Potential Energy

China Spends More on Clean Energy than the U.S.

A report suggests that the U.S. is losing its edge in the clean energy market.

Kevin Bullis 03/25/2010

  • 13 Comments

At Copenhagen, China may have been reluctant to sign an international treaty that heavily restricts its carbon emissions, but a new report from the Pew Environmental Group says that private investors there are pouring more money into clean energy than investors in any other country.

The total investment of $34.6 billion in China last year displaced the United States from the top spot.

Last year, the U.S. invested $18.6 billion, the second highest amount in the world. As a percent of GDP, however, the figure is relatively small. By this measure, Spain invested five times more last year, and China, Brazil and the United Kingdom invested 3 times more. The United States is also about to be edged out of its lead in installed renewable energy capacity, with rapid growth in installations in China leading to a "virtual tie" last year.

The report attributes the large investment in China to national renewable energy and energy efficiency standards and other incentives there. It also noted that most of the money is going to financing existing clean energy technologies, not to venture capital to promote the development of new technologies. In this arena, the United States is still by far the leading country.

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kstauff

130 Comments

  • 683 Days Ago
  • 03/25/2010

Ok

If true, this is unsurprising.  China has less access to fossil fuels and thus must make up the difference by investing in other energy technologies, including widespread use of nuclear.

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Eideard

18 Comments

  • 683 Days Ago
  • 03/25/2010

China's growth in alternative and renewable energy.

I'd rate the comment above as "ignorant".

Like nations further along the industrial path, China can always acquire energy and the raw materials for energy.  What sort of energy reserves - for example - does Japan have?

Presently, China is Australia's greatest consumer of both iron ore and coal - the largest export commodities in Oz.

Spending additional dollars on alternative and renewable energy sources is more expensive, held to a higher standard, than the cheaper alternatives followed by many of China's competitors.

The "if true" remark isn't worth commenting about other than noting the unique and everlasting role played by Cold War ideology in American politics.

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kstauff

130 Comments

  • 682 Days Ago
  • 03/26/2010

Re: China's growth in alternative and renewable energy.

Your remarks are telling.  Ironically, they display the very ignorance they claim.  China also imports coal from other countries in order to keep up with its growing economy.  Japan imports the vast majority of its gas and oil, and also has significant nuclear power (3rd in the world). 

Since China can pay their workers at a significantly reduced rate, accepting the associated standard of living and the effects on their environment, they are able to produce tremendous volumes of "green" technology.  They have the largest hydro-electric infrastructure in the world, lending to their world leading total of 152 GW. 

However, to keep up with their economic growth rate, like Japan, they must import the vast majority of their oil and gas.  They are also under significant international pressure to produce energy from alternative means.  Is this a good thing?  Yes, especially considering how foul their urban environments are; but as I said, it's unsurprising due to their limited access to gas and oil resources.

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Gaetano Marano

246 Comments

  • 682 Days Ago
  • 03/26/2010

>>> USA and Europe can beat China if... >>>

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USA and Europe can beat China if they INVEST more in new ideas and technologies to harvest more energy from medium-high altitude winds, as suggested in this article:

http://www.gaetanomarano.it/articles/028energy.html

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mkogrady

423 Comments

  • 665 Days Ago
  • 04/12/2010

The US can beat China

Just take away the subsidies we pay to Coal and Petroleum and redirect them to renewables.

Case in Point - The recent mine disaster and the arrogance of the Coal Industry in general tells me that they don't need subsidies if they show such huge profits while their mines are unsafe and they can delay paying safety fines indefinetly. Heck - they don't need that extra money, so take it away till they start playing nice.

Don't even get me started on Petroleum.....

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StriatedPattern

8 Comments

  • 682 Days Ago
  • 03/26/2010

No surprise

China's demand for increased energy production is much larger than that of the US. China is building rapidly. The US? Not so much.

It really doesn't make sense to compare the numbers in gross. Situations vary.

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erbium

336 Comments

  • 682 Days Ago
  • 03/26/2010

Re: No surprise

This article explains why china is both going green in places and horribly polluting in others, such as their coal plants without pollution controls.

www.foreignpolicy.com/articles/2009/.../think_again_green_china?

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paulfmeyer

18 Comments

  • 682 Days Ago
  • 03/26/2010

New vs. old infrastructure

China's spending capacity in this area is based on the realization that they need not invest in old technology for newly installed infrastructure.

How much US energy investment is on new infrastructure?I would wager the percentage is in single digits.  We likely spend far more repairing aged and obsolete systems.

Didn't China basically skip copper telco and go straight to fiber and wireless?  Why shouldn't they follow a similar strategy for energy?

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DennisBuller

118 Comments

  • 682 Days Ago
  • 03/26/2010

US and Europe In China?

  One thing the article does not mention/explain is how much of the "Chinese investment" are US and European companies producing solar and wind machines over there.
  Since most manufacturing is now in China, this is worth commenting on. 

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*Taliesin*

4 Comments

  • 682 Days Ago
  • 03/26/2010

Percieved Need

While I would like to think it is common knowledge that our current energy systems are quickly becoming obsolete, or arguably have been for some time now, it is far easier to justify hefty budget allocations to 'green' investments when the toxic side effects of environmental destruction are so painfully apparent as they are in China.

While public sentiment in the US is increasingly leaning in favor of more environmentally friendly practices, it is still nowhere near as strong as it should be, exemplified by the fact that I recently got into an argument with some classmates over whether or not global warming is a real issue or a hoax.

