China’s wind power generation rose 95.2% to 5.6 billion kw hours in 2007, from a year ago, reported the Xinhua News Agency. A report released by the government said that China had wind power facilities with a combined installed capacity of 6.05 gigawatts at the end of 2007, up from 2.67 gigawatts in 2006. The country achieved the goal set for the 2010 three years ahead of schedule. Wind power projects under development will make up for a combined installed capacity of 4.2 gigawatts.

According to the Medium and Long-Term Development Plan for Renewable Energy in China published by the National Development and Reform Commission (”National Development Plan”), China will generate 15% of its energy from renewable sources such as wind by 2020. To achieve the goal, the government plans to increase its wind power equipment to a combined installed capacity of 10 gigawatts by 2015, and to 30 gigawatts by 2020. Shanghai Daily reported that the 2020 target is likely to be increased by the government to as much as 100 gigawatts, which, according to WSJ Environment Capital, would be greater than the total global current installed wind capacity.

The rapid increasing utilization of wind power for electricity generation has been driven by the following factors:

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Further demonstrating its leadership on climate change response, California’s Secretary for Environmental Protection signed an agreement with the United Nations Development Programme (UNDP) to support China’s efforts to address climate change. Pursuant to the agreement, California will share valuable information, such as academic research, effective policy initiatives, lessons learned and technological innovations, with the Chinese provincial governments to support their efforts to develop strategies and actions to mitigate global climate change. California is currently developing its own program to cut greenhouse gas emissions by 30% by the year 2020.

Governor Schwarzenegger issued the following statement about the agreement: “California alone cannot solve climate change - this is a global problem that requires a global solution. America has to lead, and we are doing so even with or without Washington. California is not waiting for the federal government to take action but instead we are forming agreements and building relationships with countries like China to fight climate change.”

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China has taken an aggressive posture on technology transfer in its comments on the Bali Action Plan - the “roadmap” for guiding the next round of discussions on a post-Kyoto global climate change regime.

The UNFCCC Secretariat posted comments from 26 countries earlier this week, in advance of the first session of the Ad hoc Working Group on Long-term Cooperative Action under the Convention that will convene in Bangkok from March 31 to April 4, 2008. While most countries’ positions reiterate statements made during the Bali Climate Change Conference, China’s submission is notable for its stance on intellectual property rights (IPR), clean technology financing, and transfer. China made it explicitly clear that it has uniquely high expectations for the United States, noting that special consideration in the negotiations should be given to ensuring “quantified emission reduction targets [25%-40% of 1990 levels by 2020] for the Annex I Parties to the Convention that are not Party to the Kyoto Protocol.”

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Reflecting growing pressure from institutional investors to curb potential environmental and climate policy risks to public companies, China has put into effect a “green securities” plan. The new requirements impose barriers on heavy polluters applying for an initial public offering (IPO) and mandate that listed companies disclose more information about their environmental performance.

According to the regulation issued by China’s Securities Regulatory Commission (CSRC) in January of 2008, companies from energy- and pollution-intensive sectors must undergo inspection by a State Environmental Protection Agency (SEPA) environmental specialist if they wish to launch an IPO.

Specifically, companies in the sectors of thermal power generation, iron and steel, cement, and electrolyte aluminum, and companies with cross-provincial business in any of 13 listed industrial operations that may cause heavy pollution will be required to obtain SEPA approval of their environmental performance. These companies’ IPO application to CSRC shall include recommendations drawn up by the environmental regulator before they may be considered. Read the rest of this entry »

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The two Representatives in charge of creating a comprehensive climate change bill, Rep. John D. Dingell (D-MI) and Rep. Rick Boucher (D-VA), have just released the second in a series of white papers that will guide the Energy and Commerce Committee as they begin the process of creating a bill that can satisfy the disparate interests of a diverse group of members.

The second white paper is devoted to the issue of how best to get developing nations to reduce their greenhouse gas emissions while ensuring the United States commits to lowering its emissions.  This is important because a substantial number of members in both houses of Congress are adamant that the United States cannot be bound to targets that India, China, Russia, and Brazil are exempt from.  In their view, the legislation will result in a further outsourcing of U.S. economic growth to non-compliant countries and that this outsourcing will end up increasing greenhouse gas emissions since developing countries would remove environmental regulations.

The white paper serves as a primer on the policies the Committee is likely to consider obligations for developing countries.  It also serves to telegraph what Reps. Dingell and Boucher may be thinking as they attempt to tackle this difficult but politically crucial issue.

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While U.S. and Chinese participants in the recently concluded second annual U.S. Clean Energy Trade Mission to China have lauded the commercial and environmental benefits of the mission to both countries, the mission also raised the profile of ongoing tensions related to China’s enforcement of the intellectual property (IP) rights of U.S. companies.

U.S. Assistant Secretary of Commerce David Bohigian, who led the mission, warned during a news conference that there have been “negative developments” in China’s IP enforcement efforts over the last year, exacerbated by problems in China’s efforts to enshrine the rule of law. Bohigian further noted that U.S. companies are declining to export their most innovative environmental technologies to China because they are concerned these technologies will not be protected.

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The U.S. Department of Commerce is leading a Clean Energy Trade Mission to China and India, on January 8-17, 2008, to promote a broad range of clean energy technologies such as renewable energy, biofuels, energy efficiency, clean coal, and distributed generation. The Mission is taking place in the context of the Asia-Pacific Partnership on Clean Development and Climate, and reflects growing dialogue between the United States and China on urgent environmental issues.

Media reports from China on the Mission (also known as the Sino-U.S. Clean Energy Dialogue) focused on the significant opportunities for U.S. and Chinese businesses that could be gained through collaboration, as well as the political and policy barriers that expanded trade in clean energy technologies may face.

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Next month in Bali, countries will start what are sure to be tough negotiations over how to mitigate and adapt to climate change after commitments under the Kyoto Protocol expire in 2012.

With China’s greenhouse gas output soaring, many Western politicians want Beijing to spell out its goals for limiting emissions growth — something developing countries (or “non-Annex 1″ countries, including China) are not obliged to do under Kyoto.

Visiting Chinese Premier Wen Jiabao expounded on China’s climate change policy in Singapore on November 21, 2007, stating that China is ready to join world efforts in tackling climate change within the framework of the U.N. Framework Convention on Climate Change in accordance with the principle of “common but differentiated responsibility.”

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China issued a new policy on natural gas utilization at the end of August to regulate the use of natural gas and alleviate a shortage of supply. The policy became effective on August 30, 2007, after approval by the State Council.

The new policy issued by the National Development and Reform Commission (NDRC) classifies natural gas utilization into four categories: residential and urban gas use, industrial fuel, power generation and chemical feedstock, and labels them as categories of Given priority, Permitted, Limited, and Banned respectively.

The new policy bans the use of natural gas as raw material to produce methanol, the construction of gas-fueled power plants at large coal production bases, and the use of natural gas produced by large and medium-sized gas fields as raw material for Greenfield LNC projects.

These prohibitions, as well as other limits stipulated by the new policy, are to curb gas demand and for better conservation and higher usage.

The guideline state that urban residential gas use is the most favored option. Beijing municipal government started from November 13, 2007 to provide subsidies to residential household natural gas users in Beijing.

Existing gas-based petrochemical projects, especially fertilizer production, will remain in operation. Approved and under-construction projects which have signed long-term gas-purchase contracts won’t be affected, the NDRC said.

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