The Green Leap Forward 绿跃进

 

BRB

After more than two and a half years of blogging, I am sad to announce that I will have to take an indefinite break from contributing original pieces to this site.

Starting Monday, I begin a new stint with More »

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Green Hops: It’s Been a While! (And the next may be for a while)

Haven’t done a Green Hops for a long time, so there are lots of developments over the past weeks to catch up on!

Ten-Year New Energy Development Plan Closed to being Unveiled

State media is reporting that the National Energy Administration has finalized a 10-year new energy development plan that will require a cumulative investment of 5 trillion yuan  ($740 billion) to realize.  The plan, which is a strategy to help China realize its goals to achieve 15 percent of its primary energy mix from non-fossil sources and also to reduce its carbon intensity by 40 to 45 percent by 2020, will be sent to the State Council for approval.

This plan seems to be the long-awaited new energy stimulus plan that GLF blogged about more than a year ago with baited breath, and in fact seems to provide almost double the investment dollars.  I would, however, strongly caution against assuming that this investment estimate will translate to direct funding by the central government.  Most likely, just like the economic stimulus package of 2008, this amount represents a total investment amount that will be provided by a combination of central, provincial and local governments in addition to the private sector (see my presentation at CSIS earlier this year).

That said, the details released so far are still impressive.  Important to note is the comprehensive breadth of sectors that fall under the “new energy” concept-its not just renewables such as wind, solar and biomass, but also energy efficiency, nuclear, smart (and strong) grid, transportation, unconventional natural gas, and more efficient use of fossil fuels.

A notable winner of this plan is natural gas, a hitherto minor energy resource for China (see picture).  The NEA estimates that natural gas will account for 8 percent of China’s energy needs by 2015 at 260 billion cubic meters, compared to just 4 percent of a smaller energy supply base today at around 100 bcm.  As the Financial Times blog recognizes, this strategic push for natural gas represents an economic opportunity for foreign firms with the right expertise.

New Energy Car Subsidies

In June, new subsidies for the private purchase of “new energy cars” came into effect ona pilot basis in five cities-Shanghai, Changchun, Shenzhen, Hangzhou and Hefei.  The scheme provides up 3,000 yuan ($440) for fuel-efficient cars below 1.6 liters in engine capacity, and up to 50,000 yuan ($7,400) for plug-in hybrids and 60,000 yuan ($8,900) for pure electric vehicles for private consumers.  This new program is different from the 13-city new energy vehicle subsidy a few years ago which targeted public fleets (this will be expanded to 20 cities).

Beijing was a notable omission from this new 5-city pilot program, and according to my conversations with people who follow this sector more closely, a reflection that there are car companies based in the other cities that are closer to commercializing alternative energy cars than in Beijing, despite Beijing being the largest automobile market (this article in Chinese also backs this point up).

A product listing of 71 initial car models approved for the 3,000 yuan subsidy was released a month later.   A critical view of the program charges that the program will actually lead to increased carbon emissions-certainly the case if a life-cycle view of vehicle production, use and end-use is taken into accounts, as it should.

For everything you want to know about subsidy program, click here (if you don’t read Chinese, Google Translate can assist).

Dirty Energy Race

China is not just competing with the rest of the world in the clean energy race; apparently its trying to emulate the United States in the dirty energy race as well with a catastrophic oil spill of its own.  In any other time, the oil pipeline explosion in northeastern Dalian province would dominate the headlines (see vivid photographs by National Geographic), except that it is happening in the wake of the BP-Gulf disaster.  According to government estimates, the burst oil pipe released 1,500 tons (461,790 gallons) of oil into the Yellow Sea, but outside observers think this is a gross underestimate, with some analyzing this to be at least on the scale of Exxon Valdez at about 60,000 to 90,000 tons (18.5 to 27.7 million gallons).  That’s still no match for the BP-Gulf gusher, however.

