China Plans US$265 Bln Renewables Spending by 2020

China plans to invest 2 trillion yuan (US$265 billion) in renewable energy by 2020, most of it corporate cash, to wean itself off polluting coal as it aims for cleaner growth, a top energy planner said on Tuesday.

Chen Deming, vice-chairman of the National Development and Reform Commission, added that China aimed to be using domestically made and designed equipment by then, which could cut prices for clean energy worldwide.
“We expect the majority of the funds to come from companies,” Chen said when asked about the 2 trillion yuan forecast.

The cash would help China meet its target to boost the portion of its energy that comes from renewable sources to 15 percent by 2020, up from 7.5 percent in 2005, as it wrestles with the legacy of decades of promoting growth at any cost.

Of around 1 trillion yuan slated for spending on pollution reduction and energy efficiency goals for 2010, 80 percent would come from companies and just 10 percent from central government with local authorities and others making up the rest, he added.

Over half the proposed investment will go into large dams, which environmentalists criticise and some scientists believe are a significant source of greenhouse gas methane.

But Chen said the benefits of dams outweighed their costs.

“According to our experience, we know large scale dams can have some environmental impact, but more importantly such projects make a contribution to our energy (mix) and reducing atmospheric pollution,” he told a news conference at the launch of a medium and long-term development plan for renewable energy.

The impacts of pollution and shortages of water have hampered investment and led to social unrest in some areas of China, while a recent survey showed poor air quality in Hong Kong is making it hard for companies to attract foreign staff.

Planet Ark