[PLZ[V[OLNV]LYUTLU[-VYL_HTWSLJSVZL
YLSH[PVUZOPWZJ\YYLU[S`L_PZ[IL[^LLU[OLNV]LYUTLU[HUK*OPUH»ZYLSH[P]LS`ZTHSS
U\TILY VM JVHSIHZLK WV^LY NLULYH[VYZ ;OLZL YLSH[PVUZOPWZ OLSW [OL ÄYTZ [V
\UKLYZ[HUK *OPUH»Z PUJYLHZPUNS`Z[YPUNLU[ UP[YV\ZV_PKL LTPZZPVUZ YLX\PYLTLU[Z
HUK KYP]L [OLT [V PU]LZ[ PU ZVS\[PVUZ [V TLL[ \WJVTPUN Z[HUKHYKZ ;OLZL
YLSH[PVUZOPWZ TH` HSZV TLHU [OH[ ÄYTZ HYL HISL [V HU[PJPWH[L HUK WYLWHYL MVY
YLN\SHYHUKL]LUºYHUKVT»LTPZZPVUZPUZWLJ[PVUZ4LHUÔPSLPU*OPUH»ZOPNOS`
fragmented real estate development market, as is the case in other countries,
LUMVYJPUN I\PSKPUN LULYN` LMÄJPLUJ` Z[HUKHYKZ PZ H KPMÄJ\S[ HUK JVZ[S` LUKLH]VY
K\L[V[OLKP]LYZP[`VMVYNHUPaH[PVUZPU]VS]LK
;OLILULÄ[ZVM*OPUH»ZJVUJLU[YH[LKHUKZ[H[LKVTPUH[LKNYLLU[LJOTHYRL[Z
HYL VMMZL[ I` WVVY PUJLU[P]LZ" SHJR VM JVTWL[P[PVU YLK\JLZ LMÄJPLUJPLZ HUK
PUUV]H[PVU[OH[JVTLMYVTVWLUHUKJVTWL[P[P]LTHYRL[Z;OLJOHSSLUNLMVYHU`
nation, including China, is to know how and when to strike a balance between
these two sides. China has utilized competitive pressures to achieve balance in its
[LSLJVTT\UPJH[PVUZHUKIHURPUNZLJ[VYZPU[OLWHZ[HUKUVÔHZ[OLVWWVY[\UP[`
to do the same in greentech.
+VTPUHU[THYRL[WSH`LYZWHY[PJ\SHYS`Z[H[LJVU[YVSSLKLU[P[PLZOH]LOPZ[VYPJHSS`
LUQV`LKYLSH[P]LS`LHZ`HJJLZZ[VJHWP[HSÔPJOZVTL[PTLZKPZJV\YHNLKLMÄJPLU[
LJVUVTPJWYHJ[PJLZ*OPUH»Zº)PN»JVTTLYJPHSIHURZ(NYPJ\S[\YHS)HURVM*OPUH
)HURVM*OPUH*OPUH*VUZ[Y\J[PVU)HURHUK0UK\Z[YPHSHUK*VTTLYJPHS)HURVM
*OPUH OH]L VJJHZPVUHSS` ILLU Z\IQLJ[ [V WVSPJ`KPYLJ[LK SLUKPUN ,]LU [OV\NO
[OL`HWWLHY[VOH]LILJVTLTVYLKPZJPWSPULKPUYLJLU[`LHYZ^P[OUVUWLYMVYTPUN
SVHUYH[PVZKYVWWPUNMYVTULHYS`PU[V\UKLYPUWVSPJ`KPYLJ[LK
SLUKPUNJVU[PU\LZHUKZL]LYHSTHYRL[HUHS`Z[ZZ\NNLZ[[OH[[OLZLUVUWLYMVYTPUN
SVHUZHYLJ\YYLU[S`VU[OLYPZL3
;OLYL HYL JPYJ\TZ[HUJLZ \UKLY ÔPJO WVSPJ` SLUKPUN TH` UV[ PU P[ZLSM IL IHK
MVY[OLKL]LSVWTLU[VMTHYRL[Z-VYL_HTWSL*OPUH»ZKPYLJ[LKSLUKPUNZ[YH[LN`
under its current economic stimulus plan is expected to be a considerable driver
VM SVJHS NYLLU[LJO THYRL[Z 0[ PZ PTWVY[HU[ OV^L]LY MVY WVSPJ` JVUJLYUZ UV[ [V
override commercial risk considerations in order to channel funding to the most
LJVUVTPJHSSÌLULÄJPHS\ZLZ
:PUJL TVZ[ NYLLU[LJO THYRL[Z YLS` VU YLSH[P]LS` UL^ HUK YHWPKS` JOHUNPUN
[LJOUVSVNPLZ SPTP[PUN JVTWL[P[PVU JHU ULNH[P]LS` PTWHJ[ [OL KL]LSVWTLU[ VM
LMÄJPLU[HUKPUUV]H[P]LZVS\[PVUZ-VYL_HTWSLPU*OPUH»ZLHYS`W\ZO[VWYVTV[L
wind power, regulators used policies to direct China’s existing conventional
LULYN` NLULYH[PUN LU[LYWYPZLZ PU[V [OL ^PUK ZLJ[VY `L[ L_JS\KLK MVYLPNU ^PUK
farm developers from national concession projects and limited the extent to which
MVYLPNU[\YIPULTHU\MHJ[\YLYZJV\SKZ\WWSÙH[PVUHSWYVQLJ[Z>OPSL[OPZHWWYVHJO
THÒH]LLUHISLK*OPUH[VI\PSK\WP[ZPUMYHZ[Y\J[\YLYHWPKS`^P[OH]PL^[V^HYKZ
3
Stratfor, “China: Renewed Risk of China NPLs,” January 19, 2009, http://www.stratfor.com/

TECHNOLOGY CHALLENGES
VW[PTPaPUNP[ZVWLYH[PVUZPU[OLM\[\YLP[JVU[YPI\[LK[V*OPUH»ZLHYS`^PUKMHYTZ
ILPUNSLZZLMÄJPLU[HUKYLX\PYPUNOPNOLYVUNVPUNTHPU[LUHUJLJVZ[Z[OHU[OVZLPU
other countries.
Technology Challenges
TECHNOLOGY CHALLENGES ARE SLOWING THE DEVELOPMENT AND APPLICATION of
greentech solutions in China, hindering the widespread adoption of solutions that
meet the cost and feature requirements of potential adopters.
MORE EXPENSIVE THAN CONVENTIONAL ALTERNATIVES

>OPSLNYLLU[LJOZVS\[PVUJVZ[ZOH]LKLJYLHZLKHUKZOV\SKJVU[PU\L[VKVZV^P[O
ongoing technological development, learning curves and increasing economies
VMZJHSL[OL`HYLVM[LUZ[PSSTVYLL_WLUZP]L[OHUJVU]LU[PVUHSHS[LYUH[P]LZ4VZ[
YLUL^HISLLULYN`ZVS\[PVUZLN*VUJLU[YH[PUN:VSHY0UZ[HSSH[PVUZHUK6MMZOVYL
>PUK-HYTZHYLPUYLSH[P]LS`LHYS`Z[HNLZVM[LJOUVSVNPJHSTH[\YP[`^P[OYLSH[P]LS`
OPNO HKVW[PVU JVZ[Z K\L [V YHWPKS`L]VS]PUN KLZPNUZ Z\IVW[PTHS ZJHSL HUK
incomplete manufacturing optimization.
0U*OPUHHZPUTHU`V[OLYJV\U[YPLZZ\IZPKPaLKYLZV\YJLHUK\[PSP[`JVZ[ZTH`
also limit the attractiveness of greentech solutions. An example of this is diesel fuel
WYPJLZ>OPSLM\LSWYPJLZJVUZ[HU[S`Å\J[\H[LHU6J[VILYZ[\K`MV\UK[OH[VUL
SP[LYVMKPLZLSM\LSJVZ[`\HUWLYSP[LYPU/VUN2VUNI\[VUS`Ä]L`\HUPUULHYI`
:OLUaOLU K\L [V KPMMLYLUJLZ PU Z\IZPKPaH[PVU HUK [H_LZ4 Regulators throughout
*OPUHOH]LYLHSPaLK[OH[ZVTLJVZ[JVU[YVSZÔPJOTHRLLSLJ[YPJP[`WV[HISL^H[LY
cooking gas and central heating more affordable for low-income citizens, also
YLK\JL PUJLU[P]LZ MVY LMÄJPLUJ` (ZPKL MYVT YLK\JPUN KLTHUKZPKL JVUZLY]H[PVU
Z\IZPKPaH[PVU HSZV SPTP[Z [OL HWWLHS VM LMÄJPLUJ`LUHISPUN NYLLU[LJO ZVS\[PVUZ
9LJVNUPaPUN [OPZ JOHSSLUNL YLN\SH[VYZ HYV\UK *OPUH HYL YHPZPUN \[PSP[` WYPJLZ HUK
ILNPUUPUN[VKL]LSVWUL^]VS\TL[YPJHUKPUJVTLYLSH[LKWYPJPUNZ`Z[LTZ
One example of these new pricing approaches is simple block pricing for
KVTLZ[PJ^H[LY\ZL0U3PQPHUN*P[`MVYPUZ[HUJL[OLIHZL^H[LYWYPJLPZ`\HU
WLYJ\IPJTL[LYI\[JSPTIZ[V`\HUHUK[OLU`\HUWLYJ\IPJTL[LYHZH
OV\ZLOVSK\ZLZTVYL[OHUHUK[OLUJ\IPJTL[LYZWLYTVU[OYLZWLJ[P]LS`5
>OPSL[OPZ]VS\TLIHZLKWYPJPUNWVSPJ`PZTV]PUNPU[OLYPNO[KPYLJ[PVU[OL>VYSK
/LHS[O6YNHUPaH[PVUZ\NNLZ[Z[OH[HMHTPS`VMMV\Y^PSSVUS`\ZLHIV\[J\IPJ
TL[LYZVM^H[LYWLYTVU[OSP[LYZWLYWLYZVUWLYKH`ZV[OL[OYLZOVSKZHYL
SPRLS`Z[PSS[VVOPNO[VLUJV\YHNLZPNUPÄJHU[JVUZLY]H[PVU
;OLJ\YYLU[SV^PU[LYUH[PVUHSTHYRL[WYPJLZVMUH[\YHSYLZV\YJLZHUKJVTTVKP[PLZ
also limit the attractiveness of some greentech solutions. As noted above, China
OHZ ILLU YLSH_PUN P[Z Z\IZPKPaH[PVU VM JVTTVKP[` HUK \[PSP[` WYPJLZ" ÔPSL [OPZ
JHUTHRLNYLLU[LJOZVS\[PVUZYLSH[P]LS`TVYLH[[YHJ[P]LP[HSZVL_WVZLZ*OPUH[V
JOHUNLZPUNSVIHSJVTTVKP[`WYPJLZ-S\J[\H[PVUZPUNSVIHSVPSWYPJLZMVYL_HTWSL
OH]LHKPYLJ[PTWHJ[VU[OLWYVÄ[HIPSP[`VMNYLLU[LJOZVS\[PVUZSPRLLSLJ[YPJ]LOPJSLZ
IPVM\LSZHUKZVSHYLULYN`
;OL*OPUH.YLLU[LJO0UP[PH[P]LL_WLJ[Z[OH[WYPJLZMVYTHU`NYLLU[LJOZVS\[PVUZ
will continue to decrease as technologies mature and solution providers exploit
SLHYUPUNJ\Y]LLMMLJ[ZPUTHU\MHJ[\YPUNWYVJLZZLZ([[OLZHTL[PTLLULYN`HUK
V[OLY JVTTVKP[` WYPJLZ HYL L_WLJ[LK [V HWWYLJPH[L HZ [OL ^VYSK LTLYNLZ MYVT
[OL J\YYLU[ LJVUVTPJ KVÛ[\YU ;OL JVZ[ VM \ZPUN MVZZPS M\LSZ PZ HSZV L_WLJ[LK
[V PUJYLHZL K\L [V YLN\SH[VY` TLJOHUPZTZ ÔPJO JHW VY [H_ JHYIVU LTPZZPVUZ
IV[OPU[LYUH[PVUHSS`HUKPU*OPUH>OPSLZOVY[[LYTÅ\J[\H[PVUZJV\SKZ[PSSPTWHJ[
HKVW[PVUV]LY[OLUL_[[LU`LHYZP[ZLLTZSPRLS`[OH[THU`VM[OLZVS\[PVUZ
PU]LZ[PNH[LK I` [OL 0UP[PH[P]L ^PSS HJOPL]L JVZ[ WHYP[` VY IL[[LY ^P[O JVU]LU[PVUHS
alternatives.
4
庞昌伟，”油价补贴：肥水流向国际游资,” 清华大学中国与世界经济研究中心, [Pang Chang Wei, “Oil subsidies: hot money flow to
international speculation,” Tsinghua University Center for China in the World Economy], October 3, 2008
5
The World Bank, Addressing China’s Water Scarcity: Recommendations for Selected Water Resource Management Issues, (Washington
DC, U.S.: The World Bank Group, 2009), 91

LACKS ADAPTATION TO CHINA’S SPECIFIC MARKET REQUIREMENTS

4HU`NYLLU[LJOZVS\[PVUZHYLUV[J\Z[VTPaLK`L[[VTLL[*OPUH»ZLU]PYVUTLU[HS
and market requirements, which in some cases differ from other countries. It is
ULJLZZHY`[V\UKLYZ[HUK[OH[ÔPSL*OPUHILHYZ[OLOHSSTHYRZVMIV[OKL]LSVWLK
and developing nations, factors such as a large population, limited natural
YLZV\YJLZOPNOWVSS\[PVUSL]LSZHUKHKL]LSVWPUNLJVUVT`^P[OJVZ[JVUZJPV\Z
adopters, present unique characteristics that need to be incorporated into
NYLLU[LJOZVS\[PVUZ;OLJVTWHUPLZ[OH[Z\JJLLKPU*OPUH»ZNYLLU[LJOTHYRL[Z
^PSS IL [OVZL [OH[ TVZ[ LMMLJ[P]LS` \UKLYZ[HUK [OLZL JOHYHJ[LYPZ[PJZ HUK [OLPY
impact on requirements.
;OL HIPSP[` [V HKHW[ [LJOUVSVNPLZ KL]LSVWLK PU[LYUH[PVUHSS` [V [OL \UPX\L
JVUKP[PVUZVM*OPUH»ZTHYRL[PZ]LY`PTWVY[HU[:\JOHKHW[H[PVULU[HPSZSVJHSPaPUN
WYVK\J[ MLH[\YLZ MVY *OPUHZWLJPÄJ KLTHUKZ VY TPUPTPaPUN ZVS\[PVU WYVK\J[PVU
JVZ[Z^P[OV\[ZHJYPÄJPUNM\UJ[PVUHSP[`-VYL_HTWSLLUa`TLZ[OH[HYL\ZLK[VHPK
^H[LY[YLH[TLU[WYVJLZZLZT\Z[ILZ\P[LK[V[OLWVSS\[PVUWYVÄSLZVM*OPUH»Z]HY`PUN
^H[LYYLZV\YJLZÔPJOKPMMLYHJYVZZHUK^P[OPUYP]LYIHZPUZ;OLNYLH[LY[OLL_[LU[
[VÔPJO[OLZLJ\Z[VTPaLKLUa`TLZJHUILJVTTLYJPHSPaLKH[JVZ[ZHMMVYKHISL[V
the operating budgets of Chinese municipal water and wastewater treatment plant
VWLYH[VYZ[OLTVYLH[[YHJ[P]L[OL`^PSSILJVTL[V[OPZWYPJLJVUZJPV\ZTHYRL[
>OPSL *OPULZL JVTWHUPLZ HJYVZZ THU` ZLJ[VYZ OH]L Z[YVUN [YHJR YLJVYKZ PU
adapting, replicating and scaling solutions for large-scale manufacturing and
KPZ[YPI\[PVU^P[OPU*OPUHHUK[OYV\NOV\[[OL^VYSK[OL`HYLSLZZRUVÛMVY[OLPYHIPSP[`
to innovate new solutions. Companies, either local or foreign, who best understand
[OLWYVK\J[MLH[\YLZM\UJ[PVUZHUKJVZ[ZKLTHUKLKI`WV[LU[PHS*OPULZLNYLLU[LJO
HKVW[LYZ^PSSSPRLSÌL[OLTVZ[Z\JJLZZM\SPU[OL*OPULZLTHYRL[
INTELLECTUAL PROPERTY AND TECHNOLOGY TRANSFER ISSUES

3LNHSYLN\SH[VY`HUKJ\S[\YHSIHYYPLYZJVTWSPJH[L[OL[YHUZMLYVM[LJOUVSVNPLZPU[V
HUKV\[VM*OPUH>OPSL*OPUH»ZNV]LYUTLU[OHZ[HRLUUV[HISLZ[LWZPU[OLWHZ[
KLJHKL [V Z\WWVY[ [OL SLNHS WYV[LJ[PVU VM PU[LSSLJ[\HS WYVWLY[` 07 YPNO[Z [OLYL
YLTHPUZ H JVTTVU WLYJLW[PVU HTVUN MVYLPNU ÄYTZ [OH[ [OLPY 07 HZZL[Z JHUUV[
ILZ\P[HIS`WYV[LJ[LKPU*OPUH;OPZWLYJLW[PVUPU[\YUSPTP[Z[OLPY^PSSPUNULZZ[V
WYVK\JLVYZLSS07PU[LUZP]LWYVK\J[ZPU*OPUHJYLH[PUNHZPNUPÄJHU[VIZ[HJSLMVY
China’s greentech market development.
Although there are signs of improvement, there is still little question that China’s
LUMVYJLTLU[VM07YPNO[ZOHZ`L[[VYLHJOKL]LSVWLK^VYSKZ[HUKHYKZ6ULTHPU
PTWLKPTLU[PZ[OH[Q\KNLZV\[ZPKL[VW[PLYJP[PLZTHÒH]LSPTP[LKL_WLYPLUJL^P[O
cases related to IP infringements. Moreover, when IP-related legal penalties are
H^HYKLKPU*OPUH»ZJV\Y[ZJVSSLJ[PVUVMWH`TLU[ZVU[OLZLQ\KNTLU[ZJHUJH\ZL
M\Y[OLYJVTWSPJH[PVUZ:VTLHUHS`Z[ZÄUK[OH[[OL]HS\LVMKHTHNLZH^HYKLKPU
*OPULZL07JHZLZHYLNLULYHSSÌLSV^[OLLJVUVTPJ]HS\LVM[OLKHTHNLZYLZ\S[PUN
MYVT[OL07PUMYPUNLTLU[PU[OLÄYZ[WSHJLM\Y[OLYYLK\JPUNPUJLU[P]LZMVY[OLSVJHS
innovation of new solutions.6
*\S[\YHSHUKWVSPJÌHYYPLYZHSZVSPTP[[OL\ZLVMMVYLPNU[LJOUVSVNPLZPU*OPUH(
]HYPL[`VMTPUPZ[YPLZZ\WWVY[[OLM\UKPUNVMNYLLU[LJOKLTVUZ[YH[PVUWYVQLJ[ZMVY
PUZ[HUJLI\[JVTL\UKLYWYLZZ\YLPM[OL`ZPNUPÄJHU[S`WYVTV[L[OL\ZLVMMVYLPNU
[LJOUVSVNPLZPUWPSV[WYVQLJ[Z(ZPUV[OLYJV\U[YPLZWYLMLYLUJLZ[V^HYKZSVJHSS`
KL]LSVWLK [LJOUVSVNPLZ HYL VJJHZPVUHSS` MVYTHS HUK WVSPJÌHZLK I\[ TVYL
JVTTVUS`VWLYH[L[OYV\NOPUMVYTHSPUÅ\LUJLJOHUULSZZ\JOHZVWHX\LIPKKPUN
evaluation processes for public works infrastructure projects.
-PUHSS` *OPULZL ÄYTZ VM[LU OH]L SPTP[LK MHTPSPHYP[` ^P[O IV[O KVTLZ[PJ HUK
PU[LYUH[PVUHS 07 YLN\SH[PVUZ HUK SPTP[LK JHWHJP[` [V THUHNL [OLPY VÛ 07 HZZL[Z
LMMLJ[P]LS`;OPZJHUYLZ\S[PU*OPULZL07ILPUNTPZHWWYVWYPH[LKI`V[OLY*OPULZL
ÄYTZ VY SPTP[ [OL HTIP[PVUZ VM *OPULZL ÄYTZ [V L_WVY[ NYLLU[LJO ZVS\[PVUZ [V V[OLY
countries.
6
NERA Economic Consulting, “Intellectual Property Rights Protection in China: Trends in Litigation and Economic Damages,” (National
Economic Research Associates, 2009), 2

FINANCING CHALLENGES
Financing Challenges
DESPITE STRONG POLICY SUPPORT AND GOVERNMENT FUNDING,NYLLU[LJOÄUHUJPUNPU
*OPUHPZSPTP[LKI`[OLYLSH[P]LPTTH[\YP[`VMÄUHUJPHSTHYRL[Z4VYLZWLJPÄJHSS`
[OPZ PUJS\KLZ ML^LY ÄUHUJPUN VW[PVUZ [OHU KL]LSVWLK THYRL[Z HUK VM[LU TVYL
IHZPJÄUHUJPUNWYHJ[PJLZ[OH[HYLUV[^LSSZ\P[LK[VNYLLU[LJOYLX\PYLTLU[Z
FEWER FINANCING OPTIONS

*VTWHYLK[VKL]LSVWLKTHYRL[Z[OLYLHYLNLULYHSS`ML^LYVW[PVUZPU*OPUHMVY
YHPZPUNKLI[VYLX\P[`JHWP[HSHJYVZZ[OLSPMLJ`JSLVMNYLLU[LJOZVS\[PVUZ
*OPUHKVLZUV[OH]LHTH[\YLW\ISPJIVUKZ`Z[LT[VÄUHUJLW\ISPJPUMYHZ[Y\J[\YL
WYVQLJ[ZZ\JOHZ^H[LY[YLH[TLU[VYT\UPJPWHSYHPS^H`Z`Z[LTZSPRL[OVZL[OH[L_PZ[
PUTHU`V[OLYJV\U[YPLZ(ZHYLZ\S[*OPUH»ZWYV]PUJPHSHUKT\UPJPWHSNV]LYUTLU[Z
T\Z[ YLS` VU [H_ PUJVTL VY [YHUZMLYZ MYVT [OL JLU[YHS NV]LYUTLU[ [V M\UK [OL
L_WHUZPVUVYTVKLYUPaH[PVUVMT\UPJPWHSZ`Z[LTZ
Another aspect of the public funding gap relates to the fact that while environmental
HZZL[L_JOHUNLZOH]LILLULZ[HISPZOLKPU)LPQPUN:OHUNOHPHUK;PHUQPU[OLYLHYL
UVJHWHUK[YHKLZ`Z[LTZJ\YYLU[S`PUWSHJL[VMHJPSP[H[L[YHKPUNVU[OVZLTHYRL[Z
;OPZSLH]LZJVTWHUPLZ[OH[LUNHNLPUWVSS\[PVUHUKNYLLUOV\ZLNHZYLK\J[PVU^P[O
no domestic opportunities to monetize their emissions reductions.
([[OLTVTLU[*OPUH»ZZ[H[LVÛLKJVTTLYJPHSIHURZHUKWYP]H[LÄUHUJPLYZ
KVUV[WYV]PKLZ\MÄJPLU[ÄUHUJPUN[VZTHSSZJHSLNYLLU[LJOTHYRL[WHY[PJPWHU[Z
*VTTLYJPHS IHURZ NLULYHSS` PU]LZ[ PU SHYNLZJHSL WYVQLJ[Z HUK WYLMLY M\SS`
JVSSH[LYHSPaLKSVHUZJYLH[PUNRL`JOHSSLUNLZMVYLTLYNPUNWYV]PKLYZ[OH[TH`^HU[
to participate in greentech projects like renewable power plants and smaller scale
adopters of greentech solutions.
*OPUH»ZIHURZHYLJVTTVUS`NP]LU[HYNL[ZMVYPU]LZ[TLU[ZPUJLY[HPUZLJ[VYZ
ÔPJO TH` YLZ\S[ PU H W\ZO [V TLL[ [OLZL THYRLYZ KPZ[VY[PUN [OL VW[PTHS YPZR
HKQ\Z[LKHSSVJH[PVUVMJHWP[HS>OPSL*OPUH»ZKVTLZ[PJ]LU[\YLJHWP[HSHUKWYP]H[L
LX\P[` THYRL[Z OH]L ILLU NYV^PUN YHWPKS` PU YLJLU[ `LHYZ P[ PZ PTWVY[HU[ [V
YLTLTILY[OH[[OL`HYLZ[PSSH[HULHYS`Z[HNLVMKL]LSVWTLU[HUK[OLYLMVYLUV[HZ
LMÄJPLU[PUTVIPSPaPUNJHWP[HS
-PUHSS` MVYLPNU ÄUHUJPUN PU *OPUH»Z NYLLU[LJO THYRL[Z PZ VM[LU YLZ[YPJ[LK -VY
L_HTWSLTHU`LSLTLU[ZVMLSLJ[YPJHSWV^LYYHPSHUKT\UPJPWHSOLH[PUNZLJ[VYZHYLHSS
YLSH[P]LS`PUHJJLZZPISL[VMVYLPNUPU]LZ[VYZ;OLNSVIHSJHYIVUTHYRL[PZVM[LU\ZLKHZ
L]PKLUJL[OH[MVYLPNUJHWP[HSPZLMMLJ[P]LSÌLPUNJOHUULSLK[VNYLLU[LJOPU]LZ[TLU[Z
]PH [OL LTPZZPVUZ THYRL[ >OPSL *OPUH OHZ NLULYH[LK [OL TVZ[ LTPZZPVUZ [YHKPUN
JYLKP[Z\UKLY[OL2`V[VWYV[VJVS[OLHJ[\HSZP[\H[PVUPZT\JOTVYLJVTWSL_
*OPUH»ZJ\YYLU[WVSPJ`LU]PYVUTLU[HSSV^ZWYVQLJ[Z[VHWWS`MVYJLY[PÄJH[PVU[V
IL[YHKLK\UKLY[OL2`V[V7YV[VJVSPM[OL`HYLH[SLHZ[JVU[YVSSLKI`*OPULZL
entities.7>OPSL[OLYLHYLZPNUZ[OH[[OPZWVSPJ`THÌLZVM[LUPUN[VHSSV^/VUN
2VUN JVTWHUPLZ H NYLH[LY *SLHU +L]LSVWTLU[ 4LJOHUPZT YVSL PU *OPUH [OPZ
restriction has nevertheless limited the willingness of foreign participants to make
large-scale contributions to Chinese greentech projects that were hoping to use
JHYIVU THYRL[ JHWP[HS HZ H ÄUHUJPUN [VVS <UJLY[HPU[PLZ HIV\[ [OL WVZ[2`V[V
emissions trading regime have also increased risks and slowed foreign investment
in China’s carbon-market oriented greentech projects.
FINANCING PRACTICES LACK SYNERGY WITH GREENTECH REQUIREMENTS

.YLLU[LJOPU]LZ[TLU[ZVM[LUOH]L\UPX\LJOHYHJ[LYPZ[PJZ[OH[JVTWSPJH[LÄUHUJPUN
Z\JO HZ OPNO MYVU[LUK JHWP[HS ULLKZ HUK SVUN WHÌHJR WLYPVKZ -\Y[OLYTVYL
ZVS\[PVUZHYLUV[^LSSKL]LSVWLKVY\UKLYZ[VVKI`*OPUH»ZTHYRL[ZHUKWYLZLU[
JVTWSL_ I\ZPULZZ TVKLSZ HZ PSS\Z[YH[LK I` YLUL^HISL LULYN` WV^LYW\YJOHZL
HNYLLTLU[ZVYLULYN`WYVJ\YLTLU[JVU[YHJ[ZMVYI\PSKPUNZ3LUKLYZÔVNLULYHSS`
OH]LSPTP[LKL_WLYPLUJL^P[O[OLZLUL^ZVS\[PVUZHUKI\ZPULZZTVKLSZÄUK[OL
evaluation of these investments challenging.
7
National Development and Reform Commission, “Measures for Operation and Management of Clean Development Mechanism Projects
in China,” November 21, 2005, http://www.cdm.ccchina.gov.cn/

Investments required at different stages of product development and

JVTTLYJPHSPaH[PVU HYL JVTWSPJH[LK I` [OL J\YYLU[ Z[H[L VM *OPUH»Z ÄUHUJPHS
THYRL[Z-VYPUZ[HUJL[OLYLHYLML^PUZ[Y\TLU[ZH]HPSHISLMVYPU]LZ[PUNPU[OLLHYS`
Z[HNLZVMYLZLHYJOHUKKL]LSVWTLU[>OLUNYLLU[LJOZVS\[PVUZHYLYLHK`[VIL
KLWSV`LK [OL YHUNL HUK ZVWOPZ[PJH[PVU VM WYVQLJ[ ÄUHUJPUN PU]VS]LK PZ SPTP[LK
JVTWHYLK[VV[OLYJV\U[YPLZ(ZPNUPÄJHU[\UKLYZ[HUKPUNVM[OL[LJOUPJHSHZWLJ[Z
of environmental issues is required for investments in a range of greentech sectors.
;OLWYVÄ[HIPSP[`VMZVSHYWV^LYNLULYH[PVUMVYL_HTWSLWHY[PHSS`KLWLUKZVU[OL
HIPSP[`[VMVYLJHZ[HUKTLHZ\YLSVJHSZVSHYYLZV\YJLZÔPJOHYLHYLHZPUÔPJOTVZ[
ÄUHUJPHSPU]LZ[VYZPU*OPUHOH]LSP[[SLL_WLYPLUJL[VKH[L4VYLIYVHKS`*OPUH»Z
PU]LZ[VYZHYLVM[LUSPTP[LKPU[OLPYHIPSP[`[VHZZLZZ[OLLU]PYVUTLU[HSOLHS[OHUK
ZHML[`YPZRZVMNYLLU[LJOPU]LZ[TLU[ZÔPJOPU[\YUPUOPIP[[OLPYHIPSP[`[VWYV]PKL
ZV\UKHUHS`ZPZMVYWYVQLJ[]HS\H[PVUZHUKJHZOÅV^WYVQLJ[PVUZ
Regulatory Challenges
BASED ON THE PACE OF REGULATORY CHANGES,*OPUH»ZYLN\SH[VY`LU]PYVUTLU[PZHJSLHY
HUKWVZP[P]LKYP]LY[V[OLHJJLSLYH[PVUVM[OLJV\U[Y`»ZNYLLU[LJOTHYRL[Z*LY[HPU
JOHSSLUNLZYLTHPUOV^L]LYPUJS\KPUNJVTWSL_P[`VM[OLYLN\SH[VY`LU]PYVUTLU[
KL]LSVWPUNWVSPJ`PUJLU[P]LZ\UL]LUJVTWSPHUJL^P[OL_PZ[PUNWVSPJPLZHUKSPTP[LK
WVSPJ`]PZPIPSP[`
COMPLEX REGULATORY ENVIRONMENT

.YLLU[LJO THYRL[Z I` [OLPY UH[\YL IYVHK HUK LTLYNPUN HYL V]LYZLLU I` H
^PKL YHUNL VM *OPULZL YLN\SH[VY` LU[P[PLZ ÔPJO HYL PUJYLHZPUNS` PUÅ\LUJLK I`
PU[LYUH[PVUHS NV]LYUTLU[Z HUK PU[LYNV]LYUTLU[HS VYNHUPaH[PVUZ ;OPZ JYLH[LZ H
JVTWSL_ YLN\SH[VY` LU]PYVUTLU[ [OH[ PZ KPMÄJ\S[ [V UH]PNH[L ,ULYN` PZZ\LZ MVY
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,ULYN` (KTPUPZ[YH[PVU HUK [OL 4PUPZ[Y` VM 0UK\Z[Y` HUK 0UMVYTH[PVU ;LJOUVSVN`
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JVOLZP]L WSHUUPUN VM LULYN` HJ[P]P[PLZ HJYVZZ YLSH[LK HNLUJPLZ 0U V[OLY HYLHZ
Z\JOHZ^H[LYWVSPJÙ\TLYV\ZYLN\SH[VY`HNLUJPLZHYL^VYRPUN[VWYV]PKLIL[[LY
management with increased coordination and cooperation.
Coordination between national and local departments and their respective

WVSPJPLZ PZ HS^H`Z JOHSSLUNPUN *OPUH»Z JLU[YHS WVSPJPLZ ZOV\SK IL JYLKP[LK MVY
providing clear targets, guidelines and direction for the development of the
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]HYPH[PVUZPUSVJHSWVSPJPLZJYLH[LUVU\UPMVYTLU]PYVUTLU[Z-VYL_HTWSLÔPSL
)LPQPUN ZOV\SK IL HWWSH\KLK MVY HKVW[PUN HPY WVSS\[PVU Z[HUKHYKZ OPNOLY [OHU
UH[PVUHSSL]LSZWHY[PJ\SHYS`K\YPUN[OL6S`TWPJ.HTLZ[OPZWVSPJ`]HYPH[PVUJYLH[LZ
VWLYH[PVUHS JOHSSLUNLZ MVY PUK\Z[YPHS JVTWHUPLZ ^P[O VWLYH[PVUZ PU IV[O )LPQPUN
and other provinces. 8
:PUJLTHU`PUK\Z[YPLZHYLYLN\SH[LKI`PUK\Z[Y`ZWLJPÄJNV]LYUTLU[HNLUJPLZ
[OPZZVTL[PTLZSLHKZ[VJVUÅPJ[PUN[YLH[TLU[ZMVYJVTTVULU]PYVUTLU[HSPZZ\LZ
5H[PVUHSPUP[PH[P]LZZ\JOHZ[OL;VW,ULYN`*VUZ\TPUN,U[LYWYPZLZ7YVNYHT
WYVTV[LZJOHUNLHJYVZZT\S[PWSLPUK\Z[YPLZ/V^L]LYTHU`NYLLU[LJOVWWVY[\UP[`
areas, such as rail transportation and electric power infrastructure, are regulated
PUKLWLUKLU[S`HUKHYLWLYTP[[LK[VOH]LKPMMLYPUN[HYNL[Z^P[OYLZWLJ[[VHPY^H[LY
and other emissions compared to other industries.
-PUHSS` PU[LYUH[PVUHS JVU]LU[PVUZ HUK [YLH[PLZ Z\JO HZ [OVZL NV]LYUPUN

international shipping and air travel, impact standards and other greentech
PZZ\LZ^P[OPU*OPUHL]LUÔLUUVL_WSPJP[KVTLZ[PJWVSPJPLZL_PZ[-VYL_HTWSL
[OL :[HUKHYKZ HUK 9LJVTTLUKLK 7YHJ[PJLZ VM [OL 0U[LYUH[PVUHS *P]PS (]PH[PVU
6YNHUPaH[PVUÔPJOHYLPUJVYWVYH[LKHZ(UUL_LZ[V[OL*VU]LU[PVUVU0U[LYUH[PVUHS
Civil Aviation) contain provisions on aircraft operations that impact emissions from
China’s air transportation. As China becomes further integrated into the world
LJVUVT`P[PZL_WLJ[LK[OH[PU[LYUH[PVUHSLU[P[PLZ^PSSL_LYJPZLL]LUTVYLPUÅ\LUJL
on China’s greentech markets.
8
中国环境科学研究院，“中国区域大气污染控制，”2008年11月6日 [Chinese Research Academy of Environment and Science, “For
Regional Air Pollution Control in China,” November 6, 2008]

REGULATORY CHALLENGES
DEVELOPING POLICY INCENTIVES

Most market participants acknowledge that the overall direction of China’s
Z\IZPKPLZMVYNYLLU[LJOZVS\[PVUZKL]LSVWTLU[HUKHKVW[PVUPZL_[YLTLS`WVZP[P]L
*OPUH»ZNV]LYUTLU[OHZJVTTP[[LKZPNUPÄJHU[M\UKZ[V[OLJVTTLYJPHSPaH[PVUVM
NYLLU[LJOZVS\[PVUZHJYVZZHYHUNLVMHYLHZ;OLMV\Y[YPSSPVU`\HU<:IPSSPVU
stimulus package puts in place notable support for electric power infrastructure,
JSLHULYJVU]LU[PVUHSLULYN`JSLHULYYVHKZHUKJSLHULYYHPS[YHUZWVY[H[PVU9
>OPSL[OPZ[YLUKPZLUJV\YHNPUN[OLYLPZSPTP[LKW\ISPZOLKL]PKLUJL[OH[Z\IZPKPLZ
[HRL PU[V HJJV\U[ KL[HPSLK HUHS`ZLZ VM JVZ[ [YLUKZ MVY NYLLU[LJO ZVS\[PVUZ
:\IZPKPLZ [OH[ HYL JYLH[LK ^P[OV\[ HU \UKLYZ[HUKPUN VM H ZVS\[PVU»Z JVZ[Z YPZR
UV[ ILPUN ZPaLHISL LUV\NO [V Z[PT\SH[L ZPNUPÄJHU[ KLTHUK VY ILPUN [VV SHYNL
HUK KPZJV\YHNPUN PUUV]H[PVU :VTL PUK\Z[Y` L_WLY[Z OH]L WVPU[LK [V [OL
)\PSKPUN0U[LNYH[LK :VSHY 7OV[V]VS[HPJ Z\IZPK` HZ VUL [OH[ SHJRLK [YHUZWHYLUJ`
in its development.
7VSP[PJHSJVUZPKLYH[PVUZPUÅ\LUJLZ\IZPKPLZI`HMMLJ[PUN[OLPYZPaLI\[HSZV[OL
timing of their announcement. In greentech sectors where multiple regulators
OH]LWV[LU[PHSS`V]LYSHWWPUNH\[OVYP[`ZVTLTHYRL[WHY[PJPWHU[ZOH]LZWVRLUVM
incentive competition, where multiple government agencies compete with each
V[OLY[VZ\IZPKPaLNYV^[OPUK\Z[YPLZLP[OLYÄYZ[VYTVYLLMMLJ[P]LS`0[PZPTWVY[HU[
[V UV[L [OH[ PUÅ\LUJLZ L_LY[LK ILOPUK [OL ZJLULZ HYL UV[ HS^H`Z UV[ ]PZPISL [V
[OLTHYRL[HZZVTLTHYRL[VIZLY]LYZUV[LKILMVYL[OL5+9*ZVSHYZ\IZPK`PU
:\IZPKPLZ MVY ZWLJPÄJ [LJOUVSVNPLZ H]HPSHISL MYVT T\S[PWSL HNLUJPLZ HSZV
HYLUV[\Z\HSS`JVVYKPUH[LK:\IZPK`HWWSPJHU[ZULLK[V\UKLYZ[HUKHUKM\SÄSS[OL
VISPNH[PVUZVMKPMMLYLU[HNLUJPLZ[VX\HSPM`MVYM\UKPUN\UKLYZLWHYH[LWYVNYHTZ
-PUHSS`L]LUÔLUZ\IZPKPLZOH]LILLUHUUV\UJLKP[PZUV[HS^H`ZJSLHYÔH[
JVUKP[PVUZHWWSPJHU[ZT\Z[TLL[[VX\HSPM`MVYHUKYLJLP]L[OLT-VYL_HTWSLPU
HZ\Y]L`VM*OPUHIHZLKI\PSKPUNKLZPNULYZHUKLUNPULLYZJVUK\J[LKQVPU[S`
I`[OL*OPUH.YLLU[LJO0UP[PH[P]L^P[O[OLJVUZ[Y\J[PVUTHYRL[YLZLHYJOÄYT9**
*OPUH VM YLZWVUKLU[Z PUKPJH[LK [OL` OHK WHY[PJPWH[LK PU NYLLU I\PSKPUN
WYVQLJ[Z[OH[[HYNL[LKNV]LYUTLU[Z\IZPKPLZI\[ULHYS`VM[OPZNYV\WJSHPTLK
[VOH]LUV[YLJLP]LKL]LU[\HSILULÄ[>OPSL[OLYLHZVUZMVY[OPZMHPS\YL^LYLUV[
X\HU[PÄLKPU[OLZ\Y]L`[OLZLYLZWVUKLU[ZPUKPJH[LK[OL`^LYLVM[LU\UJSLHYVU
[OLJVUKP[PVUZ[OL`^LYLYLX\PYLK[VTLL[[VX\HSPM`MVYM\UKPUNZ\IZPKPLZ
UNEVEN COMPLIANCE WITH EXISTING POLICIES