On the same day that the NEA revealed details of its long-term new energy plan, the International Energy Agency said that China has become the world’s largest consumer of energy (a few years after becoming the world’s largest carbon emitter-indicating the relative carbon-intensive nature of its energy structure).  The Chinese, however, think the IEA have it wrong.   Speaking of carbon emissions, Dutch environmental agency now says that China’s per capita emissions are at 6.1 tons, up from the 4.5 to 5 figure that we (or at least I) have been citing in recent years, and almost triple of its 1990 level of 2.2 tons.  Recently, Jiang Kejun of NDRC’s #Energy Research Institute has said that China’s carbon emissions may peak by 2030, but what is left unspoken but equally important is at what level such peak will be.

Clean Energy Finance

A national feed-in tariff regime for solar photovoltaics is not yet in the offing.  In the latest indication that authorities are not quite ready with the idea of a national feed-in tariff for solar, especially given the woes that Spanish and German regulators are exerienceing with it, the NEA has announced 13 national concession projects, totaling 280 MW, have been opened for bidding.  The likes of partnerships among players like CECEP, Applied Materials and ENN may be candidates to watch as the bidding unfolds. According to the NEA, solar PV power can reach “grid parity” with coal-fired power by 2020 when China’s installed PV capacity reaches 20 GW.

It is notable that all 13 projects in the solar concessions are in western interior provinces such as Inner Mongolia, Gansu and Qinghai.  The western interior focus of energy infrastructure projects is consistent with the Go West development strategy to help bridge the wealth gap between coastal provinces and interior provinces.  The NDRC said China will invest more than 100 billion dollars this year in 23 new infrastructure projects, including those in grid, nuclear transportation, in impoverished western regions as part of efforts to boost domestic demand.

When it comes to financing of clean energy projects, China Development Bank (pictured right) is one financial insitition to watch.  In recent weeks, it has been reported that CDB will loan a whopping $24 billion in loans to just five companies-Yingli Solar, Trina Solar, Suntech, Goldwind and Solarfun.  CDB has also been actively investing in overseas energy projects (but not necessarily all green), such as Venezuela.

The central government is allocating 2 billion yuan in 2010 for energy conservation through the energy management contracts by energy service enterprises in  industry, construction and transportation sectors and for public institutions.  The subsidies will be covered by the central government and provincial-level governments at 240 yuan and no less than 60 yuan per ton of standard coal, respectively.

The Ministry of Industry and Information Technology said that the central government will be setting up a 10.6 billion yuan green fund to assist small and medium enterprises, which reportedly account for 50 percent of China’s industrial emissions, to cut carbon emissions and energy consumption.

This past week, China Dialogue marked the three-year anniversary of the birth of China’s green credit policies (see old GLF post introducing Green Credit as one of the Green Whirlwind policies; and this other GLF post taking stock of the Green Credit policy developments a year and a half ago) with a series of excellent articles, here, here, here and here.

Other Sectors

Water is going to play an increasing role in China’s energy future.  Big hydropower, despite its social and environmental costs, is going to continue to be important-NEA’s Zhang Guobao remains an ardent advocateOffshore wind development is starting to take hold, with the NEA and State Ocean Administration setting interim measures regulating the industry’s development earlier this year. Tidal power may also be interesting, as U.S. Verdant Power inks an understanding with state-owned China Environmental Conservation and Environmental Protection Group (CECEP) to develop tidal power in China.

In what could be a game-changing initiative in the global smart grid industry, the State Grid Corp, which controls 88 percent of China’s national grid, has released industry standards for smart grid. The new rules identify 22 core criteria covering power generation, intelligent transmission, substations, distribution, utilization and dispatch for the implementation of China’s smart grid project. The norms will be incorporated into State Grid’s 228 smart grid pilot projects and some of them will be scaled up to global standards by 2020. Unsurprisingly, smart grid will be one of China’s key industries for research R&D in its next 5-year plan.  State Grid will invest 250 billion yuan ($37 billion) this year to build a smart grid network in China

China’s coal mine safety record, or lack thereof, is well documented by this blog.  In a State Council executive meeting this month, Premier Wen Jiabao called for a “people-oriented” approach to mine safety, saying that mine bosses should be forced to start descending into the shafts themselves to work alongside miners (see also original Chinese People’s Daily report).

