Tag Archives: green energy

China is both the world’s biggest environmental villain and – paradoxically– the greatest hero when it comes to the development and export of green renewable energy.

The Middle Kingdom is the world’s biggest emitter of CO2 gases—more than the US, India and EU combined. It burns more coal than the rest of the world combined and it continues to build coal-powered plants.

But at the same time it produces 80 percent of the world’s solar panels; 70 percent of lithium-ion batteries, 65  percent of the world’s wind turbines and the world’s most affordable electric vehicles.

China has vast resources of dirty coal and very little oil or gas. So when the Chinese Communist Party decided to go all out for industrial growth it made economic sense to exploit the energy on its doorstep. So it turned first to coal and then to imported oil and gas.

But by the early 2000s the Party leadership came to the realisation that the growing dependence on imported oil meant energy insecurity. Also the burning of coal and growing number of cars was creating dangerous pollution levels. Finally, they saw that the next big industrial revolution would be “Green.”

About the same time Europeans and large slice of Americans were also investing in renewable energy. Western governments were starting to provide tax breaks and other subsidies. China, however, has a command economy. So, it didn’t just subsidise green tech companies. The Chinese leadership made the decision to rebuild the country’s entire industrial base around renewable energy.

There were massive subsidies for solar, wind, electric vehicles, and batteries. Free or cheap land was provided for green industries. The state banks offered low-interest and local governments provided tax breaks and cash incentives.

Heavy emphasis was given to national dominance of the supply chain. So development went from mining of rare earths to development of batteries to production of electric cars. No country had ever industrialized a clean-energy sector at that speed.