0U THU` JHZLZ L]LU ÔLU *OPUH OHZ [OL HWWYVWYPH[L LU]PYVUTLU[HS WVSPJPLZ PU
place at the national level, monitoring and enforcing compliance at local levels
YLTHPUZHZPNUPÄJHU[JOHSSLUNLL_HJLYIH[LKI`*OPUH»ZZPaLYLNPVUHS]HYPH[PVUZ
HUKKÙHTPJHSS`JOHUNPUNLJVUVT`6ULHZWLJ[VM[OPZJOHSSLUNLPZPKLU[PM`PUN[OL
HWWYVWYPH[LSL]LSVMZ\WLY]PZPVUMVYLHJOWVSPJ`-VYL_HTWSLSVJHSNV]LYUTLU[Z
TH`L_WLYPLUJLHJVUÅPJ[VMPU[LYLZ[PM[OL`HYLYLZWVUZPISLIV[OMVY[OLNYV^[O
of local state-owned companies and for compliance with national environmental
YLN\SH[PVUZ ;OPZ JYLH[LZ H WSH\ZPISL PUJLU[P]L MVY HSSV^PUN SH_ JVTWSPHUJL K\L
[V [OL ILULÄ[Z [OLZL JVTWHUPLZ IYPUN [V [OL SVJHS LJVUVT` *OPUH OHZ UV[
[YHKP[PVUHSS`YLSPLKVUPUKLWLUKLU[[OPYKWHY[`JVTWSPHUJLTVUP[VYPUNVM[OL[`WL
\ZLK PU V[OLY JV\U[YPLZ ZV ÄUKPUN [OL YPNO[ IHSHUJL IL[^LLU UH[PVUHS SVJHS
JP]PJHUK[OPYKWHY[`JVTWSPHUJLTVUP[VYPUNPZHJOHSSLUNL[OH[HMMLJ[ZHSTVZ[HSS
NYLLU[LJOZLJ[VYZ([[OLZHTL[PTLP[THÙV[ILLMÄJPLU[MVYUH[PVUHSHNLUJPLZ
to create large compliance monitoring bureaucracies for environmental issues.
+L]LSVWPUNHUHWWYVHJOMVYLU]PYVUTLU[HSWVSPJ`JVTWSPHUJLVM[OLTHNUP[\KLHUK
ZJVWLYLX\PYLKI`HJV\U[Y`[OLZPaLVM*OPUHOHZUL]LYILLUH[[LTW[LKILMVYL
;OPZJYLH[LZHUVWWVY[\UP[`MVY*OPUH[VKLÄULHUL^TVKLSVMLU]PYVUTLU[HSS`
sustainable development.
4P_LK PUJLU[P]LZ MVY SVJHS JVTWSPHUJL TVUP[VYPUN TH` HSZV SLHK [V KPMMLYPUN
KLNYLLZ VM WVSPJ` LUMVYJLTLU[ HJYVZZ YLNPVUZ -PYZ[[PLY JP[PLZ SPRL )LPQPUN HUK
:OHUNOHPHYLJVTTVUS`YLJVNUPaLKHZOH]PUNTVYLLMMLJ[P]LWVSPJ`LUMVYJLTLU[
JHWHIPSP[PLZ [OHU ZTHSSLY JP[PLZ ;OLYL TH` HSZV IL YLNPVUHS KPMMLYLUJLZ -VY
9
International Civil Aviation Organization, “Making an ICAO standard,” http://www.icao.int/ (accessed on May 10, 2009)
10
Hinge, Adam, “Compliance with Building Energy Standards: One Perspective from the U.S.” (presentation given at the Workshop on
Energy Efficiency Compliance, Monitoring & Evaluation, Paris, France, February 9-28, 2009)

L_HTWSL H KLZPNU YL]PL^ VM V]LY I\PSKPUNZ [OL 4PUPZ[Y` VM *VUZ[Y\J[PVU
UV^[OL4PUPZ[Y`VM/V\ZPUNHUK<YIHU9\YHS+L]LSVWTLU[JHYYPLKV\[PU
YL]LHSLK VUS` VM WYVQLJ[Z PU :V\[OLYU *OPUH ^LYL MV\UK [V OH]L KLZPNUZ
JVTWSPHU[ ^P[O LULYN` LMÄJPLUJ` I\PSKPUN JVKLZ JVTWHYLK [V PU 5VY[OLYU
China.
LIMITED POLICY VISIBILITY

.YLLU[LJO THYRL[ WHY[PJPWHU[Z VM[LU OH]L SPTP[LK RUV^SLKNL VM TLKP\T HUK
SVUN[LYTWVSPJ`WSHUZ;OPZSHJRVM\UKLYZ[HUKPUNVMWHJLZWLJPÄJZHUK[PTPUN
JVTWSPJH[LZI\ZPULZZKLJPZPVUTHRPUN(S[OV\NOTHYRL[WHY[PJPWHU[ZHYLYLSH[P]LS`
well informed of the broad direction of China’s greentech policies, knowledge
VM [OL ZWLJPÄJ [PTPUN HUK KL[HPS VM PUKP]PK\HS WVSPJ` TLHZ\YLZ YLTHPUZ SPTP[LK
Companies and investors in China’s greentech markets are sometimes surprised
I`ZWLJPÄJNYLLU[LJOYLSH[LKWVSPJ`HUUV\UJLTLU[Z
One example of these uncertainties are policies related to the construction and
VWLYH[PVU VM SVJHS PUMYHZ[Y\J[\YL WYVQLJ[Z ÔPJO HYL OPNOS` KLWLUKLU[ VU SVJHS
administrations. Private companies entering into long-term concessions with
SVJHSNV]LYUTLU[ZMVYJVUZ[Y\J[PVUVYVWLYH[PVUVMPUMYHZ[Y\J[\YLHZZL[ZTH`ÄUK
that while some public servants are willing to grant assurances or protections at
[OLLHYS`Z[HNL[OLPYYLWSHJLTLU[ZTHÙV[YLZWLJ[HNYLLTLU[ZLU[LYLKPU[VI`
MVYTLYHKTPUPZ[YH[PVUZ-VYL_HTWSL^H[LY[YLH[TLU[WSHU[JVUJLZZPVUZPU*OPUH
JHUILPUL_JLZZVMVYL]LU`LHYZ>OPSL[OLHKTPUPZ[YH[PVUZ[HMMNYHU[PUN
JVUJLZZPVUZ [V WYP]H[L THYRL[ WHY[PJPWHU[Z TH` THRL JVTTP[TLU[Z [V M\[\YL
^H[LYWYPJLPUJYLHZLZZ\IZLX\LU[Z[HMMTHÙV[HIPKLI`[OLZLJVTTP[TLU[Z
Overcoming challenges will accelerate China’s

greentech market growth
THE FOUR CATEGORIES OF CHALLENGESKPZJ\ZZLK¶THYRL[[LJOUVSVN`ÄUHUJPUNHUK
YLN\SH[VY` ¶ WYLZLU[S` JVUZ[YHPU [OL ZWLLK H[ ÔPJO *OPUH»Z NYLLU[LJO THYRL[Z
HYLKL]LSVWPUN/V^L]LY[OL*OPUH.YLLU[LJO0UP[PH[P]LILSPL]LZ[OH[HSSVM[OLZL
JOHSSLUNLZ JHU IL SHYNLS` V]LYJVTL I` [OL YHUNL VM Z[HRLOVSKLYZ JVTTP[[LK
[V OLSWPUN *OPUH HJOPL]L P[Z NVHS VM LU]PYVUTLU[HS Z\Z[HPUHIPSP[` :\JJLZZM\SS`
HKKYLZZPUN [OLZL JOHSSLUNLZ ^PSS NYLH[S` HJJLSLYH[L [OL KL]LSVWTLU[ VM *OPUH»Z
NYLLU[LJOTHYRL[ZOLSWPUN[OLJV\U[Y`[HWYLUL^HISLLULYN`ZV\YJLZJSLHU[OL
air, curtail growth in greenhouse gas emissions, decrease water consumption and
pollution and address solid waste problems – all the while supporting continued
LJVUVTPJ NYV^[O :WLJPÄJ VWWVY[\UP[PLZ [V HKKYLZZ [OLZL JOHSSLUNLZ HYL
discussed in the next chapter.

OPPORTUNITIES
TO ACCELERATE
GREENTECH MARKETS

OPPORTUNITIES TO ACCELERATE GREENTECH MARKETS
Clear opportunities exist for solution adopters, solution

providers, financial investors, goverment regulators and
other stakeholders to address challenges, accelerate the
growh of greentech market and help China transform
into an environmentally sustainable economy.
What can stakeholders do to overcome the challenges facing the commercialization of greentech solutions
in China in order to accelerate the development of these markets?
THE CHINA GREENTECH INITIATIVE POSED THIS QUESTION to its partners and advisors,
who helped develop the set of opportunities outlined in this chapter. These
opportunities are not meant to be explicit recommendations, but rather suggestions
of concrete steps different stakeholder groups may take to accelerate greentech
markets and enable China’s further evolution to a sustainable economy.
While each of the greentech sectors analyzed in this report has its own
JOHYHJ[LYPZ[PJZ HUK JOHSSLUNLZ [OL 0UP[PH[P]L PKLU[PÄLK Ä]L V]LYHSS VWWVY[\UP[PLZ
J\[[PUNHJYVZZZLJ[VYZÔPJO^V\SKOH]LHZPNUPÄJHU[WVZP[P]LPTWHJ[VU*OPUH»Z
greentech market development, as shown in Figure 1.
Fig. 1: OVERALL OPPORTUNITIES TO ACCELERATE CHINA’S GREENTECH MARKETS

OVERALL OPPORTUNITY DESCRIPTION
RAISE DECISION-MAKER AWARENESS /LSWKLJPZPVUTHRLYZ\UKLYZ[HUK[OLILULÄ[ZJVZ[ZHUK

risks of green technologies
DRIVE THE MATURITY OF Support evolution of standards-based technologies to

STANDARDS-BASED SOLUTIONS enable widespread adoption
SUPPORT FAIR MARKET PLAYING FIELDS Include costs into regulatory and market frameworks which
properly value impacts of pollution and resource use
ENHANCE CAPABILITIES Build greentech skills necessary to design, develop, market,

ÄUHUJLPTWSLTLU[TVUP[VYHUKYLN\SH[LNYLLU[LJO
solutions
Strengthen collaboration between public and private

PROMOTE COLLABORATION sectors and throughout value chains, at all stages of
greentech solution life cycles

OVERALL OPPORTUNITIES
Fig. 2: KEY STAKEHOLDERS IN CHINA’S GREENTECH MARKETS

STAKEHOLDERS DESCRIPTION
Organizations and individuals purchasing or

SOLUTION ADOPTERS
using green technologies
Businesses who develop and provide green

SOLUTION PROVIDERS technologies and services
Commercial banks, private equity, venture

FINANCIAL INVESTORS capital, investment banks and other
ÄUHUJPHSZLY]PJLZWYV]PKLYZ
China’s central, provincial and local regulators,

GOVERNMENT REGULATORS as well as relevant international policy makers
Academia, non-governmental
OTHER STAKEHOLDERS organizations, international organizations
and other stakeholders
;OL 0UP[PH[P]L HSZV PKLU[PÄLK Ä]L V]LYHYJOPUN VWWVY[\UP[PLZ YLSL]HU[ HJYVZZ HSS
sectors and every stakeholder group. These opportunities, shown in Figure 2,
present clear actions all stakeholders can take to expedite the development of
H Z\Z[HPUHISL *OPUH :LJ[VYZWLJPÄJ VWWVY[\UP[PLZ ^LYL HSZV L_WSVYLK HUK HYL
discussed in the respective sector chapters of the full version of this report.
;OLÄ]LJYVZZZLJ[VYVWWVY[\UP[PLZHYL!
RAISE DECISION-MAKER AWARENESS
,K\JH[L KLJPZPVU THRLYZ HIV\[ [OL ILULÄ[Z VM NYLLU [LJOUVSVNPLZ UV[ VUS` PU
terms of reducing negative environmental impact and risks, but also in terms
VM WV[LU[PHS JVZ[ ZH]PUNZ HUK V[OLY ILULÄ[Z MYVT HKVW[PUN NYLLU[LJO ZVS\[PVUZ
Raising awareness will help adopters overcome misconceptions and make
informed decisions when evaluating greentech solutions.
DRIVE THE MATURITY OF STANDARDS-BASED SOLUTIONS

Drive and support the evolution of greentech solutions from the early research
Fig. 3: KEY STAKEHOLDER OPPORTUNITIES TO

ACCELERATE CHINA’S GREENTECH DEVELOPMENT
STAKEHOLDERS KEY OPPORTUNITIES
Promote sustainability
SOLUTION ADOPTERS Buy green
Improve compliance
Match solutions to local market requirements

,K\JH[LHKVW[LYZ[VNYLLU[LJOILULÄ[Z
SOLUTION PROVIDERS Supply products with minimized life cycle
environmental impact
Leverage commercial partnerships
FINANCIAL INVESTORS Enhance capabilities

<[PSPaLUL^ÄUHUJPUNTLJOHUPZTZ
9LÄULWVSPJPLZHUKVW[PTPaLZ[HUKHYKZ
Enforce compliance
GOVERNMENT REGULATORS -HJPSP[H[LÄUHUJPUN
Liberalize markets
Support environmental exchange
Drive greentech training

Engage other stakeholders
OTHER STAKEHOLDERS Sponsor research
Monitor compliance

phase to maturity. Standards-based solutions (i.e. those based on broadly-

accepted industry standards) should achieve suitable pricing and provide adequate
YPZRWYVÄSLZ[VLUHISL^PKLZWYLHKHKVW[PVU
SUPPORT FAIR MARKET PLAYING FIELDS

Promote regulatory regimes and market mechanisms that incorporate environmental
costs into the price of conventional solutions, such as mandatory caps, pollution
ÄULZ[H_LZHUKV[OLYTLJOHUPZTZ-VYL_HTWSL[OL<:,U]PYVUTLU[HS7YV[LJ[PVU
Agency’s Acid Rain Program used cap-and-trade systems to increase the costs of
polluting sulfur dioxide (SO2), thereby driving the market for SO2 removal solutions.
;OLWYVNYHTSLK[VV]LYHSSZPNUPÄJHU[KLJSPULPU:62 emissions, which by 2008 were 56
percent below 1980 levels.1
ENHANCE CAPABILITIES
Build leadership skills and staff capabilities across stakeholder groups to enable
[OL KLZPNU KL]LSVWTLU[ THYRL[PUN ÄUHUJPUN PTWSLTLU[H[PVU TVUP[VYPUN HUK
regulation of China’s greentech markets. This includes providing specialized
[YHPUPUN[VTHUHNLYZ[LJOUPJPHUZÄUHUJPLYZI\`LYZYLN\SH[VYZHUKV[OLYZHJYVZZ
a broad range of greentech-related knowledge and skill areas.
PROMOTE COLLABORATION
Encourage collaboration between commercial, government and non-government
stakeholders across all sectors and at all stages of greentech solutions’
development cycles. As demonstrated by the China Greentech Initiative,
JVSSHIVYH[P]LWSH[MVYTZWYVTV[LHYHUNLVMILULÄ[ZPUJS\KPUNPUJYLHZLKTHYRL[
understanding, relationship building, business model development, commercial
venture expansion and improved dialogue between public and private entities.
;OL Ä]L V]LYHSS VWWVY[\UP[PLZ PKLU[PÄLK HIV]L OLSW MYHTL [OL TVYL ZWLJPÄJ
opportunities available to each stakeholder group. Based on the input of partners and
strategic advisors, the China Greentech Initiative focused its efforts on identifying
and describing particular opportunities available to each major stakeholder group.
These are summarized in Figure 3, and explored in the following pages.
Solution Adopters
ADOPTERS AND END USERS HAVE MUCH TO GAIN FROM THE DEVELOPMENT of China’s green
technology markets. In China and elsewhere, corporations are increasingly aware
VM[OLWV[LU[PHSILULÄ[Z[OH[JVTLMYVTILPUNLU]PYVUTLU[HSS`TPUKLK7YVTV[PUN
sustainability may enable stronger relationships with customers, suppliers and
LTWSV`LLZ;OL\ZLVMNYLLU[LJOUVSVNPLZ^P[OKPYLJ[HUKPUKPYLJ[JVZ[ILULÄ[ZJHU
KYP]LNYLH[LYSVUN[LYTWYVÄ[HIPSP[`*VTTP[TLU[Z[VLU]PYVUTLU[HSZ\Z[HPUHIPSP[`
also can help minimize negative impacts before being required by regulators.
PROMOTE SUSTAINABILITY
An organization that promotes sustainability internally with employees, and
externally with local communities, is likely to gain the advantage of a good
corporate reputation as its brand becomes associated with sustainability. With
YLZWLJ[ [V LU]PYVUTLU[HS ILULÄ[Z WPVULLYPUN ZVS\[PVU HKVW[LYZ JHU LZ[HISPZO H
ZPNUPÄJHU[ T\S[PWSPLY LMMLJ[ HZ [OLPY PU[LYHJ[PVUZ ^P[O Z\WWSPLYZ J\Z[VTLYZ HUK
business partners become more sustainability-oriented.
One way companies can minimize their environmental impact and create cultures
VM LMÄJPLUJ` PZ I` [YHPUPUN Z[HMM PU LU]PYVUTLU[HS H^HYLULZZ ÔPJO JHU SLHK [V
improved employee satisfaction, controlled costs and improved relationships with
regulators and other stakeholders.
Chinese consumers are paying increasing attention to sustainability issues.

Notably, the number of Corporate Social Responsibility reports issued by Chinese
companies has seen a strong increase, from as few as four companies in 2004 to
more than 121 by 2008.2
1
United States Environmental Protection Agency, “Acid Rain Program 2008 Progress Reports: Emissions, Compliance and Market Data,” http://www.
epa.gov/ (accessed on August 13, 2009)
2
SynTao, A Journey to Discover Values 2008: Study of Sustainability Reporting in China (Beijing, China: SynTao, December 2008), 8

OPPORTUNITIES FOR SOLUTION ADOPTERS
PROMOTING SUSTAINABILITY IN THE ALUMINUM INDUSTRY

One company frequently cited for its endorsement of sustainability and support of greentech
solutions is Alcoa, the global aluminum production and management company.
Alcoa’s sustainability strategy includes investing in green technology areas such as Carbon Capture
and Sequestration and renewable energy-powered aluminum smelting facilities
The company has adopted an internal strategic framework for sustainability through 2020, including
targets for sustainable performance metrics in areas such as Safe and Sustainable Products and
Processes and Respect and Protect Employees and Communities3
As a result, Alcoa has received significant reputational benefits, including a listing in the Dow Jones
Sustainability Index over the last seven years and being named one of the World’s Top 100 Sustainable
Corporations at the World Economic Forum in Davos, Switzerland4
Potential greentech adopters in China can strive to attain similar benefits by studying the approaches
that Alcoa and other companies have taken to support sustainability, and adapting them to their own
businesses.
The promotion of sustainability should go beyond an organization’s internal

practices and extend to the broader role of supporting long-term, ecologically-
conscious economic growth in the local community. Helping to create an
environmentally sustainable China is a key opportunity for greentech solution
adopters and the local regulators who support them.
BUY GREEN
The most direct way solution adopters can promote China’s greentech markets is
by buying green, rather than conventional, products and services whenever feasible.
;OLÄYZ[WHY[VMºI\`PUNNYLLU»PZPKLU[PM`PUNÔH[PZºNYLLU»7V[LU[PHSHKVW[LYZ
can investigate the environmental impacts of their purchases and urge suppliers
to participate in labeling programs or other transparent performance data. Sharing
KH[HMVYL_HTWSLOLSWZ[LUHU[ZSLHZLLULYN`LMÄJPLU[VMÄJLZWHJLVYM\Y[OLY\W
[OLZ\WWS`JOHPUHZZPZ[ZI\PSKPUNKL]LSVWLYZI\`LULYN`LMÄJPLU[SPNO[PUNZ`Z[LTZ
(UV[OLY HZWLJ[ VM ºI\`PUN NYLLU» PZ M\SS` L]HS\H[PUN [OL SPML J`JSL JHWP[HS
expenditure and operating expenditure implications of solutions. Many greentech
ZVS\[PVUZOH]LOPNOLY\WMYVU[JHWP[HSJVZ[ZI\[^PSSZ[PSSOH]LUL[SPMLJ`JSLILULÄ[Z
K\L[VKLJYLHZLKVWLYH[PUNJVZ[ZVYSVUN[LYTLU]PYVUTLU[HSILULÄ[Z
º)\`PUN NYLLU» JHU HSZV LU[HPS W\[[PUN PU WSHJL NYLLU[LJO Z`Z[LTZ [V Z\WWVY[
effective environmental management. Regular energy audits, for example, help
inform energy consumers about which parts of their operations may be able to
HJOPL]L PTWYV]LK LMÄJPLUJPLZ /V^L]LY THU\HS H\KP[Z HYL VM[LU PTWYLJPZL
The implementation of greentech systems to support accurate audits can help
TVUP[VY[OLLMÄJPLUJ`VMKL]PJLZ\ZLKPUOVTLZLNHPYJVUKP[PVUPUN\UP[ZHUK
refrigerators), large commercial buildings (e.g. water heaters and elevators) and
industrial facilities (e.g. processing equipment and cooling systems).
IMPROVE COMPLIANCE
Solution adopters who comply with existing environmental policies can realize
ILULÄ[Z ÔPSL TPUPTPaPUN YPZR >OPSL JVTWSPHUJL ^P[O YLN\SH[VY` WVSPJPLZ VM[LU
ULJLZZP[H[LZ PUJYLHZLK JVZ[Z [OLYL HYL THU` WV[LU[PHS ILULÄ[Z -VY L_HTWSL
procuring and operating the solutions necessary to remove nitrous oxide from
industrial smokestacks or to remove toxic contaminants from industrial wastewater
can result in better relations with monitoring bodies, regulatory enforcers and other
government entities.
*VTWS`PUN ^P[O WVSPJPLZ YLK\JLZ [OL YPZR VM PUJ\YYPUN ÄUHUJPHS WLUHS[PLZ VY
even being shut down, for non-compliance. As illustrated in the YiXing example,
meeting regulatory requirements, especially when compliance is independently
3
Alcoa, “2020 Framework for Sustainability,” http://www.alcoa.com/, (accessed on August 18, 2009)
4
Alcoa, “Alcoa Again Named One of the World’s Most Sustainable Corporations at Davos,” January 29, 2009, http://www.alcoa.com/

Benefits of Compliance 5,6,7

YiXing-Union Cogeneration Co., Ltd. is a coal-fired cogeneration power plant
located in YiXing, Jiangsu province, a historic city famous for its teapots. Yixing
teapots have a long and colorful history dating back to the Song Dynasty (960 -
1279) when purple clay was first mined around the YiXing area.
Being located in the center of a historic city creates challenges for an

industrial facility like the YiXing-Union Cogeneration plan
To maintain good relationships within the local community, the company is

an early adopter of advanced emission reduction technologies, including their
spring 2009 project to lower nitrous oxide emissions
Working with LP Amina, an environmental and energy solution provider, the

facility upgraded their steam generator to become one of the first plants in
China to perform an in-furnace de-NOx modification
The modification improved the plant’s overall efficiency and lowered its NOX
emissions to 40% below China’s existing standard, in-line with current U.S.
and European standards
As a direct result of meeting mandates ahead of schedule, YiXing-Union

Cogeneration is building a positive relationship with local and provincial
governments
In turn, regulators are now promoting YiXing-Union Cogeneration’s results

as a showcase of what they want other local power generators to accomplish
Being a good corporate citizen brings benefits both to YiXing-Union Cogeneration

and to the broader YiXing community. As cities like YiXing continue to grow,
companies like YiXing-Union Cogeneration can meet rising energy needs while
protecting local environments and building strong reputations.
HUK[YHUZWHYLU[S`]LYPÄLKJHUOLSWJVTWHUPLZI\PSKYLW\[H[PVUZHZYLZWVUZPISL
corporate citizens and contribute to strong market positioning.
Policy compliance can also facilitate a company’s ability to engage with regulators
on multiple topics, including the evolution of policies and the optimization of
standards. Firms with poor government relations may be less likely to be invited to
such high-level forums of discussion.
Solution Providers
SIMILAR TO SOLUTION ADOPTERS, SOLUTION PROVIDERS have tremendous opportunities
to accelerate greentech markets in China. These include better matching greentech
ZVS\[PVUZ [V SVJHS THYRL[ YLX\PYLTLU[Z LK\JH[PUN HKVW[LYZ VU NYLLU[LJO ILULÄ[Z
minimizing life cycle environmental impact of products and leveraging commercial
partnerships.
MATCH SOLUTIONS TO LOCAL MARKET REQUIREMENTS

Many existing green technologies, developed for use in other countries, have yet to
ILJ\Z[VTPaLK[V*OPUH»ZZWLJPÄJTHYRL[ULLKZ6ULWV[LU[PHSKPMMLYLUJLIL[^LLU
China and other markets, for example, is that Chinese adopters are often more
cost-sensitive. More economically-priced solutions or new long-term contract
structures can support the widespread adoption of already proven solutions.
Aside from pricing, unique market features, such as the type of pollutants
in China’s water bodies or the associated regulatory requirements, may also
necessitate different greentech solutions than those required elsewhere. Once
5
China Greentech Initiative interview with Mr. Hu Zhijie, Deputy General Manager at YiXing-Union Cogeneration Co., Ltd. on August 14th, 2009
6
China Greentech Initiative interview with Will Latta, Managing Director at LP Amina on August 14th, 2009
Jiangsu Frontier Electric Technologies, “Boiler Performance Test Report after Combustion System Retrofit for Yixing Xielian Cogeneration Plant Boiler
7
Unit #8, DL-BG-2009-767,” 2009

OPPORTUNITIES FOR SOLUTION PROVIDERS
PROMOTING GREENER CHINESE CITIES

GENERAL ELECTRIC (GE) PARTNERED WITH BEIJING’S QINGHE WASTEWATER TREATMENT PLANT TO RECYCLE WASTEWATER
BEFORE THE BEIJING OLYMPICS.8
Beijing is one of China’s most water-scarce cities due to rapid urbanization and economic development,
and exacerbated by limited water resources and strong upstream water consumption
To address this problem, GE put in place wastewater treatment membranes and other technologies to treat
LMÅ\LU[MYVT8PUNOL>HZ[L^H[LY;YLH[TLU[7SHU[»ZJSHYPÄJH[PVUWVVS
Aside from increased municipal water supply for the residents of Haidian and Zhouyang districts,
BeijingYLZPKLU[ZHUK]PZP[VYZK\YPUN[OL6S`TWPJMLZ[P]P[PLZILULÄ[[LKIYVHKS`MYVT[OLU\TLYV\ZWSHU[Z
[YLLZHUKÅV^LYZÔPJO^LYLPYYPNH[LKI`[OPZYLJ`JSLK^HZ[L^H[LY
solutions are adapted to these market needs and regulatory requirements,

solution providers can market improved regulatory compliance as an additional
driver for adoption.
)`KL]LSVWPUNPUUV]H[P]LTHYRL[ZWLJPÄJZVS\[PVUZMVYLPNUZVS\[PVUWYV]PKLYZ
have the potential to improve their market share in China. Forging partnerships
with local providers that help develop a better understanding of local needs may
IYPUNNYLLU[LJOZVS\[PVUZ[VTHYRL[TVYLLMÄJPLU[S`
Partnerships with local universities are also a productive way of working to adapt
solutions to China’s market needs. The Tsinghua-BP Clean Energy Research and
Education Center in Beijing, with its numerous collaborative projects on a range
of clean energy issues, is a prime example of this type of approach.
EDUCATE ADOPTERS ON GREENTECH BENEFITS

Given the current lack of recognition and understanding of greentech solution
ILULÄ[ZWYV]PKLYZOH]LHUVWWVY[\UP[`[VLK\JH[LWV[LU[PHSHKVW[LYZOLSWPUN[V
establish demand for greentech products and services.
Collaboration with other solution providers, adopters, NGOs or government

agencies provides solution providers the opportunity to raise awareness
and promote the diffusion of green technologies they represent. This type of
engagement often allows enterprises to enhance their corporate reputations as
environmentally-minded companies. As industrialized countries have developed,
reputation building and brand enrichment have grown in importance, and there
are few reasons to believe that China’s experience will be substantially different.
Solution providers across China are also able to build consumer awareness
about the advantages of adopting green technologies by working to improve
environmental, health and safety conditions in the communities in which they are
involved.
SUPPLY PRODUCTS WITH MINIMIZED LIFE CYCLE ENVIRONMENTAL IMPACT

:VS\[PVUWYV]PKLYZOH]LZPNUPÄJHU[VWWVY[\UP[PLZ[VKL]LSVWHUKJVTTLYJPHSPaL
solutions that minimize life cycle environmental impact.
<UKLY WYLZZ\YL [V TPUPTPaL JVZ[Z HUK [V TH_PTPaL WYVÄ[Z ZVS\[PVU WYV]PKLYZ
occasionally supply products with shorter life spans, resulting in higher
maintenance costs and higher negative environmental impact than might be
considered optimal from the environmental perspective. For example, residential
buildings in China generally are of substantially lower quality than buildings in
other countries and, correspondingly, have shorter life spans. Demolitions are
IV[OL_WLUZP]LHUKYLZ\S[PUZPNUPÄJHU[ZVSPK^HZ[LHUKHPYWVSS\[PVU/V^L]LY
since landowners generally pay for the demolition costs to clear the area for
construction, these costs are not factored into the economic models of real
estate developers. Because of this, most developers and building owners fail to
consider the environmental costs of demolition when deciding what real estate
8
General Electric, “Water reuse project of Qinghe Wastewater Treatment Plant,” 2008

to develop or own. As China’s greentech markets mature, providers with solutions

that minimize life cycle environmental impact will be able to differentiate their
WYVK\J[ZMYVT[OLJVTWL[P[PVU;OLZLILULÄ[ZJHUILM\Y[OLYWYVTV[LKI`NYLH[LY
[YHUZWHYLUJ`HUKLK\JH[PVUHIV\[SPMLJ`JSLLU]PYVUTLU[HSJVZ[ZHUKILULÄ[Z
LEVERAGE COMMERCIAL PARTNERSHIPS

Solution providers can address challenges associated with geographic diversity and
JVZ[ILULÄ[KPZJVUULJ[ZI`WHY[ULYPUN^P[OJVTWHUPLZ[OH[VMMLYJVTWSPTLU[HY`
geographical footprints or operate in different parts of the value chain. One good
example of such partnerships is the new biofuel relationship between China
National Cereals, Oil & Foodstuff Corporation (COFCO), Novozymes and Sinopec,
ÔPJOPZWYVÄSLKILSV^
Financial Investors
THERE ARE A NUMBER OF OPPORTUNITITESMVYÄUHUJPHSPU]LZ[VYZ[VPUJYLHZL[OLPY
HIPSP[`[VLMMLJ[P]LS`ÄUHUJLHUKPU]LZ[PU*OPUH»ZNYLLU[LJOTHYRL[Z2L`
VWWVY[\UP[PLZL_PZ[PU[OLKL]LSVWTLU[VMNYLLU[LJOYLSL]HU[ÄUHUJPUNZRPSS
ZL[ZHUK[OLLTWSV`TLU[VMUL^ÄUHUJPUNTLJOHUPZTZ[VZ\WWVY[THYRL[
development.
BIOFUEL VALUE CHAIN INTEGRATION OPPORTUNITY9

As a leading grain, oils and foodstuffs import BENEFITS:
and export group in China, COFCO has access None of these companies individually had the
to biomass supply chains necessary for large- capacity to collect, process and distribute
scale biofuel production bioenergy supplies to commercial consumers in
The Danish company Novozymes has the China. Without a formal partnership, each company
technical expertise to optimize the enzymes would have had to enter into complex contractual
necessary to convert the biomass resources relationships to guarantee that revenue generated
from COFCO’s supply chains into usable from commercial customers could be passed
ethanol supplies through the supply chain for the benefit of all
On the distribution side, Sinopec owns roughly participants. A collaborative approach was required,
a third of China’s gas stations, providing the so that the costs of bioethanol commercialization
infrastructure required to distribute ethanol could be integrated with revenue, stimulating
produced by the partnership investment and creating a more profitable long-term
partnership for all three companies.
ENHANCE CAPABILITIES
*OPUHIHZLK ÄUHUJPHS PU]LZ[VYZ OH]L [OL WV[LU[PHS [V LUOHUJL [OLPY JHWHIPSP[PLZ
in areas such as the assessment and monitoring of clients’ environmental, health
and safety (EHS) risks. Another is mastering the use of new approaches to value
investments in greentech sectors.
Improving EHS risk evaluation and assessment will likely allow for greater
WHY[PJPWH[PVU I` ÄUHUJPHS PU]LZ[VYZ PU *OPUH»Z NYLLU[LJO THYRL[Z ,/: YPZRZ
include direct risks such as liabilities for environmental damages or more indirect
market, credit or reputational risks as greentech businesses interact with the
market. Similarly, revenue streams for solar or wind power generation are highly
KLWLUKLU[ VU YLZV\YJL H]HPSHIPSP[` HUK ÄUHUJPLYZ OH]L [V [HRL PU [V HJJV\U[
ZPNUPÄJHU[WV[LU[PHSKPZY\W[PVUZ[VJHZOÅV^HZHYLZ\S[;OLNYLH[LY[OLHIPSP[`MVY
*OPUH»ZÄUHUJPLYZ[VHZZLZZ[OLWV[LU[PHSPTWHJ[VMKPYLJ[HUKPUKPYLJ[,/:YPZRZ
[OLNYLH[LY[OLHIPSP[`[OL`^PSSOH]L[VPU]LZ[WYVÄ[HIS`PU*OPUH»ZNYLLU[LJOTHYRL[Z
At a global level, 69 banks have adopted the Equator Principles, which include
a voluntary set of benchmarks for managing environmental issues in development
ÄUHUJL10 ;OLZL IHURZ OV^L]LY HYL UV[ HJ[P]LS` ÄUHUJPUN *OPUH»Z NYLLU[LJO
sectors. As of August 2009, only one medium-sized Chinese bank, Industrial Bank
Co., had adopted the Equator Principles. Widespread adoption could help China’s
banks demonstrate a commitment to environmental principles and give them tools
to enhance their project capabilities.
9
Novozymes, “Novozymes and Sinopec,” http://www.novozymes.com/, February 2, 2009 (accessed on 12 August 2009)
10
The Equator Principles, “A Benchmark for the Financial Industry to Manage Social and Environmental Issues in Project Financing,” http://www.
equator-principles.com/ (accessed on August 12, 2009)

OPPORTUNITIES FOR FINANCIAL INVESTORS
OUTSOURCING ENVIRONMENTAL EXPERTISE
Investors can enhance their capabilities to evaluate greentech-related investments opportunities by

collaborating with companies with established environmental expertise.
One option is outsourcing environmental help desks to third-party specialists. For example,
PricewaterhouseCoopers has provided help desk services to assist financial investors with:
Integrating environmental criteria in credit processing, procedures and instructions

Training credit officers, back-offices, sales offices and recovery managers
Developing instructions, training documents and train-the-trainer concepts
Ensuring compliance with environmental credit risk instructions
Conducting environmental due diligences for various types of financial transactions
The second opportunity is to increase the sophistication of the valuation

HWWYVHJOLZHZ\ZLK[VHZZLZZ[OLPTWHJ[ZVMZ\Z[HPUHIPSP[`VUJSPLU[Z»ÄUHUJPHS
WLYMVYTHUJL0U*OPUHSPRLLSZLÔLYLÄUHUJPLYZ[LUK[V\ZLTVKLSPUNMYHTL^VYRZ
and tools with which they are most comfortable. While traditional tools can support
NYLLU[LJOÄUHUJPUNKLJPZPVUZ[OL`VM[LUULLK[VILJVTIPULK^P[OV[OLY[`WLZVM
analysis that incorporate diverse perspectives (e.g. regulatory risk modeling of potential
M\[\YLWVSS\[PVU[H_LZPUVYKLY[VM\SS`JHW[\YLNYLLU[LJOÄUHUJPUNKÙHTPJZ11
*OPULZL ÄUHUJPLYZ JV\SK LUOHUJL [OLPY NYLLU[LJO JHWHIPSP[PLZ HZ KLZJYPILK

above in a number of ways. The most common would be to partner with foreign
banks and learn from their experiences. A second way would be to recruit
specialized staff and develop training programs targeting the necessary skill sets.
Alternatively, partnering with companies who can provide the necessary expertise on-
demand can avoid the costs associated with building up new capabilities in house.
UTILIZE NEW FINANCING MECHANISMS

5L^ ÄUHUJPUN TLJOHUPZTZ HWWSPJHISL [V NYLLU[LJO PU]LZ[TLU[Z JV\SK WYLZLU[
additional opportunities for accelerating the development of China’s greentech
THYRL[9LSL]HU[ÄUHUJPHS[VVSZL_PZ[HJYVZZNYLLU[LJOWYVK\J[J`JSLZMYVTLHYS`Z[HNL
R&D through demonstration, deployment and diffusion of greentech solutions.
The earliest stages of greentech R&D in China and elsewhere are commonly
funded by the public sector. However, there are opportunities for angel investors
HUK[LJOUVSVN`PUJ\IH[VYZ[VNL[PU]VS]LKPULHYS`Z[HNLZVMÄUHUJPUN[LJOUVSVN`
development. Many venture capital funds also have capital that they distribute in
YLSH[P]LS`ZTHSSHTV\U[Z[VLHYS`Z[HNLJVTWHUPLZ;OPZ[`WLVMÄUHUJPUNZOV\SK
present an area of opportunity as it becomes more common in China.
Venture capital and private equity funds can play a more important role at the
demonstration stage. China’s central government is supportive of channeling
]LU[\YL PU]LZ[TLU[ PU[V NYLLU[LJO WYVQLJ[Z HUK JVTWHUPLZ WYV]PKPUN ÄUHUJPHS
investors with opportunities to build relationships with local regulators in order to
facilitate their access to China’s greentech markets.
+LI[ HUK LX\P[` ÄUHUJPUN MVY KLTVUZ[YH[PUN HUK KLWSV`PUN ZVS\[PVUZ PZ HSZV
an important tool in advancing greentech opportunities. In asset-light greentech
investment environments such as the pre-construction stages of solar power
plant development, Chinese banks typically require full corporate guarantees on
greentech investments and rarely offer non-recourse debt. Credit lines and loan
guarantees between banks have been used in other regions to diversify credit
risks and facilitate debt investment in this type of environment, suggesting there
ZOV\SKILVWWVY[\UP[PLZ[VM\Y[OLYTHRL\ZLVM[OPZ[`WLVMÄUHUJPUNPU*OPUH
11
CFO Research Services and Jones Lang LaSalle, The Role of Finance in Environmental Sustainability Efforts (Boston, MA, U.S.: CFO Publishing
Corp., March 2008), 11
12
International Finance Corporation, IFC CHUEE Program to Finance Two Energy Efficiency Projects in Western China (Washington DC, U.S.: The
World Bank, 2007)
13
Xu, Calvin Q., “China Utility-based Energy Efficiency Finance (CHUEE) Program: One Finance Solution to Climate Change” (presentation given at
Financing Cambodia’s Sustainable Energies, Phnom Penh, Cambodia, September 3, 2007)
14
MacLean, John, “New Developments in Energy Efficiency Finance in China” (presentation given at Asia Development Bank’s Asia Clean Energy Week,
Manila, Philippines, June 4, 2008)

DEVELOPING MULTI-PARTY APPROACHES 12,13,14
The International Finance Corporation (IFC) has a China Utility-based