The NDRC and Ministry of Finance announced an intriguing plan (in Chinese) for 30 “urban mining” (scrap metal recycling) model cities to established in five years.

Energy Price Reform Continues

Based on a circular issued by the State Council in May, it is clear that the reform of water and energy prices are a key component of China’s overall economic reform strategy (see point #4 of this circular in Chinese).

As part of a pilot program, a five-percent tax on crude oil and natural gas has been levied in Xinjiang as of June.  This replaces a volume-based tax system and may be a pre-cursor to a nationwide tax regime on oil and gas.  Relatedly, domestically produced onshore natural gas prices were hiked 25 percent to keep pace with rising demand.  Separately, NDRC has urged local governments to cease providing energy intensive industries with preferential electricity rates.  In transportation, domestic and international flights in and from China are experience an increase in fuel levies.

But natural resource price reform is not always that easy as planners are mindful of the need to balance effective resource allocation tool through proper pricing on the one hand, and the need to ward of the threat of inflation on the other.

Transparency and Accountability

As mentioned in a recent post, the central government is getting serious on holding local governments and companies accountable for meeting their share of the national energy intensity targets.  It is important to remember that a rigorous framework for the monitoring and verification of energy consumption and emissions already exists, see, e.g. this extensive circular (in Chinese) by the State Council back in 2007.  But it is clear that the government is stepping on the accountability pedal.

Earlier this year, the State-owned Assets Supervisory and Administration Commission, or SASAC, released interim measures (in Chinese) on energy consumption and emissions monitoring.  SASAC is a special commission under the State Council that is responsible for managing the affairs of central government-level state-owned enterprises.

In order to follow-through on electricity price reforms, the central government is dispatching seven inspection teams nationwide (in Chinese) throughout the provinces to ensure compliance to energy conservation measures such as the discontinuation of subsidized electricity to energy intensive companies, described above.

The center is also relying on naming and shaming mechanisms to get provincial governments to be on their A-game.  It recently released a 2009 progress report assessing the extent to which 31 provincial-level governments have met their respective energy intensity targets.  Most seem to be ahead or on schedule, with Beijing and Tianjin are two governments that have met their five-year plan target a year ahead of schedule.   A couple of provincial-level regions are behind schedule, however, and those governments will be held accountable at the end of the five-year period (i.e. 2010) if they fail to meet their allotted targets, warns the central government announcement.

Finally, the work of the Natural Resources Defense Council and Institute for Public and Environmental Affairs on the issue of environmental transparency must be highlighted.  I’ll leave it to my friend Alex Wang at NRDC’s Beijing office to describe their efforts to rank Chinese cities on the basis of meeting the transparency requirements of China’s relatively new Open Government Information Regulations and Open Environmental Information Measures.

Picture credits:  “Natural Gas” by Marcelo Rampazzo, plug-in fuel cell EV by Asianewsphoto via World Expo, Dalian oil spill cleanup by National Geographic, China Development Bank by From Sandton to Shanghai, power grid by China Hourly, accounting cartoon by Randy Glasbergen via immobilienblasen.

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China’s Innovation Model and its Role in the Global Clean Energy Market

This is slightly dated by now but I want to be sure this is posted for posterity’s sake.  In mid-May I participated in a panel discussion at the China Environment Forum at the Wilson Center here in Washington, DC.   The topic of discussion was Decarbonizing King Coal: Growing U.S.-China Clean Technology Cooperation“, and my fellow panelists Ming Sun of Clean Air Task Force (pictured right) and Albert Lin representing Future Fuels, LLC (pictured left) had very interesting perspectives on the role of “clean coal” in China’s energy future.  (And that’s me in the center of the pic.) The focus of my presentation was to provide a more macro look at China’s innovation capacity in clean energy technologies.  The whole sessions can be accessed at this archived webcast.

For the convenience of readers, I am pasting my presentation outline (as prepared, but not necessarily delivered) here: More »

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How to Deal with Chinese Green Protectionism: A U.S. Perspective

This is a repost of my final column at Center for American Progress that was also reposted on Climate Progress, and an adaptation of excerpts of my recent full written testimony before Congress.

