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Develop Economy by Three Low Standards (Low Pollution, Low Emissions, Low Energy Consumption)

Date: Aug 10, 2010      Source: IEEPA      
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Cheng Siwei, Vice Chairman of the Standing Committee of the ninth and tenth Chinese National People’s Congress, indicated in his lecture: in order to realize low carbon economic development, China shall make efforts in four aspects: first, development of non-emission carbon dioxide industry, including new energy industry, modern service industry, modern information industry, modern finance industry, modern consultation industry, modern exhibition industry, modern logistics industry as well as culture industry; second, reduction of carbon dioxide emission, improvement of energy efficiency; third, utilization of carbon dioxide, particularly in chemical industry; fourth, application and summary of carbon dioxide treatment and Carbon Capture and Storage (CCS) Technology.

In order to develop green economy, we shall solve the problem politically, economically and technologically.

First, co-operation between different nations is necessary to develop a green economy. Copenhagen Summit is a good beginning despite various disagreements. Politically, we need all the countries adhere to the principle of "common but differentiated responsibility" , and positively work out their plan to reduce carbon dioxide emission, rather than blame other countries.

Second, economically, we need calculate the environmental costs. The development of new energy remain slow in the past because of its expensive cost. Some subsidies from the government are necessary, for example, Japan and Europe subsidize their solar industry. At the same time, we need observe the rules of Kyoto Protocol concerning clean development mechanism (CDN), and offer financial support to the new energy, pushing forward free or negative tax plan, procure green products for government agency, offer preferential and relatively long-term loan for green economy.

Third, technology is a key factor to reduce cost. At present, many technical bottlenecks still exist despite fast development of new energy. For instance, power generation is unavailable if the wind scale is below 3.2, and the fan blade has to be dismantled when typhoon strikes. furthermore, we have no automatic wind-power control technology presently. Therefore, we propose self-innovation on the one hand, and also make efforts to introduce advanced technology to develop new energy industry on the other.

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Beijing Low-Carbon Strategy International Development Center