Energy Efficiency Finance Program (CHUEE), which addresses three
key opportunities to enhance greentech financing in China:
Promote financing through guarantees – The IFC provides partial

guarantees to local banks for their investments in power utility
energy efficiency projects or equipment purchases
Use partners to identify opportunities - Utility companies, energy

management companies and energy efficiency suppliers act as
commercial banks’ channel partners to recommend projects to bank
loan officers
Build capabilities – The CHUEE program contains a training element

whereby banks can improve their skills in evaluating and monitoring
environmental investments
While the CHUEE program has benefits, investors have also identi-
fied drawbacks to the program. Firstly, a relatively small number of
banks are currently participating in the CHUEE program, and secondly,
financing amounts may not be sufficient for the energy efficiency proj-
ects China’s utilities would like to undertake.
Despite its drawbacks, the CHUEE program is a good starting point

for effective greentech financing in China. The Chinese government
and banking sector could build on the CHUEE experience to launch a
program that can both scale guarantee financing instruments as well
as mobilize financing partners’ technical expertise to more effectively
evaluate potential greentech investments.
7YVQLJ[ ÄUHUJL YLX\PYLK H[ [OL KLTVUZ[YH[PVU HUK KLWSV`TLU[ Z[HNLZ VM
greentech commercial solution development, may require more complex and
ZVWOPZ[PJH[LK ÄUHUJPHS PUZ[Y\TLU[Z HUK Z[Y\J[\YLZ 0U HKKP[PVU [V T\S[PWSL KLI[
and equity components, these can also include syndicated loans provided by a
U\TILYVMÄUHUJPHSPU]LZ[VYZ[VZOHYLWYVQLJ[YPZRZ:[HUKHYK*OHY[LYLK)HURMVY
example, offers both project structuring advice as well as genuine non-recourse
lending to well-structured renewable energy projects in China. This may be able to
serve as a model for other banks in China seeking to do the same.
Several of China’s greentech sectors are seeing the increasing use of equity
investments as a way of raising capital. In China’s water sector, for example, where
ÄUHUJPUN H ML^ `LHYZ HNV ^HZ VI[HPULK TVYL JVTTVUS` [OYV\NO ,UNPULLYPUN
Procurement and Construction (EPC), build-operate-transfer (BOT) or other project
ÄUHUJPUNHWWYVHJOLZ^H[LYJVTWHUPLZHYLUV^[HRPUNLX\P[`Z[HRLZPUU\TLYV\Z
water infrastructure projects.
Capital markets, both inside and outside China, also provide an opportunity
for China’s greentech companies to raise capital. Financiers can work with local
NYLLU[LJOJVTWHUPLZ[VZ\WWVY[[OLPYÅV[H[PVUVU[OL:OLUaOLU:OHUNOHP/VUN
2VUNVYV[OLYTHYRL[Z7HJRHNPUNT\S[PWSLYPZRKP]LYZPÄLKNYLLU[LJOPU]LZ[TLU[Z
into a common portfolio and securitizing the portfolio to raise public capital is a
TL[OVK[OH[JHUIL\ZLKI`ÄUHUJPLYZ:PUNHWVYL»Z/`Å\_>H[LY;Y\Z[PZHULHYS`
innovator in this area with its Singapore-listed public security representing multiple
water projects in both China and other countries.
+PMMLYLU[NYLLU[LJOZLJ[VYZOH]LKP]LYZLULLKZHUKYLX\PYLJ\Z[VTPaLKÄUHUJPHS
WYVK\J[Z(ZÄUHUJPHSZLY]PJLWYV]PKLYZPUUV]H[LWYVK\J[Z[VTLL[[OLZLULLKZPU
China there will be opportunities to uncover attractive greentech investments.
Energy service companies (ESCOs), for example, commonly carry out energy
LMÄJPLUJ`YL[YVÄ[ZVMI\PSKPUNZHUKPUK\Z[YPHSMHJPSP[PLZHUKHYLYLPTI\YZLKMYVT[OL
YLZ\S[PUNLSLJ[YPJP[`JVZ[ZH]PUNZ-VYHUPUKP]PK\HSI\PSKPUNLULYN`YL[YVÄ[NLULYHSS`

OPPORTUNITIES FOR GOVERNMENT REGULATORS
H YLSH[P]LS` ZTHSS HTV\U[ VM JHWP[HS PZ ULLKLK \WMYVU[ [V ÄUHUJL LX\PWTLU[
purchase and installation. In China however, where large-scale loans are the norm,
THU`,:*6ZÄUKP[KPMÄJ\S[[VZLJ\YLÄUHUJPUN
Industry experts suggest that Chinese banks have an opportunity to launch

UL^ KLI[ WYVK\J[Z ZWLJPÄJHSS` J\Z[VTPaLK MVY ,:*6Z HUK PUKP]PK\HS LULYN`
LMÄJPLUJ` YL[YVÄ[Z :PTPSHYS` [OPYKWHY[` PU[LYTLKPHYPLZ JV\SK HNNYLNH[L ZTHSSLY
LULYN` LMÄJPLUJ` WYVQLJ[Z HJYVZZ T\S[PWSL LU[P[PLZ HUK ZLLR ÄUHUJPUN MVY [OLZL
projects on a joined basis. In the U.S., where public buildings have been avid
ESCO adopters and banks more willing to lend to small projects, the ESCO
industry grew around 20% each year between 1990 and 2006, reaching over US$3.5
billion annually by 2006.15
6ULV[OLYYPZRYLSH[LKÄUHUJLVWWVY[\UP[`MVY*OPUH»ZNYLLU[LJOÄUHUJPHSZLY]PJL
providers is insurance. Environmental insurance products are used frequently
both inside and outside China, most commonly to protect farmers from weather
disturbances, but also to protect wind farms against wind resource disturbances.
China-based insurers may also have the opportunity to insure assets and income
Z[YLHTZVMNYLLU[LJOÄUHUJPLYZZVS\[PVUWYV]PKLYZHUKHKVW[LYZ16
Government Regulators
AS STRESSED THROUGHOUT THIS REPORT, China’s policy makers have already made
substantial progress in creating and implementing policies that protect the
environment and enable the development of the greentech market. Given the
pace desired and magnitude of the challenges faced, policy makers still have a
number of opportunities to support China’s efforts to become an environmentally
sustainable economy.
REFINE POLICIES AND OPTIMIZE STANDARDS

To address the challenges of China’s complex greentech policy environment,
China’s policy makers can continue to support relevant medium and long-term
policy planning efforts, placing emphasis on coordinating plans across multiple
regulatory agencies. As outlined previously, China’s greentech markets are
overseen by a wide range of regulatory entities using a diverse set of policy
instruments. This has resulted in a complex and at times confusing regulatory
environment.
One approach used in other countries to manage the complexity of environmental

issues is to introduce new cross-sector regulatory agencies. To manage the
complex policy environment surrounding water issues, for example, Singapore’s
government created the Ministry of Environment and Water Resources, which has
overall responsibility for water resources and coordinates the water policy activity
of other regulators.
While the NDRC is putting in place some measures for national harmonization of
energy policy, many of China’s renewable energy market observers have pointed
to feed-in electricity tariffs as an area where substantial policy divergence has
occurred at local levels across China. Greater interprovincial coordination on this
and other issues should improve the attractiveness of national markets.
(KKYLZZPUNWVSPJ`NHWZPUZWLJPÄJNYLLU[LJOZLJ[VYZHSZVWYLZLU[ZYLN\SH[VYZ
with methods to strengthen target greentech markets in China. The country’s
NV]LYUTLU[PZTV]PUNYHWPKS`[VKLWSV`H^PKLYHUNLVMZ\IZPKPLZ[H_ILULÄ[Z
and other industry promotion policies to drive the development of China’s
NYLLU[LJOTHYRL[Z*VU[PU\PUN[VYLÄUL[OLZLWVSPJ`[VVSZ[VLUOHUJL[OLPYPTWHJ[
JHUVUS`M\Y[OLYILULÄ[[OLKL]LSVWTLU[VM*OPUH»ZNYLLU[LJOZLJ[VYZ;OL*OPUH
Greentech Report sector chapters identify policy circumstances in each of the
ZL]LU NYLLU[LJO ZLJ[VYZ PU]LZ[PNH[LK I` [OL 0UP[PH[P]L HUK OPNOSPNO[ ZWLJPÄJ
opportunities to accelerate market development.
Hopper, Nicole et al., “A Survey of the US ESCO Industry: Market Growth and Development from 2000 to 2006,” (Berkeley, CA, U.S.: Lawrence
15
Berkeley National Laboratory, May 2007), 11

United Nations Environment Programme and Global Environment Facility, “UNEP Feasibility Studies for the Development of Insurance Solutions for
16
Renewable Energy Projects: Project Status Note Number Three,” September 2008, http://www.uneptie.org/

Also at the individual sector level, opportunities exist to improve environmental

and greentech solution standards above today’s levels. China’s government has
made dramatic steps to upgrade many environmental standards, in areas including
H\[VTVIPSL LTPZZPVUZ I\PSKPUN LULYN` LMÄJPLUJ` HUK WV[HISL ^H[LY X\HSP[` [V
levels equal to or even superior to international levels. However, standardization
represents a complex and fast-changing landscape, providing the government
additional opportunities to further develop China’s policy environment. Emerging
greentech areas, such as coal mining land recovery and collapse provisions or
interconnection of vehicles to China’s electric power infrastructure, currently lack
relevant standards, contributing to market uncertainty.
China has well-established standards development processes, but may accelerate

greentech market development by enhancing collaboration with China’s industry
associations in order to incorporate greater diversity of technical expertise into
the development process. In addition, as global trade increasingly links China’s
greentech markets with markets in other parts of the word, participating in the
development of international standards and building domestic standards that
are in line with international norms may enable China to more effectively import
advanced technologies and export Chinese solutions to the world.
ENFORCE COMPLIANCE
China has taken dramatic steps in recent years to bring its policies and standards
in line with international norms and best practices. Compliance, however, remains
uneven across different regions and across different sized market players. While
central policy makers usually draft the laws and standards with which market
participants are required to comply, it is commonly provincial and municipal
regulators who have enforcement responsibility. Central agencies may address
this challenge by supporting centralized training programs for local regulators
or highlighting strong cases of effective local enforcement as best practices
to be replicated. The scale and speed at which China is trying to address its
environmental issues in the absence of a single best-in-class model to follow make
this effort more challenging, but also more rewarding as China has an opportunity
[VKLÄULHUL^TVKLSVMZ\Z[HPUHISLKL]LSVWTLU[
Regulators can also increase policy compliance by supporting the development

VMYVI\Z[H\KP[PUNVY]LYPÄJH[PVUWYHJ[PJLZMVYWVSPJ`JVTWSPHUJL(ZHUL_HTWSL
companies under China’s Top-1000 Energy-Consuming Enterprises program
are required to submit annual energy audits to the government, but there are
few standards for the methodologies or controls to be used in these auditing
processes.
Outside China, governments sometimes outsource policy compliance monitoring

to non-governmental entities. For example, Seattle, Washington, in the U.S.,
requires public buildings larger than 5,000 square feet to achieve LEED (a third-
WHY[`NYLLUI\PSKPUNZ[HUKHYKJLY[PÄJH[PVU17<ZPUNH[OPYKWHY[`JLY[PÄJH[PVUHUK
compliance monitoring mechanism precludes municipal regulators from having to
maintain a policy compliance monitoring workforce.
;OPYKWHY[` ]LYPÄJH[PVU VM WVSPJ` JVTWSPHUJL JHU HSZV OH]L V[OLY ILULÄ[Z
particularly when local-level authorities have both regulatory and managerial
responsibility for local state-owned companies. Independent policy compliance
]LYPÄJH[PVUJHUOLSWZ\WWVY[[YHUZWHYLUJ`HUKWVSP[PJHSSLNP[PTHJ`HUKJHULUHISL
JVUZ\TLYZ [V LHZPS` I\` JVTWSPHU[ WYVK\J[Z 0U V[OLY JV\U[YPLZ ÄYTZ HYL VM[LU
required to publicly disclose evidence of their compliance with environmental
policies. This disclosure, in turn, allows consumers to show their preferences for
green technologies through their purchasing activities.
An additional aspect of promoting compliance across China’s industrial

landscape relates to the government’s potential role as an educator for potential
greentech adopters around China. Government agencies have close relationships
with many of China’s industry associations, and this channel could be used as a
Stephenson, Janet, “Case Study: Seattle Sets the Standard for U.S. Green Buildings” (paper presented at the C40 Large Cities Climate Summit, New
17
York, May 25, 2007)

OPPORTUNITIES FOR GOVERNMENT REGULATORS
FACILITATING GREENTECH DEVELOPMENT AND DEPLOYMENT
The economic development agency of the Republic of Chile has instituted programs to help power
generating companies assess financial viability of renewable energy projects and to assist commercial
banks in lending to the renewable energy sector.19
FOR RENEWABLE ENERGY PROJECT OWNERS:

Project preparation matching funds for natural resource assessment, feasibility and environmental studies,
and CDM documentation
Cost-sharing on other areas of advanced project preparation
FOR RENEWABLE ENERGY INVESTORS:

Credit lines for lending to renewable energy projects offering 30-month grace periods and repayment terms of
up to 12 years allowing them to invest as much as US$13 million in individual projects
conduit for government outreach efforts to inform potential greentech adopters

HIV\[ LJVUVTPJ HUK LU]PYVUTLU[HS JVZ[Z HUK ILULÄ[Z VM [OLPY WYVJ\YLTLU[
decisions.
FACILITATE FINANCING
As noted above, in the early stages of greentech solution development,
companies in China and elsewhere often rely heavily on public funding, either in
collaboration with academia or through direct government support. With more
than 20 subordinate institutes in its “Science and Technology for Resources
and the Environment” research area, the Chinese Academy of Sciences (CAS)
PZVULVM*OPUH»ZTVZ[PUÅ\LU[PHSJOHUULSZMVYZ[H[LZWVUZVYLKYLZLHYJO*OPUH»Z
NV]LYUTLU[PZHSYLHK`THRPUNZPNUPÄJHU[PU]LZ[TLU[ZPUNYLLU[LJOYLZLHYJOI\[
might have yet more opportunity to further use grants, prizes and other public
funding mechanisms to support greentech innovation.
Directly funding greentech development through research institutes or grant

WYVNYHTZ PZ UV[ [OL VUS` ^H` [OH[ *OPUH»Z NV]LYUTLU[ JHU ÄUHUJPHSS` Z\WWVY[
[OL KL]LSVWTLU[ VM NYLLU[LJO PU *OPUH 6I[HPUPUN KLI[ ÄUHUJPUN PZ VM[LU H
KPMÄJ\S[JOHSSLUNLMVYNYLLU[LJOWYV]PKLYZHUKHKVW[LYZÔVHYLOVWPUN[VKLWSV`
greentech solutions in China. In the same way that many of these projects are
VM[LULSPNPISLMVYJVUJLZZPVUHY`ÄUHUJPUNMYVTPU[LYUH[PVUHSVYNHUPaH[PVUZSPRL[OL
Asian Development Bank, China can and already does make use of its policy
banks to provide reduced-interest or otherwise favorable lending.
There is potential for China’s government to utilize a loan softening program

(which often includes either an interest subsidy or a partial guarantee) to enable
commercial banks to make risk assessment-based investments in greentech
sectors on concessionary terms. The Indian Ministry of New and Renewable
Energy, for example, has successfully used such an approach to help Indian banks
offer loans for the adoption of solar water heaters.18
(ZHM\Y[OLYVWWVY[\UP[`[V\ZLWVSPJ`[VVSZ[VMHJPSP[H[L[OLÅV^VMWYP]H[LJHWP[HS
into greentech sectors, China’s government can also support greentech market
KL]LSVWTLU[I`[HRPUNZ[LWZ[VOLSW*OPUH»ZÄUHUJPLYZPTWYV]L[OLPYNYLLU[LJO
relevant capabilities. China’s government is already helping to stimulate the
expansion of these skills. As noted in the Regulatory Response chapter, China’s
government rolled out a so-called Green Credit program in July of 2007 whereby
banks were required to put in place environmental impact assessment and risk
management controls for investments to environmentally damaging industries.20
(Z [OL NV]LYUTLU[ KPYLJ[S` Z\WWVY[Z HUK SL]LYHNLZ *OPUH»Z ÄUHUJPHS ZLJ[VY
to support the development of greentech solutions, another area where China’s
government can play a key enabling role is in the formation of a commercial
18
MaClean, John et al., “Public Finance Mechanisms to Mobilise Investment in Climate Change Mitigation,” (United Nations Environment Programme,
2008), 35
19
Ibid., 15
20
Ministry of Environmental Protection, “Calendar in July 2007,” http://english.mep.gov.cn/, November 27, 2007 (accessed on August 12, 2009)

environment conducive to greentech industries and solutions. The U.S.-China

Clean Energy Forum, a dialogue on clean energy issues facing the two countries,
has called for the creation of “Strategic Energy Zones” to facilitate innovation in new
[LJOUVSVNPLZWHY[PHSS`[OYV\NO[OL\ZLVMUL^ÄUHUJPUNTLJOHUPZTZ21 Creating
special industrial zones to promote the development of selected industries is an
area in which China has extensive experience and national and local policymakers
should be able to leverage this to further enable the development of substantial
greentech industries.
LIBERALIZE MARKETS
As discussed in the previous chapter, some of China’s greentech markets are
highly-concentrated or controlled primarily by state-owned enterprises. While
[OLYLHYLPTWVY[HU[ILULÄ[Z[VOH]PUNJLY[HPUPUK\Z[YPLZ\UKLYJSVZLYNV]LYUTLU[
control at critical stages in their development, more open markets also have clear
ILULÄ[ZWHY[PJ\SHYS`YLSH[LK[VLUHISPUNLMÄJPLUJ`HUKPUUV]H[PVU-PUKPUN[OLYPNO[
balance will provide China an opportunity to effectively utilize foreign and private
sector expertise and technologies to address its environmental issues, while also
supporting the development of healthy domestic greentech industries.
One path is to create mechanisms for private and foreign participation in state-
dominated markets. For instance, in the coal sector, regulators could accelerate
market development by lowering tariffs on the importation of mining solutions and
by encouraging foreign investment in coal mining and infrastructure development.
Capitalization requirements and opaque public works bidding processes constitute
barriers to private involvement in some greentech markets such as wind power.
6UL HWWYVHJO YLN\SH[VYZ TPNO[ [HRL [V WYVTV[L LMÄJPLUJ` HUK PUUV]H[PVU PU
China’s greentech sectors could be a relaxation of restrictions on private and
foreign market participation where appropriate. A further step regulators could
take would be a continued gradual relaxation of currency exchange restrictions,
which could help provide Chinese greentech companies easier access to foreign
capital as an additional source of funding.
(UV[OLY WH[O YLN\SH[VYZ JV\SK W\YZ\L [V Z\WWVY[ [OL ÄUHUJPUN VM NYLLU[LJO
solutions would be to establish special technology-focused or even greentech-
MVJ\ZLKJHWP[HSTHYRL[ZHRPU[V5(:+(8PU[OL<:[VLUHISLZPTWSPÄLKÅV[H[PVU
MVYNYLLU[LJOJVTWHUPLZ;OLILULÄ[ZVMZ\JOHTV]LJV\SKILJVTWV\UKLKPM
UL^JS\Z[LYZVMÄUHUJPHSPUZ[P[\[PVUZJV\SKILKL]LSVWLKWV[LU[PHSS`PU[OLZHTL
HYLHZHZ[OLZLTHYRL[Z[VWYV]PKLZWLJPHSPaLKÄUHUJLVWWVY[\UP[PLZ
4VYL NLULYHSS` THU` VM [OL ÄUHUJPUN VWWVY[\UP[PLZ OPNOSPNO[LK HIV]L JHU
be fully realized only with strong regulatory support. This support could include
best-practice guidelines for greentech public-private partnerships or other effec-
tive investment arrangements, such as power purchase agreements. Additionally,
regulatory support could entail incentives for domestic commercial banks to issue
concessionary loans through guarantee programs.
SUPPORT ENVIRONMENTAL EXCHANGES

Another opportunity regulators have for further promoting China’s greentech
markets relates to supporting increased use of national and international
LU]PYVUTLU[HSL_JOHUNLZ;OLZLL_JOHUNLZHSSV^JVTWHUPLZ[VYLZWVUKÅL_PIS`
[V LU]PYVUTLU[HS WVSPJPLZ I` NP]PUN [OLT VW[PVUZ [V W\YJOHZL ºLU]PYVUTLU[HS
assets’22 from other companies rather than invest in the greentech solutions
needed to create them themselves. This would allow market forces to allocate
capital to projects that most effectively reduce emissions or achieve other environmental
ILULÄ[Z
It seems likely that environmental exchanges will continue to be a part of

environmental issue management for some time to come. No matter where these
M\[\YLTHYRL[ZKL]LSVW*OPULZLNYLLU[LJOJVTWHUPLZHYL^LSSWSHJLK[VILULÄ[
China’s greentech adopters will be able to monetize their environmental assets and
[OLYLI`NHPUHKKP[PVUHSJOHUULSZMVYÄUHUJPUN[OLPYJHWP[HSPU]LZ[TLU[Z*OPUH»Z
21
US-China Clean Energy Forum, “Initiatives,” http://cleanenergyforum.net/ (accessed on August 11, 2009)
22
While carbon emissions reductions are the most well-known environmental assets, other examples include emissions reductions of other air, water, or
solid waste pollutants, or improvements in energy, water, or raw material efficiency.

OPPORTUNITIES FOR OTHER STAKEHOLDERS
greentech solution providers will meanwhile have opportunities to sell solutions to

companies participating in relevant environmental markets.
Therefore, the question for China’s regulators is how to most effectively support
[OLKL]LSVWTLU[VMLU]PYVUTLU[HSL_JOHUNLZ[VIYPUNYLZ\S[PUNILULÄ[Z[V*OPUH»Z
greentech providers and adopters. One approach would be to enable further
WHY[PJPWH[PVU PU [OL 2`V[V 7YV[VJVS»Z *SLHU +L]LSVWTLU[ 4LJOHUPZT *+4 (Z
noted in the previous chapter, there are limitations in place on foreign investments
in CDM projects in China. Creating mechanisms for increased foreign involvement
could facilitate greater deployment of advanced foreign CDM-applicable
NYLLUOV\ZL NHZ LTPZZPVUZ YLK\J[PVU ZVS\[PVUZ Z\JO HZ SHUKÄSS NHZ[VLULYN`
technologies. Encouraging international environmental exchanges could also
extend to supporting the creation of other international environmental exchanges,
as successors to the CDM or otherwise.
Irrespective of developments at the international level, China has already estab-

lished domestic environmental exchanges in Beijing, Shanghai and Tianjin. These
exchanges are discussing future potential trading of sulfur oxide (SOX), nitrous
oxide (NOXHUKJOLTPJHSV_`NLUKLTHUK*6+LTPZZPVUZYLK\J[PVUJLY[PÄJH[LZ
in addition to wider trading of carbon or other environmental assets. China’s gov-
ernment could drive the development of China’s greentech markets by further
supporting the development of such exchanges.
As noted in the Regulatory Response chapter, China’s government has gained

experience with allocation of environmental targets to individual companies
through the Top-1000 Energy-Consuming Enterprises Program. This experience
should be useful if the government makes a move towards requiring company-
level reductions of other types of emissions related to its national environmental
targets. Once individual companies have targets for environmental performance,
using exchanges to minimize the costs of reaching these targets is a logical next
step, and one to which regulatory support could lend further momentum.
Like many opportunities to promote the development of greentech in China,

building strong environmental exchanges is not something any one group of
market stakeholders can do alone. Whether in relation to international or domestic
environmental asset trading, China’s greentech adopters will have to work with
ÄUHUJPLYZ[VKL]LSVWLMMLJ[P]LZ[YH[LNPLZMVYTVUL[PaPUNLU]PYVUTLU[HSHZZL[ZHUK
using them to support capital investments. Greentech providers will also have to
^VYRTVYLJSVZLS`^P[OHKVW[LYZ[VOLSW[OLT\UKLYZ[HUKOV^HKVW[PVUVMZWLJPÄJ
ZVS\[PVUZ JHU IL WHY[PHSS` ÄUHUJLK I` JHWP[HS TVIPSPaLK [OYV\NO LU]PYVUTLU[HS
exchange transactions. Other market stakeholders also have important roles to
play in creating the environments necessary for vibrant environmental exchanges
and spreading information about them to encourage companies to participate.
Other Stakeholders
A NUMBER OF OTHER STAKEHOLDERS, including academic institutions, non-
governmental organizations (NGOs) and international organizations, also have interest
PUHUKWV[LU[PHSHIPSP[`[VPUÅ\LUJL[OLKL]LSVWTLU[VM*OPUH»ZNYLLU[LJOTHYRL[Z
DRIVE GREENTECH TRAINING

A core opportunity is to develop and support environmental education and greentech
training initiatives in China. Academic, non-governmental and international
organizations often have considerable technical expertise in environmental issues,
ÔPJOX\HSPÄLZ[OLT[VZ\WWVY[YLN\SH[VY`JHWHJP[Ì\PSKPUNH[UH[PVUHSHUKSVJHS
levels. One example of this support is the Joint U.S.-China Cooperation on Clean
Energy (JUCCCE) Mayoral Training Program, which together with China’s Ministry
of Housing and Urban-Rural Development, trained over 50 mayors from China’s
largest cities on sustainability issues in 2008.23
Like regulators, solution providers and adopters also require training in the
economic and environmental values of greentech solutions in China. This
23
TreeHugger.com, “Greening China’s Mayors: A Q&A with Dr Steve Hammer of the Mayoral Training Program on Energy Smart Cities,” http://www.
treehugger.com/ (accessed on August 11, 2009)

knowledge can directly contribute to more effective investment decisions by

solution providers and increased adoption by solution adopters.
General public training initiatives and campaigns also support the development
of the greentech market. Many NGOs, such as the Jane Goodall Institute,
organize public awareness campaigns on environmental issues within China.
These campaigns effectively raise the environmental awareness of the Chinese
consumer, who is encouraged to support environmentally-friendly products and
services, thus accelerating China’s greentech market development.
ENGAGE OTHER STAKEHOLDERS

Another opportunity for academic, NGO and international organizations is to
leverage their independent status to build links and communications channels
IL[^LLUZVS\[PVUWYV]PKLYZZVS\[PVUHKVW[LYZÄUHUJPHSPU]LZ[VYZHUKYLN\SH[VYZ
For example, by hosting forums, conferences and other industry meetings they
provide a range of market participants with platforms to exchange information and
build relationships, as well as address policy issues with regulators.
Activities can develop beyond bringing stakeholder groups together. There are
already a wide range of greentech conferences in China, but academic, non-
governmental or international organizations should have further opportunity to
move beyond conferences to action-oriented meetings and ongoing dialogues
YH[OLY[OHUVULVMML]LU[Z;OLZL\UHMÄSPH[LKVYNHUPaH[PVUZJHUL]LU[HRLKPYLJ[
action to support China’s greentech market development. For example, Econet
China, coordinated by the German Industry and Commerce Greater China, hosts
an extensive directory of Chinese and foreign greentech companies on their
website as a tool for companies to locate and contact each other.24
Other organizations such as China Sustainable Energy Program (CSEP), funded

I` ;OL ,ULYN` -V\UKH[PVU WYV]PKL NYHU[Z [V NV]LYUTLU[HMÄSPH[LK YLZLHYJO
institutes that aid in shaping the Chinese government’s energy policies to reduce
carbon dioxide emissions. The research institutes along with international policy
experts advise the government on new energy policies.25
SPONSOR RESEARCH
Academic, non-governmental and international organizations can also support
the development of China’s greentech markets by conducting and disseminating
research in greentech basic science and greentech solutions. For example,
research institutes at China’s top universities typically have strong relationships with
regulators, and are consequently in a good position to advise the government on
issues as diverse as resource pricing policies and technical solution standards.
Outside of academia, other groups such as China’s Energy Management Company

Association (EMCA), an industry association with more than 200 company members
HJ[P]LPU[OL,:*6ÄLSKHSZVJVUK\J[HUKKPZZLTPUH[LNYLLU[LJOYLZLHYJO,4*(
grew from 59 organizations in 2003 to 212 ESCOs in 2007 and assisted the NDRC
in the management of a World Bank/Global Environment Fund project to build ESCO
capacity in China. Much of its focus is on disseminating information on new policies
HUKYLN\SH[PVUZYLSH[LK[VLULYN`LMÄJPLUJ`HUKOLSWPUNI\PSK,:*6JHWHIPSP[PLZ26
MONITOR COMPLIANCE
Third-party stakeholders can play a role in creating and supporting mechanisms
for tracking compliance with existing policies. The use of independent regulatory
compliance monitoring is somewhat limited in China compared to other countries.
While many smaller, more local NGOs in China have transparency issues and
unclear agendas, larger international NGOs have opportunities to investigate
whether or not market participants are in compliance with policies and promote
information transparency.
Econet China, “Company Directory,” http://www.econet-china.com/ (accessed on August 11, 2009)

24
The China Sustainable Energy Program, “Approach,” http://www.efchina.org/ (accessed on August 13, 2009)
25
Zhu, Lin, “ Enhanced Stakeholder’s Involvement in Energy Efficiency Action at Municipal Level” (presentation given at the International Seminar on
26
Energy Efficiency Action at Municipal Level, Ulanbataar, Mongolia, May 9-10, 2006)

OPPORTUNITIES FOR OTHER STAKEHOLDERS
Opportunities Are a Starting Point

THE OPPORTUNITIES DISCUSSED IN THIS CHAPTER represent steps that China’s
NYLLU[LJOTHYRL[Z[HRLOVSKLYZ¶ZVS\[PVUHKVW[LYZZVS\[PVUWYV]PKLYZÄUHUJPHS
investors, government regulators and others – can take to address existing
challenges, accelerate the development of greentech markets and contribute to
China’s environmental sustainability.
Developed with the input of the Initiative’s partners and strategic advisors,
[OLZL VWWVY[\UP[PLZ HYL PU[LUKLK [V WYV]PKL N\PKHUJL YH[OLY [OHU ZWLJPÄJ
recommendations, which can be customized and used in the decision-making
processes of individual organizations. As such, these opportunities represent a
starting point for the innovative steps that organizations will take over the next
ZL]LYHS`LHYZPU*OPUH4VYLKL[HPSLKZLJ[VYZWLJPÄJVWWVY[\UP[PLZHYLPUJS\KLKPU
the individual sector chapters of the full report.
With thousands of organizations and millions of people involved in the ongoing

development of China’s greentech markets, the China Greentech Initiative is
optimistic that development challenges will be largely overcome, greentech
THYRL[Z^PSSNLULYHSS`ÅV\YPZOHUK[OLJV\U[Y`^PSSHJJLSLYH[LP[Z[YHUZMVYTH[PVU[V
an environmentally sustainable future.

111
THE CHINA GREENTECH RE-
PORT
SECTOR SNAPSHOTS
SECTOR SNAPSHOTS
112
CLEANER CONVENTIONAL ENERGY
RENEWABLE ENERGY
ELECTRIC POWER INFRASTRUCTURE
GREEN BUILDING
CLEANER INDUSTRY
CLEAN WATER
The full version of The China Greentech ReportTM contains detailed chapters that
cover the Definition, Market Context, Regulatory Response, Solutions,
Challenges and Opportunities for each sector.
The full report is available at www.china-greentech.com.
113
SECTOR SNAPSHOT
CLEANER CONVENTIONAL ENERGY
DEFINITION Cleaner Conventional Energy is defined as energy derived from non-

renewable fossil (e.g., coal, oil, natural gas) or nuclear fuel sources in ways
which minimize the negative impact on the natural environment.
Cleaner coal includes solutions such as Coal Screening and Scrubbing,
0U[LNYH[LK .HZPÄJH[PVU *VTIPULK *`JSL 0.** HUK *HYIVU *HW[\YL HUK
:LX\LZ[YH[PVU**:1
*SLHULYNHZJVUZPZ[ZVMZVS\[PVUZSPRL*HW[\YLHUK<ZLVM*VHS4PUL=LU[PSH[PVU
(PY4L[OHULHUK5H[\YHS.HZ*VTIPULK*`JSL5.**
*SLHULY VPS PZ THKL \W VM ZVS\[PVUZ Z\JO HZ ,MÄJPLU[ 6PS ,_[YHJ[PVU >H[LY
9LPUQLJ[PVUHUK6W[PTPaLK9LZLY]VPY4HUHNLTLU[[OH[HSSV^VPS[VILL_[YHJ[LK
PU^H`ZÔPJOTPUPTPaLULNH[P]LPTWHJ[VU[OLUH[\YHSLU]PYVUTLU[
5\JSLHY WV^LY PZ LULYN` KLYP]LK ]PH JVU[YVSSLK U\JSLHY ÄZZPVU VM YHKPVHJ[P]L
TH[LYPHSZH[U\JSLHYWV^LYWSHU[Z
MARKET CONTEXT *OPUHPZ[OL^VYSK»ZSHYNLZ[LULYN`JVUZ\TLYHM[LY[OL<:HUKP[ZLULYN`KLTHUK

PZMVYLJHZ[LK[VNYV^HZT\JOHZHUU\HSS`[VYLHJO TPSSPVU[VUZVMVPS
LX\P]HSLU[4[VLI`2+LZWP[L*OPUH»ZJVTTP[TLU[[V[OLKL]LSVWTLU[VM
YLUL^HISLLULYN`HZHUHS[LYUH[P]LZV\YJLMVYP[ZLULYN`KLTHUKHUHS`Z[ZWYLKPJ[
[OH[ *OPUH»Z KLWLUKLUJL VU JVU]LU[PVUHS LULYN` ^PSS JVU[PU\L PU [OL JVTPUN
KLJHKLZ*VHSPZWYLKPJ[LK[VYLTHPU[OLKVTPUHU[LULYN`ZV\YJLPU[OLJV\U[Y`»Z
M\LSTP_[OYV\NO[VH[SLHZ[3

SECTOR SNAPSHOT: CLEANER CONVENTIONAL ENERGY
*OPUH»Z YLSPHUJL VU JVU]LU[PVUHS LULYN` OHZ OHK H Z\IZ[HU[PHS LU]PYVUTLU[HS

PTWHJ[^P[O*OPUH»ZJVHSJVTI\Z[PVUHSVULJVU[YPI\[PUNTVYL[OHUVMNSVIHS
*62 LTPZZPVUZ PU 4 0U HKKP[PVU [V *62 V[OLY JVU]LU[PVUHS WVSS\[HU[Z WYV-
K\JLKK\YPUNJVU]LU[PVUHSLULYN`NLULYH[PVUZ\JOHZUP[YVNLUV_PKLZHUKZ\SM\Y
V_PKLZHYLHSZVVM[LUYLSLHZLKPU[V[OLH[TVZWOLYL\U[YLH[LK*OPUH»ZVPSPUK\Z[Y`
HZHYLZ\S[VML_WSVP[H[PVUWYVK\J[PVUHUKYLÄUPUNWYVJLZZLZWYVK\JLZZ\IZ[HU-
[PHSHTV\U[ZVMWVSS\[PVUPU^H[LYNHZHUKZVSPKMVYT
0UVYKLY[VTHUHNLYLSPHUJLVUJVU]LU[PVUHSLULYN`HUK[OLWVSS\[PVU[OH[YLZ\S[Z
CHINA’S REGULATORY MYVTP[Z\[PSPaH[PVU*OPUH»ZNV]LYUTLU[OHZPZZ\LKHU\TILYVMZLNTLU[ZWLJPÄJ
RESPONSE KL]LSVWTLU[WSHUZ
In the 11th-P]L@LHY7SHUMVY*VHS0UK\Z[Y`+L]LSVWTLU[*OPUH»Z
NV]LYUTLU[JHSSLKMVYJVHSPUK\Z[Y`PU[LNYH[PVU[VILHJOPL]LK[OYV\NO[OLJSVZPUN
VMZTHSSHUKPULMÄJPLU[JVHSTPULZHUKWV^LYWSHU[Z5 ;OL4LKP\THUK3VUN;LYT
+L]LSVWTLU[7SHUMVY[OL6PS9LÄUPUN0UK\Z[Y`WYV]PKLZHZPTPSHYNVHS
MVY JSVZPUN ZTHSS HUK TLKP\TZPaLK YLÄULYPLZ ^P[O SPTP[LK JHWHJP[PLZ V\[KH[LK
[LJOUVSVNPLZ HUK OPNO WVSS\[PVU PU[LUZP[PLZ YLWSHJPUN [OLT ^P[O SHYNLY TVYL
LMÄJPLU[YLÄULYPLZ
0U*OPUH»Z4LKP\THUK3VUN;LYT+L]LSVWTLU[7SHUMVY5\JSLHY7V^LY
[OL NV]LYUTLU[ JHSSLK MVY [OL HJJLSLYH[PVU VM U\JSLHY KL]LSVWTLU[ [V
HJOPL]L SV^JHYIVU WYVNYLZZ >OPSL U\JSLHY WV^LY HJJV\U[LK MVY VUS` VM
*OPUH»Z [V[HS WV^LY TP_ PU *OPUH WSHUZ [V PUJYLHZL [V[HS U\JSLHY JHWHJP[`
MYVT .>PU[V.>I`
(ZKLZJYPILKPU[OL,_PZ[PUNHUK,TLYNPUN:VS\[PVUZJOHW[LY[OL*OPUH.YLLU[LJO
EXISTING AND EMERGING 0UP[PH[P]LL]HS\H[LKNYLLU[LJOZVS\[PVUZHJYVZZ[^VRL`KPTLUZPVUZLU]PYVUTLU[HS
GREENTECH SOLUTIONS PTWHJ[WV[LU[PHSHUKJVTTLYJPHSPaH[PVUWV[LU[PHSHUHNNYLNH[PVUVMHKKYLZZHISL
THYRL[ZPaLZVS\[PVUH[[YHJ[P]LULZZHUKTHYRL[HJJLZZPIPSP[`:LL[OL:VS\[PVUZ
JOHW[LYMVYHTVYLJVTWSL[LKLZJYPW[PVUVM[OLTL[OVKVSVN`\ZLK
CLEANER CONVENTIONAL ENERGY SOLUTIONS EVALUATION SUMMARY

SOLUTION UNIT ENVIRONMENTAL COMMERCIALIZATION POTENTIAL OVER TIME
IMPACT POTENTIAL
CLEANER COAL: PRE-COMBUSTION

HIGHEST
Commercialization potential is a product of average addressable

(K]HUJLK*VHS4PUPUN,X\PWTLU[ 5 market size, solution attractiveness and market accessibility for all
Coal Blending 1 solutions within each displayed category. More detail on solutions
is included in the Existing and Emerging Solutions chapter and the
Coal Screening and Scrubbing 5
COMMERCIALIZATION POTENTIAL
Cleaner Conventional Energy chapter of the full report.
CLEANER COAL: CONVERSION AND COMBUSTION

*VHS3PX\LMHJ[PVU 1
F-Class Gas Turbine 2
0U[LNYH[LK.HZPÄJH[PVU*VTIPULK*`JSL 3
<S[YH:\WLYJYP[PJHS7V^LY.LULYH[PVU 2
<UKLYNYV\UK*VHS.HZPÄJH[PVU*VTIPULK*`JSL 3
CLEANER COAL: POST-COMBUSTION
*HYIVU*HW[\YLHUK:LX\LZ[YH[PVU 5
LOWEST
-S\L.HZ+LZ\SM\YPaH[PVU 5
Flue Gas Denitration 5
7HY[PJ\SH[L4H[[LY9LTV]HS 5
0 - 1 YEARS 1 - 5 YEARS 5 - 10 YEARS
CLEANER GAS
*HW[\YLHUK<ZLVM*VHS4PUL=LU[PSH[PVU(PY4L[OHUL 5 Cleaner coal: Pre-combustion
*VTIPULK/LH[HUK7V^LY 3 Cleaner coal: Conversion and combustion
5H[\YHS.HZ*VTIPULK*`JSL 4 Cleaner coal: Post-combustion
Cleaner gas
CLEANER OIL Cleaner oil
Nuclear power
>H[LY9LPUQLJ[PVU 5
NUCLEAR POWER
-HZ[5L\[YVU9LHJ[VY 5 LEGEND
4VK\SHY/PNO;LTWLYH[\YL.HZ*VVSLK9LHJ[VY Unit environmental impact potential of solutions:
5
5!=!More than 40%!!1!=!Less than 10%