Foreign governments’ and businesses’ frustration and disgruntlement over China’s restrictions on trade and foreign investment is reaching fever pitch. First it was Jeff Immelt, the chief executive of General Electric in a speech in Rome earlier this month raising the question of whether China “want[s] any of us to win, or any of us to be successful.” Then it was the chief executives of BASF and Siemens together with German chancellor Angela Merkel in an exchange with Chinese Premier Wen Jiabao last weekend in Beijing, who all reportedly used pointed language to call China’s restrictive foreign investment and trade policies to question. These complaints, while valid, point to a larger problem here in the United States—we give the Chinese government leverage by not giving companies valid market alternatives.

There has been particular attention on Chinese government policies in the clean energy sector that favor domestic companies and products over their foreign counterparts. This is a new industry and represents a rapidly growing market for foreign firms. But there is also a widely held notion in the international business community that clean energy should be more open to foreign competition since it doesn’t raise the same national security concerns as tightly held industries such as defense or telecommunications.

Despite a substantial 19.6 percent rise in foreign investments into China over the first six months of this year, there is still a growing question whether China is using industrial policy beyond legitimate means of promoting domestic development of fledgling industries, and actively shutting out foreign competition so as to cultivate national champions. After all, China’s Medium-to-Long Term National Plan for Science and Technology Development, or S&T Plan, released in 2006, does explicitly call for the “the country’s reliance on foreign technology [to] decline to 30 percent or below.”

The frontlines of this debate lie in the Chinese government’s policies to promote homegrown innovation, or “indigenous innovation” as it is called. The National Indigenous Innovation Accreditation Program, initially announced last November, directs Chinese government agencies and provincial governments to procure products listed in a newly created product catalog covering six categories from companies that meet certain criteria. The release had foreign businesses up in arms. Foreign companies rightly charge that the criteria used to determine whether or not a firm’s product qualifies for the catalog discriminates against their products and excludes them from potentially lucrative Chinese government procurement contracts.

Excellent overviews of the details surrounding these government procurement guidelines are available elsewhere, but several points are worth bearing in mind. First, what the Chinese government is doing is More »

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Of Solar Tech and Chicken McNuggets: My Testimony Before the U.S.-China Commission

Two weeks ago I testified before the U.S.-China Economic and Security Review Commission, or USCC, a specialized body created by the U.S. Congress tomonitor, investigate, and submit to congress an annual report on the national security implications of the bilateral trade and economic relationship between the United States and the People’s Republic of China, and to provide recommendations, where appropriate, to Congress for legislative and administrative action.”

The hearing was about China’s policies to promote green technologies, and was actually held in Toledo, Ohio, a city struggling economically due to its long-standing codependence on nearby Detroit’s ailing auto industry, but which also sees some sort of future in clean energy technologies.

Below is my oral statement, which lasted just 7 minutes long.

I also submitted 13 pages of written testimony, available here (pdf, as submitted to the USCC and has footnote citations) or here (html, repost on Climate Progress). I encourage the reader to read the full testimony as it allowed me to go much more in depth on specific things.  The first part of the testimony may be familiar to faithful readers of this blog; it is primarily an adaptation of a chapter I wrote for a larger Center for American Progress report called “Out of the Running?” that provides an account for China’s comprehensive approach to developing its “new energy” sector.  The latter part is more original stuff, as I (i) make the case for how China’s clean energy push is in fact consistent with its overall economic reform , e.g. Scientific Development, reduction of excess industrial capacity, natural resource price reform, western development, boosting domestic consumption, and Going Out strategy; (ii) describe China’s activities in innovation and R&D and its desire to create, not just produce, energy technologies of the 21st century; (iii) address criticisms that China’s “indigenous innovation” policies are protectionist in nature by pointing out the myopia of such observations from a US (or EU for that matter) policymakers point of view; (iv) provide thoughts about what the proper U.S. policy response should be.