Whereas in China, if you live in an urban center, it is impossible to hide from the fact that environmental damage from the burning of coal, and other dirty industrial practices are playing a major role in the devastation of quality of life through smog, loss of clean usable water, proliferation of respiratory based sickness and complications etc etc etc. This translates into greater public awareness and demand for cleaner means of growth.Not that China's authoritative government is known for their consideration of greater public sentiment.

However, although having a top-down authoritative government like China's has many disadvantages, you have to give them credit for how fast they are able to mobilize towards a goal or objective (like cleaner means of economic growth, or spurring economic growth in recent decades) when it is in their greater national interests, which investment in sustainable infrastructure obviously is.

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kstauff

130 Comments

  • 679 Days Ago
  • 03/29/2010

RE: Global warming

It's not that it's a hoax; it's that many of the scientists who support the theory have failed miserably at the job of being a scientist.  Many have become activists, and others have deliberately over-emphasized various signals in their data to support fantastically horrific possibilities which scare the public into funding their research.

Very few disagree that the earth has warmed in recent decades.  But proponents of global warming routinely fail to recognize that temperatures on this planet have previously been as warm or warmer, even as little as one thousand years ago.  This selective dissemination of information, combined with fearsome stories of ruin and the failure of climate models to accurately predict the last ten years, lead the public to distrust the people who are pushing the global warming theory.

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firozalimulla

29 Comments

  • 679 Days Ago
  • 03/29/2010

China Spends More on Clean Energy than the U.S.

Kevin This week the Obama administration – who give Israel $3bn a year, more than they dole out to any other nation on earth – made a meek and craven request for Israelis to simply have a pause in seizing even more land, and to sit down with the Palestinians. Prime Minister Benjamin Netanyahu responded with a big concrete slap: the announcement of 1,600 more homes to be built on occupied Palestinian land from which Arabs will be forcibly kept out. He has made it plain he will not loosen his grip by an inch, announcing: "Even if [Palestinian President] Abu Mazen comes along and says he's ready to sign a peace deal on the spot, we will restore settlement construction to its previous levels." No compromise. Never.
How does this look to the Palestinians? Their story is so rarely explained without disinformation that it still seems startling when it is stated plainly. Until 1948, the Palestinians were living in their own homes, on their own land – until they were suddenly driven out in a war to make way for a new state for people fleeing a monstrous European genocide. Now when you read the above, you will feel dizzy and the poor farmers lose the cane as USA, China squeezes the juice for the biogas. Is this not cruelty or just a snobbish behaviour?
I thank you Firozali A.Mulla DBA

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No2StatQuo

2 Comments

  • 666 Days Ago
  • 04/11/2010

China Spends More on Energy than the U.S.

Is there any intelligent life out there?
Today down sunny Florida I noticed gasoline prices were closing in from below to $3.00 a gallon. It’s $2.83 for a gallon of Regular.
So here we are climbing out from the most recent financial collapse, and things are apparently getting better, as I for one do believe that things are getting better. This is not to say however, that the opposing forces to “change” will not be trying there hardest to stop the attempt towards “change’s” success. But, does anyone even realize that overall we are only $1.50 or so away from the most recent highs of gasoline.
Forget the Politics and the Climate Change talk for minute instead, let's talk about common sense. This is strictly about the race to the future. The reality is the rest of the World outside the U.S. is racing away from the past and into tomorrow with renewable and clean energy technology sources. And we in the U.S. are "stuck in neutral" and truly losing in this race.
Everyone needs to please stop for a minute and think, we may have gotten better but yet the truth is, we are still only a dollar fifty away from where we were. We could very well be right back nearing recession in 90-180 days unless we start making some real progress forward. So, why not Renewable Energy…? Imagine the jobs created if we took on the large and major project of revamping our infrastructure which by way is the major obstacle holding us back. We need and should do everything there is to move away from the “status quo” and into the new age of tomorrow. This means drilling for our own oil PLUS, aggressively establishing a market for individual consumers in the use of Solar and Wind technology. While it may seem to cost more in the beginning, when you factor in the jobs and additional revenues created, the inevitable savings in consumer and businesses electric bills, it will balance itself out in the long run. Besides, why wouldn't anyone especially the "have not’s" in our society want to establish something that benefits them and changes the “status quo”, and benefits the environment we are to pass along to our children, and in addition, strengthens our country against our competitors, our opponents, and our enemies. The simple truth is no one trusts the politicians and most don't wish to be labeled or thought of as some "environmental greenie". Yet everyone knows that something MUST be done to alleviate gas prices, keep more money here at home, create new jobs, reduce electrics costs, provide a good environment for our offspring, and strengthen our country for tomorrow’s way of life. If we do not and instead continue the bickering over the things that really are beside’s the point, we will go the way of a previous great Roman society, only in a much quicker time span. The Romans ruled supreme for almost 800 years and we only 235 years in are starting to fold already to the rest of the world in technological advancements. If we lose this race, our children and children's children will not see the strengths that we ourselves have so enjoyed. We will be taken over, not literally, but politically by those that ran harder towards technology in an attempt to strengthen their economies and independence. The truly unfortunate part is that some of these advancements coming from renewable and the clean energy technologies will so greatly advance the strengths of not only our competitors, but maybe even our enemies. This is a frightening thought.
So I implore us, let's stop the bickering and do what intelligent people would do and to a big extent, doing already. Make the major moves necessary NOW to reduce our use of Foreign Oil and Oil in general. Create jobs by committing to the construction of Solar and Wind, Hydro, Geothermal, Biofuels, BioMass, and Nuclear projects today. The ability to do so is already here. Now the Country by the will of its people just needs to demand and accept its inevitable happening. This is what an intelligent life would do, if any were willing to use their Common Sense, instead of their Political and or Environmental sense.

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Kevin Bullis is Technology Review’s energy editor.

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