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Nation world leader in renewable energy, says eco-group

(China Daily/Agencies)
Updated: 2008-08-04 09:21

China is the world's leading producer of energy from renewable sources and is on the way to overtaking developed countries in creating clean technologies, says a Climate Group report.

The report, published on Friday, says China's "clean revolution", shows that supportive government policies investing billions of dollars in energy efficiency and renewable energy are driving huge levels of innovation in China.

Despite its coal-dependent economy, China has become a world leader in the manufacture of solar photovoltaic (PV) technology - its six biggest solar companies have a combined value of more than $15 billion, the Climate Group says. Last year, China produced about 820 megawatts of solar PV, second only to Japan.

The Climate Group is an independent, non-profit organization dedicated to advancing business and government leadership on climate change. It is based in the UK, the USA, Australia, China and India, and operates internationally.

China already leads the world in terms of installed renewable capacity at 152 gigawatts. Next year, it will become the world's leading exporter of wind turbines too. Plus, it is highly competitive in solar water heaters, energy efficient home appliances and rechargeable batteries.

"For too long, many governments, businesses and individuals have been wary of committing to action on climate change because they perceive that China (one of the largest emitters) is doing little to address the issue," said Steve Howard, chief executive of the Climate Group.

"But the reality is that China's government is beginning to unleash a low-carbon dragon which will power its future growth, development and energy security objectives."

The report says that investment in renewable energy in China, about $12 billion last year, is almost level with world leader Germany as a percentage of GDP.

The Climate Group highlights China's fuel efficiency standards for cars, too, which are 40 percent higher than those in the US.

Biofuel production is also on the rise: by using marginal land that is half the size of the UK, China is the already the world's third largest producer of ethanol.