SECTOR SNAPSHOT: CLEANER CONVENTIONAL ENERGY
;OL PUKP]PK\HS*SLHULY*VU]LU[PVUHS,ULYN`ZVS\[PVUZPULHJOVM[OLHUHSàLK
ZVS\[PVUHYLHZ^LYLNLULYHSS`MV\UK[VOH]LZPaLHISL\UP[LU]PYVUTLU[HSPTWHJ[Z
WYV]PKPUN WV^LY WSHU[ VWLYH[VYZ ^P[O H ]HYPL[` VM ZVS\[PVUZ [OL` JHU PTWSLTLU[
[VPTWYV]L[OLPYLU]PYVUTLU[HSWLYMVYTHUJL,U]PYVUTLU[HSPTWHJ[ZKPMMLY^P[OPU
VWWVY[\UP[`HYLHZZ\JOHZHTVUN[OLKPMMLYLU[[`WLZVMJVHSJVU]LYZPVUHUKJVT-
I\Z[PVU ZVS\[PVUZ HUK HYL L_WSVYLK PU TVYL KL[HPS PU [OL *SLHULY *VU]LU[PVUHS
,ULYN`ZLJ[VYJOHW[LYVM[OLM\SSYLWVY[
>P[OYLZWLJ[[VJVTTLYJPHSPaH[PVUWV[LU[PHSÔPSLTHU`HUHS`ZLZOH]LMVJ\ZLK
VUJVHSJVTI\Z[PVUHUKJVU]LYZPVU[LJOUVSVNPLZ[OL0UP[PH[P]L»ZHUHS`ZPZPUKPJH[LZ
[OH[ JSLHULY JVHS WYLJVTI\Z[PVU HUK WVZ[JVTI\Z[PVU ZVS\[PVUZ TH` OH]L H
Z[YVUNLY JVTTLYJPHS WV[LU[PHS PU *OPUH V]LY [OL UL_[ `LHYZ >P[OPU [OL NHZ
ZLNTLU[*VTIPULK/LH[HUK7V^LYHSVUN^P[O*HW[\YLHUK<ZLVM*VHS4PUL
=LU[PSH[PVU(PY4L[OHUL^LYLMV\UK[VOH]LWVZP[P]LJVTTLYJPHSPaH[PVU[YLUKZV]LY
[OL`LHYWLYPVKHUHSàLKI\[K\L[VWV[LU[PHSS`YPZPUNJVZ[ZHUKPUJYLHZPUNS`
KPMÄJ\S[L_[YHJ[PVUVM*OPUH»ZZJHYJLUH[\YHSNHZYLZV\YJLZ5H[\YHS.HZ*VTIPULK
*`JSL ZVS\[PVUZ HYL L_WLJ[LK [V OH]L H KLJSPUPUN JVTTLYJPHSPaH[PVU WV[LU[PHS PU
*OPUHV]LY[PTL
GREENTECH DEVELOPMENT A number of challenges complicate the development of China’s Cleaner

Conventional Energy, including:
CHALLENGES
CATEGORY CHALLENGES
4HYRL[MYHNTLU[H[PVUPUZVTL]HS\LJOHPUZ[HNLZLNTPULZHUKYLÄULYPLZ
MARKET
HUKJVUJLU[YH[PVUPUV[OLYZLNVPSL_WSVYH[PVUHUKNHZVSPULKPZ[YPI\[PVU
SLHKPUN[VLMÄJPLUJ`JOHSSLUNLZHUKOPNOWVSS\[PVUSL]LSZ
>OPSLZVTLJSLHULYJVU]LU[PVUHSLULYN`ZVS\[PVUZHYLHSYLHKÌLPUNKLWSV`LK
TECHNOLOGY
V[OLYZHYLUV[`L[[LJOUVSVNPJHSS`TH[\YLLUV\NO[VZ\WWVY[^PKLZWYLHK
JVTTLYJPHSPaH[PVU
:[H[LÄUHUJPUNVMJVU]LU[PVUHSLULYN`ZLJ[VYSPTP[PUNWYP]H[LHUKMVYLPNU
FINANCING PU]LZ[TLU[HUKWV[LU[PHSKP]LYZPÄJH[PVUVMPU]LZ[TLU[YPZRZ
*VTWSPHUJL^P[OZVTLJVU]LU[PVUHSLULYN`Z[HUKHYKZPTWYV]PUNT\JOTVYL
REGULATORY X\PJRS`[OHUJVTWSPHUJL^P[OV[OLYZ
OPPORTUNITIES TO Cleaner Conventional Energy sector opportunities include:

7HY[PJPWH[PUN PU *OPULZL HUK PU[LYUH[PVUHS YLZLHYJO HUK KL]LSVWTLU[ LMMVY[Z [V LU
ACCELERATE MARKET OHUJLPUUV]H[PVUHUKKVTLZ[PJWYVK\J[PVUVMZVS\[PVUZ
DEVELOPMENT ,UJV\YHNPUN [OL KL]LSVWTLU[ VM Z[HUKHYKPaH[PVU ZHML[` TVUP[VYPUN Z`Z[LTZ HUK
^HZ[LTHUHNLTLU[WVSPJPLZ]PHJVSSHIVYH[PVUZIL[^LLUWYV]PKLYZHKVW[LYZHUK[OL
NV]LYUTLU[
+L]LSVWPUNÄUHUJPUNTLJOHUPZTZ\[PSPaPUNIV[OW\ISPJHUKWYP]H[LPU]LZ[TLU[[V
Z[PT\SH[L[OLKL]LSVWTLU[VMPUUV]H[P]L[LJOUVSVNPLZ
)\PSKPUNHKVW[LYJHWHJP[`[VPU[LNYH[LT\S[PWSLJSLHULYJVU]LU[PVUHSLULYN`ZVS\[PVUZ
PU[VLULYN`VW[PTPaLKNLULYH[PVUZ`Z[LTZ
A breakdown of opportunities for different stakeholder groups is available in the full version
of the report.
1
Also often referred to as Carbon Capture and Storage (CCS)
2
International Energy Agency, World Energy Outlook 2007: China and India Insights (Paris, France: International Energy Agency, 2007),
109
3
Ibid., 122
4
Ibid., 199
5
中华人民共和国国家发展和改革委员会, “煤炭工业发展”‘十一五’规划,”2007年1月, [NDRC, “11th Five Year Plan for Coal
Industry Development,” January 2007]
6
中华人民共和国国务院,“炼油工业中长期发展专项规划, ”2006年1月[The State Council, People’s Republic of China, Medium and
Long Term Development Plan of Oil Refining Industry, January, 2006]
7
World Nuclear Association, “Nuclear Power in China,” August 21, 2009, http://www.world-nuclear.org/
8
中华人民共和国国家发展和改革委员会,核电中长期发展规划, [NDRC,Middle and Long Term Development Plan of Nuclear
Power(2005-2020)]

SECTOR SNAPSHOT
RENEWABLE ENERGY
SECTOR SNAPSHOTS
CHINA’S RENEWABLE ENERGY SECTOR

DEFINITION Renewable Energy is produced from sources that are naturally
replenishing, such as solar light, wind, waves, underground heat, surface
water flows and biomass. The China Greentech Initiative focused on
China’s solar, wind and bioenergy markets.
SOLAR ENERGY CONSISTS OF THERMAL OR ELECTRIC ENERGY DERIVED FROM SOLAR

LIGHT \ZPUN 7OV[V]VS[HPJ JLSSZ *VUJLU[YH[PUN :VSHY PUZ[HSSH[PVUZ VY :VSHY >H[LY
/LH[LYZ >PUK WV^LY PZ KLÄULK HZ LSLJ[YPJ LULYN` NLULYH[LK MYVT ^PUK \ZPUN
WV^LY NLULYH[PVU [\YIPULZ )PVLULYN` PZ [OLYTHS VY LSLJ[YPJ LULYN` WYVK\JLK
MYVTIPVTHZZHUKPUJS\KLZZVS\[PVUZZ\JOHZIPVL[OHUVSIPVKPLZLSIPVNHZHUK
IPVTHZZJVTI\Z[PVU
;OL*OPUH.YLLU[LJO0UP[PH[P]L»ZMVJ\ZVUZVSHY^PUKHUKIPVLULYN`ZVS\[PVUZ^HZ
IHZLKVUMLLKIHJRMYVTWHY[ULYZHUKHK]PZVYZHU\UKLYZ[HUKPUNVMJ\YYLU[THYRL[
VWWVY[\UP[PLZHUKJVUZPKLYH[PVUVM[OL0UP[PH[P]L»ZH]HPSHISL[PTLHUKYLZV\YJLZ;OPZ
MVJ\ZIÙVTLHUZPTWSPLZHQ\KNTLU[VU[OLLU]PYVUTLU[HSVYJVTTLYJPHSWV[LU[PHS
VMV[OLYYLUL^HISLLULYN`THYRL[ZLNTLU[Z
MARKET CONTEXT *OPUH»ZKYHTH[PJPUK\Z[YPHSPaH[PVUOHZSLK[VZ\IZ[HU[PHSNYV^[OPULULYN`KLTHUK

;V[HSLSLJ[YPJP[`JVUZ\TW[PVUNYL^TVYL[OHUÄ]L[PTLZMYVT [VÔPSL
NYV^PUN WL[YVS JVUZ\TW[PVU OHZ THKL *OPUH [OL ^VYSK»Z ZLJVUK SHYNLZ[ VPS
JVUZ\TLYHM[LY[OL<:1-HZ[LYNYV^[OPUKLTHUK[OHUZ\WWSÒHZSLK[VHOLH]`
YLSPHUJLVUPTWVY[ZVMMVYLPNUVPSJYLH[PUNUH[PVUHSZLJ\YP[`JVUJLYUZ

SECTOR SNAPSHOT: RENEWABLE ENERGY
;OLLULYN`WYVK\JLKMYVTJVHSZLY]LZTVZ[VM*OPUH»ZLULYN`KLTHUK·
]LYZ\Z H NSVIHS H]LYHNL VM PU 2 >OPSL [OPZ PZ UV[ Z\YWYPZPUN HZ JVHS
PZJOLHWHUKHI\UKHU[PU*OPUHP[JYLH[LZLU]PYVUTLU[HSJOHSSLUNLZZPUJLJVHS
WV^LYNLULYH[PVUPZZPNUPÄJHU[S`TVYL*62PU[LUZP]L[OHUWV^LYWYVK\J[PVUMYVT
V[OLYLULYN`ZV\YJLZ3
@L[PUHKKP[PVU[VP[ZHI\UKHUJLVMJVHS*OPUHPZMVY[\UH[L[VOH]LYLUL^HISL
resources in abundance:
SOLAR: ;^V[OPYKZ VM *OPUH»Z SHUK HYLH LUQV`Z V]LY YHKPH[PVU OV\YZ
HUU\HSS`HUKOHZZVSHYYLZV\YJLZPUL_JLZZVM21JT`LHYI`JVTWHYPZVU
.LYTHU` HUK 1HWHU H]LYHNL VUS` 21JT`LHY HUK 21JT2`LHY
YLZWLJ[P]LS`4,5
WIND: *OPUHHSZVOHZHI\UKHU[^PUKLULYN`YLZV\YJLZÔPJOPMM\SS`[HWWLK
JV\SKNLULYH[LH[SLHZ[HZT\JOLSLJ[YPJP[`HZ[OLJV\U[Y`»ZJ\YYLU[[V[HSPUZ[HSSLK
LSLJ[YPJHSJHWHJP[`
BIOENERGY: 0U *OPUH OHK TPSSPVU [VUZ VM JVHS LX\P]HSLU[ 4[JL
IPVTHZZZ\WWS`
CHINA’S REGULATORY *OPUHPZMVJ\ZLKVUTP[PNH[PUN[OLPTWHJ[VMJSPTH[LJOHUNL0[Z5H[PVUHS*SPTH[L

RESPONSE *OHUNL7YVNYHT1\ULV\[SPULZ*OPUH»ZZ[YH[LNPJWYPVYP[PLZMVYHKKYLZZPUN
JSPTH[L JOHUNL PUJS\KPUN RL` WVSPJPLZ [V IL KL]LSVWLK ;OPZ ^HZ [OL ÄYZ[ Z\JO
WSHUI`HKL]LSVWPUNJV\U[Y`[VTVKLYH[LNYLLUOV\ZLNHZLTPZZPVUZHUKHKHW[
[VJOHUNPUNLU]PYVUTLU[HSJVUKP[PVUZ
9LJVNUPaPUN[OLK\HSULLK[VIV[OHKKYLZZJSPTH[LJOHUNLHUKPTWYV]LLULYN`
ZLJ\YP[` *OPUH OHZ \UKLY P[Z 9LUL^HISL ,ULYN` 3H^ HUK Z\IZLX\LU[
WVSPJPLZW\[PUWSHJLU\TLYV\ZYLN\SH[PVUZPUJLU[P]LZHUKZ\IZPKPLZ[VZ\WWVY[
[OL\[PSPaH[PVUVMYLUL^HISLLULYN`(ZKPYLJ[LKI`*OPUH»Z4LKP\THUK3VUN;LYT
+L]LSVWTLU[7SHUMVY9LUL^HISL,ULYN`*OPUH»ZWV^LYWYVK\JLYZ
HYL ^VYRPUN [V I\PSK UVUO`KYV YLUL^HISL LULYN` NLULYH[PVU JHWHJP[` [V VM
[OLPY[V[HSLULYN`TP_I`HUKI`
*OPUH»Z KLZPYL [V PUJYLHZL [OL \ZL VM YLUL^HISL LULYN` OHZ Z\WWVY[LK [OL
KL]LSVWTLU[ VM KVTLZ[PJ YLUL^HISL LULYN` PUK\Z[YPLZ ;OL NV]LYUTLU[ OHZ
PTWSLTLU[LK H ^PKL YHUNL VM Z\IZPKPLZ [V LUJV\YHNL PU]LZ[TLU[ PU [OL ZLJ[VY
Z\JO HZ PU]LZ[TLU[Z Z\WWVY[PUN HJJLZZ YVHKZ HUK LSLJ[YPJP[` [YHUZTPZZPVU
PUMYHZ[Y\J[\YL [HYPMM HUK =(; YLIH[L WYVNYHTZ MVY PTWVY[Z VM WHY[Z HUK YH^
TH[LYPHSZHUKKPYLJ[WH`TLU[Z[VYLUL^HISLLULYN`WSHU[VÛLYZ[VJVTWLUZH[L
MVYSVZZLZ;OLZLWVSPJPLZÔPJOOH]LZ\WWVY[LK[OLNYV^[OVMKVTLZ[PJYLUL^HISL
LULYN`JVTWHUPLZOH]LWYVTW[LKZVTLMVYLPNUJVTWHUPLZ[VX\LZ[PVUÔL[OLY
[OLL]VS\[PVUVMSVJHSJVUKP[PVUZ^PSSHSSV^[OLT[VJVU[PU\LWHY[PJPWH[LPU[OLZL
THYRL[Z
EXISTING AND EMERGING (ZKLZJYPILKPU[OL,_PZ[PUNHUK,TLYNPUN:VS\[PVUZJOHW[LY[OL*OPUH.YLLU[LJO

GREENTECH SOLUTIONS 0UP[PH[P]LL]HS\H[LKNYLLU[LJOZVS\[PVUZHJYVZZ[^VRL`KPTLUZPVUZLU]PYVUTLU[HS
PTWHJ[WV[LU[PHSHUKJVTTLYJPHSPaH[PVUWV[LU[PHSHUHNNYLNH[PVUVMHKKYLZZHISL
4VZ[YLUL^HISLLULYN`ZVS\[PVUZZJVYLOPNOMVYLU]PYVUTLU[HSPTWHJ[WV[LU[PHS
ZPUJL YLUL^HISL LULYN` NLULYH[PVU WYVK\JLZ aLYV VY TPUPTHS NYLLUOV\ZL NHZ
LTPZZPVUZHZ\IZ[HU[PHSHK]HU[HNLV]LYJVU]LU[PVUHSNLULYH[PVU>P[OPUJLY[HPU
YLUL^HISL LULYN` THYRL[ ZLNTLU[Z OV^L]LY [OLYL HYL LU]PYVUTLU[HS PTWHJ[
KPMMLYLUJLZ Z\JO HZ [OL NYLH[LY *62 HIH[LTLU[ WV[LU[PHS VM JLSS\SVZPJ IPVM\LSZ
JVTWHYLK [V ÄYZ[ NLULYH[PVU IPVM\LSZ 0U HKKP[PVU [OLYL HYL ZL]LYHS PUKP]PK\HS
1
Bureau of East Asian and Pacific Affairs, Fact Sheet: Economic Relations Between the United States and China (Washington, DC, U.S.: United States
Department of State, 2006), 2
2
Li, Junfeng and Wang, Sicheng, 2007 China Solar PV Report (China: China Environmental Science Press, 2008), 6
3
Energy Information Administration, International Energy Outlook 2009 (Washington, DC, U.S.: United States Department of Energy, 2009), 109
4
Bai, Charles, Solar Energy Demand in China (Zhejiang, China: ReneSola), 2
5
Chinagate, “Medium and Long-Term Development Plan for Renewable Energy in China,” September 4, 2007, http://en.chinagate.cn/
6
Li, Junfeng et al., 2007 China Wind Power Report (China: China Environmental Science Press, 2008); World Nuclear Association, “Nuclear Power in
China,” August 21, 2009, http://www.world-nuclear.org/; The China Greentech Initiative Analysis
7
National Devleopment and Reform Commission, China Renewable Energy Development Overview (Beijing, China: Energy Bureau of the NDRC and
Energy ,Research Institute of the NDRC, 2008), 14
8
National Devleopment and Reform Commission, China’s National Climate Change Program (Beijing, China: NDRC, 2007)
9
中华人民共和国国家发展和改革委员会,可再生能源中长期发展规划,2007年8月, [China Climate Change Info-Net, Medium and Long-Term
Plan for Renewable Energy Development (2007-2020)], (Beijing, China: National Development and Reform Commission, August, 2007), 30

SECTOR SNAPSHOT : RENEWABLE ENERGY
RENEWABLE ENERGY SOLUTIONS EVALUATION SUMMARY

UNIT UNIT UNIT
WIND SOLUTION ENVIRONMENTAL SOLAR SOLUTION ENVIRONMENTAL BIOENERGY SOLUTION ENVIRONMENTAL
IMPACT POTENTIAL IMPACT POTENTIAL IMPACT POTENTIAL
WIND - TURBINES SOLAR - BIO - ELECTRICITY

PHOTOVOLTAICS
Offgrid / <1MW / Horizontal 5 Crystalline Silicon PV 5 Biomass Combustion 5

Offgrid / <1MW / Vertical 5 Thin Film PV 5 Biomass Co-Firing 3
- Amorphous Silicon
Ongrid / 1-3 MW / Onshore 5 Thin Film PV 5 BIO - HEAT

- Cadmium Telluride
Ongrid / >3 MW / Onshore 5 Thin Film PV - CIGS 5 Industrial Heat 5
Ongrid / >3 MW / Offshore 5 Building-Intergrated PV 5 Civil Heat 5
WIND - DEVELOPMENT SOLAR - BIO - FUELS
CONCENTRATING
Micrositing 3 Parabolic Trough 5 Sweet Sorghum (ethanol) 5
Wind Assessment 3 Fresnel Mirror 5 Cassava (ethanol) 5

WIND - MAINTENANCE Power Towers 5 Cellulose (ethanol) 5
Control Systems 2 Parabolic Dish 5 Waste Vegetable Oil (diesel) 5
-Stirling Engine
Maintenance 2 Concentrating PV 5 Jatropha (diesel) 5
Standard Operating 2 Microalgae (diesel) 5
Procedures (SOPs)
Conversion Technology 4
WIND - ENERGY STORAGE SOLAR WATER

HEATERS
Compressed Air Storage 5 Solar Water Heater 5

Battery Storage 5 LEGEND
Unit environmental impact potential of solutions:
Pumped Hydro Storage 5
5!=!More than 40%!!1!=!Less than 10%
YLUL^HISLLULYN`ZVS\[PVUZÔPJOOH]LSPMLJ`JSLLU]PYVUTLU[HSJVUJLYUZK\L[V
[OL YLZV\YJLZ \ZLK VY ^HZ[L NLULYH[LK PU [OLPY THU\MHJ[\YPUN THPU[LUHUJL VY
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GREENTECH DEVELOPMENT =HYPV\ZJOHSSLUNLZOPUKLY[OLM\SSKL]LSVWTLU[VM*OPUH»ZYLUL^HISLLULYN`ZLJ[VY

( OPNOSL]LS ZHTWSL VM [OLZL JOHSSLUNLZ PZ PUJS\KLK ILSV^ HUK TVYL ZWLJPÄJ
CHALLENGES JOHSSLUNLZ HYL PU]LZ[PNH[LK IV[O PU [OL *OHSSLUNLZ JOHW[LY HUK [OL 9LUL^HISL
,ULYN`:LJ[VYJOHW[LYVM[OLM\SSYLWVY[

SECTOR SNAPSHOT: RENEWABLE ENERGY
Commercialization potential is a product of average addressable market size, solution attractiveness and market accessibility for all solutions within each displayed category.
More detail on solutions is included in the Existing and Emerging Solutions chapter and the Renewable Energy chapter of the full report.
CATEGORY CHALLENGES
(YLUL^HISLLULYN`PZSHYNLS`HIV\[WV^LYNLULYH[PVUHUK[O\ZLULYN`ZLJ\YP[`*OPUH»ZSH^Z
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SLU[ZK\L[V[OLJVTWHYH[P]L[LJOUVSVNPJHSTH[\YP[`VMMVYLPNUZVS\[PVUZHUKNYLH[LYL_WLYP
TECHNOLOGY LUJLVMMVYLPNUJVTWHUPLZPU[OLZLHYLHZ
+VTLZ[PJWYV]PKLYZVM[LUOH]LSLZZL_WLYPLUJLPUTHUHNPUNPU[LSSLJ[\HSWYVWLY[`HZZL[Z[OHU
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YLUL^HISLLULYN`WYVQLJ[Z[VZLJ\YLÄUHUJPUN^P[OV\[M\SSJVYWVYH[LZWVUZVYN\HYHU[LLZ
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3HJRVM[YHUZWHYLUJ`HUKZWLJPÄJP[`PUYLUL^HISLLULYN`YLN\SH[PVUJVTIPULK^P[OSPTP[LK
JVTT\UPJH[PVUVU[OLZWLJPÄJZHUK[PTPUNVMWVSPJPLZHUKKPYLJ[PVUTHRLZP[KPMÄJ\S[MVY
REGULATORY JVTWHUPLZ[VWYLKPJ[YPZRZHZ^LSSHZSL]LSHUK[PTPUNVMWV[LU[PHSYL[\YUZ[O\ZZSV^PUNPU]LZ[TLU[
OPPORTUNITIES TO Renewable Energy opportunities sector include:

ACCELERATE MARKET ,UJV\YHNL[OLKL]LSVWTLU[VM\UPÄLKHUKL]LUS`LUMVYJLKZ[HUKHYKZZ\JO
DEVELOPMENT HZZ[HUKHYKZMVYPU[LYMHJPUN[LJOUVSVNPLZHUKJVZ[PUNTL[OVKVSVNPLZMVY
JVUULJ[PUNYLUL^HISLLULYN`NLULYH[PVU[V*OPUH»ZLSLJ[YPJWV^LY
PUMYHZ[Y\J[\YLI`JVSSHIVYH[PUN^P[OWYV]PKLYZHKVW[LYZHUK[OLNV]LYUTLU[
0U[YVK\JLPUUV]H[P]LÄUHUJPUNTLJOHUPZTZZ\JOHZWYLJVUZ[Y\J[PVUWV^LY
W\YJOHZLHNYLLTLU[Z[VLUJV\YHNLPU]LZ[TLU[ZPU*OPUH»ZYLUL^HISLLULYN`PUK\Z[Y`
,Z[HISPZOMYHTL^VYRZMVYW\ISPJWYP]H[LHUK:PUVMVYLPNUJVSSHIVYH[PVUZ\JOHZ
QVPU[ZVS\[PVUZKL]LSVWTLU[VYYLUL^HISLLULYN`WSHU[VWLYH[PVUZ[VLUJV\YHNL
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*OPUH»ZYPZPUNLULYN`KLTHUK
A breakdown of opportunities for different classes of stakeholders is available in the

full version of the China Greentech Report.

SECTOR SNAPSHOT
ELECTRIC POWER INFRASTRUCTURE
DEFINITION Electric Power Infrastructure refers to “smart” electric grids and

networks, supported by IT applications, which deliver power to users
on demand in an efficient and reliable way, from a broad range of
generating sources.
THE ELECTRIC POWER INFRASTRUCTURE VALUE CHAIN INCLUDES CONVENTIONAL GRID
COMPONENTS Z\JO HZ WV^LY NLULYH[PVU [YHUZTPZZPVU HUK KPZ[YPI\[PVU HUK
ZLY]PJLSVJH[PVUHZ^LSSHZZ[VYHNLHUKPUMVYTH[PVUJVTT\UPJH[PVUZ[LJOUVSVN`
JVTWVULU[ZJLU[YHS[VZTHY[NYPKZ
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SECTOR SNAPSHOT : ELECTRIC POWER INFRASTRUCTURE
*OPUH»ZPUZ[HSSLK^PUKJHWHJP[`^HZUV[JVUULJ[LK[V[OLNYPKPUHUKHTVUN
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CHINA’S REGULATORY ;VYLZWVUK[V[OLKYHTH[PJNYV^[OPULSLJ[YPJP[`KLTHUK*OPUH»ZYLN\SH[VYZOH]L

[HRLU H U\TILY VM JVUJYL[L Z[LWZ [V WYVTV[L M\Y[OLY KL]LSVWTLU[ VM *OPUH»Z
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Z\JOHZPTWYV]LKYLSPHIPSP[`HUK[OLWV[LU[PHS[VLUHISLV[OLYM\[\YLZVS\[PVUZUVY
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1
2
“BP,” BP Statistical Review of World Energy June 2009”
3
“中国电力科学研究院, ”“中国电力 ” [China Electricity Research Institute, “China Electric Power ‘Highway’”] http://www.epri.ac.cn/
(accessed on July 18, 2009)”
4
中国电力企业联合会,“统计与分析:全国电力工业统计快报 (2005 - 2008)” [China Electricity Council, National Power Industry Statisti-
cal Reports 2005-2008]
5
People’s Daily, “China’s Strong Smart Grid Leads the Way,” August 11, 2009, http://english.people.com.cn/
6
中央政府门户网站, “投资数据尽显亮色“4万亿”投资计划初见成效”, 2009年3月29日 [Central Government Website, “4 Trillion Invest-
ment Has Achieved Preliminary Results”, March 29, 2009], http://www.gov.cn

SECTOR SNAPSHOT : ELECTRIC POWER INFRASTRUCTURE
ELECTRIC POWER INFRASTRUCTURE SOLUTIONS EVALUATION SUMMARY

IMPACT POTENTIAL
EFFICIENCY IMPROVEMENT AND
HIGHEST
LOSS REDUCTION TECHNOLOGIES market size, solution attractiveness and market accessibility for all
solutions within each displayed category. More detail on solutions
*VTWVZP[L4H[LYPHSZ*HISLZ 1 is included in the Existing and Emerging Solutions chapter and the
Electric Power Infrastructure chapter of the full report.
;YHUZMVYTLYZ^P[O(TVYWOV\Z*VYL 1
<S[YH/PNO=VS[HNL;YHUZTPZZPVU 1

SMART GRID COMPONENTS
(K]HUJLK4L[LYPUN0UMYHZ[Y\J[\YL 2
Digital Substation 1
07)HZLK(\[VTH[PJ4L[LY9LHKPUN 1
9LHS;PTL0UMVYTH[PVU7YVJLZZPUN 1
>PKL(YLH4HUHNLTLU[:`Z[LT 1
LOWEST
ENERGY STORAGE SOLUTIONS
5H:)H[[LY` 5 0 - 1 YEARS 1 - 5 YEARS 5 - 10 YEARS

=HUHKP\T9LKV_)H[[LY` 5
Efficiency improvement and loss reduction technologies
Smart grid components
GRID ACCESS SOLUTIONS Energy storage solutions
Grid access solutions
,SLJ[YPJ(\[V=LOPJSL*OHYNPUN:`Z[LT 5
9LUL^HISL,ULYN`(JJLZZ-SL_PISL 5 LEGEND
(S[LYUH[PUN*\YYLU[;YHUZTPZZPVU Unit environmental impact potential of solutions:
5!=!More than 40%!1!=!Less than 10%
:`Z[LT-(*;:
GREENTECH DEVELOPMENT A number of challenges complicate the development of China’s Electric

Power Infrastructure, including:
CHALLENGES
CATEGORY CHALLENGES
4VUVWVS`THYRL[Z^P[OOPNOLU[YÌHYYPLYZJVTIPULK^P[OKP]LYZLHWWSPJH[PVU
MARKET
LU]PYVUTLU[Z
/PNO\UP[JVZ[ZHUKZHML[`PZZ\LZJVU[YPI\[PUN[VYLSH[P]LJVTTLYJPHS
TECHNOLOGY
PTTH[\YP[`VMTHU`LSLJ[YPJWV^LYPUMYHZ[Y\J[\YLNYLLU[LJOZVS\[PVUZ
5HZJLU[I\ZPULZZTVKLSZHUKYLZ[YPJ[PVUZVUWYP]H[LHUKMVYLPNUPU]LZ[TLU[
FINANCING SPTP[PUN[OLH]HPSHIPSP[`VMJHWP[HSMVYLSLJ[YPJWV^LYPUMYHZ[Y\J[\YLPU]LZ[TLU[Z
4HYRL[PUZ\SH[LK\WZ[YLHTHUKLUK\ZLYLSLJ[YPJP[`WYPJLZ
REGULATORY 3PTP[LKÄZJHSPUJLU[P]LZMVYTVKLYUPaH[PVUJV\WSLK^P[OSPTP[LKZ\WLY]PZPVU
VMLSLJ[YPJWV^LYPUMYHZ[Y\J[\YLLU]PYVUTLU[HSPTWHJ[Z
Electric Power Infrastructure sector opportunities include:

OPPORTUNITIES TO
0TWYV]PUN[OLJHWHIPSP[PLZVMZVS\[PVUWYV]PKLYZHUKHKVW[LYZ[VPUUV]H[L
ACCELERATE MARKET L]HS\H[LHUKTHUHNLHK]HUJLKLSLJ[YPJWV^LYPUMYHZ[Y\J[\YLZVS\[PVUZ
DEVELOPMENT ULJLZZHY`[VPTWYV]LNYPKLMÄJPLUJ`YLSPHIPSP[`ZLJ\YP[`HUKTHUHNLHIPSP[`
:\WWVY[PUNLMMLJ[P]LW\ISPJWYP]H[LWHY[ULYZOPWZPUIV[O[OLÄUHUJPUNHUK
VWLYH[PVUZVM*OPUH»Z,SLJ[YPJ7V^LY0UMYHZ[Y\J[\YLWHY[PJ\SHYS`PUHYLHZYLSH[LK[V
TVKLYUPaPUNKPZ[YPI\[PVUPUMYHZ[Y\J[\YL
0UJYLHZPUN [OL PTWHJ[ VM THYRL[ MVYJLZ VU LSLJ[YPJP[` WYPJL JVUZPKLYH[PVUZ H[
[OLZ\WWS`HUKKLTHUKZPKLZVM*OPUH»Z,SLJ[YPJ7V^LY0UMYHZ[Y\J[\YLZVHZ[V
OLSWWV^LYNLULYH[VYZNYPKVWLYH[VYZHUK\ZLYZTHRLLMMLJ[P]LKLJPZPVUZVU
UL^JHWP[HSWYVQLJ[Z
A detailed description of opportunities for different stakeholders
is in the full version of the report.

SECTOR SNAPSHOT
GREEN BUILDING
DEFINITION Green Building covers planning, building and operating solutions that are
more sustainable, efficient and healthy than conventional solutions for an
equivalent level of comfort and service. Green Building includes solutions
such as integrated design, sustainable materials, energy efficient appliances
and building automation.
MARKET CONTEXT >P[O ULHYS` [^PJL [OL [V[HS ÅVVY ZWHJL VM [OL <: HUK TVYL [OHU MV\Y [PTLZ HZ
T\JO HZ >LZ[LYU ,\YVWL *OPUH»Z I\PSKPUN THYRL[ PZ [OL SHYNLZ[ PU [OL ^VYSK1
2L` KYP]LYZ VM JVUZ[Y\J[PVU PUJS\KPUN .+7 NYV^[O HUK \YIHUPaH[PVU HYL
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JLY[PÄLK¹NYLLU¹ÅVVYZWHJLJVUZ[P[\[LZSLZZ[OH[VM[OLULÎ\PS[LU]PYVUTLU[3
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WS\Z[OLJVUZ[Y\J[PVUHUKVWLYH[PVUVM[OLI\PSKPUNZPUÔPJO[OLZLTH[LYPHSZHYL\ZLK
*OPUH»ZI\PSKPUNZ\ZLULHYS`MV\Y[PTLZSLZZLULYN`WLYZX\HYLTL[LY[OHUI\PSKPUNZ
PUKL]LSVWLKJV\U[YPLZ`L[NLULYH[LULHYS`VM*OPUH»ZHUU\HSNYLLUOV\ZLNHZ

SECTOR SNAPSHOT : GREEN BUILDING
LTPZZPVUZ4,5/V^L]LYK\LWHY[PHSS`[VWVVYJVUZ[Y\J[PVUWYHJ[PJLZZVTLI\PSKPUN
[`WLZ PU *OPUH LN THU` VMÄJL I\PSKPUNZ PU ÄYZ[HUK ZLJVUK[PLY JP[PLZ OH]L MHY
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I\PSKPUNLTPZZPVUZ^PSSPUJYLHZLJVUZPKLYHIS`PU[OLM\[\YL
*OPUH»ZNV]LYUTLU[OHZZL[HTIP[PV\Z[HYNL[ZHUKN\PKLSPULZMVYNYLLUI\PSKPUN
CHINA’S REGULATORY ,ULYN`LMÄJPLUJ`PZVULVM*OPUH»ZRL`LU]PYVUTLU[HSWVSPJ`NVHSZHUKI\PSKPUNZ
RESPONSE HYLL_WLJ[LK[VJVU[YPI\[LVM*OPUH»Z[V[HSLULYN`LMÄJPLUJ`PTWYV]LTLU[Z
in the 11th -P]L@LHY .\PKLSPULZ WLYPVK >H[LY JVUZLY]H[PVU PZ HSZV
NYV^PUN PU WVSP[PJHS PTWVY[HUJL HUK *OPUH»Z KVTLZ[PJ NYLLU I\PSKPUN Z[HUKHYK
HSYLHK` MVJ\ZLZ TVYL VU ^H[LY PZZ\LZ [OHU V[OLY NYLLU I\PSKPUN Z[HUKHYKZ
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VM/V\ZPUNHUK<YIHU9\YHS+L]LSVWTLU[46/<9+4PUPZ[Y`VM,U]PYVUTLU[HS
7YV[LJ[PVU4,7HUKV[OLYJLU[YHSHUKSVJHSYLN\SH[VYZJVTWSPHUJLSL]LSZOH]L
]HYPLK ZPNUPÄJHU[S` HJYVZZ [OL JV\U[Y` *OPUH PZ L_WLJ[LK [V MHJL JVU[PU\LK
JOHSSLUNLZ TVUP[VYPUN JVTWSPHUJL ^P[O LP[OLY J\YYLU[ VY M\[\YL NYLLU I\PSKPUN
YLN\SH[PVUZVYJVKLZ
(ZKLZJYPILKPU[OL,_PZ[PUNHUK,TLYNPUN:VS\[PVUZJOHW[LY[OL*OPUH.YLLU[LJO
EXISTING AND EMERGING 0UP[PH[P]LL]HS\H[LKNYLLU[LJOZVS\[PVUZHJYVZZ[^VRL`KPTLUZPVUZLU]PYVUTLU[HS
GREENTECH SOLUTIONS PTWHJ[ HUK JVTTLYJPHSPaH[PVU WV[LU[PHS HU HNNYLNH[PVU VM HKKYLZZHISL THYRL[
ZPaL ZVS\[PVU H[[YHJ[P]LULZZ HUK THYRL[ HJJLZZPIPSP[` :LL [OL ,_PZ[PUN HUK
,TLYNPUN:VS\[PVUZJOHW[LYMVYHTVYLJVTWSL[LKLZJYPW[PVUVM[OLTL[OVKVSVN`
\ZLK
GREEN BUILDING SOLUTIONS EVALUATION SUMMARY

IMPACT POTENTIAL
ENERGY EFFICIENCY SOLUTIONS

HIGHEST

market size, solution attractiveness and market accessibility for all
(K]HUJLK,U]LSVWL 5 solutions within each displayed category. More detail on solutions
)\PSKPUN0U[LNYH[LK/LH[HUK7V^LY 5
Green Building chapter of the full report.

