China's green transition expected to boost domestic market and global economy

China is committed to developing a sustainable economy, emphasizing domestic consumption and putting green economy as the centerpiece of its planning process. This is the basis of China’s ongoing 12th Five-Year Plan. Experts say that China’s rapid transition to a green economy will be a boon both to its domestic market and the global economy, especially the renewable energy industry. The United Nations Environment Programme defines a green economy as one where “growth in income and employment should be driven by public and private investments that reduce carbon emissions and pollution, enhance energy and resource efficiency, and prevent the loss of biodiversity and ecosystem services.”
 
On China’s part, it is making a green refurbishment of its economy under a number of key headings defined in its 12th Five-Year Plan. These include the value-added output of emerging strategic industries, which will account for 8% of GDP; and the country’s manufacturing base in coastal regions will transition to high-end manufacturing, research and development.
Keystones in the greening process in China include replacing coal-fired plants with those that run on renewable sources like biomass, wind energy and solar power. Also included are better insulation of homes and offices to reduce heating bills, combined urban heating and power networks, more recycling, improving energy-efficiency of production facilities, and developing alternative-fuel cars. The Chinese government says it plans to increase the share of non fossil-fuel based energy in the country’s total energy consumption to 11.4% in 2015, up from 8.3% in 2010.
Denmark and its Nordic neighbors, which have been the prime movers in the global green growth arena, could benefit commercially from China’s rapid green transition if the country uses their model of green development with certain adaptations to meet local needs. While keeping energy consumption generally constant and slashing carbon dioxide emissions, the Danish economy has grown 78% since 1980, due largely to technological advances in renewable energy and energy-saving. (October 4, 2012)