My Oral Statement:

Download the full written testimony (pdf)

Good morning and thank you for the opportunity to testify before this distinguished commission on China’s policies to develop clean energy technologies.

My name is Julian Wong and I am a Senior Policy Analyst at the Center for American Progress Action Fund. I speak before you today after having spent the past two and a half years of my professional life almost exclusively devoted to analyzing China’s energy policies. Three months ago, I led a delegation of senior staffers from the Center, along with key Senate staffers from Ohio and other important districts, to Beijing and the surrounding area to look at China’s advances in clean energy.

In a Washington Post op-ed last year, two esteemed business leaders, venture capitalist John Doerr and General Electric CEO Jeff Immelt, said More »

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The Food–Energy–Water Nexus: An Integrated Approach to Understanding China’s Resource Challenges

In this post, originally published in Harvard Asia Quarterly. I draw the connections among food, water and energy systems in China and make the case for the urgent need for more integrated approaches to resource management.

Related posts:

China’s rapidly growing economy is very quickly testing the limits of its resource constraints. While China is home to a quarter of the world’s population, it is endowed with disproportionately less arable land, oil and water.

Such natural resources are vital to any nation’s ability to be self-sufficient, but China’s predicament is especially dire not only because of its large population, but also its rapid urbanization and climate change, both of which will exert more intensive demands on food, energy and water supply. Yet, other than recognizing that water is essential for agriculture, the discussion of each resource constraint is often conducted in isolation, without paying heed to the inter-linkages of food, energy and water systems.

The Example of the Yangtze River
China’s Yangtze River (pictured right) is the third longest in the world and stretches over 6,000 kilometers from the Qinghai Plateau in the west towards the East China Sea at Shanghai. Throughout China’s history, it has played a central role culturally, socially, and economically. It is the unofficial dividing line between China’s north and south, flows through deep gorges in Yunnan Province that have been designated as a UNESCO World Heritage Site, and serves as the lifeblood upon which much of China’s agricultural and industrial activity has depended on to the present day. All told, the Yangtze River system produces 40 percent of the nation’s grain, a third of its cotton, 48 percent of its freshwater fish and 40 percent of its total industrial output value.
The Yangtze has now become a victim of its own success. With China’s rapid economic industrialization over the past three decades, the Yangtze has evolved from a source of life and prosperity to a symptom of the limits of China’s unabated economic pursuits. It has become a depository for 60 percent of the country’s pollution, making it the single largest source of pollution in the Pacific Ocean. The Yangtze is also home to two massive and highly controversial hydraulic projects—the Three Gorges Dam, the world’s largest hydro-electric power facility, and the South-North Water Diversification (SNWD) project (see map illustration below), an unprecedented, multi-decade effort to channel water from the water-rich south to the arid north—each a symptom of a larger ill. The former project points to China’s struggles to maintain energy security and desire to use cleaner sources of energy in a carbon-constrained world, while the latter points to its sheer desperation to address a gross imbalance in the distribution and use of water resources across the Chinese sub-continent.

Neither project comes on the cheap; the Three Gorges Dam bore a price tag of US$30 billion and the SNWD project is projected to cost twice that. Both projects have caused, or will continue to cause, the dislocation of hundreds of thousands of citizens and the significant alteration of landscapes, including the destruction of arable land. Needless to say, both projects have required, or will require, massive inputs of concrete, steel and energy. Together, Three Gorges and SNWD point to a fragile interrelationship between energy, water and food. Beyond the Yangtze, the “food–water–energy trilemma” represents a looming and complex threat to China’s economic stability and national security.

Watergy
Climate change now stands front and center of energy and environmental agendas around the world. In virtually every case, More »

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Interview with The Atlantic on China and the Clean Energy Race

Its been busy and its time to play catchup on some of the work I’ve been doing in recent weeks.  Let me start by republishing a recent conversation I had with Derek Thompson of The Atlantic, originally published here.

DT: My readers are always asking how climate change legislation in the U.S. could impact China’s energy policy. In broad strokes, how is China moving on green energy already?