.YLLU+L]PJLZ 3
:THY[)\PSKPUNZ 2
WATER EFFICIENCY SOLUTIONS
.YL`^H[LY:`Z[LTZ 4
)\PSKPUN0U[LNYH[LK9HPU^H[LY*VSSLJ[PVU 2
3V^-SV^-P_[\YLZ 3
OPTIMIZED MATERIALS SOLUTIONS

LOWEST
3VJHS:V\YJPUN 2
3V^0TWHJ[4H[LYPHSZ 4
9LJ`JSLK4H[LYPHSZ 4 0 - 1 YEARS 1 - 5 YEARS 5 - 10 YEARS
Energy efficiency solutions
CROSS-AREA SOLUTIONS Water efficiency solutions
Optimized materials solutions
*VTTPZZPVUPUNHUK,MÄJPLU[6WLYH[PVUZ 3 Cross-area solutions
Integrated Design 5
7HZZP]L+LZPNU 5 LEGEND
9LZV\YJL:LY]PJL*VTWHUPLZ 3 Unit environmental impact potential of solutions:
:\Z[HPUHISL<YIHU7SHUUPUN 5 5!=!More than 40%!1!=!Less than 10%

SECTOR SNAPSHOT: GREEN BUILDING
>OPSLHSSJSHZZLZVM.YLLU)\PSKPUNZVS\[PVUZ^LYLMV\UK[VOH]LMHPYSÒPNO
\UP[LU]PYVUTLU[HSPTWHJ[WV[LU[PHSJYVZZHYLHZVS\[PVUZZJVYLKOPNOLZ[
VU[OPZKPTLUZPVUTHPUS`KYP]LUI`WSHUUPUNHUKKLZPNUZVS\[PVUZ7HZZP]L
+LZPNU0U[LNYH[LK+LZPNUHUK:\Z[HPUHISL<YIHU7SHUUPUNÔPJOJHUIL
HWWSPLKPULHYS`Z[HNLZVMHI\PSKPUN»ZKLZPNUHUKVMMLYT\S[PWSLVWWVY[\UP[P[LZ
[VPTWYV]LZ\Z[HPUHIPSP[`:\Z[HPUHISL<YIHU7SHUUPUNJHUHSZVYLK\JL[OL
LU]PYVUTLU[HSPTWHJ[ZHZZVJPH[LK^P[OV[OLYZ`Z[LTZZ\JOHZLSLJ[YPJHS
JVTT\UPJH[PVUZVY[YHUZWVY[H[PVUPUMYHZ[Y\J[\YL
+L]LSVWPUNLULYN`LMÄJPLU[ZVS\[PVUZPZH[VWWYPVYP[`MVYTH`.YLLU)\PSKPUN
ZVS\[PVUWYV]PKLYZHUKPZ^LSSHSPNULK^P[ONV]LYUTLU[WYPVYP[PLZ>P[O
YPZPUNLULYN`WYPJLZLULYN`LMÄJPLUJ`ZVS\[PVUZZOV\SKHSZVILJVTLTVYL
PTWVY[HU[MVYZVS\[PVUHKVW[LYZHUKLUK\ZLYZKYP]PUNPUJYLHZLKJVTTLYJPHS
\W[HRL(Z*OPUH»Z^H[LYZJHYJP[`PZZ\LZILJVTLTVYLZPNUPMÄJHU[^H[LY
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THYRL[WV[LU[PHS
GREENTECH DEVELOPMENT A number of challenges complicate the ongoing development of China’s

Green Building sector:
CHALLENGES
CATEGORIES DESCRIPTION
3V^HKVW[LYH^HYLULZZHUKPUHKLX\H[LKVTLZ[PJKLZPNUHUKJVUZ[Y\J[PVU
MARKET
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(KVW[PVUVMNYLLUI\PSKPUNZVS\[PVUZHUK[LJOUPX\LZZSV^LKI`SPTP[LKZ\WWS`
TECHNOLOGY and distribution
+LJV\WSPUNVMJVZ[ZHUKILULÄ[ZIL[^LLUKL]LSVWLYZLUK\ZLYZHUKLULYN`
FINANCING Z\WWSPLYZÔPJOWYL]LU[ZHU`WHY[`MYVTWYVHJ[P]LS`HKVW[PUNZVS\[PVUZ
<UL]LUPTWSLTLU[H[PVUVMHUKJVTWSPHUJL^P[OWVSPJPLZSPTP[LKPU[LNYH[PVU
REGULATORY ^P[OT\UPJPWHS\[PSP[ÙL[^VYRZHUKSV^YLZV\YJLHUK\[PSP[`WYPJLZ
OPPORTUNITIES TO ;OLYLHYLU\TLYV\ZVWWVY[\UP[PLZMVYTHYRL[Z[HRLOVSKLYZ[V[HRLHJ[PVU[V
HJJLSLYH[L[OLKL]LSVWTLU[VM*OPUH»Z.YLLU)\PSKPUN:LJ[VYPUJS\KPUN!
ACCELERATE MARKET -VYTPUNUL^TVKLSZVMT\S[PWHY[`JVSSHIVYH[PVUHJYVZZ[OL.YLLU
DEVELOPMENT )\PSKPUN]HS\LJOHPU[VTPUPTPaLSPMLJ`JSLLJVUVTPJHUKLU]PYVUTLU[HS
JVZ[ZÔPSLPTWYV]PUNI\PSKPUNZLY]PJLZ
,UNHNPUNL_PZ[PUNHUKWV[LU[PHSI\PSKPUNVÛLYZ[VJVTT\UPJH[L
WYLMLYLUJLZMVYI\PSKPUNZ[OH[TPUPTPaLLU]PYVUTLU[HSPTWHJ[ZHUKJVTWS`
^P[OLU]PYVUTLU[HSYLN\SH[PVUZ
0UUV]H[PUNNYLLUÄUHUJPUNWYVK\J[ZMVYWYV]PKLYZHUKHKVW[LYZ
+L]LSVWPUNHUKL_WHUKPUNNYLLUI\PSKPUNJVTWVULU[WYVK\J[SHILSPUN
and standards
A breakdown of opportunities for different classes of stakeholders is

available in the full version of the report.
1
Calculated as the product of a country’s population (Source: United Nations, “World Population Prospects: The 2008 Revision”) and total
floor space per capita (Source: China Council for International Cooporation on Environment and Development, Annual General Meeting
2008: Energy Efficiency and Urban Development (Beijing, China: CCICED, 2008)). Western Europe includes the U.K., Ireland, Belgium,
France, Netherlands, Portugal, and Spain.”
2
Crosthwaite David et al., World Construction 2007-2008 Report, (London, U.K.: Davis Langdon, 2007), 4
3
Based on the proportion of 2009 expected construction that is certified as “LEED” (Source: US Green Building Council, “LEED Regis-
tered Projects Directory”) or by “Green Building Label” (Source: MOHURD, “Announcement of ‘Green Building Label’ Project Names,”
July 16, 2008) as of March, 2009”
4
China Council for International Cooperation on Environment and Development, Energy Efficiency and Urban Development Task Force:
Background Report 2008 (Beijing, China: CCICED, 2008), 21
5
Zhang, Haimeng et al., China’s Green Revolution: Prioritizing Technologies to Achieve Energy and Environmental Sustainability (Chicago,
U.S.: McKinsey & Company, 2009), 10
6
China Council for International Cooporation on Environment and Development, Annual General Meeting 2008: Energy Efficiency and
Urban Development (Beijing, China: CCICED, 2008), 21
7
United National Environment Programme, Sustainable Buildings & Climate Initiative, “Briefing: Policies for Energy Efficient Buildings in
China,” March 26, 2008, http://www.unepsbci.org/

SECTOR SNAPSHOT
SECTOR SNAPSHOTS
DEFINITION The China Greentech Initiative defines Cleaner Transportation as solutions that
increase energy efficiency, reduce emissions and improve resource utilization to
minimize negative impact of transportation on the environment.
ROAD, RAILWAY, AIR AND WATERWAY [YHUZWVY[H[PVUYLWYLZLU[[OLMV\YTHPUZLNTLU[Z
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Z\JOHZTVYL,MÄJPLU[,UNPULZ*SLHULY-\LSZ(S[LYUH[P]L=LOPJSL,ULYN`:`Z[LTZ
HUK *VTWYLOLUZP]L 9VHK 5L[^VYR 7SHUUPUN HUK +L]LSVWTLU[ *SLHULY YHPS
[YHUZWVY[H[PVU PUJS\KLZ ,ULYN` ,MÄJPLU[ ;YHPUZ ,SLJ[YPÄJH[PVU VM 9HPS^H`Z HUK
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PUJS\KL ZVS\[PVUZ Z\JO HZ -\LS ,MÄJPLU[ (PYJYHM[ HUK :OPWZ >LSS7SHUULK HUK
*VUZ[Y\J[LK (PYWVY[ HUK >H[LY^H` 0UMYHZ[Y\J[\YL HUK 6W[PTPaLK (PY HUK >H[LY
;YHMÄJ4HUHNLTLU[
*OPUH»Z Z[YVUN LJVUVTPJ NYV^[O HUK PUJYLHZPUN NV]LYUTLU[ PUMYHZ[Y\J[\YL

MARKET CONTEXT PU]LZ[TLU[V]LY[OLWHZ[ML^KLJHKLZOH]LTHKL[OLJV\U[Y`VULVM[OL^VYSK»Z
TVZ[ ZPNUPÄJHU[ [YHUZWVY[H[PVU THYRL[Z ;OPZ OHZ YLZ\S[LK PU Z\IZ[HU[PHS VPS
PTWVY[ZZPNUPÄJHU[[YHUZWVY[H[PVULULYN`JVUZ\TW[PVUPUJYLHZLKLTPZZPVUZHUK
OPNOSL]LSZVM\YIHU[YHMÄJJVUNLZ[PVU
*OPUHPZL_WLYPLUJPUNZ[YVUNNYV^[OHJYVZZHSSTVKLZVM[YHUZWVY[0[ZÅLL[VM
WHZZLUNLY ]LOPJSLZ NYL^ H[ ULHYS` *(.9 IL[^LLU 1,2 9HPS^H`
[YHMÄJNYV^[OOHZILLUZW\YYLKI`NV]LYUTLU[WSHUZ[VM\Y[OLYL_WHUKT\UPJPWHS

SECTOR SNAPSHOT: CLEANER TRANSPORTATION
HUKPU[LYWYV]PUJPHSYHPSUL[^VYRZHUKL_[LUKLSLJ[YPÄJH[PVU*OPUHOHZMV\YVM[OL
^VYSK»Z [VW ZOPWWPUN VWLYH[VYZ I` U\TILY VM ZOPWZ HUK SLHKZ [OL ^VYSK PU
ZOPWWPUNWVY[JVU[HPULY[OYV\NOW\[3 0UHYLSH[P]LS`ZOVY[WLYPVKVM[PTL*OPUHOHZ
ILJVTL H THQVY WSH`LY PU HPY [YHUZWVY[H[PVU ^P[O V]LY TPSSPVU WHZZLUNLYZ
Å`PUNVUV]LYJVTTLYJPHSHPYJYHM[PU4
(SVUN ^P[O *OPUH»Z L_WHUKPUN [YHUZWVY[H[PVU THYRL[Z [YHUZWVY[H[PVUIHZLK

LULYN` JVUZ\TW[PVU OHZ NYVÛ Z\IZ[HU[PHSS` ULHYS` ZPUJL HUK PZ
MVYLJHZ[LK [V TVYL [OHU KV\ISL IL[^LLU HUK 5 +YP]LU I` *OPUH»Z
I\YNLVUPUN YVHK [YHUZWVY[H[PVU VPS JVUZ\TW[PVU PZ MVYLJHZ[ [V NYV^ H[ H
*(.9 MYVT MHY L_JLLKPUN [OL NSVIHS H]LYHNL VM 6PS HUK
V[OLY [YHUZWVY[H[PVU LULYN` JVUZ\TW[PVU OHZ SLK [V [OL ZPNUPÄJHU[ LTPZZPVU VM
NYLLUOV\ZLNHZLZHUKV[OLYWVSS\[HU[ZHJJV\U[PUNMVYULHYS`VM*OPUH»Z*6
LTPZZPVUZPU
CHINA’S REGULATORY *OPUH»Z NV]LYUTLU[ PZ PU]LZ[PUN OLH]PS` PU [YHUZWVY[H[PVU PUMYHZ[Y\J[\YL HUK
HNNYLZZP]LS`WYVTV[PUNJSLHU[YHUZWVY[H[PVUZVS\[PVUZI`Z\WWVY[PUNWVSPJPLZHUK
RESPONSE Z[YPJ[LYZ[HUKHYKZPULTPZZPVUZHUKM\LSJVUZ\TW[PVU
-VYYVHK[YHUZWVY[H[PVU*OPUH»ZNV]LYUTLU[Z\WWVY[Z[OLNYV^[OVMHKVTLZ[PJ
H\[VPUK\Z[Y`HUKOHZHSZVHUUV\UJLKWSHUZ[VYLK\JL[V[HSVPSJVUZ\TW[PVUVUH
WLY]LOPJSLIHZPZVMULHYSÌ`
;OL UH[PVUHS YHPS^H` Z`Z[LT PZ OPNOS` LMÄJPLU[ JVTWHYLK [V V[OLY TVKLZ VM
[YHUZWVY[H[PVU HUK [OL L_WHUZPVU VM YHPS^H` [YHUZWVY[ JHWHJP[` PZ H [VW WYPVYP[` MVY
*OPUH»ZNV]LYUTLU[)`YHPZPUN[OLWYLZLU[YHPSLSLJ[YPÄJH[PVUSL]LSVM[VTVYL
[OHUI`HUKTVYL[OHUI`*OPUHOVWLZ[VWYVTV[LLMÄJPLUJ`
HUKYLK\JLKLWLUKLUJLVUVPSPTWVY[Z 4LHUÔPSLWV[LU[PHSM\[\YLSPILYHSPaH[PVUVM
*OPUH»ZYHPSZLJ[VY^V\SKHSZVZLY]L[VZ\WWVY[PUJYLHZPUNLMÄJPLUJ`SL]LSZ
-VYIV[O^H[LY^H`HUKHPY[YHUZWVY[H[PVUPU[LYUH[PVUHS[YLH[PLZHUKYLN\SH[PVUZ
HSYLHK`JVU[HPUTLHZ\YLZ[VHKKYLZZ[OLLU]PYVUTLU[HSPTWHJ[ZVM[OL[YHUZWVY[VM
IV[ONVVKZHUKWLVWSLPUJS\KPUNJSPTH[LJOHUNLPTWHJ[Z(ZWVSPJ`THRLYZOH]L
\U]LPSLKYL]P[HSPaH[PVUWSHUZKLZPNULK[VM\Y[OLYKL]LSVW[OLJV\U[Y`»ZZOPWI\PSKPUN
PUK\Z[Y`*OPUH»ZZOPWI\PSKLYZZOV\SKILVISPNLK[VJVUMVYT[VLTLYNPUNZ[HUKHYKZ
MVYLULYN`LMÄJPLU[ZOPWKLZPNUHUKVWLYH[PVUZ(SVUNZPKL*OPUH»ZOLH]`PU]LZ[TLU[
PU IV[O HPY [YHUZWVY[ PUMYHZ[Y\J[\YL HUK HPYWSHUL THU\MHJ[\YPUN JHWHIPSP[PLZ [OL
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EXISTING AND EMERGING (ZKLZJYPILKPU[OL,_PZ[PUNHUK,TLYNPUN:VS\[PVUZ*OHW[LY[OL*OPUH.YLLU[LJO

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LU]PYVUTLU[HSPTWHJ[WV[LU[PHSYLK\JPUN\W[VVM*62LTPZZPVUZ>OPSL[OL
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IV[OUL^LULYN`]LOPJSLZHUKHK]HUJLKPU[LYUHSJVTI\Z[PVULUNPULIHZLK]LOPJSLZ
HYLL_WLJ[LK[VOH]LPUJYLHZPUNJVTTLYJPHSWV[LU[PHSHZZVS\[PVUZTH[\YLHUKNSVIHS
VPSWYPJLZTHPU[HPU[OLYPZRVMPUJYLHZL11 ,SLJ[YPJIPJ`JSLZOH]LZLLUZ[YVUNNYV^[OPU
*OPUH^P[O\UP[ZHSLZNYV^PUNH[HULZ[PTH[LK*(.9MVYHUKHYL
VULVM[OLWV[LU[PHSKYP]LYZVM*OPUH»ZL_WLJ[LKNYV^[OPULSLJ[YPJ]LOPJSLZ12
9HPSZVS\[PVUZ^LYLHSZVMV\UK[VOH]LOPNO\UP[LU]PYVUTLU[HSPTWHJ[WV[LU[PHS
I\[ TVYL SPTP[LK JVTTLYJPHSPaH[PVU WV[LU[PHS K\L [V *OPUH»Z THU` OPNOS`
JVUJLU[YH[LKYHPS^H`ZVS\[PVUTHYRL[Z
*SLHULY HPY HUK ^H[LY^H` ZVS\[PVUZ HSZV ZJVYL OPNO VU LU]PYVUTLU[HS PTWHJ[
WV[LU[PHS I\[ ]HY` PU JVTTLYJPHSPaH[PVU WV[LU[PHS 6U H]LYHNL JSLHULY ^H[LY^H`
[YHUZWVY[H[PVU ZVS\[PVUZ HYL YLSH[P]LS` TVYL JVTTLYJPHSS` H[[YHJ[P]L K\L [V *OPUH»Z
KYP]L [V M\SS` SL]LYHNL P[Z THU\MHJ[\YPUN ZLJ[VY [OYV\NO H ^VYSKSLHKPUN ZOPWWPUN
PUK\Z[Y`HUKNP]LU*OPUH»ZTHYRL[HJJLZZPIPSP[`YLZ[YPJ[PVUZVMHPY[YHMÄJTHUHNLTLU[
PUK\Z[Y`

CLEANER TRANSPORTATION SOLUTIONS EVALUATION SUMMARY

AREA SOLUTION UNIT ENVIRONMENTAL AREA SOLUTION UNIT ENVIRONMENTAL
IMPACT POTENTIAL IMPACT POTENTIAL
CLEANER ROAD TRANSPORTATION (K]HUJLK+PLZLS0*, 5 CLEANER RAIL (K]HUJLK+PLZLS 5

- Advanced ICE solutions TRANSPORTATION 3VJVTV[P]L
(K]HUJLK.HZVSPUL0*, 5 ,SLJ[YPJ 5
3VJVTV[P]L
CLEANER ROAD TRANSPORTATION )PVL[OHUVS, 5 4\S[PWSL 3

- Alternative fuel solutions <UP[;YHPU
CLEANER AIR (K]HUJLK 4

*VTWYLZZLK5H[\YHS.HZ 5
TRANSPORTATION Aircrafts
CLEANER ROAD TRANSPORTATION Cleaner Aircraft

)H[[LY` 5 5
- New energy vehicle solutions Fuels
6W[PTPaLK(PY
)H[[LY`,SLJ[YPJ=LOPJSL 5 1
;YHMÄJ4HUHNLTLU[
CLEANER (K]HUJLK:OPWZ
,SLJ[YPJ;^V>OLLSLYZ 5 WATERWAY
4
TRANSPORTATION
*SLHULY:OPW-\LSZ
-\LS*LSS=LOPJSL 5 5
6W[PTPaLK>H[LY^H`
/ÌYPK,SLJ[YPJ=LOPJSL 4 6WLYH[PVUZ 4
LEGEND: Unit environmental impact potential of solutions:!5!=!More than 40%!1!=!Less than 10%
CLENER TRANSPORTATION COMMERCIALIZATION POTENTIAL
Cleaner road - Advanced ICE solutions

HIGHEST
Cleaner road - Alternative fuel solutions

Cleaner road - New energy vehicle solutions
Cleaner rail solutions
Cleaner air solutions
Cleaner waterway solutions

solutions within each displayed category. More detail on solutions
Cleaner Transportation chapter of the full report.
LOWEST
1
National Bureau of Statistics of China, “China Statistical Yearbook 2008” 9
Gerson Lehrman, “Rail and electric sectors to benefit from China’s stimulus plan”, http://www.
2
CAGR stands for Compound Annual Growth Rate glgroup.com/ (accessed on Mar.15, 2009)
3
United Nations Conference on Trade and Development, Review of Maritime Transport 2008 10
中华人民共和国国家发展和改革委员会,“国家发展改革委批准’中长期铁路网规划 (2008年调整)”
(Geneva, Switzerland: United Nations Conference on Trade and Development, 2008), 96 2008年10月, [National Development and Reform Commission, “On issuing Medium and Long-Term
4
National Bureau of Statistics of China, “China Statistical Yearbook 2008” Plan for Rail Network Development (2008 revision),” October, 2008], http://www.ndrc.gov.cn/
5
Parkash, Manmohan, Promoting Environmentally Sustainable Transport in the People’s Republic 11
The China Greentech Initiative Cleaner Transportation working group evaluated one type of
of China (Mandaluyong City, Philippines: Asian Development Bank, 2009), 21 biofuel - bioethanol. Bioethanol is used to create a hybrid fuel E10, which is a mixture of bioethanol
6
Ibid. with regular gasoline in 10% to 90% respective composition. The Renewable Energy sector chapter
7
McKinsey & Company, China’s Green Revolution (Chicago, U.S.: McKinsey & Company, 2009), contains a more detailed treatment for different types of biofuels.
31 12
Asia Consulting Alliance, “M&A Analysis and Research on Electric Bicycle Industry in China
8
中国机电网, “汽车专家谈中国汽车业的可持续发展,” [China Electromechanical Website, “Automo- 2008”, http://www.acunion.net/ (accessed on July 28, 2009)
tive experts on China’s auto industry for sustainable development”], March 12, 2005, http://www.
chinanics.com/


CHALLENGES Cleaner Transportation sector:
CATEGORY DESCRIPTION
3V^H^HYLULZZVMILULÄ[ZHUKYLZPZ[HU[THYRL[PUJ\TILU[ZOPUKLY[OL
MARKET
JVTTLYJPHSPaH[PVUVM*SLHULY;YHUZWVY[H[PVUZVS\[PVUZ
4HU`*SLHULY;YHUZWVY[H[PVUZVS\[PVUZOH]LOPNOHKVW[PVUJVZ[Z\UJSLHY
TECHNOLOGY
M\[\YLKL]LSVWTLU[[YLUKZHUKVYHYLUV[`L[Z\MÄJPLU[S`TH[\YLMVYTHZZ
JVTTLYJPHSPaH[PVU
0TTH[\YL[YHUZWVY[H[PVU[LJOUVSVNPLZOH]LZPNUPÄJHU[PU]LZ[TLU[YPZRZ"
FINANCING
WYP]H[LPU]LZ[VYZOH]LSPTP[LKHJJLZZ[V[YHUZWVY[H[PVUPUMYHZ[Y\J[\YL
PU]LZ[TLU[Z
<UKLYKL]LSVWLK[YHUZWVY[H[PVUPUMYHZ[Y\J[\YLJVTIPULK^P[OZ\IVW[PTHS
REGULATORY YLN\SH[VY`WSHUUPUNJVVYKPUH[PVUHUKLUMVYJLTLU[ZSV^[OLKL]LSVWTLU[VM
*OPUH»Z*SLHULY;YHUZWVY[H[PVUTHYRL[Z
OPPORTUNITIES TO Cleaner Transportation sector opportunities include:

;OYLLVM[OLRL`VWWVY[\UP[PLZOPNOSPNO[LKI`[OL*OPUH.YLLU[LJO0UP[PH[P]L[V
ACCELERATE MARKET HJJLSLYH[LTHYRL[KL]LSVWTLU[PU*SLHULY;YHUZWVY[H[PVUPUJS\KL!
DEVELOPMENT ,UOHUJPUN[OLJHWHIPSP[PLZVMSVJHSZVS\[PVUWYV]PKLYZ[VKL]LSVWJ\Z[VTPaLK
*SLHULY;YHUZWVY[H[PVUZVS\[PVUZMVY*OPUH»ZTHYRL[JVUKP[PVUZ
*VU[PU\PUN[VZ\WWVY[[OLL_WHUZPVUVM*OPUH»Z[YHUZWVY[H[PVUPUMYHZ[Y\J[\YL
]PHVW[PVUZZ\JOHZW\ISPJWYP]H[LPU]LZ[TLU[WHY[ULYZOPWZ
(KVW[PUNILZ[THUHNLTLU[WYHJ[PJLZHUKHK]HUJLK0;ZVS\[PVUZMYVT
V[OLYJV\U[YPLZ^P[OYLZWLJ[[V[OLWSHUUPUNHUKVWLYH[PVUZVMIV[OW\ISPJ
[YHUZWVY[H[PVUHUKNVVKZ[YHUZWVY[


SECTOR SNAPSHOT
CLEANER INDUSTRY
SECTOR SNAPSHOTS
DEFINITION Cleaner Industry encompasses practices that increase energy efficiency,

reduce pollution of air and water and decrease the amount of solid waste
produced by industrial activities. Solutions include on-site Combined Heat
and Power (CHP), Energy Efficient Motors, Flue Gas Desulfurization
(FGD) systems and Process Redesign.
CHINA’S INDUSTRIAL SECTOR, ÔPJOOHZNYVÛYHWPKS`ZPUJL[OL ZHUKH[HUL]LU
MARKET CONTEXT TVYLHJJLSLYH[LKYH[LZPUJL*OPUHQVPULK[OL>VYSK;YHKL6YNHUPaH[PVUPU
THU\MHJ[\YLZH^PKLYHUNLVMJVUZ\TLYHUKPUK\Z[YPHSWYVK\J[Z\ZLKHYV\UK[OL
^VYSK(Z*OPUH»ZPUK\Z[YPHSV\[W\[OHZNYVÛ[VTLL[NSVIHSKLTHUKHUK[OLULLKZ
VM*OPUH»ZVUNVPUNPUK\Z[YPHSPaH[PVUZVOHZP[ZPUK\Z[YPHSZLJ[VY»ZJVUZ\TW[PVUVM
LULYN`*OPUH»ZPUK\Z[YPHSZLJ[VYHJJV\U[ZMVYVM[OLJV\U[Y`»Z[V[HSLULYN`
JVUZ\TW[PVUJVTWHYLK[V[OL^VYSKH]LYHNLVM10U*OPUH^HZ[OL
ZLJVUK SHYNLZ[ JVUZ\TLY JV\U[Y` VM WYPTHY` LULYN` ^VYSK^PKL HJJV\U[PUN MVY
VM[OL^VYSK»Z[V[HS2
7YVK\J[PVU PU *OPUH NLULYHSS` \ZLZ YLZV\YJLZ SLZZ LMÄJPLU[S` [OHU WYVK\J[PVU
PU V[OLY JV\U[YPLZ -VY L_HTWSL ÔPSL [OL LULYN` PU[LUZP[` VM THU` VM *OPUH»Z
IHZPJ TH[LYPHS WYVK\J[Z OHZ ILLU KLJSPUPUN Z[LHKPS` MVY [OL WHZ[ [^LU[` `LHYZ
SL]LSZYLTHPUZPNUPÄJHU[SÒPNOLY[OHU[OVZLPUTVYLKL]LSVWLKJV\U[YPLZ3*OPUH»Z
LULYN`PU[LUZP[`WLY\UP[VM.+7PZMV\Y[PTLZ[OH[VM[OL<:HUKLPNO[[PTLZ[OH[
VM1HWHU4

SECTOR SNAPSHOT: CLEANER INDUSTRY
*OPUH»Z PUK\Z[YPHS HJ[P]P[` OHZ H ZPNUPÄJHU[ PTWHJ[ VU [OL LU]PYVUTLU[ ^P[O
[OL PUK\Z[YPHS ZLJ[VY YLZWVUZPISL MVY [OL V]LYÔLSTPUN THQVYP[` VM *OPUH»Z *62
LTPZZPVUZ0UK\Z[YPHSHJ[P]P[PLZPU*OPUHNLULYH[LZPNUPÄJHU[HPYHUK^H[LYWVSS\[PVU
HZ^LSSHZZVSPK^HZ[LYLZ\S[PUNPUZ[YHPULKHPY^H[LYHUKSHUKYLZV\YJLZ
CHINA’S REGULATORY >OPSL *OPUH»Z YLN\SH[VY` YLZWVUZL [V [OL *SLHULY 0UK\Z[Y` JOHSSLUNL OHZ ILLU
YLZVS\[LHUKIYVHKTHYRL[WHY[PJPWHU[ZVM[LUOH]LSPTP[LKRUV^SLKNLVMTLKP\T
RESPONSE HUK SVUN[LYT WVSPJ` WHJL ZWLJPÄJZ HUK [PTPUN ( U\TILY VM TPUPZ[YPLZ HUK
HKTPUPZ[YH[P]L IVKPLZ HYL PU]VS]LK PU YLN\SH[PUN [OL PUK\Z[YPHS ZLJ[VY ^P[O [OL
5H[PVUHS+L]LSVWTLU[HUK9LMVYT*VTTPZZPVU5+9*[OL4PUPZ[Y`VM0UK\Z[Y`
HUK 0UMVYTH[PVU ;LJOUVSVN` 400; HUK [OL 4PUPZ[Y` VM ,U]PYVUTLU[HS 7YV[LJ[PVU
4,7WSH`PUNJLU[YHSYVSLZ
([[OLUH[PVUHSSL]LS*OPUH»Zth-P]L@LHY.\PKLSPULZLZ[HISPZOLK
HTIP[PV\Z [HYNL[Z MVY PTWYV]PUN LULYN` LMÄJPLUJ` YLK\JPUN LTPZZPVUZ HUK
TPUPTPaPUN UH[\YHS YLZV\YJL \ZL HJYVZZ H YHUNL VM WYPTHY` HUK ZLJVUKHY`
PUK\Z[YPLZ2L`[HYNL[ZMVY[OLthÄ]L`LHYWLYPVKPUJS\KLHYLK\J[PVUPU.+7
LULYN`PU[LUZP[`HUKHYLK\J[PVUPUIV[OZ\SM\YKPV_PKL:62HUKJOLTPJHS
V_`NLU KLTHUK *6+0U *OPUH»Z JLU[YHSNV]LYUTLU[ SH\UJOLK [OL ;VW
,ULYN`*VUZ\TPUN,U[LYWYPZLZ7YVNYHTVULVM[OLRL`PUP[PH[P]LZILOPUKP[Z
[HYNL[LKLULYN`PU[LUZP[`YLK\J[PVU5;OLJLU[YHSNV]LYUTLU[OHZHSZVPUZ[P[\[LKH
U\TILYVMZ\IZPKPLZHUKPUJLU[P]LZJOLTLZ[VWYVTV[LPUK\Z[YPHSLULYN`LMÄJPLUJ`
HUKYLZV\YJLJVUZLY]H[PVU
(ZPKL MYVT *OPUH»Z UH[PVUHS YLN\SH[VYZ WYV]PUJPHS NV]LYUTLU[Z HUK SVJHS

H\[OVYP[PLZHSZVWSH`JYP[PJHSYVSLZPUPTWSLTLU[PUNZ\Z[HPUHIPSP[`WVSPJPLZTVUP[VYPUN
JVTWSPHUJLHUKLUMVYJPUNYLN\SH[PVUZ
EXISTING AND EMERGING (ZKLZJYPILKPU[OL,_PZ[PUNHUK,THYNPUN:VS\[PVUZJOHW[LY[OL*OPUH.YLLU[LJO

THYRL[ZPaLZVS\[PVUH[[YHJ[P]LULZZHUKTHYRL[HJJLZZPIPSP[`KPTLUZPVUZ:LL[OL
:VS\[PVUZJOHW[LYMVYHKLZJYPW[PVUVM[OLTL[OVKVSVN`\ZLK
CLEANER INDUSTRY SOLUTIONS EVALUATION SUMMARY

IMPACT POTENTIAL
ENERGY EFFICIENCY SOLUTIONS

HIGHEST

)HSHUJLVM7SHU[ 2 solutions within each displayed category. More detail on solutions
*VTIPULK/LH[HUK7V^LY 5 is included in the Existing and Emerging Solutions chapter and the
Cleaner Industry chapter of the full report.

,ULYN`,MÄJPLU[4V[VYZ 3
AIR AND WATER POLLUTION MITIGATION
SOLUTIONS
*HYIVU*HW[\YLHUK:LX\LZ[YH[PVU 5
Flue Gas Denitration 5
-S\L.HZ+LZ\SM\YPaH[PVU 5
-\LS:^P[JOPUN 2
0UK\Z[YPHS>HZ[L^H[LY 4
7HY[PJ\SH[L4H[[LY9LTV]HS 5
LOWEST
SOLID WASTE MANAGEMENT SOLUTIONS

0UJPULYH[PVU,ULYN`9LJV]LY` 2
>HZ[L:LWHYH[PVUHUK6MM;HRL 4 0 - 1 YEARS 1 - 5 YEARS 5 - 10 YEARS
CROSS-AREA SOLUTIONS Energy efficiency solutions
Air and water pollution mitigation solutions
*VTTPZZPVUPUN 2 Solid waste management solutions
,U]PYVUTLU[HS4HUHNLTLU[:`Z[LTHUK0;:`Z[LTZ 2 Cross-area solutions
7YVJLZZ9LKLZPNU 3
LEGEND
:[HUKHYK6WLYH[PUN7YVJLK\YLZ;YHPUPUN-LLKIHJR 2
Unit environmental impact potential of solutions:

SECTOR SNAPSHOT: CLEANER INDUSTRY
L]HS\H[LKNYLLU[LJOZVS\[PVUZHJYVZZ[^VRL`KPTLUZPVUZLU]PYVUTLU[HSPTWHJ[
WV[LU[PHSHUKJVTTLYJPHSPaH[PVUWV[LU[PHSHUHNNYLNH[PVUVMHKKYLZZHISLTHYRL[
ZPaLZVS\[PVUH[[YHJ[P]LULZZHUKTHYRL[HJJLZZPIPSP[`KPTLUZPVUZ:LL[OL:VS\[PVUZ
JOHW[LYMVYHKLZJYPW[PVUVM[OLTL[OVKVSVN`\ZLK
(PYHUK^H[LYWVSS\[PVUZVS\[PVUZ^LYLMV\UK[VOH]L[OLNYLH[LZ[\UP[LU]PYVUTLU[HS
PTWHJ[WV[LU[PHSHZ[OL`[HYNL[ZWLJPÄJWVSS\[HU[ZHUKPUTHU`JHZLZJHUHJOPL]L
HYLTV]HSYH[LVM\W[V ;OLJVTTLYJPHSWV[LU[PHSVM[OLZLZVS\[PVUZZOV\SK
PUJYLHZLYHWPKS`V]LY[PTLPUYLZWVUZL[V[OLPTWYV]LKLUMVYJLTLU[VMNV]LYUTLU[
YLN\SH[PVUZHUKHNYV^PUNHKKYLZZHISLTHYRL[
>OPSL [OL H]LYHNL \UP[ LU]PYVUTLU[HS PTWHJ[ VM LULYN` LMÄJPLUJ` ZVS\[PVUZ ^HZ
HSZV MV\UK [V IL ZPNUPÄJHU[S` OPNO [OL HUHS`ZPZ Z\NNLZ[Z [OH[ NYLH[LY LMÄJPLUJ`
NHPUZ JHU IL HJOPL]LK [OYV\NO VW[PTPaPUN OLH[PUN WV^LY HUK TV[VY Z`Z[LTZ
[OHU MYVT LUOHUJPUN [OL LULYN` LMÄJPLUJ` VM V[OLY PUK\Z[YPHS LX\PWTLU[ ,ULYN`
LMÄJPLUJ` ZVS\[PVUZ OV^L]LY ^LYL MV\UK VU H]LYHNL [V WYLZLU[ [OL NYLH[LZ[
V]LYHSSJVTTLYJPHSWV[LU[PHSK\L[V[OLPYSHYNLVWLUTHYRL[ZHUKH[[YHJ[P]LULZZ[V
HKVW[LYZJVUZJPV\ZVM[OLLULYN`JVTWVULU[ZVMTHU\MHJ[\YPUNJVZ[Z
(S[OV\NOZVSPK^HZ[LTHUHNLTLU[HUKJYVZZHYLHZVS\[PVUZ^LYLMV\UK[VOH]L
SV^LY H]LYHNL \UP[ LU]PYVUTLU[HS PTWHJ[ [OL` JHU Z[PSS OH]L UV[HISL LMMLJ[Z
HJYVZZHPYHUK^H[LYWVSS\[PVUHZ^LSSHZZVSPK^HZ[L;OLPYJVTTLYJPHSWV[LU[PHS
^HZ JVTTVUS` SPTP[LK K\L [V H YLSH[P]LS` ZTHSS THYRL[ ZPaL JVTWHYLK [V V[OLY
ZVS\[PVUZ

Cleaner industry sector, including:
CHALLENGES
CATEGORY DESCRIPTION
3HJRVMH^HYLULZZZ\WWVY[HUKL_WLYPLUJL[VKYP]LLMÄJPLUJ`HUKHKVW[
MARKET
PUUV]H[PVU
TECHNOLOGY :VS\[PVUZUV[HS^H`ZLHZPS`H]HPSHISLHUKVM[LUJVZ[S`HUKJVTWSL_
7YLMLYLUJLZMVYÄUHUJPUNVMZ[H[LVÛLKLU[LYWYPZLZV]LYZTHSSHUKTLKP\T
ZPaLKLU[LYWYPZLZ
FINANCING .V]LYUTLU[PUJLU[P]LZUV[M\SS`HSPNULK
3PTP[LKYHUNLVMHWWSPJHISLÄUHUJPUNTLJOHUPZTZ
6WHX\LIYVHKJVTWSL_HUKV]LYSHWWPUNYLN\SH[PVUZ
REGULATORY 3PTP[LKLUMVYJLTLU[HUKH\KP[PUNJHWHJP[`
3V^LULYN`WYPJLZHUKTPSK]PVSH[PVUWLUHS[PLZ
OPPORTUNITIES TO 6WWVY[\UP[PLZMVYHJJLSLYH[PUN*SLHULY0UK\Z[Y`THYRL[KL]LSVWTLU[PUJS\KL!
Cleaner Industy sector opportunities include:
ACCELERATE MARKET 7YPVYP[PaPUNKLTVUZ[YH[PVUWYVQLJ[Z[VWYV]L[OL]PHIPSP[`VMZVS\[PVUZ
DEVELOPMENT ,Z[HISPZOPUN J\S[\YLZ VM LMÄJPLUJ` HUK LU]PYVUTLU[HS H^HYLULZZ" JVUK\J[PUN
THUHNLTLU[HUKZ[HMM[YHPUPUNHUKJHWHJP[`KL]LSVWTLU[
+L]LSVWPUNHUKWYVTV[PUNPUUV]H[P]LÄUHUJPUNTLJOHUPZTZMVYPUK\Z[YPHS
MHJPSP[`\WNYHKLZ
,UHISPUNHUKKYP]PUNNYLH[LYYLN\SH[VY`LUMVYJLTLU[HUKJVTWSPHUJLH[HSSSL]LSZ

1
Energy Information Administration, International Energy Outlook 2009 (Washington DC, U.S.: United States Department of Energy, 2009), 203,
215
2
International Energy Agency, Key World Energy Statistics 2008 (Paris, France: IEA, 2008), 48-57
3
Hu, Xiulian et al., “Development of China Carbon Emissions Scenarios Towards 2050” (presentation given at the Asia-Pacific Initiative toward
Environmentally Sound and Sustainable Society, Bonn, Germany, May 23, 2006), 5,6
4
Energy Information Administration, “International Energy Annual 2006”
5
Price, Lynn et al., China’s Top-1000 Energy-Consuming Enterprises Program (Berkeley, California, U.S.: Lawrence Berkeley National Labora-
tory, 2008), 3
6
中国社会科学院, “中国节能及环境政策调研报告,” [China Academy of Social Sciences, “China Energy Saving and Environment Policy Survey
Report”], (Beijing, China: 2008), 41-4

SECTOR SNAPSHOT
CLEAN WATER
SECTOR SNAPSHOTS
CHINA’S RENEWABLE ENERGY SECTOR

DEFINITION The China Greentech Initiative defines the clean water sector as the
collective sum of activities within the economic water cycle – water
extraction, water treatment, water distribution, water use and
DEFINITION
wastewater treatment – with solutions including water treatment
technologies, water quality measurement and monitoring and efficient
point-of-use equipment.
MARKET CONTEXT *OPUH»Z WVW\SH[PVU NYV^[O HUK LJVUVTPJ KL]LSVWTLU[ ^PSS JVU[PU\L [V KYP]L
ZPNUPÄJHU[ PUJYLHZLZ PU KLTHUK MVY JSLHU ^H[LY ÔPJO PZ WYVQLJ[LK [V NYV^ [V
IPSSPVUJ\IPJTL[LYZPUHPUJYLHZLV]LY *OPUH»ZULLK[VTLL[[OPZ
NYV^PUNKLTHUK^PSSPUL]P[HIS`WSHJLTVYLWYLZZ\YLVUL_PZ[PUNMYLZO^H[LYZ\WWSPLZ
>P[OWLYJHWP[H^H[LYYLZV\YJLZLX\P]HSLU[[VVUS`VULMV\Y[OVM[OL^VYSKH]LYHNL
*OPUHMHJLZZL]LYL^H[LYJOHSSLUNLZ5VY[O*OPUH»Z^H[LYYLZV\YJLZHTLYL
VM[OVZLPU:V\[O*OPUHVUHWLYJHWP[HIHZPZHYLWHY[PJ\SHYS`Z[YLZZLK3
>H[LY WVSS\[PVU M\Y[OLY KPTPUPZOLZ *OPUH»Z \ZHISL ^H[LY YLZV\YJLZ *OPUH»Z

PUK\Z[YPHSHUKKVTLZ[PJ^H[LY\ZLYZKPZJOHYNLIPSSPVU[VUZVM^HZ[L^H[LYPU[V
[OLJV\U[Y`»ZUH[\YHS^H[LYIVKPLZLHJO`LHY4(ZT\JOHZVM*OPUH»ZYP]LYZ
SHRLZHUKYLZLY]VPYZHYLZLYPV\ZS`PTWHJ[LKI`^H[LYWVSS\[PVU5
;OL HUU\HS JVZ[ VM *OPUH»Z ^H[LY ZJHYJP[` PL PTIHSHUJL IL[^LLU H]HPSHIPSP[`
HUKKLTHUKK\L[VWVSS\[PVUHUKKLWSL[PVUVMNYV\UK^H[LYPZLZ[PTH[LKH[
IPSSPVU`\HU<:IPSSPVUHSTVZ[VM*OPUH»ZHUU\HSLJVUVTPJV\[W\[

