As leaders of the world's richest nations agree at the G8 summit that worldwide temperature levels should rise no more than two degrees Celsius, debate still rages as to how much responsibility developed and developing nations should shoulder. While China is often criticized in the foreign media for dragging its feet in such matters, it is often overlooked that the country has a very promising green business sector. And some predict this is going to play an important role in helping the world address its environmental problems.
China may not be the first country that comes to mind when one thinks about tackling the global environmental crisis. But this may be set to change as the government, investors and companies operating here are waking up to the huge growth potential of green technology.
According to government predictions, by the end of 2010 China will have poured the equivalent of 66 billion dollars into green business. That's more than the entire GDP of Syria. Last year around 30,000 enterprises were operating within the environmental sector in China, employing over 3 million workers.
One such company is Beijing-based Dragon Power Group, which specializes in building environmentally friendly power plants that generate electricity by burning farm waste. Meng Xiangwen, Sales Manager for China, explains how incentives from the Chinese government have helped their business grow.
"Thanks to China's renewable energy law, our power plants receive subsidy from the government, along with a reduced tax rate for consuming farming waste. So the government has been of great support. Of course, China's renewable energy industry is still in its infancy, but I believe that the government will increase its efforts to promote the growth of this area," Meng Xiangwen told CRI.
Meng was speaking at the recent China Cleantech Business Forum in Beijing, a networking event bringing together companies, investors and policy makers operating within this rapidly developing sector.
Rocky Lee is head of venture capital and private equity for legal firm DLA Piper, one of the main backers of the Cleantech forum. He compares the government's passion for developing its green business sector to the fervor generated in the years running up to the Beijing Olympics.
"We're starting to see the first time where China has really embraced the concept much like it did during the Olympics; so you saw the planning, the strategizing, the building out all the infrastructure and now we are seeing China doing the exactly same thing for cleantech, renewables, sustainable technologies and ideas," Rocky said in a booming voice that lived up to his name.
Another attendee at the conference was Phillip Campbell, director of Alpha Emptor, a Hong Kong-based firm producing energy saving plug adaptors that can reduce domestic electricity consumption by as much as 15 percent. Campbell sings the praises of being based in China.
"A lot of my developments come from the UK in terms of ideology. But actually moving those concepts and ideas forward to real products takes three times longer in the UK and costs five times more," proclaimed Campbell just outside the conference building alongside a few other environmental business leaders that had slipped out for a quick smoke.
"There is an abundant resource of intelligent people here," he continued. "And one of the other marvelous factors in China is the dedication to work that I don't get in the UK. These people really know how to work and really know how to do a good job. They need far more guidance and far more training but when they've understood it, they run with it...So, there are three benefits to me: time, money and productivity."
Despite the efforts to develop its green technology sector, the Chinese government is often portrayed in a negative light in foreign press with regard to its environmental policies. Yet in reality, China has more reason than most to be concerned about the environment. This is because the country is more exposed than most to the potential negative consequences of environmental change. Clare Pearson is a lawyer that has been helping the Chinese government draw up new guidelines for ethical business practice. She says many communities in rural provinces are going to have trouble surviving if the climate pressure continues increasing at the rate it has over the last few years, and that the government here is fully aware of the magnitude of the problem.
"Anyone who thinks China's detached from the climate debate is so wrong," she implores."They know the impact, they know about the draught in the north of China. It's not like Britain where environmental change is an academic topic. Maybe some river beds will run dry in Scotland but it doesn't mean a million farmers are out of work. It just means, 'Oh, my nice holiday cottage doesn't have a running brook'. It's on a different level here. China is seriously committed to tackling climate change."
Just how fast China's green business sector develops over the next few years remains to be seen, but if there is as much potential for growth in this area as experts predict, success could mean not just helping the world tackle the environmental crisis, but also helping it pull out of a global recession.