Me: It’s across the board. In China they have for several years already realized that their direction is not sustainable. They have undertaken some of the most ambitious programs in energy efficiency and renewable energy deployment in the world. They’ve created medium and long term plans and set national numerical targets, such as producing 100 to 150 Gigawatts of wind energy by 2020. There is a national goal of reducing energy consumption per unit of GDP over the 2005 to 2010 term by 20 percent. In the run-up to Copenhagen they promised to achieve a 40 percent reduction in carbon intensity.

Have they kept up with their promises in the last few years?

Well, we saw great progress between 2006 and 2008. But the financial crisis forced them to respond with a stimulus package that allocated a lot of money to infrastructure projects that had the result of stimulating heavy industry. That caused energy efficiency to decrease. But the central government has taken that setback very seriously.

We’re having trouble convincing lawmakers to pass significant energy legislation in the States because many of them don’t see an upside in aggressive legislation. What good does China see in all these energy plans?

Five things. The number one concern is energy security. China is already a net importer of coal, despite conventional wisdom that they have abundant coal resources. That’s because a lot of the supply is in remote areas while the demand is more on the coast, and there’s inadequate logistics capacity to move the coal around. Also, they already import 50% of their oil. Their auto market is the biggest in the world, yet it’s just getting started. Car penetration rates are a fraction of the U.S. As it continues to grow, China will see increased demand for petroleum products.

Second, pollution is a factor. Local pollution incidents create social disruption that has led to citizens’ unrest. This is important because the Chinese’ mandate in power is predicated on social stability. Three, China sees the investment in green tech as a driver of innovation and economic growth. They need to conserve resources and are looking for less resource intensive sources. Fourth, tech innovation will create jobs and lift the nation. Fifth, they feel international pressure to start acting on mitigating climate change and they want to be seen as a partner in this field.

What evidence have you seen that China is acting on these bold plans? More »

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Reversal of Energy Intensity Trend Ilicits Iron Resolve

State Council presses for accountability for urgent energy conservation measure; NDRC issues 12-point circular to deepen economic reform.

If China is to achieve its 20 percent reduction in energy intensity in the current five year period, it will have to undertake some drastic actions in the months that remain.

And drastic action is just what the Premier has ordered.

Last month, the central government announced that energy intensity for the first quarter of this year rose 3.2 percent (from what baseline is not clear, although the press is saying its from Q1′09 rather than Q4′09).  This represents a reversal of a downward trend-the first time since first half of 2006 that energy intensity has actually risen.  This news also comes in a month after it was announced that China’s first quarter GDP grew by a remarkable 11.9% year-on-year, signaling that a recovery from the financial crisis is in full swing and stoking fears of inflation.

At the end of 2009, the government reported that China had achieved a 14.38 percent reduction in energy intensity from 2005 levels, putting it slightly behind pace (16 percent) to achieve its 2010 target of 20 percent.  That said, no one I’ve spoken to about China’s energy intensity numbers understands how the government arrives at its statistics.  Recall previous guest post on this issue, and this more recent reflection.  At best, China is at 8 percent energy intensity reduction, folks tell me.  But whether its 8 percent or 14 percent, the admission by the government that energy intensity has started to go up means that it will be extremely difficult under any circumstance to hit that cherished 2010 target.

The rise in energy intensity is attributed to the resurgent heavy industry sectors that were the beneficiaries of the economic stimulus program.  So much for all that hype about China having the greenest stimulus in the world.  (As I recently pointed out, the reality about China’s “green stimulus” is much more complicated.)

But now, Premier Wen and the State Council have apparently had enough.  In a nationally televised videoconference, Premier Wen used very strong language, saying that energy conservation is a “fundamental national policy” that concerns the “survival and development of the Chinese people.”  Government communications have gone on to attribute Premier Wen as using the vivid metaphor of needing to use an “iron hand” (”采取铁的手腕“) to eliminate backward heavy industrial production capacity.