SECTOR SNAPSHOT: CLEAN WATER
*OPUH»Z PUZ\MÄJPLU[ ^H[LY PUMYHZ[Y\J[\YL JV]LYHNL WHY[PJ\SHYS` PU Y\YHS HYLHZ

L_HJLYIH[LZ ZJHYJP[` HUK WVSS\[PVU HUK JVU[YPI\[LZ [V OLHS[O WYVISLTZ HTVUN
[OL WVW\SH[PVU *OPUH PZ YHWPKS` I\PSKPUN \W P[Z ^H[LY PUMYHZ[Y\J[\YL I\[ L_PZ[PUN
Z\WWS` ZL^LYHNL HUK ^HZ[L^H[LY [YLH[TLU[ PUMYHZ[Y\J[\YL WHY[PJ\SHYS` PU Y\YHS
HYLHZSLH]LZHZPNUPÄJHU[WVY[PVUVM[OLWVW\SH[PVU\UKLYZLY]LK
CHINA’S REGULATORY *OPUH»Z NV]LYUTLU[ OHZ H U\TILY VM [HYNL[Z HPTLK H[ JYLH[PUN H OHYTVUPV\Z
RESPONSE ^H[LYZH]PUNZVJPL[`-VYL_HTWSL[VHKKYLZZWVSS\[PVUP[HPTZ[VYLK\JLJOLTPJHS
V_`NLUKLTHUK*6+HTLHZ\YLVM^H[LYWVSS\[PVUIÌ` To enhance
[OLH]HPSHIPSP[`VMZ\WWS`*OPUHPZJ\YYLU[SÌ\PSKPUNH]HZ[:V\[O[V5VY[O>H[LY
+P]LYZPVU WYVQLJ[ [V Z\WWVY[ ^H[LY ULLKZ PU UVY[OLYU HUK ^LZ[LYU *OPUH ;V
PTWYV]L^H[LYLMÄJPLUJ`P[WSHUZ[VYLK\JL^H[LYJVUZ\TW[PVUI`WLY\UP[
VM .+7 I` [OYV\NO H ]HYPL[` VM TLHZ\YLZ Z\JO HZ KLWSV`TLU[ VM LMÄJPLU[
PYYPNH[PVU Z`Z[LTZ H YLK\J[PVU VM H]LYHNL T\UPJPWHS WPWLSPUL SLHRHNL [V ^P[OPU
HUKHUPUJYLHZLVMVM[OLWVY[PVUVMYL\ZLKT\UPJPWHS^HZ[L^H[LY
*OPUH»ZWVSP[PJHSZ`Z[LTOHZHU\TILYVMUH[PVUHSZ\IUH[PVUHSSVJHSHUKJYVZZ
HKTPUPZ[YH[P]LYLN\SH[VY`HNLUJPLZZOHYPUNYLZWVUZPIPSP[`MVYV]LYZPNO[VM[OL^H[LY
ZLJ[VY ;OLZL HNLUJPLZ OH]L YLJLU[S` SH\UJOLK H YHUNL VM PUP[PH[P]LZ [V YLN\SH[L
HUK LUMVYJL ^H[LYYLSH[LK TH[[LYZ PUJS\KPUN [OL PU[YVK\J[PVU VM ZWLJPÄJ SH^Z
:[H[L *V\UJPS YLN\SH[PVUZ TPUPZ[LYPHS YLN\SH[PVUZ SVJHS H\[OVYP[` TLHZ\YLZ HUK
V[OLYWYVHJ[P]LWVSPJPLZ
>OPSL*OPUHOHZTHKLZVSPKLMMVY[ZPUYLJLU[`LHYZ[VKL]LSVWP[Z^H[LYX\HSP[`
Z[HUKHYKZ [V PU[LYUH[PVUHS SL]LSZ [OLYL HYL YLTHPUPUN YLNPVUHS KPMMLYLUJLZ PU
JVTWSPHUJL SL]LSZ [OYV\NOV\[ [OL JV\U[Y` (S[OV\NO UH[PVUHS ^H[LY X\HSP[` KH[H
PZUV[LHZPS`HJJLZZPISL*OPULZLHUKPU[LYUH[PVUHSLMMVY[ZJVU[PU\L[VILUJOTHYR
^H[LY\[PSP[`WLYMVYTHUJLZVHZ[VIL[[LY\UKLYZ[HUK*OPUH»Z[Y\L^H[LYZP[\H[PVU
;OL *OPULZL NV]LYUTLU[ JVU[PU\LZ [V HSSVJH[L Z\IZ[HU[PHS JHWP[HS [V [OL
KL]LSVWTLU[ VM *OPUH»Z ^H[LY PUK\Z[YPLZ 0U P[Z th -P]L@LHY .\PKLSPULZ
[OL *OPULZL NV]LYUTLU[ WYVQLJ[LK [OH[ P[Z [V[HS PU]LZ[TLU[ PU P[Z ^H[LY
ZLJ[VY ^V\SK HTV\U[ [V HSTVZ[ VUL [YPSSPVU `\HU ;OL LJVUVTPJ Z[PT\S\Z WSHUZ
*OPUHWYVT\SNH[LKPUSH[LHSSVJH[LKHUHKKP[PVUHSIPSSPVU`\HU[VY\YHS^H[LY
JVUZLY]H[PVUWYVQLJ[Z;OLZLKLJPZP]LW\ISPJPU]LZ[TLU[ZPU[OL^H[LYZLJ[VYHYL
L_WLJ[LK[VJVU[PU\L^P[OIPSSPVU`\HUHSYLHK`HSSVJH[LK[V[OLJVUZ[Y\J[PVUVM
NYV\UK^H[LYTVUP[VYPUN^LSSZK\YPUN[OLth-P]L@LHY.\PKLSPUL11

GREENTECH SOLUTIONS 0UP[PH[P]LL]HS\H[LKNYLLU[LJOZVS\[PVUZHJYVZZ[^VRL`KPTLUZPVUZLU]PYVUTLU[HS
PTWHJ[WV[LU[PHSHUKJVTTLYJPHSPaH[PVUWV[LU[PHSHUHNNYLNH[PVUVMHKKYLZZHISL
*OPUH»Z PUJYLHZPUNS` WYLZZPUN ^H[LY ZJHYJP[` KYV]L [OL OPNO H]LYHNL \UP[
LU]PYVUTL[HSPTWHJ[WV[LU[PHSVMIV[OLMÄJPLUJ`HUKT\S[P\ZLZVS\[PVUZÔPSLT\S[P
\ZLZVS\[PVUZ»HIPSP[`[VHSZVHKKYLZZ*OPUH»ZWVSS\[PVUPZZ\LZM\Y[OLYZ\WWVY[LKOPNO
H]LYHNLLU]PYVUTLU[HSPTWHJ[WV[LU[PHS;OLZLZVS\[PVUZHSZVYLJLP]LKOPNOH]LYHNL
ZJVYLZMVYJVTTLYJPHSPaH[PVUWV[LU[PHSK\L[V[OLYHUNLVMLU]PYVUTLU[HSILULÄ[Z
[OL`KLSP]LYHUK[OLPYYLSH[P]LS`\UYLZ[YPJ[KHUKHJJLZZPISLTHRLZ-\[\YL^H[LYWYPJL
HWWYLJPH[PVUZOV\SKKYP]L[OLJVTTLYJPHSWV[LU[PHSVMLMÄJPLUJ`ZVS\[PVUZ
4\S[P\ZL^H[LYZVS\[PVUZOH]LVUH]LYHNLHSHYNLYLU]PYVUTLU[HSPTWHJ[YH[PUN[OHU
V[OLY[`WLZVM^H[LYZVS\[PVUZHZ[OL`JVTTVUS`HKKYLZZIV[OWVSS\[PVUHUKZJHYJP[`
PZZ\LZ ;OLZL ZVS\[PVUZ HSZV YLJLP]LK OPNO H]LYHNL ZJVYLZ MVY JVTTLYJPHSPaH[PVU
WV[LU[PHSK\L[V[OLYHUNLVMLU]PYVUTLU[HSILULÄ[Z[OL`KLSP]LYHUK[OLPYYLSH[P]LS`
\UYLZ[YPJ[LK HUK HJJLZZPISL THYRL[Z -\[\YL ^H[LY WYPJL HWWYLJPH[PVU ZOV\SK KYP]L
[OLPUJYLHZPUNJVTTLYJPHSWV[LU[PHSVMLMÄJPLUJ`ZVS\[PVUZ
1
Jian, Xie et al., Addressing China’s Water Scarcity: Recommendations for Selected Water Resource Management Issues, (Washington, DC, U.S.: The
World Bank, 2009), 23
2
Food and Agriculture Organization of the United Nations, “AQUASTAT”
3
Jian, Xie et al., Addressing China’s Water Scarcity: Recommendations for Selected Water Resource Management Issues, (Washington, DC, U.S.: The
World Bank, 2009), 11
4
5
Greenpeace, “Water Pollution Has Become China’s Most Urgent Environmental Problem Today,” July 24, 2008, http://www.greenpeace.org/
6
IGD, “The Value of Water,” http://www.igd.com/ (accessed on August 25, 2009)
7
People’s Daily, “中共中央关于制定十一五规划的建议（全文）,” [Full Text of the Chinese Communist Party Central Committee on the Full
Development of the 11th Five-Year Plan], October 18, 2005, http://politics.people.com.cn/
8
Ibid.
9
“People’s Daily, “Singapore International Water Week Opens Gateway to China Market,” June 18, 2008, http://english.peopledaily.com.cn/
10
Ministry of Water Resource, “China to Strengthen Rural Water Conservation with 20 Billion Yuan Plan,” November, 24, 2008, http://www.mwr.gov.
cn/
11
Ministry of Water Resource, “Govt to Spend $249M on Groundwater Monitors,” October, 29, 2008, http://www.mwr.gov.cn/

SECTOR SNAPSHOT: CLEAN WATER
CLEAN WATER SOLUTIONS EVALUATION SUMMARY

IMPACT POTENTIAL
WATER SUPPLY SOLUTIONS Commercialization potential is a product of average addressable
HIGHEST
Desalination 3 solutions within each displayed category. More detail on solutions
,_[YHJ[PVU:VS\[PVUZ 2
Clean Water chapter of the full report.
POLLUTION MINIMIZATION
SOLUTIONS
:LJVUKHY`;YLH[TLU[:VS\[PVUZ 3
:S\KNL;YLH[TLU[HUK+PZWVZHS 3
;LY[PHY`;YLH[TLU[:VS\[PVUZ 1
WATER EFFICIENCY SOLUTIONS
0TWYV]LK0YYPNH[PVU 5
LOWEST
3V^-SV^-P_[\YLZ 3
MULTI-USE SOLUTIONS
(K]HUJLK+PZ[YPI\[PVU4H[LYPHSZHUK*VTWVULU[Z 1 Water supply solutions
0UK\Z[YPHS>H[LY9L\ZL 4 Pollution minimization solutions
4VUP[VYPUNHUK4LHZ\YLTLU[:VS\[PVUZ 2 Water efficiency solutions
7VPU[VM<ZL:VS\[PVUZ 3 Cross-area solutions
7YPTHY`;YLH[TLU[:VS\[PVUZ 5 LEGEND: Unit environmental impact potental of solutions:
GREENTECH DEVELOPMENT A number of challenges complicate the development of Clean Water sector
in China, including:
CHALLENGES
CHALLENGES DESCRIPTION
<UKLYKL]LSVWLK^H[LYTHYRL[ZJVTIPULK^P[OSPTP[LKUH[PVU^PKL
MARKET
ILUJOTHYRPUNOPUKLY[OLJVTTLYJPHSPaH[PVUVMJSLHU^H[LYZVS\[PVUZ
3PTP[LKJ\Z[VTPaH[PVU[V*OPUH»Z\UPX\L^H[LYJVUKP[PVUZVY[VWV[LU[PHS
TECHNOLOGY HKVW[LYJVZ[[VSLYHUJLSL]LSZ
3V^^H[LY[HYPMMZJV\WSLK^P[OPUHKLX\H[LW\ISPJHUKWYP]H[LÄUHUJPUNHUK
FINANCING PUJLU[P]LZSPTP[[OLH]HPSHIPSP[`VMJHWP[HSMVYPU]LZ[TLU[ZPUZVS\[PVUZ
3LZZ[OHUVW[PTHSYLN\SH[VY`WSHUUPUNHUKJVVYKPUH[PVUJV\WSLK^P[OYL
REGULATORY NPVUHSKPMMLYLUJLZPULUMVYJLTLU[VMYLN\SH[PVUZZSV^[OLKL]LSVWTLU[VM[OL
^H[LYTHYRL[Z
;OLYLHYLZL]LYHSVWWVY[\UP[PLZMVYTHYRL[Z[HRLOVSKLYZ[VHJJLSLYH[L[OLKL]LS-
OPPORTUNITIES TO VWTLU[VM*OPUH»Z*SLHU>H[LY;OYLLVM[OLRL`VWWVY[\UP[PLZOPNOSPNO[LKI`[OL
ACCELERATE MARKET *OPUH.YLLU[LJO0UP[PH[P]LPUJS\KL!
DEVELOPMENT *\Z[VTPaL^H[LYZVS\[PVUZ[V[OL\UPX\LULLKZVM*OPUH»Z^H[LYTHYRL[
0TWYV]LÄUHUJPHSWSHUUPUNMVY[OLLZ[HISPZOTLU[HUKVWLYH[PVUVM^H[LYPUMYHZ[Y\J[\YL
:\WWVY[]HS\LJOHPUWHY[ULYZOPWZIL[^LLUW\ISPJHUKWYP]H[LZLJ[VYÄUHUJLYZ
ZVS\[PVUZWYV]PKLYZVWLYH[VYZHUKV[OLYRL`THYRL[WHY[PJPWHU[Z
12
Ministry of Water Resource, “China to Strengthen Rural Water Conservation with 20 Billion Yuan Plan”, http://www.mwr.gov.cn/ (ac-
cessed on February 29, 2009)
Ministry of Water Resource, “Govt to spend $249 m on Groundwater Monitors”, http://www.mwr.gov.cn/ (accessed on February 29, 2009)
13

PATH FORWARD
This report is a starting point for defining and framing
China’s greentech issues, challenges and opportunities,
recognizing that these markets will continue to
evolve rapidly.
THE CHINA GREENTECH REPORT 2009 provides an overall picture of China’s greentech
markets, challenges and opportunities as of the middle of 2009. As discussed,
China’s market requirements for greentech solutions are tremendous. Stakeholders
have clear opportunities to accelerate market development and create a more
LU]PYVUTLU[HSS`Z\Z[HPUHISL*OPUHHZPSS\Z[YH[LKI`[OLRL`ÄUKPUNZMYVT[OLYLWVY[!
China’s greentech markets encompass a wide range of sectors,
segments and distinct solutions
China has transformed dramatically over the last three decades into a
JVSVZZHSHUKYLZPSPLU[LJVUVTÌ\[H[ZPNUPÄJHU[LU]PYVUTLU[HSJVZ[Z
While China is likely to continue its rapid economic development, it is
expected to do so in an environmentally sustainable way
China has already laid the foundation for greentech market growth,
HUK[OLÄYZ[ZPNUZVM[OPZNYLLU[YHUZMVYTH[PVUHYLWYVTPZPUN
Regulators have taken concrete steps to address its environmental
issues and support the development of greentech markets
*OPUH»ZNYLLU[LJOTHYRL[ZHYLHSZVPUÅ\LUJLKI`PU[LYUH[PVUHSWVSPJ`
principles, agreements and relationships, with China proactively
engaging in dialogues related to global climate change and other
environmental issues
While many green technologies, products and services are still being
developed, a great number already exist and are available in China today
These greentech solutions hold the potential to mitigate the impact
of economic development on China’s natural environment and offer
attractive commercial opportunities for both providers and adopters
;^LS]LV]LYHSSJOHSSLUNLZYLTHPU[VILHKKYLZZLK"MV\YHYLHZ!THYRL[
[LJOUVSVN`ÄUHUJPUNHUKYLN\SH[VY`
:VS\[PVUHKVW[LYZZVS\[PVUWYV]PKLYZÄUHUJPHSPU]LZ[VYZNV]LYUTLU[
regulators and other stakeholders have clear opportunities to
address these challenges in an open source collaborative model,
accelerating China’s greentech markets and achieving the vision of an
environmentally sustainable China
0U[LUKLK [V IL H Z[HY[PUN WVPU[ [OH[ KLÄULZ HUK MYHTLZ THYRL[ PZZ\LZ HUK
opportunities, the Initiative recognizes that the report doesn’t answer every
question that market participants have. Given the broad scope of greentech
markets in China, the country’s immense scale and the intense speed at which
regulatory, end user, competitive and technology markets are changing, certain
aspects of this report will become dated relatively quickly.
Important questions that remain to be answered include evaluations of competing
green technologies’ functionalities and cost curves, assessments of emerging
business models, strategies for addressing intellectual property and technology
[YHUZMLY JVUJLYUZ YL]PL^Z VM HS[LYUH[P]L ÄUHUJPUN HUK WHY[ULYZOPW TVKLSZ [OL
impact of the Copenhagen climate change agreement on China, and many others.
Readers of The China Greentech ReportTM 2009 are invited to join the conversa-
[PVUI`]PZP[PUN^^^JOPUHNYLLU[LJOJVT;OL0UP[PH[P]L»Z^LIZP[LHSSV^ZWLVWSL[V!
Download electronic copies of the Executive Overview, full report and
individual sector chapters
Order printed versions of the report
Access additional content developed by the Initiative
Participate in interactive discussion forums to create, uncover and
promote greentech solutions for an environmentally sustainable China
and the world
The China Greentech Initiative looks forward to welcoming readers to its extended
community. Suggestions on improving the content in this report are also welcome
at feedback@china-greentech.com.

ACKNOWLEDGMENTS
Hundreds of individuals from more than 80 leading

technology and services companies, entrepreneurs,
investors, NGOs and policy advisors provided input to
The China Greentech Report 2009. The logos of these
organizations are presented on the front and inside
covers, and a complete listing of partners and strategic
advisors is included on the last page of the report. This
report is only possible because of the support and direction
provided from these organizations and their people.
THE CHINA GREENTECH INITIATIVE also recognizes and profusely thanks the many
talented professionals who became part of its core and extended teams over
the past year. Driven by their passion for greentech opportunities in China, these
team members demonstrated their willingness to tackle huge objectives and meet
unrealistic deadlines while delivering the highest quality deliverables. They’ve
^VYRLK JV\U[SLZZ SH[L OV\YZ ZHJYPÄJLK THU` ^LLRLUKZ THZ[LYLK UL^ ZRPSSZ
Q\NNSLKJVTWL[PUNWYPVYP[PLZHUKÅL_PIS`HKKYLZZLKWYVISLTZPKLU[PÄLKHSVUN[OL
^H`;OLZLWYVMLZZPVUHSZHUK[OLPYHMÄSPH[PVUÔLUUV[LTWSV`LKKPYLJ[SÌ`[OL
Initiative) are acknowledged below.
RESEARCH TEAM
Randall S. Hancock, co-Managing Director of the Initiative and CEO of
MangoStrategy, LLC, led the research team and the writing of this report. Hermes
:\U孙兆庆) directed the research team onsite from Beijing. Constantin Crachilov
HUK.HY`:OHYRL`7^*JV^YV[LT\JOVM[OPZYLWVY[HUKLHJOTHUHNLKT\S[PWSL
YLZLHYJO [LHTZ (UUHILSS *OHY[YLZ 7^* (UH 3PU ; *OPVUN 4HUNV:[YH[LN`
4PJOHLS 3P 李明 :OLYY` 3P 李晓丽 704 ,YPJH @\ 郁晓菲, PIM) and Jasmine
AOHUN 张金莉, PwC) managed individual sector teams. Core analysts with the
0UP[PH[P]LMVY[OLK\YH[PVU^LYL1V`)PHU卞玉娟(UNLSH-HU范羽/LSLU/L何
晓彦HUK9HJOLS?PHV肖凝).
6[OLYZQVPULK[OLYLZLHYJO[LHTH[ZWLJPÄJWVPU[ZPU[OLWYVQLJ[THU`HZ]VS\U[LLYZ
;OLZLL_[LUKLK[LHTTLTILYZPUJS\KLK(UUH:(IHYYV4HUNV:[YH[LN`9LU`P
(UN(HYVU(YMTHU/HV*HWP[HS)YPHUUH)\JR<:-VYLPNU*VTTLYJPHS:LY]PJL
4HU\LS 3PVULS 9 )HZPSPV 4HUNV:[YH[LN` AOHV *OHV 704 (UUPL *OLU 704
2L]PU *OPUN <: -VYLPNU *VTTLYJPHS :LY]PJL ?PU *OLU 陈歆, PwC), Siobhan
+HZ)HJOYHU(TLYPJHU*OHTILYVM*VTTLYJLPU:OHUNOHP4LP7PUN+VLY`李
美萍7^*)PLU]LUPKV,,ZTLYV4HUNV:[YH[LN`5PJRP-\UN冯斯琦, PwC）
3`KPH/L704@\ZOH/\-\SIYPNO[:JOVSHYH[;ZPUNO\H<UP]LYZP[`1LUUPMLY1PU
+V^*VYUPUN9LP2VIH`HZOP9VZL(UU:*3H\YLS4HUNV:[YH[LN`.LVMMYL`
3L^PZ -\SIYPNO[ :JOVSHY H[ ;ZPUNO\H <UP]LYZP[` 1LUUPMLY 3P 李宁, PwC), Ray Li
9***OPUH3PUH3P李莉娜7LRPUN<UP]LYZP[`3L^PZ3P\(刘杰, PwC), Feng Lei
4H 马逢蕾 7LRPUN <UP]LYZP[` .P\ZLWWL 5 7HYLU[L 4HUNV:[YH[LN` 3PSPHU 7\
濮国立 7^* 4HU\LS 9PUJVU*Y\a /HY]HYK <UP]LYZP[` 9HUK` 9\HU 阮春浩,
*VYUPUN;VIPHZ9VIPUZVU7^*.HYYL[:[PSLZ:[L]L;LUN/HY]HYK<UP]LYZP[`
)PHUJH>HUN王白羽*SPTH[L*OHUNL*HWP[HS*SH\KPH>HUN王晴, PwC), Wilson
>HUN 王吉涛 7^* 9HJOLS >HZZLY 7H\S * >H[ZVU @HUN @HUN 杨阳, PwC),
1LZZPL@\喻方7^*HUK:[L]LAOV\周尤, PwC).
PARTNER OUTREACH TEAM

Ellen G. Carberry, co-Managing Director of the Initiative and a Partner with Hao
Capital, led the partner outreach and government relations team. Craig Adams,
*OYPZ[PHU )LKHYK *PUK` 1PHUN 姜新燕 HUK ;VT >HYK 704 ^LYL [OL WYPUJPWHSZ
responsible for developing and managing relationships with the Initiative’s partners
and strategic advisors. Together, they complimented one another to achieve a
IYVHK YLWYLZLU[H[PVU HUK ZPNUPÄJHU[ WHY[PJPWH[PVU VM JVTWHUPLZ HUK UVUWYVÄ[
organizations from diverse industries, geographies and roles. Craig Adams, with
HZZPZ[HUJL MYVT 1HTLZ +V\NOLY[` JVU[YPI\[LK ZPNUPÄJHU[S` [V THUHNPUN [OL

ACKNOWLEDGMENTS
0UP[PH[P]L»ZTHYRL[PUNHUKJVTT\UPJH[PVUZHJ[P]P[PLZ1HZVU/\于经东) provided
tremendous administrative support across all facets of the Initiative. In addition,
[OL (TLYPJHU *OHTILY VM *VTTLYJL PU :OHUNOHP (T*OHT :OHUNOHP HSZV
contributed to the partner outreach activities.
PROJECT MANAGEMENT
(UUHILSS *OHY[YLZ 7^* ZLY]LK HZ [OL WYVQLJ[ THUHNLY MVY [OL 0UP[PH[P]L PU
addition to the research role noted earlier. Thanks to her organizational skills and
tireless commitment, she made it possible to manage successfully the Initiative’s
enormous complexity.
REPORT PRODUCTION
Several individuals from AmCham Shanghai played critical roles in the production
of the report – Siobhan Das Bachran, in addition to overseeing the Chamber’s
overall participation in the Initiative, coordinated the overall production effort.
Katie Howe edited and managed the editorial process. David Basmajian, along
with other Chamber staff, provided additional support. Marianne Kaulima was
responsible for the report’s design and layout. Julius Mak, a Shanghai based
photographer, provided all of the images used in this report at no cost to the
Initiative. Scribes of the Orient provided the Chinese translation for the online
version and print production was executed by Snap Printing, Shanghai.
NOTABLE OTHERS
Finally, while it is impossible to name the hundreds of other individuals from the
partner and strategic advisor group who’ve assisted in so many ways, a few
people stand out for special recognition.
9\[O +VIZVU 7^* ÔV THUHNLK 7YPJL^H[LYOV\ZL*VVWLYZ» WHY[PJPWH[PVU PU

the Initiative, provided detailed feedback on all facets of the research, procured
additional research support when needed, ensured availability of meeting facilities,
participated in sector working sessions, hosted team parties and much more.
Other members of PricewaterhouseCoopers’ leadership team who contributed
NYLH[S`[V[OL0UP[PH[P]LPUJS\KL5VYH>\顾宜4HY[PU-VSL`*ÙHYH;HU陈细丽)
HUK(SSHUAOHUN张鉴钧).
6[OLY PUKP]PK\HSZ THKL ZPNUPÄJHU[ JVU[YPI\[PVUZ [V [OL MV\UKPUN VM [OL 0UP[PH[P]L
ÔLU P[ ^HZ Q\Z[ H ]PZPVU PUJS\KPUN *OHYSLZ 3P\ 刘扬声), Simon Eckersley and
,SHPUL >VUN /HV *HWP[HS :[L]L )LY[HTPUP MVYTLY *,6 VM ., 5VY[O (ZPH HUK
*OPUH 7L[LY 4HYYZ +LSS )Y`HU 3HYZVU <: -VYLPNU *VTTLYJPHS :LY]PJL HUK
.HY` 9PLZJOLS 8PTPUN =LU[\YLZ )YLUKH 3LP -VZ[LY (T*OHT :OHUNOHP HUK
P[Z,U]PYVUTLU[HS*VTTP[[LLSLKI`PUJS\KPUN;VT4J*H^SL`6^LUZ*VYUPUN
*OHYSLZ4J,S^LL:X\PYL:HUKLYZHUK+LTWZL`HUK4H[[;HYNL[[)H`LYÔV
saw the potential of broadening the Initiative to include seven working sector
teams.
0U1\S`-YHUZ.YLPKHU\Z7OPSPWZ(ZPHILJHTL[OL0UP[PH[P]L»ZÄYZ[,\YVWLHU
WHY[ULYHUKPU[OLZHTLTVU[O)LPQPUN*HWP[HS北京首创ILJHTL[OLÄYZ[*OPULZL
Z[H[LVÛLK LU[LYWYPZL [V QVPU ;PUH 1\ 27*) *OPUH OVZ[LK *,6Z VM 0UP[PH[P]L
WHY[ULYZH[HWYP]H[LYLJLW[PVU^P[OMVYTLY<:=PJL7YLZPKLU[(S.VYL+H]PK5PLO
:O\P6U+L]LSVWTLU[瑞安房地产) hosted discussion dinners for the Initiative’s
YLZLHYJO[LHTPU:OHUNOHP:[L]L>P[[YPNHUK3PAOLUN;ZPUNO\H)7*SLHU,ULYN`
Center, 清华-BP清洁能源中心) dedicated hours of their time on weekends and
contributed a steady stream of secondary research.

GLOSSARY THE CHINA GREENTECH REPORT SOURCES
GLOSSARY
TERM DEFINITION
Advanced aircraft (PYJYHM[[OH[HYLTVYLM\LSLMÄJPLU[HUKWYVK\JLSLZZLTPZZPVUZ[OHU
Advanced coal mining equipment *VHS TPUPUN LX\PWTLU[ [OH[ PZ TVYL LULYN` LMÄJPLU[ HUK LUHISLZ
OPNOLYL_[YHJ[PVUYH[LZ[OHUJVU]LU[PVUHSLX\PWTLU[
Advanced diesel internal combustion =LOPJSLZ^P[OKPLZLS0*,[OH[HYLTVYLM\LSLMÄJPLU[HUKWYVK\JLSLZZ

engine (ICE) vehicles LTPZZPVUZ[OHUJVU]LU[PVUHSTVKLSZ\ZLKPU*OPUH
Advanced diesel locomotives +PLZLS SVJVTV[P]LZ [OH[ HYL TVYL M\LS LMÄJPLU[ HUK WYVK\JL SLZZ
Advanced envelopes 0UJS\KLZ PUZ\SH[PVU ^PUKV^Z YVVÄUN HUK V[OLY WHZZP]L ZVS\[PVUZ
LP[OLYPUZ[HSSLKTVYLHJJ\YH[LS`[OHU*OPUH»ZTHYRL[JVU]LU[PVUVY
JVTIPULK ^P[O HJ[P]L Z`Z[LTZ Z\JO HZ TVPZ[\YL VY [LTWLYH[\YL
ZLUZVYZ[VLUHISLYLK\JLKOLH[NHPUVYSVZZ
Advanced gasoline internal combustion =LOPJSLZ^P[ONHZVSPUL0*,[OH[HYLTVYLM\LSLMÄJPLU[HUKWYVK\JL

engine (ICE) vehicles SLZZLTPZZPVUZ[OHUJVU]LU[PVUHSTVKLSZ\ZLKPU*OPUH
Advanced metering infrastructures (AMI) 0U[LNYH[LKZ`Z[LTZ[OH[TLHZ\YLJVSSLJ[Z[VYLHUKHUHSàL\[PSP[`

\ZHNL:VTLVMÔPJOPUJS\KLLSLJ[YPJP[`NHZVY^H[LY"HIYVHKLY
JVUJLW[[OHU(4907IHZLKZVS\[PVUZ
Advanced recycling fees -LLZ WHPK \WVU [OL W\YJOHZL VM UL^ LSLJ[YPJ VY LSLJ[YVUPJ LX\PW
TLU[HUKHYL\ZLK[VÄUHUJL[OLYLJ`JSPUNVMLSLJ[YPJHUKLSLJ[YVUPJ
LX\PWTLU[^HZ[L
Advanced ships :OPWZ[OH[HYLTVYLM\LSLMÄJPLU[HUKWYVK\JLSLZZLTPZZPVUZ[OHU

Aeration >HZ[L^H[LY[YLH[TLU[HWWSPJH[PVUPUÔPJO^H[LYPZWHZZLK[OYV\NO
HPY;OLZ\IZLX\LU[PUJYLHZLPU[OL^H[LY»ZV_`NLUJVU[LU[HZZPZ[Z
IHJ[LYPHPU[OLJSLHU\WWYVJLZZ
Amine treatments (SZV JHSSLK HTPUL NHZ Z^LL[LUPUN H KLZ\SM\YPaH[PVU [LJOUPX\L PZ
HWYVJLZZ[OH[YLTV]LZO`KYVNLUZ\SÄKLHUKJHYIVUKPV_PKLMYVT
UH[\YHSNHZ
Amorphous silicon thin film photovoltaic ;`WL VM [OPU ÄST ZVSHY JLSSZ IHZLK VU HTVYWOV\Z ZPSPJVU JOLTPJHS
cells (a-Si PV) JVTWV\UK
Anaerobic digestion :LYPLZ VM WYVJLZZLZ PU ÔPJO TPJYVVYNHUPZTZ IYLHR KVÛ
IPVKLNYHKHISL TH[LYPHS PU [OL HIZLUJL VM V_`NLU (WWSPJH[PVU
PZ ^PKLS` \ZLK [V [YLH[ ^HZ[L^H[LY ZS\KNL HUK VYNHUPJ ^HZ[L 0[
YLK\JLZ[OLLTPZZPVUVMSHUKÄSSNHZHUKWYVK\JLZHTL[OHULHUK
JHYIVUKPV_PKLYPJOIPVNHZZ\P[HISLMVYLULYN`WYVK\J[PVU
Balance of plant 6W[PTPaH[PVU VM H WSHU[»Z LX\PWTLU[ HPTLK H[ TH_PTPaPUN LULYN`
^H[LYLMÄJPLUJ`HZ^LSSHZTPUPTPaPUNWVSS\[PVUHUK^HZ[L
Basic industries *VSSLJ[PVU VM LU[LYWYPZLZ [OH[ WYVK\JL [OL YLÄULK IHZPJ TH[LYPHSZ
ULJLZZHY` MVY THU\MHJ[\YPUN JVUZ\TLY NVVKZ HUK [OH[ \ZL YH^
TH[LYPHSZMYVTL_[YHJ[P]LPUK\Z[Y`
Batteries *VTIPUH[PVUVMLSLJ[YVJOLTPJHSJLSSZ[OH[Z[VYLLSLJ[YPJP[`
Battery electric vehicles (BEV) =LOPJSLZ [OH[ JVTWSL[LS` YLS` VU LSLJ[YPJP[` Z[VYHNL IH[[LYPLZ HZ H
WV^LYZV\YJLHUKHYLKYP]LUI`LSLJ[YPJTV[VYZ

GLOSSARY
Battery storage ,SLJ[YVJOLTPJHS JLSSZ [OH[ JHU IL \ZLK [V Z[VYL LULYN` ;OL` HYL
HISL[VILJOHYNLK\ZPUNLSLJ[YPJP[`HUK[OLUKPZJOHYNLK[VWYVK\JL
LSLJ[YPJP[`
Biochemicals *OLTPJHSZ[OH[HYLUH[\YHSS`L_PZ[PUNHUKVJJ\Y^P[OV\[HY[PÄJPHSHPK
Biodiesel 5VUWL[YVSL\TIHZLKKPLZLSM\LS[OH[\[PSPaLZLP[OLY]LNL[HISLVPSVY
HUPTHSMH[
Bioethanol ,[O`S HSJVOVS HU HS[LYUH[P]L [V NHZVSPUL PZ WYVK\JLK MYVT JLY[HPU
HNYPJ\S[\YHSJYVWZ[OYV\NOHTPJYVIPHSZ\NHYMLYTLU[H[PVUWYVJLZZ
Biofuels :VSPKSPX\PKVYNHZLV\ZM\LSZKLYP]LKMYVTIPVSVNPJHSTH[LYPHSZLN
Z\NHY JHUL VY MLLKZ[VJR )PVKPLZLS HUK IPVL[OHUVS HYL [OL TVZ[
JVTTVU[`WLZVMIPVM\LSZ\ZLKPUH\[VTVIPSLZ
Biogas ;`WLVMIPVM\LS[OH[PZWYVK\JLKI`[OLIYLHRKVÛVMVYNHUPJTH[[LY
]PHMLYTLU[H[PVUWYVK\JPUNTHPUS`JHYIVUKPV_PKLHUKTL[OHULVY
[OLNHZPÄJH[PVUVM^VVKTH[[LYWYVK\JPUNUP[YVNLUHUKO`KYVNLU
Bioheat -\LSJVTWYPZLKVMHISLUKVMOLH[PUNVPSHUKIPVM\LS\ZLKTHPUS`MVY
OVTLOLH[PUNHWWSPJH[PVUZ
Biological flocculation 7YVJLZZÔLYLWVSS\[HU[ZPU^H[LYHYLJVUJLU[YH[LK[VNL[OLYPU[OL

MVYTVMÅHRLZÔPJOHYL\ZLKPU[OLW\YPÄJH[PVUVMKYPURPUN^H[LY
HUK[YLH[TLU[VMZL^HNL
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Biomass 9LUL^HISLLULYN`ZV\YJLJVTWYPZLKVMSP]PUNVYYLJLU[S`KLHKIPVSVNPJHS
TH[LYPHSWSHU[VYHUPTHSTH[[LY[OH[JHUILJVU]LY[LKPU[VM\LS
Biomass co-firing 7YVJLZZ [OH[ NLULYH[LZ WV^LY WSHU[ LSLJ[YPJP[` I` ZPT\S[HULV\ZS`
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Biosphere ;LYT\ZLK[VKLZJYPIL[OLLU[PYLNSVIHSLJVSVNPJHSZ`Z[LTHUK[OL
YLSH[PVUZOPWVMP[ZPUOHIP[HU[Z
Building energy intensity 4LHZ\YLTLU[VMHI\PSKPUN»ZLULYN`LMÄJPLUJ`JHSJ\SH[LKHZ\UP[ZVM

LULYN`WLYZX\HYLTL[LY
Building integrated heat and power *VTIPUH[PVUVMOLH[PUNHUKWV^LYNLULYH[PVUZVS\[PVUZ[OH[JV\SK

ILPU[LNYH[LKPU[VHI\PSKPUN:VTLVMÔPJOPUJS\KLZVSHYWOV[V]VS
[HPJJLSSZ^PUK[\YIPULZHUKZVSHY^H[LYOLH[LYZ
Building integrated photovoltaics (BIPV) (WWSPJH[PVU VM ZVSHY WOV[V]VS[HPJ TH[LYPHSZ ÔL[OLY JY`Z[HSSPUL VY
[OPUÄST PU[V HJ[\HS I\PSKPUN Z[Y\J[\YLZ ;OPZ UVYTHSS` YLWSHJLZ
JVU]LU[PVUHS I\PSKPUN TH[LYPHSZ PU WHY[Z VM [OL I\PSKPUN LU]LSVWL
Z\JOHZ[OLYVVMZR`SPNO[ZVYMHJHKLZ
Build-operate-transfer (BOT) (YYHUNLTLU[ÔLYLPU[OLNV]LYUTLU[H^HYKZHMYHUJOPZLSPJLUZL[V

HWYP]H[LZLJ[VYJVTWHU`PUJS\KPUNMVYLPNUJVTWHUPLZMVYHJLY[HPU
WLYPVKVM[PTL;OPZPU[\YUWLYTP[Z[OLJVUZ[Y\J[PVUHUKVWLYH[PVU
VM H ZWLJPÄJ W\ISPJ PUMYHZ[Y\J[\YL WYVQLJ[ ÔPJO PZ L]LU[\HSS`
[YHUZMLYYLK[V[OLNV]LYUTLU[MYLLVMJOHYNLÔLU[OLJVUJLZZPVU
WLYPVKL_WPYLZ
Bus rapid transit (BRT) (ULMÄJPLU[I\ZZ`Z[LTYLZ\S[PUNMYVTPTWYV]LTLU[ZPUPUMYHZ[Y\J[\YL

]LOPJSLZHUKZJOLK\SLZ

GLOSSARY
Cadmium telluride thin film photovoltaic ;`WLVM[OPUÄSTZVSHYJLSSZIHZLKVU[OLJHKTP\T[LSS\YPKLJOLTPJHS

cells (CdTe PV) JVTWV\UK
Capture and use of coal mine ventilation 7YVJLZZVMJHW[\YPUNHUK[OLU\ZPUN[OLTL[OHUL[OH[PZJVU[HPULK

air methane PU[OLL_OH\Z[HPYMYVT\UKLYNYV\UKJVHSTPULZ
Carbon capture and sequestration (CCS) :`Z[LT [OH[ JHW[\YLZ JHYIVU KPV_PKL MYVT MVZZPS M\LS LP[OLY WYPVY
[V VY HM[LY JVTI\Z[PVU HUK ZLX\LZ[LYZ P[ MVY SVUN[LYT Z[VYHNL
\UKLYNYV\UK
Carbon dioxide equivalent (CDE) -VYHNP]LUHTV\U[VMNYLLUOV\ZLNHZP[PZ[OLHTV\U[VMJHYIVU

KPV_PKL *62 ^P[O [OL ZHTL NSVIHS ^HYTPUN WV[LU[PHS .>7
HZZ\TPUNP[YLTHPUZPU[OLH[TVZWOLYLMVY`LHYZ-VYL_HTWSL
[OL .>7 VM UP[YV\Z V_PKL PZ [PTLZ [OH[ VM *62 [O\Z VUL [VU
UP[YVNLUV_PKLLX\HSZ[VUZ*+,
Carbon monoxide (CO) 6KVYSLZZ JVSVYSLZZ WVPZVUV\Z NHZ WYVK\JLK I` [OL PUJVTWSL[L
I\YUPUN VM MVZZPS M\LSZ LN NHZVSPUL VPS UH[\YHS NHZ 7YVK\JLK
WYPTHYPSÌ`]LOPJSLZHUKPUK\Z[YPHSWYVJLZZLZ
Cassava bioethanol )PVL[OHUVSWYVK\JLKMYVTJHZZH]HJYVW
Cellulosic bioethanol )PVL[OHUVSWYVK\JLKMYVT^VVKNYHZZLZVYV[OLYWSHU[Z
Centralized energy generation model ,ULYN` PZ NLULYH[LK PU SHYNLZJHSL JLU[YHSPaLK WV^LY WSHU[Z HUK
KPZ[YPI\[LK[V[OLLUK\ZLY]PH[OLWV^LYNYPK
Certified emission reductions (CER) 9LMLYZ[VJHYIVUHUKVYJSPTH[LJYLKP[ZPZZ\LKI`[OL*SLHU+L]LSVWTLU[

4LJOHUPZT*,9ZHYL\[PSPaLKI`WHY[PJPWH[PUNJV\U[YPLZHUKWYVQLJ[Z
PUVYKLY[VJVTWS`^P[OLZ[HISPZOLKLTPZZPVUSPTP[H[PVU[HYNL[Z;OL`JHU
IL[LTWVYHY`VYWLYTHULU[KLWLUKPUNVU[OLK\YH[PVUVMP[ZILULÄ[Z
HUKJHUILHJX\PYLKVY[YHKLKVU[OLTHYRL[
Chemical wastewater treatments ;YLH[TLU[TL[OVKZ[OH[\ZLZ\IZ[HUJLZZ\JOHZJOSVYPULVaVULVY

O`KYVNLUWLYV_PKL[VYLTV]LWVSS\[HU[Z
CIGS thin film photovoltaic cells ;`WL VM [OPU ÄST ZVSHY JLSSZ IHZLK VU [OL JVWWLY PYYPKP\T NHSSP\T
(CIGS PV) ZLSLUPKLJOLTPJHSJVTWV\UK
Circulating fluidized bed combustion *VTI\Z[PVUHWWSPJH[PVU[OH[\ZLZÅ\PKPaLKILKZÔPJOPZHKL]PJL

(CFBC) [OH[JH\ZLZ[OLZVSPKJVTWVULU[ZVMHÅ\PK[VHJ[SPRLHSPX\PK0[[OLU
Z\ZWLUKZZVSPKM\LSV]LYZ[YLHTZVMOV[HPYK\YPUN[OLJVTI\Z[PVU
WYVJLZZ[OLYLI`YLZ\S[PUNPUTVYLLMÄJPLU[JOLTPJHSYLHJ[PVUZ
Civil heat )\YUPUNVMIPVTHZZ[VNLULYH[LOLH[[VIL\ZLKMVYJP]PSW\YWVZLZ
Clean Development Mechanism (CDM) 4LJOHUPZT I` ÔPJO JV\U[YPLZ [OH[ HYL ZPNUH[VYPLZ [V [OL 2`V[V
7YV[VJVS JHU PU]LZ[ PU LTPZZPVU YLK\J[PVU WYVQLJ[Z PU KL]LSVWPUN
JV\U[YPLZPUZ[LHKVMPTWSLTLU[PUNZPTPSHYWYVQLJ[ZPUJV\U[Y`
Cleaner aircraft fuels (PYJYHM[ M\LSZ [OH[ WYVK\JL JVUZPKLYHIS` SLZZ HPY LTPZZPVUZ
[OHU JVU]LU[PVUHS HPYJYHM[ M\LSZ ÔPSL KLSP]LYPUN LX\HS VY IL[[LY
WLYMVYTHUJL
Cleaner ship fuels :OPW M\LSZ [OH[ WYVK\JL JVUZPKLYHIS` SLZZ HPY LTPZZPVUZ
[OHU JVU]LU[PVUHS ZOPW M\LSZ ÔPSL KLSP]LYPUN LX\HS VY IL[[LY
WLYMVYTHUJL
Coal bed methane (CBM) 4L[OHUL VYPNPUH[PUN PU JVHS ZLHTZ PU H ULHY SPX\PK Z[H[L [OH[ PZ
KYHPULKMYVTZ\YMHJLIVYLOVSLZILMVYLTPUPUN[HRLZWSHJL
Coal blending 7YVJLZZ VM JVTIPUPUN ]HYPV\Z [`WLZ VM W\S]LYPaLK JVHS [V [HRL
HK]HU[HNLVM[OLPYKPMMLYLU[JVTI\Z[PVUHUKLTPZZPVUWYVWLY[PLZ

GLOSSARY
Coal briquettes :THSS YLJ[HUN\SHY ISVJRZ VM JVTWYLZZLK JVHS \ZLK PU SPTP[LK
PUK\Z[YPHS HWWSPJH[PVUZ WYPTHYPS` ZTHSSLY ZJHSL JOLTPJHS WSHU[Z
HUK ISHZ[ M\YUHJLZ <[PSPaH[PVU VM IYPX\L[[LZ JHU YLK\JL LTPZZPVU
YLZ\S[PUNMYVTJVTI\Z[PVU
Coal liquefaction 7YVJLZZ[OH[JVU]LY[ZJVHSPU[VSPX\PKM\LSZ
Coal mine methane (CMM) 4L[OHUL JVU[HPULK PU NHZLZ JHW[\YLK PU H ^VYRPUN JVHS TPUL I`
TL[OHULKYHPUHNLZ`Z[LTZ
Coal screening and scrubbing 7YVJLZZLZ[OH[YLK\JLZPTW\YP[PLZZ\JOHZHZOVYZ\SM\YJVU[HPULK

PUJVHSWYPVY[VI\YUPUNUVYTHSS`H[VYJSVZL[V[OLJVHSTPUL
Coal water slurry *VHSIHZLK SPX\PK M\LS JVUZPZ[PUN VM ÄUL JVHS WHY[PJSLZ Z\ZWLUKLK
PU^H[LY0[JVUZPZ[ZVMVMÄULKPZWLYZLKJVHSWHY[PJSLZHUK
VM^H[LY
Coal water slurry technology ;LJOUVSVN`HUKHWWSPJH[PVU[OH[[YHUZMVYTZJVHS^H[LYZS\YY`PU[VH

]PHISLLULYN`WYVK\J[;OL\ZLVMZS\YY`ZH]LZZ\IZ[HU[PHSHTV\U[Z
VM OLH]` VPS PU [OL LSLJ[YPJP[` NLULYH[PUN WYVJLZZ HUK LTP[Z ML^LY
WVSS\[HU[Z
Coke +LUZL HSTVZ[ JVTWSL[LS` W\YL MVYT VM JHYIVU [OH[ I\YUZ H[ ]LY`
OPNO [LTWLYH[\YLZ <ZLK PU H ]HYPL[` VM PUK\Z[YPHS HWWSPJH[PVUZ PU
JS\KPUNZ[LLSWYVK\J[PVU
Combined cycle ([LJOUPX\LLTWSV`LKI`WV^LYWYVK\JPUNWSHU[ZVYLUNPULZ[OH[

\ZLZ TVYL [OHU VUL [OLYTVKÙHTPJ J`JSL ZV HZ [V M\Y[OLY \[PSPaL
^HZ[LOLH[NLULYH[LKMYVTPUP[PHSJVTI\Z[PVU
Combined heat and power (CHP) :`Z[LT[OH[ZPT\S[HULV\ZS`NLULYH[LZLSLJ[YPJP[`HUK\ZHISLOLH[I`

JHW[\YPUNOLH[[OH[^V\SKUVYTHSSÌLSVZ[
Commissioning and efficient operations (ZZ\YPUN[OH[HSSZ`Z[LTZPUHI\PSKPUNHYLPUZ[HSSLK[LZ[LKVWLYH[LK

HUKTHPU[HPULKHZVYPNPUHSS`PU[LUKLK
Composite materials cables ;YHUZTPZZPVU HUK KPZ[YPI\[PVU SPUL JHISLZ THKL MYVT JVTWVZ[P]L
TH[LYPHSZ[OH[HYLZWLJPÄJHSS`LUNPULLYLK[VYLK\JLSVZZLZ
Compost )PVKLNYH[PVU VY KLJH` VM VYNHUPJ TH[[LY Z\JO HZ HNYPJ\S[\YHS HUK
MVVK^HZ[L*VTWVZ[HOPNOX\HSP[`MLY[PSPaLYPZ[OLTHPUI`WYVK\J[
VM[OLWYVJLZZ
Compressed air energy storage (CAES) :`Z[LT[OH[JHUZ[VYLLULYNÌ`JVTWYLZZPUNHPYPUHJVTWHY[TLU[

Z\JOHZHPY[PNO[\UKLYNYV\UKJH]LYUHUK[OLUNLULYH[LLSLJ[YPJP[`
I`YLSLHZPUN[OLHPYMYVTZ[VYHNL[OYV\NOHJVTI\Z[PVU[\YIPUL
Compressed natural gas (CNG) -VZZPSM\LSZ\IZ[P[\[LMVYNHZVSPULKPLZLSVYWYVWHULTHKLI`JVTWYLZZPUN

UH[\YHSNHZHUKZ[VYLKPUZWLJPHSJVTWYLZZLKNHZJ`SPUKLYZ
Concentrating photovoltaics (CPV) +L]PJLZ[OH[JVUJLU[YH[LZ\USPNO[VU[VWOV[V]VS[HPJZ\YMHJLZ[VWYV

K\JLLSLJ[YPJP[`
Concentrating solar power (CSP) >OLYLHZ JVUJLU[YH[LK WOV[V]VS[HPJ \ZLZ WOV[V]VS[HPJ Z\YMHJLZ [V
NLULYH[L LSLJ[YPJP[` *:7 \ZLZ SLUZLZ VY TPYYVYZ HUK [YHJRPUN Z`Z
[LTZ[VJVUJLU[YH[LHSHYNLHYLHVMZ\USPNO[PU[VHZTHSSILHT;OL
OLH[WYVK\JLKI`[OLZTHSSILHTVMSPNO[^PSS[OLUIL\ZLK[VNLULY
H[LLSLJ[YPJP[`
Control systems :`Z[LTZ[OH[TVUP[VYHUKJVU[YVS[OLILOH]PVYVMV[OLYKL]PJLZVY

Z`Z[LTZ[VLUZ\YLVW[PTHSVWLYH[PVUVM[OL^PUK[\YIPUL

GLOSSARY
Conversion efficiency 9H[PVIL[^LLUPUW\[HUKV\[W\[HM[LYHULULYN`PZJVU]LY[LKMYVT

VULMVYT[VHUV[OLY;OLJHSJ\SH[PVUVM[OPZYH[PVHSZVÄN\YLZPU[OL
\ZLM\SULZZVM[OLV\[W\[HTV\U[:WLJPÄJHSS`MVYWOV[V]VS[HPJJLSSZ
JVU]LYZPVU LMÄJPLUJ` PZ [OL WYVWVY[PVU VM Z\USPNO[ LULYN` [OH[ [OL
JLSSJVU]LY[Z[VLSLJ[YPJHSLULYN`
Conversion technologies +L]PJLZ[OH[JVU]LY[LSLJ[YPJP[`YLJLP]LKMYVTHZL[VM^PUK[\YIPULZ

[V[OLZ[HUKHYKYLX\PYLKI`[OLWV^LYNYPKILMVYLMLLKPUN[OLLSLJ
[YPJP[`VU[V[OLNYPK
Copper rotor motors (CRM) 4V[VY [LJOUVSVNPLZ [OH[ VMMLY PUJYLHZLK LSLJ[YPJHS LULYN` LMÄJPLU
J`SV^LYVWLYH[PUN[LTWLYH[\YLL_[LUKLKTV[VYSPMLHUKYLK\JLK
^LPNO[HUKZPaL
Crystalline silicon photovoltaic cells ;`WLVMZVSHYJLSSTHKLMYVTHZPUNSLJY`Z[HSVYHWVS`JY`Z[HSSPULZSPJL

(cSi PV) VMZPSPJVU"P[^HZ[OLÄYZ[[`WL[VIL^PKLS`JVTTLYJPHSPaLK
Cylinder deactivation (\[VTVIPSL LUNPUL [LJOUVSVN` [OH[ JHU YLK\JL M\LS JVUZ\TW[PVU
HUKLTPZZPVUVMHULUNPULK\YPUNSPNO[SVHKVWLYH[PVUI`RLLWPUN[OL
PU[HRLHUKL_OH\Z[]HS]LZJSVZLKMVYHWHY[PJ\SHYJ`SPUKLY
De-dusting 7YVJLZZKLZPNULK[VYLTV]LWHY[PJ\SH[LTH[[LYJYLH[LKPU[OLWV^LY
NLULYH[PVU WYVJLZZ ,SLJ[YVZ[H[PJ WYLJPWP[H[VYZ JYLH[L HU LSLJ[YPJ
ÄLSK[OH[LZZLU[PHSS`JHW[\YLZWHY[PJ\SH[LZ"\W[V VMWHY[PJ\SH[LZ
PUNHZJHUILJHW[\YLKPU[OPZ^H`
Desalination 7YVJLZZ[OH[YLTV]LZZHS[HUKV[OLYTPULYHSZMYVTZHSPUL^H[LYZ\JO
HZZLH^H[LYPUVYKLY[VTHRLP[Z\P[HISLMVYO\THUJVUZ\TW[PVU
VYPYYPNH[PVU
Diesel oxidation catalysts (DOC) +LZPNULK [V V_PKPaL JHYIVU TVUV_PKL NHZ WOHZL O`KYVJHYIVUZ
HUK[OLZ\SM\YJVTWVULU[VMKPLZLSWHY[PJ\SH[LTH[[LY[OLYLI`JYLH[
PUNJHYIVUKPV_PKLHUK^H[LY/HZILLUZOVÛ[VYLK\JLLTPZZPVU
I`\W[V
Diesel particulate filters (DPF) -PS[LYZ [OH[ \ZL ZPSPJVU JHYIPKL ISVJRZ PU [OL L_OH\Z[ Z`Z[LTZ VM
SVJVTV[P]LZ[V[YHWWHY[PJ\SH[LTH[[LY*HUYLK\JLLTPZZPVUI`\W
[V
Digital substations (\[VTH[LK HUK JVTW\[LYPaLK Z\IZ[H[PVUZ [OH[ WYV]PKL NYLH[LY

[YHUZWHYLUJÒPNOLYYLSPHIPSP[`HUKLMÄJPLUJ`VMVWLYH[PVUZ
Dimethyl ether (CH3OCH3) *VUZPKLYLKHJSLHUI\YUPUNO`KYVJHYIVUM\LS*/6*/PZWYVK\JLK

I` [OL NHZPÄJH[PVU VM JVHS VY UH[\YHS NHZ *VUZPKLYLK [V OH]L
WV[LU[PHSHZHZÙ[OL[PJIPVM\LS
Discharge rate 9H[L H[ ÔPJO WVSS\[HU[Z VY V[OLY TH[LYPHSZ HYL LTP[[LK PU[V [OL
LU]PYVUTLU[ PL [OL HTV\U[ VM ZVSPK SPX\PK VY NHZLV\Z TH[LYPHS
LTP[[LKV]LYHWLYPVKVM[PTL
Disinfection 7YVJLZZ [OH[ PU]VS]LZ [OL YLTV]HS VM WH[OVNLUPJ VYNHUPZTZ MYVT
^H[LY ]PH [OL \ZL VM JOSVYPUL HUK \S[YH]PVSL[ SPNO[ HTVUN V[OLY
HWWSPJH[PVUZ
Distributed generation :THSSZJHSL WV^LY NLULYH[PVU [LJOUVSVNPLZ [`WPJHSS` PU [OL YHUNL
VM R> [V R> \ZLK [V WYV]PKL HU HS[LYUH[P]L [V VY HU
LUOHUJLTLU[ VM [OL [YHKP[PVUHS LSLJ[YPJ WV^LY Z`Z[LT 7V^LY
NLULYH[PVU PZ HJOPL]LK VUVYVMMNYPK HZ VWWVZLK [V SHYNLZJHSL
JLU[YHSPaLKWV^LYWSHU[Z
Distribution materials and components 7PWLZ]HS]LZHUKUVaaSLZ[OH[HYL\ZLK[V[YHUZWVY[^H[LYWYPTHYPS`

IL[^LLU[YLH[TLU[WSHU[ZHUK\ZHNLWVPU[Z

GLOSSARY
Efficient motors ,SLJ[YPJ TV[VYZ [OH[ HYL TVYL LULYN` LMÄJPLU[ [OHU JVU]LU[PVUHS
TVKLSZJ\YYLU[S`\ZLKPU*OPUH
Efficient processing 7YVJLZZLZ[OH[HYLLULYN`LMÄJPLU[SV^WVSS\[PUNLJVMYPLUKS`HUK

SLH]LILOPUKSP[[SLVYUVZVSPK^HZ[L
Effluent >HZ[L^H[LY [YLH[LK VY \U[YLH[LK [OH[ JVTLZ V\[ VM ZL^HNL
[YLH[TLU[MHJPSP[PLZHUKVYPUK\Z[YPHSMHJPSP[PLZ
Electric two wheelers (E2W) )PRLZ HUK ZJVV[LYZ LX\PWWLK ^P[O H YLJOHYNLHISL IH[[LY` HUK HU
LSLJ[YPJTV[VY\ZLKMVYWYVW\SZPVU
Electric auto vehicle (EAV) charging :`Z[LTZ[OH[HSSV^MVYWS\NPULSLJ[YPJ]LOPJSLZ[VILJOHYNLK\ZPUN

systems WV^LYMYVT[OLNYPK
Electric locomotives 3VJVTV[P]LZ WV^LYLK I` HU LSLJ[YPJ LUNPUL ÔPJO \ZLZ HU
LSLJ[YPJP[`ZV\YJLZ\JOHZHUV]LYOLHKSPUL[OPYKYHPSVYHUVUIVHYK
LSLJ[YPJP[`Z[VYHNLKL]PJLYH[OLY[OHUMVZZPSM\LSZ[VTLL[P[ZLULYN`
YLX\PYLTLU[Z
Electrical/electronic waste (e-waste) +PZJHYKLK VIZVSL[L IYVRLU VY Z\YWS\Z JVTW\[LYZ LU[LY[HPUTLU[
LSLJ[YVUPJ KL]PJLZ TVIPSL WOVULZ [LSL]PZPVUZ YLMYPNLYH[VYZ HUK
LSLJ[YVUPJP[LTZÔL[OLYZVSKKVUH[LKVYKPZJHYKLKI`[OLPYVYPNPUHS
VÛLYZ
Embodied energy ;V[HSLULYN`\ZLKPU[OLTHU\MHJ[\YPUNVMWYVK\J[(UHJJV\U[PUN

TL[OVK[OH[JVTW\[LZ[OLZ\T[V[HSVM[OLLULYNÙLJLZZHY`MVY[OL
LU[PYLSPMLJ`JSLVMHWYVK\J[
Emission standards 9LX\PYLTLU[Z [OH[ ZL[ ZWLJPÄJ SPTP[Z [V [OL HTV\U[ VM WVSS\[HU[Z
[OH[JHUILYLSLHZLKPU[V[OLLU]PYVUTLU[ÔPJONLULYHSS`PUJS\KL
UP[YVNLUV_PKLZZ\SM\YV_PKLZWHY[PJ\SH[LTH[[LYL[J
Energy intensity of GDP (]LYHNLHTV\U[VMLULYN`JVUZ\TLK[VWYVK\JLH\UP[VM.+7
Engineering, procurement, construction 7YVQLJ[ JVU[YHJ[ [OH[ PUJS\KLZ LUNPULLYPUN WYVJ\YLTLU[ HUK JVU
(EPC) Z[Y\J[PVU
Enhanced coal bed methane (CBM) 7YVJLZZVMYLJV]LYPUNHKKP[PVUHSJVHSILKTL[OHULMYVTO`KYVJHY

recovery IVUYPJOYVJRZ
Enhanced oil recovery (EOR) :VS\[PVUZ [OH[ PUJYLHZL [OL HTV\U[ VM L_[YHJ[HISL JY\KL VPS MYVT
HU VPS ÄLSK Z\JO HZ! .HZ PUQLJ[PVU JOLTPJHS PUQLJ[PVU \S[YHZVUPJ
Z[PT\SH[PVUTPJYVIPHSPUQLJ[PVUVY[OLYTHSYLJV]LY`
Environmental management system *VTWYLOLUZP]L Z`Z[LTH[PJ KVJ\TLU[LK THUHNLTLU[ VM HU

(EMS) and IT systems VYNHUPaH[PVU»ZLU]PYVUTLU[HSWYVNYHTZ[OH[YLS`VU0;ZVS\[PVUZMVY
LMMLJ[P]LVWLYH[PVU
Ethanol 10 (E10) =LOPJSLM\LSJVTWYPZLKVML[OHUVSISLUK^P[ONHZVSPUL[OH[OHZ

ILJVTLHZ[HUKHYKPU*OPUH)SLUKJHUIL\ZLKPUZ[HUKHYKPU[LYUHS
JVTI\Z[PVULUNPULZ^P[OV\[ULLKMVYTVKPÄJH[PVUZ
Extraction solutions :VS\[PVUZ [OH[ OLSW SVJH[L HJJLZZ HUK L_[YHJ[ ^H[LY MYVT
\UKLYNYV\UKZV\YJLZ
Fabrication industries )\ZPULZZLZ LUNHNLK PU [OL WYVK\J[PVU VM THU\MHJ[\YLK NVVKZ"
L_JS\KPUN[OLNLULYH[PVUVMLULYN`MVYTHU\MHJ[\YPUNWYVJLZZLZ;OPZ
PZPUJVU[YHZ[[V[OL[LYT¸THU\MHJ[\YPUNPUK\Z[Y`¹ÔPJOZVTL[PTLZ
LUJVTWHZZLZIV[OLULYN`NLULYH[PVUHUKNVVKZMHIYPJH[PVU
Fast neutron reactors ;`WLVMU\JSLHYYLHJ[VYZ[OH[JHU\[PSPaLU\JSLHY^HZ[LZMYVT[OLYTHS

YLHJ[VYZHZMLLKZ[VJRHUKVWLYH[LH[OPNOLYLMÄJPLUJPLZ

GLOSSARY
F-class gas turbines (K]HUJLK [LJOUVSVN` NHZ [\YIPULZ ÔPJO HYL YV[HY` LUNPULZ [OH[
L_[YHJ[ LULYN` MYVT H ÅV^ VM JVTI\Z[PVU NHZ H[ [OLYTHS WV^LY
WSHU[Z [OH[ HYL TVYL LMÄJPLU[ HUK YLSPHISL [OHU JVU]LU[PVUHS NHZ
[\YIPULZ
Filtration 9LTV]PUNZVSPKWHY[PJ\SH[LTH[[LYZ\ZWLUKLKPU^H[LYI`WHZZPUN
[OL^H[LY[OYV\NOWLYTLHISLMHIYPJZVYWVYV\ZSH`LYZVMZVPS
First generation biofuels -\LSZ[OH[\ZLMLLKZ[VJRZ\JOHZZ\NHY`VYZ[HYJO`TH[LYPHSZ[OH[

HYL[OLUMLYTLU[LKPU[VIPVL[OHUVS(SZVPUJS\KLZVPSMYVTZLLKZ[OH[
JHUIL\ZLKPUIPVKPLZLS
Flue gas denitration (De-NOx) :`Z[LT[OH[YLTV]LZUP[YVNLUV_PKLZMYVTÅ\LNHZ
Flue gas desulfurization (De-SOx) :`Z[LT[OH[YLTV]LZZ\SM\YV_PKLZMYVTÅ\LNHZ
Flue gas purification 7YVJLZZ I` ÔPJO Å\L VY L_OH\Z[ NHZLZ HYL JSLHULK PU VYKLY [V
YLTV]LUP[YVNLUV_PKLZZVV[HUKV[OLYWHY[PJ\SH[LZ
Fresnel mirrors :VSHY [OLYTHS LULYN` JVSSLJ[VYZ [OH[ JVUZPZ[ VM H ZLYPLZ VM SVUN
UHYYV^ ZSPNO[S` J\Y]LK TPYYVYZ [OH[ MVJ\Z [OL SPNO[ VU[V SPULHY
YLJLP]LYZWVZP[PVULKHIV]L[OLTPYYVYZ[VILL]LU[\HSS`JVU]LY[LK
PU[VLSLJ[YPJP[`
Fuel cell vehicles (FCV) =LOPJSLZWYVWLSSLKI`HULSLJ[YPJTV[VY\ZPUNLSLJ[YPJP[`NLULYH[LK

[OYV\NO H JOLTPJHS WYVJLZZ ^P[OPU H M\LS JLSS ÔPJO YLX\PYLZ
O`KYVNLUM\LSHUKV_`NLUMYVT[OLHPYHZMLLKZ[VJR
Fuel economy standards :[HUKHYKZ [OH[ YLN\SH[L [OL HTV\U[ VM M\LS YLX\PYLK [V TV]L [OL
H\[VTVIPSLV]LYHNP]LUKPZ[HUJL
Fuel switching (IPSP[`[VTHRL\ZLVMHS[LYUH[P]LM\LSZLP[OLYI`\ZPUNT\S[PWSLM\LSZ

ZPT\S[HULV\ZS`VYI`Z^P[JOPUNIL[^LLUM\LSZ
Gas flaring and venting 4L[OVK I` ÔPJO L_JLZZ UH[\YHS NHZ [`WPJHSS` MV\UK H[ VPS ^LSSZ
HUK YLÄULYPLZ PZ I\YULK PU VYKLY [V WYL]LU[ [OL I\PSK\W VM L_JLZZ
WYLZZ\YL-SHYPUNHUK]LU[PUNHYLTHQVYJVU[YPI\[VYZ[VNYLLUOV\ZL
NHZLTPZZPVU
Gas reburning 7YVJLZZKLZPNULK[VYLK\JL[OLLTPZZPVUVMUP[YV\ZV_PKLZNLULYH[LK

IÙH[\YHSNHZIVPSLYZI`PUQLJ[PUNUH[\YHSNHZHIV]L[OLIVPSLYZ»JVHS
I\YULYZPUVYKLY[V¸YLI\YU¹[OLI`WYVK\J[ZVMJVTI\Z[PVU
Gasification 4L[OVK[OH[L_[YHJ[ZLULYN`MYVTVYNHUPJTH[LYPHSZ*HYIVUIHZLK
TH[[LYLNJVHSYLHJ[ZH[OPNO[LTWLYH[\YLZ^P[OV_`NLUWYVK\JPUN
ZÙ[OLZPZNHZ7YVJLZZJHUILTVYLLMÄJPLU[[OHUKPYLJ[JVTI\Z[PVU
VM JHYIVU TH[LYPHS HUK PZ JVUZPKLYLK [V IL TVYL LU]PYVUTLU[HSS`
ZV\UKHZ^LSS
Gasoline grades *SHZZPÄJH[PVU Z`Z[LT [OH[ JH[LNVYPaLZ NHZVSPUL I` VJ[HUL YH[PUNZ
;OL [OYLL [`WLZ VM NHZVSPUL JVU]LU[PVUHS V_`NLUH[LK HUK
YLMVYT\SH[LK HYL M\Y[OLY IYVRLU KVÛ PU[V YLN\SHY TPKNYHKL HUK
WYLTP\TJH[LNVYPLZHSSIHZLKVUVJ[HULJVU[LU[
Generators 4HJOPULZ [OH[ JVU]LY[ VUL [`WL VM LULYN` Z\JO HZ RPUL[PJ VY
TLJOHUPJHSPU[VLSLJ[YPJHSLULYN`
Global warming potential (GWP) 4LHZ\YL VM H NP]LU WVSS\[HU[»Z LZ[PTH[LK JVU[YPI\[PVU [V NSVIHS
^HYTPUN:JHSLPZYLSH[P]LHUKJVTWHYLZ[OLNHZPUX\LZ[PVU[V[OH[
VM[OLZHTLTHZZVMJHYIVUKPV_PKL

GLOSSARY
Green devices ,SLJ[YVUPJKL]PJLZ\ZLKPUZPKLI\PSKPUNZPUJS\KPUNSPNO[PUNZVS\[PVUZ

HWWSPHUJLZHUKJVUZ\TLYLSLJ[YVUPJZ[OH[HYLTVYLLULYN`LMÄJPLU[
[OHUJVU]LU[PVUHSHS[LYUH[P]LZ
Greenfield refineries 9LÄULY`MHJPSP[PLZ[OH[HYLI\PS[VUZP[LZ[OH[OH]LUV[L_WLYPLUJLK

WYL]PV\ZKL]LSVWTLU[
Greenhouse gas (GHG) .HZ PU [OL H[TVZWOLYL [OH[ HIZVYIZ HUK LTP[Z YHKPH[PVU ^P[OPU
[OL [OLYTHS PUMYHYLK YHUNL PUJS\KPUN ^H[LY ]HWVY JHYIVU KPV_PKL
TL[OHULUP[YV\ZV_PKLVaVULHUKJOSVYVÅ\VYVJHYIVUZ
Greywater systems :`Z[LTZ[OH[MVJ\ZVU[OLYL\ZLVM^H[LYNLULYH[LKMYVTKVTLZ[PJ

WYVJLZZLZ Z\JO HZ KPZO ^HZOPUN SH\UKY` HUK IH[OPUN MVY LP[OLY
PUKVVY\ZLVYPUPYYPNH[PVU
Hazardous wastes >HZ[LZ JOHYHJ[LYPaLK HZ ILPUN ÅHTTHISL V_PKPaPUN JVYYVZP]L

[V_PJYHKPVHJ[P]LL_WSVZP]LVY^P[O[OLWV[LU[PHS[V[OYLH[LUW\ISPJ
OLHS[OVY[OLLU]PYVUTLU[
Heating, ventilation and air conditioning *SPTH[LJVU[YVSZ`Z[LTVMI\PSKPUNZ"P[LUZ\YLZ[OH[YVVT[LTWLYH[\YL

(HVAC) O\TPKP[`HUKHPYÅV^HYLHKLX\H[L[VZ\Z[HPUHJVTMVY[HISLSP]PUN
LU]PYVUTLU[
High temperature superconducting trans- ;YHUZMVYTLYZ[OH[\ZLOPNO[LTWLYH[\YLZ\WLYJVUK\J[PUNTH[LYPHSZ

formers [VPTWYV]LLMÄJPLUJ`HUKYLK\JLSVZZLZPULSLJ[YPJHS[YHUZTPZZPVU
High voltage transmission 4V]LTLU[ VM ]VS[HNL V]LY SVUN KPZ[HUJLZ NYLH[LY [OHU
]VS[Z
Horizontal-axis wind turbines (HAWT) 4VZ[JVTTVU[`WLVM[\YIPUL^P[O[OLTHPUYV[VYZOHM[HUKLSLJ[YPJHS

NLULYH[VYH[[OL[VWVMH[V^LYHUKPZ\Z\HSS`WVPU[LKPU[V[OL^PUK
Hot-summer/cold-winter zone 9LNPVU PU *OPUH JOHYHJ[LYPaLK I` OV[ O\TPK Z\TTLYZ HUK JVSK
(aka transition zone) O\TPK ^PU[LYZ ;LTWLYH[\YL KPMMLYLUJL IL[^LLU KH` HUK UPNO[ PZ
YLSH[P]LS`SP[[SLHUK[OLYLPZ\Z\HSS`SHYNLHTV\U[VMWYLJPWP[H[PVUPU
H `LHY AVUL PUJS\KLZ [OL ÔVSL VM /\ILP /\UHU 1PHUN_P (UO\P
AOLQPHUN WYV]PUJLZ :OHUNOHP *OVUNXPUN [OL LHZ[LYU WHY[Z VM
:PJO\HU HUK .\PaOV\ WYV]PUJLZ [OL ZV\[OLYU WHY[Z VM /LUHU
1PHUNZ\ :OHU_P HUK .HUZ\ WYV]PUJLZ HUK [OL UVY[OLYU WHY[Z VM
-\QPHU.\HUNKVUNHUK.\HUN_PWYV]PUJLZ
Hybrid electric vehicles (HEV) =LOPJSLZ [OH[ JVTIPUL HU PU[LYUHS JVTI\Z[PVU LUNPUL ^P[O HU
LSLJ[YPJTV[VY[VKYP]L[OL]LOPJSLZHUKYLS`VUNHZVSPULVYKPLZLS
HUKLSLJ[YPJP[`Z[VYHNLIH[[LYPLZHZWV^LYZV\YJLZ
Hybrid locomotives 3VJVTV[P]LZ [OH[ \[PSPaL H JVU]LU[PVUHS WV^LY ZV\YJL [`WPJHSS` H

KPLZLS LUNPUL PU JVUQ\UJ[PVU ^P[O H YLJOHYNLHISL LULYN` Z[VYHNL
Z`Z[LT9,,:;OL9,,:PZJOHYNLK\ZPUN[OLZ\YWS\ZLULYN`MYVT
[OLWV^LYZV\YJLHUKVYMYVTYLNLULYH[P]LIYLHRPUNHUKJHU[OLU
IL\ZLK[VWYV]PKLLULYN`MVYWYVW\ZPVU
Improved irrigation 0YYPNH[PVUZVS\[PVUZZ\JOHZZWYPURSLYVYKYPWPYYPNH[PVU[OH[\ZL^H[LY

TVYL LMÄJPLU[S` [OHU *OPUH»Z JVU]LU[PVUHS PYYPNH[PVU TL[OVKZ ^P[O
LX\HSVYNYLH[LYILULÄ[[V[OL\ZLY
Incineration energy recovery >HZ[L[VLULYN`ZVS\[PVU[OH[NLULYH[LZWV^LYMYVT[OLJVTI\Z[PVU

VMZVSPK^HZ[L
Industrial heat )\YUPUN VM IPVTHZZ [V NLULYH[L OLH[ [V IL \ZLK MVY PUK\Z[YPHS
W\YWVZLZ
Industrial solid wastes .HYIHNL YLM\ZL ZS\KNL HUK V[OLY ZVSPK TH[LYPHSZ KPZJHYKLK HZ H
YLZ\S[ VM PUK\Z[YPHS VWLYH[PVUZ *VTTVUS` \UKLYZ[VVK [V L_JS\KL
IPVKLNYHKHISLHUKOHaHYKV\Z^HZ[L
GLOSSARY
Industrial symbiosis -VYT VM PUK\Z[YPHS VYNHUPaH[PVU ÔLYL ^HZ[L MYVT VUL WYVK\J[PVU
WYVJLZZJHUIL\ZLKHZHUPUW\[PUWYVK\JPUNHUV[OLYNVVK[O\Z
TH_PTPaPUNYLZV\YJLLMÄJPLUJ`HUKTPUPTPaPUNPUK\Z[YPHS^HZ[L
Industrial wastewater systems :`Z[LTZ \ZLK H[ PUK\Z[YPHS ZP[LZ [V [YLH[ ^H[LY HM[LY \ZL WYPVY [V
LP[OLYYL\ZLVYYLSLHZLPU[V[OLUH[\YHSLU]PYVUTLU[
Industrial water reuse 7YVJLZZ ÔLYLI` JLY[HPU WVSS\[HU[Z HYL YLTV]LK MYVT PUK\Z[YPHS
^HZ[L^H[LYZV[OH[[OL^H[LYJHUILYLJ`JSLKMVYM\Y[OLY\ZLZH[[OL
ZHTLZP[L
Influent >H[LYÅV^PUNPU[V^HZ[L^H[LY[YLH[TLU[WSHU[Z
Installed capacity ;OLVYL[PJHS WYVK\J[PVU JHWHJP[` VM [OL [V[HS LX\PWTLU[ [OH[ PZ
PUZ[HSSLKHZVWWVZLK[V[OLLMMLJ[P]LJHWHJP[`ÔPJOPZ[OLHJ[\HS
VW[PTHSWYVK\J[PVU
Integrated design (WWYVHJO [OH[ IYPUNZ [VNL[OLY HSS [OL Z[HRLOVSKLYZ PU [OL I\PSKPUN
WYVJLZZH[HULHYS`Z[HNL[VTH_PTPaLI\PSKPUNJVTMVY[HUK\ZHIPSP[`
ÔPSLTPUPTPaPUNYLZV\YJL\ZL
Integrated gasification combined cycle :`Z[LT [OH[ [\YUZ JVHS PU[V ZÙ[OLZPZ NHZ HUK YLTV]LZ PTW\YP[PLZ
(IGCC) ILMVYLJVTI\Z[PUNP[PUNHZ[\YIPULZ"[OL^HZ[LOLH[PZJHW[\YLKHUK
WHZZLK[VHZ[LHT[\YIPULZ`Z[LTMVYLULYN`YLJV]LY`
Integrated rainwater collection :`Z[LT [OH[ JVSSLJ[Z HUK Z[VYLZ YHPU^H[LY MYVT [OL YVVM[VW VM H
I\PSKPUN[VIL\ZLKSVJHSS`
Internal combustion engines (ICE) ,UNPULZPUÔPJO[OLJVTI\Z[PVUVMHM\LSVJJ\YZ^P[OHUV_PKPaLY

PU H JVTI\Z[PVU JOHTILY 0U HU 0*, [OL L_WHUZPVU VM [OL OPNO
[LTWLYH[\YLHUKWYLZZ\YLNHZLZKPYLJ[S`HWWS`MVYJL[VHTV]HISL
JVTWVULU[VM[OLLUNPULZ\JOHZ[OLWPZ[VUZVY[\YIPULISHKL
IP-based automatic meter reading (AMR) :VS\[PVUZ [OH[ H\[VTH[PJHSS` NH[OLY KH[H MYVT LULYN` TL[LYPUN
KL]PJLZHUK[YHUZTP[[VHJLU[YHSWYVJLZZPUNMHJPSP[`ÔLYLIPSSPUNPZ
OHUKSLKHUKJVUZ\TW[PVUWH[[LYUZHYLHUHSàLK
Jathropa diesel )PVKPLZLSWYVK\JLKMYVTQH[YVWOHJYVW
Kim hotstart idle reduction systems :`Z[LTZ[OH[YLS`VULSLJ[YPJHUKZTHSSKPLZLSWV^LYLKOLH[PUN\UP[Z

[VTHPU[HPUKLZPYLKLUNPUL[LTWLYH[\YLZIV[OJVVSHU[HUKS\ILVPS
ÔPSL[OLSVJVTV[P]LPZZO\[KVÛ
Lean manufacturing 4L[OVKVSVN` ZLLRPUN [V TPUPTPaL ^HZ[L UVU]HS\L HKKLK

HJ[P]P[PLZPUTHU\MHJ[\YPUNWYVJLZZLZ[OYV\NO[OL\ZLVMPU]LU[VY`
THUHNLTLU[WYL]LU[P]LTHPU[LUHUJLWYVK\J[X\HSP[`HUKÅL_PISL
^VYRMVYJLZHUKWYVK\J[PVUMHJPSP[PLZ
Line loss rate 4LHZ\YLTLU[VM[OLLULYN`SVZ[K\YPUN[OL[YHUZTPZZPVUVMLSLJ[YPJP[`

HZPNUPÄJHU[WVY[PVUVMÔPJOPZ[OLYTHSPUUH[\YL
Liquefied natural gas (LNG) 5H[\YHS NHZ [LTWVYHYPS` JVU]LY[LK PU[V SPX\PK MVYT PU VYKLY [V
LUZ\YL LHZL VM Z[VYHNL HUK [YHUZWVY[ ;OL YLK\J[PVU PU ]VS\TL PZ
HJJVTWSPZOLKI`JVVSPUN[OLNHZ\U[PSP[ILJVTLZSPX\PK
Liquefied petroleum gas (LPG) 4P_[\YL VM O`KYVJHYIVU NHZLZ [`WPJHSS` WYVWHUL HUK I\[HUL [OH[
HYL ZÙ[OLZPaLK MYVT WL[YVSL\T 0[ PZ H SV^ JHYIVU LTP[[PUN M\LS
ZV\YJLMVYWV^LYPUNHWWSPHUJLZHUK]LOPJSLZ
Liquefied petroleum gas (LPG) vehicles =LOPJSLZ [OH[ \ZL 37. HZ P[Z WYPTHY` M\LS ;OLYL HYL [^V [`WLZ VM
37.]LOPJSLZ![OVZL[OH[VUS`\[PSPaL37."HUKZVJHSSLK¸K\HS
M\LS¹H\[VZ[OH[JHU\ZLIV[O37.HUKJVU]LU[PVUHSNHZVSPUL

GLOSSARY
Liquid flow batteries 9LJOHYNLHISLIH[[LYPLZ[OH[JVU]LY[JOLTPJHSLULYN`PU[VLSLJ[YPJP[`

I`HSSV^PUNHULSLJ[YVS`[LJVU[HPUPUNVULVYTVYLKPZZVS]LKLSLJ[YV
HJ[P]LZWLJPLZ[VÅV^[OYV\NOHULSLJ[YVJOLTPJHSJLSS
Lithium ion (Li-Ion) batteries 2UVÛMVY[OLPY\ZLPUJVUZ\TLYLSLJ[YVUPJZHZ^LSSHZPUJYLHZPUNS`

ILPUN \ZLK PU W\YL LSLJ[YPJ ]LOPJSLZ HWWSPJH[PVUZ *VTWHYLK [V
UPJRLSTL[HSO`KYPKLIH[[LYPLZ3P0VUIH[[LYPLZLUQV`HOPNOLYLULYN`
KLUZP[`SVUNLYSPMLJ`JSLTVYLYHWPKJOHYNLHUKWLYMVYTIL[[LYPU
JVSKLY^LH[OLY
Local sourcing 7YVJ\YPUN HUK ZV\YJPUN I\PSKPUN TH[LYPHSZ ^P[OPU [OL NLVNYHWOPJHS
WYV_PTP[`VM[OLPYPU[LUKLK\ZL
Low-flow fixtures -H\JL[Z HUK V[OLY ^H[LY \ZL Z`Z[LTZ [OH[ \ZL SLZZ ^H[LY [OHU
JVU]LU[PVUHSZ`Z[LTZI\[KLSP]LY[OLZHTLVYNYLH[LYILULÄ[[V[OL
\ZLY
Low-impact materials )\PSKPUNTH[LYPHSZ[OH[\ZLSLZZYLZV\YJLZHUKWYVK\JLSLZZWVSS\[PVU

JVTWHYLK[VJVU]LU[PVUHSI\PSKPUNTH[LYPHSZV]LY[OLPYSPMLJ`JSL
Maintenance :L[ VM PUZWLJ[PVUZ YLWHPYZ VY TVKPÄJH[PVUZ VM PUKP]PK\HS ^PUK
[\YIPULZVY^PUKMHYTZ[VLUZ\YLVW[PTHSVWLYH[PVU
Medical wastes (SZVRUVÛHZJSPUPJHS^HZ[LZUVYTHSS`YLMLYZ[V^HZ[LZWYVK\JLK