Wen went on to describe seven broad points of urgent action (in Chinese).  These seven points were a subset of 14 points outlined by the State Council (in Chinese), which consist of the following headings:

  1. Strengthen the sense of urgency and responsibility for energy conservation. More »

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Guardian names @GreenLeapFwd as one of “Top 50 Twitter climate accounts to follow”

My blogging has been irregular as of late due to heavy commitments with my day job, but to compensate, I hope my blog readers have also been following my regular tweets at @GreenLeapFwd.  Today,The Guardian named me among the “Top 50 Twitter climate accounts to follow“, and #4 among climate bloggers.  A great honor!

I am equally thrilled that my colleague and uber-prolific blogger, Joe Romm, also made the list, coming in #1 among climate bloggers.

Thanks to my Guardian and followers who helped shape Guardian’s list.  Twitter has allowed me, in my many moments of insane busyness, to still share links on the latest energy, environmental and climate news on or from China.

But that’s not excuse to getting back to some serious blogging…

Follow The Green Leap Forward on Twitter if you aren’t already (and while you are at it, on Facebook and LinkedIn as well)!

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High-Tech Transportation for a Growing Nation

A Look Under the Hood at China’s High-Speed Rail Investments, originally published here.


We took the high-speed CRH3 train that runs between Beijing and Tianjin. Technology for the CRH3, assembled in China, was originally derived from Siemens’ Valero line of train technologies.

President Dwight D. Eisenhower put a down payment on the U.S. economy in 1956 by signing the National Interstate and Defense Highways Act. This wise investment in a modern, transformative transportation infrastructure—in the form of 41,000 miles of interstate highways—enabled the rapid movement of people and goods across the nation and was vital to our astounding economic progress for the next 50 years.

Today, it is China that is leading the world in a key next-generation transportation technology: high-speed rail. China has already built 4,000 miles of rail featuring trains with average speeds of 120 miles per hour or greater, and the country plans to build an additional 10,000 miles of high-speed rail connecting all of China’s major cities by 2020.

CAP experts experienced the high-speed rail firsthand during our recent fact-finding mission to China. We took the train from Beijing to Tianjin, reaching a top speed of 205 mph and covering the 73-mile journey—roughly the distance between New York and Philadelphia—in less than 30 minutes. Stepping off the rail platform, it was hard not to get the feeling that China is racing ahead in investing in mass public transit infrastructure while the United States is lagging behind in the race to develop clean energy industries.

China’s $300 billion investment in high-speed rail

China already boasts a rail network that, including both standard and high-speed rail, is more than 53,000 miles long. And China plans for that network to reach 68,000 in 2012 and 75,000 by 2020. All of China’s provincial capitals have been connected by rail since the 1960s, and unlike the United States, rail is already a major mode of intercity passenger transportation.

train operator's cockpit

Inside the train operator’s cockpit of the CRH3. In its less-than-30-minute journey from Beijing to Tianjin, the train has a maximum speed of 330 kilometers per hour (205 miles per hour).

The country began planning its nationwide network of high-speed rail in the early 1990s. And China began implementing a series of six “speed-up” campaigns in the late 1990s to modernize its existing rail infrastructure by increasing the speed and capacity of its lines. It also plans to build new passenger-dedicated high-speed rail lines. Indeed, the centerpiece of China’s Medium- to Long-Term Railway Network Plan is a new national high-speed rail grid overlaid onto the existing rail network. The new grid would consist of four north-to-south corridors, four east-to-west corridors, and two additional More »

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What is the Green Leap Forward?

The Great Leap Forward was an economic and social plan used from 1958 to 1960 which aimed to use China's vast population to rapidly transform mainland China from a primarily agrarian economy dominated by peasant farmers into a modern, industrialized communist society. It is now widely seen, both within and outside of China, as an major economic (and environmental) disaster.

By contrast, the Green Leap Forward, is an emerging movement to harness and combine the powerful forces of smart policy, sustainable finance and green technologies to steer China's red-hot economy onto a more ecologically and socially sustainable path. Unlike its predecessor, the Green Leap Forward is as much a bottom-up revolution as it is a top-down one and in this age of increasing global interconnectedness, is a movement that will have an impact beyond its borders.

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