VUOLHS[OJHYLWYLTPZLZZ\JOHZOVZWP[HSZJSPUPJZKVJ[VYZVMÄJLZ
SHIZ HUK U\YZPUN OVTLZ ;OL` HYL UVYTHSS` IPVOHaHYKV\Z VY
PUMLJ[PV\ZHUKTH`JVU[HPUISVVKVIQLJ[ZJVU[HTPUH[LKPUTLKPJHS
WYVJLK\YLZHUKIVK`WHY[Z
Membrane bioreactor (MBR) process 4\S[PZ[HNL ^HZ[L ^H[LY [YLH[TLU[ WYVJLZZ ÔPJO JVTIPULZ
IPVSVNPJHS ^HZ[L V_PKH[PVU HUK TLTIYHUL ZLWHYH[PVU PU VYKLY [V
YLTV]LLMÅ\LU[Z
Membrane separation ;LJOUVSVNPLZ \[PSPaLK [V YLTV]L ^H[LY ]HWVY HUK JHYIVU KPV_PKL
MYVTUH[\YHSNHZ
Metallurgical coal ( OPNOLYX\HSP[` JVHS \ZLK PU THRPUN JVRL (SZV RUVÛ HZ JVRPUN
JVHS
Methane hydrocarbons 4HPU H[TVZWOLYPJ WVSS\[HU[Z YLSLHZLK PU [OL WYVJLZZ VM VPSÄLSK
L_WSVP[H[PVUHUK[OLWYVK\J[PVUVMWL[YVSL\T
Methane recovery and utilization ;LJOUVSVN` KLZPNULK [V JHW[\YL TL[OHUL YLSLHZLK PU JVHS TPUL
YLSH[LK LTPZZPVU HUK \[PSPaL P[ PU ]HYPV\Z HWWSPJH[PVUZ <[PSPaH[PVU
PUJS\KLZ HTVUN V[OLY [OPUNZ PUQLJ[PUN YLJV]LYLK TL[OHUL PU[V
UH[\YHSNHZWPWLSPULZ
Microalgae diesel +PLZLS WYVK\JLK MYVT TPJYVHSNHL WOV[VZÙ[OL[PJ VYNHUPZTZ [OH[

JHUILMHYTLKPU^H[LY
Micrositing *VUZPKLYH[PVU VM HU HYYH` VM MHJ[VYZ YLSH[LK [V ^PUK ÅV^ [LYYHPU
SVJHS WV^LY KLTHUK LU]PYVUTLU[HS HUK SHUK\ZL PZZ\LZ JHYYPLK
V\[K\YPUNZP[LZLSLJ[PVUMVY^PUK[\YIPULZ[VTH_PTPaL^PUKMHYT»Z
VWLYH[PVUHSLMÄJPLUJ`HUKLJVUVTPJZ
Mixed refrigerant cycle (MRC) (WWSPJH[PVUZ HYL \ZLK [V SPX\LM` UH[\YHS NHZ *VUZPKLYLK [V IL HU
LMÄJPLU[HUKJVZ[LMMLJ[P]L[LJOUVSVN`HUK\ZLKPU]HYPV\Z*OPULZL
SPX\LÄLKUH[\YHSNHZWSHU[Z
Modular high-temperature gas-cooled ;`WL VM U\JSLHY YLHJ[VYZ [OH[ HYL ZHMLY HUK OH]L OPNOLY LMÄJPLUJ`
reactors (MHTGCR) ÔLUJVTWHYLK[VJVU]LU[PVUHSU\JSLHYYLHJ[VYZ

GLOSSARY
Monitoring and measurement solutions :VS\[PVUZ [OH[ [YHJR [OL JVTWVZP[PVU VY ]VS\TLZ VM ^H[LY ÅV^Z PU
UH[\YHS^H[LYZV\YJLZ^H[LYKPZ[YPI\[PVUZ`Z[LTZ^H[LY[YLH[TLU[
WSHU[ZVY\ZLYWYLTPZLZÔPJOHYLVM[LUPU[LNYH[LK^P[O0;HUKVY
.7:[LJOUVSVNPLZ
Multiple units (MU) train ;YHPUZ [OH[ YLS` VU H ZLYPLZ VM ZLSMWYVWLSSPUN JHYYPHNLZ JVU[YVSSLK
MYVTVULJHIPUMVYP[ZWYVW\SZPVUPUZ[LHKVMSVJVTV[P]LZ
Municipal solid wastes (MSW) >HZ[LTH[LYPHSZNLULYH[LKI`\YIHUHYLHZHUKHYL[`WPJHSS`KLHS[

^P[O I` PUJPULYH[PVU VY WSHJLTLU[ PU SHUKÄSSZ *VTWVZ[PUN HUK
ZVSPKPÄJH[PVUHYLV[OLYKPZWVZHSTL[OVKZ
Natural gas 0TWVY[HU[M\LSZV\YJLHUKMLY[PSPaLYJVTWVULU[JVUZPZ[PUNWYPTHYPS`

VM TL[OHUL HUK PZ MV\UK PU MVZZPS M\LSZ HUK JVHS ILKZ HTVUN
V[OLYWSHJLZ*VUZPKLYLK[VIL[OLJSLHULZ[VM[OLMVZZPSM\LSZI\[
YLX\PYLZ L_[LUZP]L WYVJLZZPUN PU VYKLY [V YLTV]L LSLTLU[Z V[OLY
[OHUTL[OHUL
Natural gas combined cycle (NGCC) :`Z[LTZ [OH[ NLULYH[L LSLJ[YPJP[` \ZPUN NHZ [\YIPULZ HUK [OLU
JHW[\YL ^HZ[L OLH[ [V NLULYH[L Z[LHT HUK HKKP[PVUHS LSLJ[YPJP[`
\ZPUNHZ[LHT[\YIPUL
Natural gas desulfurization )YVHK WYVJLZZ JVUZPZ[PUN VM ZL]LYHS HWWSPJH[PVUZ LN HTPUL
[YLH[TLU[VYTLTIYHULHKZVYW[PVU[OH[YLTV]LZZ\SM\YMYVTUH[\YHS
NHZ[OLYLI`W\YPM`PUNZHPKNHZHUKYLTV]PUNWVSS\[HU[Z9LJV]LYLK
Z\SM\YJHUIL\ZLKPU]HYPV\ZJOLTPJHSPUK\Z[Y`HWWSPJH[PVUZ
Natural gas vehicles =LOPJSLZ^P[OTV[VYZ[OH[Y\UWYPTHYPS`PMUV[L_JS\ZP]LS`VUUH[\YHS

NHZ
Net zero buildings (NZB) )\PSKPUNZ[OH[KYHÛVUL[LULYN`MYVT[OLNYPKVUHUHUU\HSIHZPZ

(JOPL]LK [OYV\NO H JVTIPUH[PVU VM LULYN` LMÄJPLUJ` HUK VUZP[L
NLULYH[PVU
Neutralization 7YVJLZZPUÔPJO[OLOHaHYKV\ZJVTWVULU[ZVM^HZ[LHYLLSPTPUH[LK
[OLYLI`YLUKLYPUN[OLTILUPNULNHJVYYVZP]LHJPKPZUL\[YHSPaLK
^P[OHIHZPJZ\IZ[HUJLZV[OH[P[PZUVSVUNLYJVYYVZP]LL[J
New energy vehicles =LOPJSLZ[OH[HYLUV[KYP]LUI`NHZVSPULVYKPLZLSPU[LYUHSJVTI\Z[PVU

LUNPULZ I\[ I` V[OLY WV^LY ZV\YJLZ Z[VYHNL IH[[LYPLZ M\LS JLSS
ZVSHYWV^LYL[J
Nitrogen oxide (NOx) .LULYPJKLZPNUH[PVUMVYHU\TILYVMTVUVUP[YVNLUV_PKLZ56_PZ

WYVK\JLKHUKYLSLHZLKK\YPUNJVTI\Z[PVUHUKPZHJOPLMJVTWVULU[
VMZTVN
Non-GHG air pollutants 4HPUS` Z\SM\Y V_PKLZ UP[YVNLU V_PKLZ ]VSH[PSL VYNHUPJ JVTWV\UKZ
HUK V[OLY WVSS\[HU[Z ÔVZL WYPTHY` KL[YPTLU[HS LMMLJ[Z VU OLHS[O
HUKLU]PYVUTLU[KVUV[Z[LTMYVT[OLPYNSVIHS^HYTPUNWV[LU[PHS
Offgrid / <1 MW / Horizontal /VYPaVU[HS^PUK[\YIPULZ^P[O\UKLY4>JHWHJP[`[OH[NLULYH[L

LSLJ[YPJP[`[VIL\ZLKSVJHSS`HUKKVLZUV[YLX\PYLJVUULJ[PVU[V[OL
WV^LYNYPK
Offgrid / <1 MW / Vertical =LY[PJHS ^PUK [\YIPULZ ^P[O \UKLY 4> JHWHJP[` [OH[ NLULYH[L
LSLJ[YPJP[`[VIL\ZLKSVJHSS`HUKKVLZUV[YLX\PYLJVUULJ[PVU[V[OL
WV^LYNYPK
Oil tank automatic dehydrators 7VSS\[PVU HIH[LTLU[ KL]PJLZ KLZPNULK [V YLK\JL VPS SL]LSZ PU
KPZJOHYNLK^HZ[L^H[LY]PHKLO`KYH[PVUZLWHYH[PVU<ZLKI`ÄSSPUN
Z[H[PVUZHUKV[OLYZLNTLU[ZVM[OLWL[YVJOLTPJHSPUK\Z[Y`

GLOSSARY
Ongrid / >3 MW / Offshore /VYPaVU[HS^PUK[\YIPULZ^P[OJHWHJP[`V]LY4>[OH[HYLSVJH[LK

VMMZOVYLHUKMLLK[OLNLULYH[LKLSLJ[YPJP[`VU[V[OLWV^LYNYPK
Ongrid / >3 MW / Onshore /VYPaVU[HS^PUK[\YIPULZ^P[OJHWHJP[`V]LY4>[OH[HYLSVJH[LK

VUZOVYLHUKMLLK[OLNLULYH[LKLSLJ[YPJP[`VU[V[OLWV^LYNYPK
Ongrid / 1-3 MW / Onshore /VYPaVU[HS^PUK[\YIPULZ^P[OJHWHJP[ÌL[^LLUHUK4>[OH[

HYL SVJH[LK VUZOVYL HUK MLLK [OL NLULYH[LK LSLJ[YPJP[` VU[V [OL
WV^LYNYPK
Optimized air traffic management :L[ VM WYVJLZZLZ KLZPNULK [V HJOPL]L [OL OPNOLZ[ WVZZPISL
WYVK\J[P]P[`VM[OLHPYÅLL[HUKNYV\UKMHJPSP[PLZ;OPZPZHJJVTWSPZOLK
I`VW[PTPaPUNÅPNO[WSHUUPUNSVNPZ[PJZHUKHPY[YHMÄJTHUHNLTLU[
ÔPSLLUZ\YPUNZHML[`HUKJVU]LUPLUJLHUKTPUPTPaPUN[OLULNH[P]L
PTWHJ[VU[OLLU]PYVUTLU[
Optimized waterway management :L[ VM WYVJLZZLZ KLZPNULK [V HJOPL]L [OL OPNOLZ[ WVZZPISL
WYVK\J[P]P[` VM ZOPWZ HUK YLSH[LK MHJPSP[PLZ Z\JO HZ WVY[Z ;OPZ PZ
HJJVTWSPZOLK I` VW[PTPaPUN ^H[LY [YHMÄJ WSHUUPUN SVNPZ[PJZ HUK
[YHMÄJ THUHNLTLU[ ÔPSL LUZ\YPUN ZHML[` HUK JVU]LUPLUJL HUK
TPUPTPaPUN[OLULNH[P]LPTWHJ[VU[OLLU]PYVUTLU[
Oxygen-enriched combustion ;`WLVMJVTI\Z[PVU[OH[\ZLZV_`NLULUYPJOLKI\YULY[VPUJYLHZL

V_`NLUJVU[LU[PU[OLJVTI\Z[PVUHPYZVHZ[VYLK\JLLULYN`SVZZ
HUKPUJYLHZLOLH[PUNLMÄJPLUJ`
Parabolic dish stirling engines +L]PJLZ [OH[ JVUJLU[YH[L Z\USPNO[ H[ H ZPUNSL MVJHS WVPU[ ]PH H
WHYHIVSPJ KPZO [V WYVK\JL LSLJ[YPJP[` HUK JHU [YHJR [OL Z\U HSVUN
[^VH_LZI`H\[VTH[PJHSS`HKQ\Z[PUN[OLKPYLJ[PVUVM[OLKPZO
Parabolic troughs :VSHY[OLYTHSLULYN`JVSSLJ[VYZ[OH[JVUZPZ[VMHSVUNWHYHIVSPJTPYYVY

HUKH+L^HY[\ILY\UUPUNP[ZSLUN[OH[[OLMVJHSWVPU[[OH[HIZVYIZ
LULYN`MYVT[OLZ\USPNO[ÔPJOPZJVU]LY[LKPU[VLSLJ[YPJP[`
Particulate matter (PM) removal systems :`Z[LTZ[OH[YLTV]LWHY[PJ\SH[LTH[[LYOHYTM\SÄULWHY[PJSLZMYVT

Å\LNHZ
Passive design )\PSKPUNKLZPNU[OH[[HRLZHK]HU[HNLVM[OLSVJHSJSPTH[L[VWYV]PKL

ZVTLVYHSSVM[OLOLH[PUNJVVSPUNSPNO[PUNHUK]LU[PSH[PVUULLKZVM
[OLVJJ\WHU[Z
Peak load capacity 4H_PT\TLSLJ[YPJHSSVHKJHWHISLVMILPUNOHUKSLKI`[YHUZTPZZPVU

LX\PWTLU[PUHNP]LU[PTLWLYPVK
Physical wastewater treatments ;YLH[TLU[ TL[OVKZ [OH[ \Z\HSS` [YLH[ Z\ZWLUKLK HZ VWWVZLK [V
KPZZVS]LK WVSS\[HU[Z ;OL WYVJLZZ VM[LU PU]VS]LZ ZPTWS` HSSV^PUN
Z\ZWLUKLK WHY[PJSLZ [V ÅVH[ [V [OL [VW VM H JVU[HPULY VY ZL[[SL H[
[OL IV[[VT I\[ TH` HSZV \ZL TLJOHUPJHS TLHUZ [V HZZPZ[ PU [OL
ZL[[SPUNÅVH[PUNWYVJLZZ
Point-of-use solutions >H[LY TVUP[VYPUN VY [YLH[TLU[ ZVS\[PVUZ [OH[ HYL PUZ[HSSLK H[ [OL
WVPU[ÔLYL^H[LYPZHJ[\HSS`\ZLKZ\JOHZHWHY[TLU[ZJVTTLYJPHS
HUKPUK\Z[YPHSMHJPSP[PLZ
Power towers ;`WL VM ZVSHY WV^LY WSHU[Z [OH[ \ZLZ H [V^LY HUK H OPNO OLH[
JHWHJP[`JVTWVULU[[VYLJLP]L[OLZ\USPNO[MVJ\ZLKI`HUHYYH`VM
ÅH[TV]HISLTPYYVYZHUKJVU]LY[P[PU[VLSLJ[YPJP[`
Pressure swing adsorption (WWSPJH[PVU [OH[ ZLLRZ [V ZLWHYH[L JLY[HPU [HYNL[ NHZLZ MYVT H
IYVHKLY TP_[\YL VM NHZLZ \ZPUN ZWLJPHSPaLK HKZVYW[P]L TH[LYPHSZ
;`WPJHSS` \ZLK [V YLTV]L JHYIVU KPV_PKL HUK O`KYVNLU Z\SÄKL [V
PUJYLHZL[OLX\HU[P[`VMTL[OHULHRL`JVTWVULU[VMUH[\YHSNHZ

GLOSSARY
Pressurized fluidized bed combustion +L]LSVWLK[VM\Y[OLYPTWYV]LLMÄJPLUJ`SL]LSZPUJVHSÄYLKWSHU[ZP[

(PFBC) YLWSHJLZ[OLJVU]LU[PVUHSJVTI\Z[PVUJOHTILYVM[OLNHZ[\YIPUL
^P[OHWYLZZ\YPaLKÅ\PKPaLKILKJVTI\Z[VY;OLLUKYLZ\S[PZ[OH[
[OLWYVK\J[ZVMJVTI\Z[PVUWHZZ[OYV\NOHOV[NHZJSLHUPUNZ`Z[LT
ILMVYLLU[LYPUN[OL[\YIPUL
Primary treatment solutions :VS\[PVUZ \ZLK WYPTHYPS` H[ [OL ZLKPTLU[H[PVU Z[HNL ÔLYL [OL
ZVSPKZHYLZLWHYH[LKMYVT[OL^HZ[L^H[LYZ[YLHT
Process wastes >HZ[LZ[OH[YLZ\S[MYVT[OLWYVJLZZVMJVU]LY[PUNYH^TH[LYPHSZPU[V

ÄUHSWYVK\J[ZLNZJYHWTL[HSZSHNTPUL[HPSPUNZL[J
Process redesign 9LKLZPNU HUKVY Z`Z[LTZ VW[PTPaH[PVU VM [OL VWLYH[PVU ^P[O [OL
W\YWVZL VM PUJYLHZPUN YLZV\YJL \ZL LMÄJPLUJ` HUK TPUPTPaPUN
WVSS\[PVU
Pumped hydro storage 4L[OVK\UKLYÔPJOLULYN`JHUILZ[VYLKI`W\TWPUN^H[LYPU[V

H OPNO YLZLY]VPY HUK [OLU YLSLHZPUN P[ IHJR PU[V H SV^LY YLZLY]VPY
[V NLULYH[L LSLJ[YPJP[` ÔLU WHZZPUN [OYV\NO WV^LY NLULYH[PUN
[\YIPULZ
Real-time information processing :VS\[PVUZ[OH[LUHISLYLHS[PTLJVTT\UPJH[PVUIL[^LLUJVYLUVKLZ

PU [OL LSLJ[YPJ UL[^VYR PUJS\KPUN J\Z[VTLY WYLTPZL HUK HSSV^ [V
IL[[LY THUHNL KLTHUK PTWYV]L YLSPHIPSP[` HUK ÅL_PIPSP[` VM [OL
UL[^VYR
Recycled materials )\PSKPUN TH[LYPHSZ THU\MHJ[\YLK MYVT TH[LYPHSZ [OH[ OH]L ILLU
YLJ`JSLK
Renewable energy access flexible alternat- :`Z[LTJVTWYPZLKVMZ[H[PJLX\PWTLU[\ZLKMVYHS[LYUH[PUNJ\YYLU[

ing current transmission system (FACTS) [YHUZTPZZPVUZ[OH[HYLTLHU[[VLUOHUJLJVU[YVSSHIPSP[`HUKPUJYLHZL
WV^LY[YHUZMLYJHWHIPSP[`VM[OLUL[^VYR
Resource service companies 7YVMLZZPVUHS ZLY]PJL JVTWHUPLZ PUJS\KPUN ,ULYN` :LY]PJL

*VTWHUPLZ [OH[ WYV]PKL WYVQLJ[ THUHNLTLU[ JVUZ\S[PUN
LUNPULLYPUN ÄUHUJPUN VWLYH[PVU HUK THPU[LUHUJL ZLY]PJLZ [OH[
YLK\JLLULYN`HUK^H[LY\ZLPUI\PSKPUNZ
Second generation biofuels -\LSZ[OH[\ZLZWLJPHSLULYNÙVUMVVKJYVWZ[OH[OH]L[OLLMMLJ[

VMUV[KP]LY[PUNMVVKZ\WWSPLZH^H`MYVT[OLMVVKJOHPUHUK^HZ[L
IPVTHZZJVU[HPUPUNSPNUPUHUKJLSS\SVZL
Secondary treatment solutions :VS\[PVUZ[OH[Z\IZ[HU[PHSS`YLTV]L[OLIPVSVNPJHSJVU[LU[VMZL^HNL

PUJS\KPUN KLYP]H[LZ VM O\THU ^HZ[L MVVK ^HZ[L ZVHWZ HUK
KL[LYNLU[
Sedimentation ;YHKP[PVUHS^H[LY[YLH[TLU[TL[OVK[OH[PZIHZLKVU[OLZL[[SPUNVM
WHY[PJ\SH[LZH[[OLIV[[VTVMHIVK`VM^H[LY
Sludge :LTPZVSPKTH[LYPHSSLM[MYVTPUK\Z[YPHS^H[LY[YLH[TLU[VY^HZ[L^H[LY
[YLH[TLU[WYVJLZZLZ
Sludge treatment and disposal :VS\[PVUZ PUJS\KPUN KL^H[LYPUN SHUKÄSS Z[VYHNL HUK MLY[PSPaLY
JVU]LYZPVU[OH[[YLH[ZS\KNLNLULYH[LKMYVT^HZ[L^H[LY[YLH[TLU[
PU VYKLY [V YLTV]L \ZHISL Z\IZ[HUJLZ HUK WYVWLYS` KPZWVZL VM
YLZPK\HS^HZ[LZ
Smart buildings )\PSKPUNZ[OH[YLS`VUPU[LNYH[LK0;IHZLKYLZV\YJL\ZLTLHZ\YLTLU[

HUKTVUP[VYPUNPU[LSSPNLU[HUHS`ZPZVM[OLPU[LYUHSLU]PYVUTLU[HSHUK
WLYMVYTHUJLKH[HHUKH\[VTH[PVUVMJVUULJ[LKI\PSKPUNZ`Z[LTZ

GLOSSARY
Smart grid networks 5L[^VYRZZ\WWVY[LKI`KPNP[HS[LJOUVSVN`JHWHISLVML_LY[PUN¸ZTHY[

JVU[YVS¹ V]LY HSS HZWLJ[Z VM [OL LSLJ[YPJ WV^LY ZLJ[VY PUJS\KPUN
NLULYH[PVU[YHUZTPZZPVUKPZ[YPI\[PVUJ\Z[VTLYZLY]PJLHUKWV^LY
KPZWH[JO H[ HSS ]VS[HNL SL]LSZ ;OL` KLSP]LY WV^LY PU HU LMÄJPLU[
THUULYHUKJHUIL[[LYPU[LNYH[LWV^LYMYVTYLUL^HISLZV\YJLZ
Sodium-sulfur (NaS) batteries )H[[LYPLZ ^P[O OPNO LULYN` KLUZP[` HUK OPNO LMÄJPLUJ` VM JOHYNL
KPZJOHYNL[OH[YLX\PYLOPNOVWLYH[PUN[LTWLYH[\YLZ
Solar photovoltaics (PV) 7OV[V]VS[HPJZZVSHYJLSSZHYLKL]PJLZ[OH[JVU]LY[SPNO[PU[VKPYLJ[

J\YYLU[ \ZPUN [OL WOV[VLSLJ[YPJ LMMLJ[ :VSHY 7=Z HYL [OL THPU
[LJOUVSVN`\ZLKPU*OPUHMVY[OLNLULYH[PVUVMLSLJ[YPJZVSHYWV^LY
Solar water heaters (SWH) :`Z[LTZ[OH[OLH[^H[LYI`HIZVYIPUN[OLLULYN`MYVT[OLZ\UUVYTHSS`

JVUZPZ[PUNVMZVSHY[OLYTHSJVSSLJ[VYZÅ\PKZ`Z[LTZ[V[YHUZWVY[[OL
OLH[HUKH^H[LY[HURÔLYL^H[LYPZOLH[LKHUKZ[VYLK
Solidification/stabilization (S/S) *VTTVUTL[OVK\ZLKMVY[YLH[TLU[THUHNLTLU[HUK[OLYL\ZLVM

JVU[HTPUH[LK^HZ[LLZWLJPHSS`[YLH[LKPUK\Z[YPHSOHaHYKV\Z^HZ[L
HUKJVU[HTPUH[LKTH[LYPHS;OPZWYVJLZZPU]VS]LZTP_PUN7VY[SHUK
JLTLU[^P[O[OLJVU[HTPUHU[ZÔPJOYLZ\S[ZPUHIYPJRÔPJOJHUIL
YL\ZLKVUZP[L
Standard operating procedures (SOPs) :L[ VM WYLZJYPW[PVUZ MVY LTWSV`LLZ VM[LU THUKH[LK VU OV^ [V
L_LJ\[L ZWLJPÄJ [HZRZ VY [V YLHJ[ [V JPYJ\TZ[HUJLZ PU [OL TVZ[
LMÄJPLU[HUKLMMLJ[P]L^H`Z
Standard operating procedures (SOPs), *VSSLJ[PVUVMTHUHNLTLU[[VVSZKLZPNULK[VPTWYV]L[OLLMÄJPLUJ`

training, feedback VMLTWSV`LLZHZ^LSSHZ[OLLMMLJ[P]LULZZVM[OLTHUHNLTLU[H[HU
PUK\Z[YPHSZP[L
Stop-start systems :`Z[LTZ [OH[ ZHMLS` Z[VW HUK YLZ[HY[ H SVJVTV[P]L»Z LUNPUL
K\YPUN PKSPUN VWLYH[PVU [V JVUZLY]L M\LS HUK YLK\JL HPY HUK UVPZL
WVSS\[PVUZ
Subcritical power generation *VHSÄYLK Z\IJYP[PJHS WV^LY WSHU[Z [OH[ VWLYH[L H[ ]LY` OPNO
[LTWLYH[\YLZYLZ\S[PUNPUT\JOOPNOLYOLH[LMÄJPLUJPLZ
Sulfur dioxide (SO2) )`WYVK\J[YLZ\S[PUNMYVT[OLJVTI\Z[PVUVMJVHSHUKVPSJVU[HPUPUN

Z\SM\Y>OLUJVTIPULK^P[OUP[YVNLUKPV_PKLZ\SM\YKPV_PKLMVYTZ
HJPKYHPU
Supercapacitors ,SLJ[YVJOLTPJHS JHWHJP[VYZ [HZRLK ^P[O Z[VYPUN LSLJ[YPJHS JOHYNL

[OH[OH]LHU\U\Z\HSSÒPNOLULYN`KLUZP[`ÔLUJVTWHYLK[VJVT
TVUJHWHJP[VYZ[`WPJHSS`VU[OLVYKLYVM[OV\ZHUKZVM[PTLZNYLH[LY
[OHUHOPNOJHWHJP[`LSLJ[YVS`[PJJHWHJP[VY
Sustainable materials 4H[LYPHSZ NH[OLYLK PU LU]PYVUTLU[HSS` YLZWVUZPISL ^H`Z PUJS\KPUN

YLJ`JSLKTH[LYPHSZJLY[PÄLK^VVKHUKIPVKLNYHKHISLWSHZ[PJZ
Sustainable urban planning <YIHU WSHUUPUN [OH[ VW[PTPaLZ [OL \ZL VM [OL I\PS[ LU]PYVUTLU[
[YHUZWVY[H[PVUZ`Z[LTLULYN`^H[LYHUKSHUKÔPSLHPTPUN[VTPUP
TPaL[OLULNH[P]LPTWHJ[VM[OLJVTT\UP[`VU[OLUH[\YHSLU]PYVU
TLU[
Sweet sorghum bioethanol )PVL[OHUVSWYVK\JLKMYVTZ^LL[ZVYN\TJYVW
Tertiary treatment solutions :VS\[PVUZ [OH[ WYV]PKL H ÄUHS [YLH[TLU[ PU VYKLY YHPZL [OL LMÅ\LU[
X\HSP[`VM[OL^H[LYILMVYLP[PZKPZJOHYNLKPU[V[OLYLJLP]PUNLU]P
YVUTLU[

GLOSSARY
Thermal coal (SSV[OLYJVHSZ[OH[HYLUV[JSHZZPÄLKHZTL[HSS\YNPJHSVYJVRPUNJVHS

*VHSZ VM [OLZL [`WL HYL \Z\HSS` SV^ PU NYHKL HUK HYL JVTTVUS`
I\YULKPUWV^LYWSHU[Z[VNLULYH[LLSLJ[YPJP[`(SZVRUVÛHZZ[LHT
JVHS
Thin film ;LJOUVSVN` [OH[ \[PSPaLZ [OPU SH`LYZ VM TH[LYPHS MVY LSLJ[YVUPJ
ZLTPJVUK\J[VYHUKVW[PJHSHWWSPJH[PVUZ;OPUÄSTPZ\ZLKPUZLJVUK
HUK[OPYKNLULYH[PVUWOV[V]VS[HPJ[LJOUVSVNPLZHUKVM[LUHWWSPLKMVY
I\PSKPUNPU[LNYH[LKHWWSPJH[PVUZ
Third generation biofuels 7YVJLZZLZ [OH[ PU]VS]L [OL WYVK\J[PVU VM IPVKPLZLS MYVT HSNHS VPSZ
,ULYN`KLYP]LKMYVTHSNHLJYVWZPZZ\IZ[HU[PHSS`NYLH[LY\W[V
[PTLZ[OHUZLJVUKNLULYH[PVUIPVM\LSJYVWZ
Time-of-use (TOU) pricing *VZ[ Z`Z[LT ÔLYLPU [OL WYPJL VM LSLJ[YPJP[` PZ LZ[HISPZOLK HOLHK
VM [PTL HUK MVY H ZWLJPÄJ WLYPVK VM [PTL LUJV\YHNPUN JVUZ\TLYZ
[V TVKPM` [OLPY JVUZ\TW[PVU OHIP[Z I` [HRPUN WYPJL MHJ[VYZ PU[V
JVUZPKLYH[PVU
Transformers with amorphous core (S[LYUH[P]L [YHUZMVYTLYZ [OH[ HYL TVYL LULYN`LMÄJPLU[ HUK
LU]PYVUTLU[HSS`MYPLUKS`[OHUJVU]LU[PVUHS
Ultra high voltage (UHV) transmission 7V^LY [YHUZTPZZPVU SPULZ ^P[O ]VS[HNLZ VM R= VY OPNOLY MVY
HS[LYUH[PUNJ\YYLU[VYR=VYOPNOLYMVYKPYLJ[J\YYLU[0[HSSV^Z
WV^LY[VIL[YHUZTP[[LKH[NYLH[LYKPZ[HUJLZ^P[OSV^LYSVZZLZ[OHU
SV^LY]VS[HNL[YHUZTPZZPVUSPULZ
Ultra supercritical power generation *VHSÄYLK WV^LY WSHU[Z [OH[ VWLYH[L H[ ]LY` OPNO [LTWLYH[\YLZ
(USPG) HUK \ZL HK]HUJLK Z[LHT J`JSLZ PU VYKLY [V HJOPL]L OPNOLY OLH[
LMÄJPLUJPLZHUKSLZZLTPZZPVU[OHUJVU]LU[PVUHSJVHSWV^LYWSHU[Z
Underground coal gasification combined 7YVJLZZI`ÔPJOJVHSPZJVU]LY[LKPU[VHWYVK\J[NHZ\UKLYNYV\UK

cycle (UCGCC) HUK [OLU JVTI\Z[LK HIV]LNYV\UK [V NLULYH[L LSLJ[YPJP[` PU
JVTI\Z[PVUZ`Z[LTZ[OH[JHW[\YLHUK\[PSPaL^HZ[LOLH[
Vanadium redox batteries -SV^ IH[[LYPLZ ^P[O KLLW J`JSPUN SPML [OH[ JHU IL TLJOHUPJHSS`
YLM\LSLKHUKOHZSVÛLNH[P]LLU]PYVUTLU[HSPTWHJ[
Vapor recovery 7YVJLZZ VM JVSSLJ[PUN L]HWVYH[PUN VPS ÔPSL P[ PZ ILPUN SVHKLK
YLJLP]LK VY Z[VYLK H[ ÄSSPUN Z[H[PVUZ =HWVY YLJV]LY` PZ JHYYPLK V\[
]PHHIZVYW[PVUJVTI\Z[PVUJVUKLUZH[PVUVYÄSTZLWHYH[PVU
Vertical-axis wind turbines ;`WLVM^PUK[\YIPULZÔLYL[OLTHPUYV[VYZOHM[Y\UZ]LY[PJHSS`
Waste management *VSSLJ[PVU[YHUZWVY[WYVJLZZPUNTVUP[VYPUNYLJ`JSPUNHUKKPZWVZHS

VM^HZ[LTH[LYPHSZ
Waste oil <ZLKJVVRPUNVPSTHPUS`]LNL[HISLVPSHUKHUPTHSMH[[OH[JHUIL

JVU]LY[LKPU[VM\LSZZ\JOHZIPVKPLZLS
Waste separation and off-take :VY[PUNVMZVSPK^HZ[LZH[[OLPUK\Z[YPHSMHJPSP[`[VHZZPZ[P[ZL_JOHUNL

YLJ`JSPUNPUJPULYH[PVUVYKPZWVZHS
Waste vegetable oil biodiesel )PVKPLZLSWYVK\JLKMYVT^HZ[L]LNL[HISLVPS
Wastewater sulfur stripping units 4LJOHUPZTZ KLZPNULK [V YLTV]L O`KYVNLU Z\SÄKL HUK HTTVUPH
MYVTYLÄULY`^HZ[L^H[LY
Water grades :`Z[LT KLZPNULK I` *OPUH [V NYHKL ^H[LY X\HSP[` [OH[ \ZLZ H
ZJHSL YHUNPUN MYVT 0 [V = ^P[O NYHKLZ 0 [OYV\NO 000 Ä[ MVY O\THU
JVUZ\TW[PVU
Water productivity ;OLYH[PVVMNVVKZHUKZLY]PJLZWYVK\JLKV]LY[OL]VS\TLVM^H[LY

YLX\PYLKMVY[OLPYWYVK\J[PVU"TLHZ\YLZ[OLLMÄJPLU[\ZLVM^H[LY

THE CHINA GREENTECH REPORT SOURCES
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• 中华人民共和国国务院办公厅, “中华人民共和国国务院令第512号,” 2007年12月6日B.LULYHS6MÄJLVM[OL:[H[L
Council, “State Council Circular 512,” December 6, 2007], http://www.gov.cn/
• 中华人民共和国环境保护部, “国家环境保护总局办公厅文件,” 2007年8月30日 [Ministry of Environmental Protection,
¸*PYJ\SHYVU,U]PYVUTLU[HS7YV[LJ[PVU=LYPÄJH[PVUVM/PNOS`7VSS\[PUN0UK\Z[YPLZ[V-\Y[OLY:[HUKHYKPaL[OL
7YVK\J[PVUHUK4HUHNLTLU[VM*VTWHUPLZ(WWS`PUNMVY7\ISPJ3PZ[PUNVY9LÄUHUJPUN¹:LW[LTILYD
http://www.mep.gov.cn/
• 中华人民共和国科学技术部, “关于开展节能与新能源汽车示范推广试点工作的通知,” 2009年2月11日 [Ministry of
Science and Technology, Provisional Measure on the Management of Government Subsidies for Energy-Saving
and New Energy Vehicles, February 11, 2009], http://www.most.gov.cn/
• 中央政府门户网站, “投资数据尽显亮色 “4万亿”投资计划初见成效”, 2009年3月29日 [Central Government Website,
“4 Trillion Investment Has Achieved Preliminary Results,” March 29, 2009], http://www.gov.cn/

PARTNERS AND STRATEGIC ADVISORS
FOUNDING PARTNERS SECTOR PARTNERS

The American Chamber of Commerce Alcoa
in Shanghai ARUP
PricewaterhouseCoopers Ashland Water
B&L Group
PRESENTING PARTNERS Beijing Capital
Hao Capital Dalian Tiandi Software Hub
Suntech Power Holdings GreatPoint Energy
Haworth
REPORT PARTNERS Honeywell
IBM
Alstom
IMW
BP
ITT
China International Capital Corporation
LP Amina
Cisco
Lutron
Corning
Millipore
Dell
Modine
Dow-Corning
National Instruments
DNV
Owens Corning
Duke Energy
Powerspan
General Electric
Shui On Development
KPCB (Kleiner Perkins) China
Sixtron Advanced Materials
Nike
Spaceframe Construction & Engineering
Philips
TongFang Technovator
Suzlon
United Solar Ovonic
Volkswagen
WL Gore
Westinghouse
ZhongDe Waste Treatment
SERVICES PARTNERS STRATEGIC ADVISORS
Amperex Technology
The Asia Foundation
APCO China
Chinese Environment Service Industry Association
Beijing Tianrun New Energy Investment
Chinese Petroleum and Chemical Industry Association
Climate Change Capital
Clean Air Task Force
Export Development Canada
The Climate Group
Microstaq
Econet China DE (German Chamber)
Nixon-Peabody
Embassy of The Netherlands
Ogilvy Public Relations Worldwide
EnTech China
Qiming Ventures
Future Generations
Standard Chartered Bank
HIFE Green Power
Vantage Point Partners
Innovation Center for Energy and Transportation
Shanghai Water Resources Foundation
SUPPORTING ORGANIZATIONS Society of Entrepreneurs and Ecology
Beijing Shougang International Engineering Technology Tsinghua University
Business Environment Council (HK)
China Business Council for Sustainable Development
China Datang Technologies & Engineering
China Energy Net. Consulting
Liaoning Huafu Group
PIM Ltd.
Reach Construction China
Sound Group
TsingHua TongFang
U.S. Embassy in the People’s Republic of China
U.S. Foreign Commercial Service

The China Greentech Report 2009

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THE CHINA

Lead Report Writers:

Research Team Leader:

Partner Outreach Leader:

Initiative Project Manager:

MangoStrategy, LLC, the China Greentech Initiative, and its partners

Comments and suggestions about this report are welcome at feedback@

This work by MangoStrategy, LLC is licensed under the Creative

This license allows for the copying, distributing, transmitting and

Editors: Katie Howe and Siobhan Das Bachran

This publication is printed on paper sourced from sustainable forestry (FSC

RESEARCHED AND PRODUCED BY:

All editions will be available in PDF format at www.china-greentech.com

RECOMMENDED READING PRIORITIZATION

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 THE CHINA GREENTECH REPORT 2009 www.china-greentech.com

Ellen G. Carberry and Randall S. Hancock

www.china-greentech.com THE CHINA GREENTECH REPORT 2009 

China’s greentech markets include a broad range of

Three decades of formidable economic growth have

RADICAL IMPROVEMENTS IN LIVING STANDARDS

www.china-greentech.com THE CHINA GREENTECH REPORT 2009 9

Yet China’s economic development has come at

STRAINED WATER RESOURCES

China’s economic development will become

RESULTING SURGE IN RESOURCE DEMAND

10 THE CHINA GREENTECH REPORT 2009 www.china-greentech.com

VISION FOR ENVIRONMENTAL SUSTAINABILITY

China has laid the foundation for greentech market

UNIQUE MOMENT IN TIME

Guided by policy principles, China’s government

CHINA’S POLICY ENVIRONMENT

GUIDING POLICY PRINCIPLES

www.china-greentech.com THE CHINA GREENTECH REPORT 2009 11

PLANS AND PROGRAMS

International policy organizations, principles,

12 THE CHINA GREENTECH REPORT 2009 www.china-greentech.com

INTERNATIONAL POLICY PRINCIPLES

A wide range of businesses are beginning to deploy

SOLUTIONS EVALUATION APPROACH

CONSIDERABLE ENVIRONMENTAL IMPACT

www.china-greentech.com THE CHINA GREENTECH REPORT 2009 13

SIGNIFICANT MARKET SIZES

While China’s greentech market opportunities are

14 THE CHINA GREENTECH REPORT 2009 www.china-greentech.com

Clear opportunities exist for stakeholders to accelerate

www.china-greentech.com THE CHINA GREENTECH REPORT 2009 15

CHINA’S GREENTECH MARKETS

16 THE CHINA GREENTECH REPORT 2009 www.china-greentech.com

This report refines the term ‘greentech,’ provides a

In order to ensure a common language throughout this report, the Initiative

China Greentech Market Map

Fig. 1: THE CHINA GREENTECH MARKET MAP

Cleaner Solar Transmis- Optimized Cleaner Optimized Water Waste Sustainable

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Cleaner Conventional Energy

Electric Power Infrastructure

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FORMIDABLE ECONOMIC GROWTH

RADICAL IMPROVEMENTS TO LIVING STANDARDS

STRAINED WATER RESOURCES

ECONOMIC DEVELOPMENT OF EPIC PROPORTIONS

A VISION FOR SUSTAINABILITY