U.S.-China Economic and Security Review Commission epub U.S.-China Clean Energy Cooperation: Status, Challenges, and Opportunities

After decades of rapid economic growth and heavy industrialization, China is currently one of the world's top energy consumers and the largest emitter of greenhouse gases. As a result, Chinese leaders have recently enacted a number of plans and directives with a specific focus on developing a cleaner energy policy and a lower carbon economy. In the 12th Five Year Plan, the Chinese government set ambitious goals in this regard, including increasing the use of clean and renewable energy sources, such as natural gas, wind, and solar. However, as China builds up its own clean energy industry, it has also adopted some policies that may disadvantage U.S. energy companies seeking to operate and sell their products and services inside of China. Indeed, China's "indigenous innovation" policy may preclude certain foreign manufacturing companies from qualifying for government-funded projects. Despite these differences, however, bilateral cooperation on clean energy is an area that both countries have indeed embraced. China and the U.S. account for nearly 60 percent of all the coal burned in the entire world. By working together and making joint budgetary commitments, the U.S. and China can accelerate advanced clean coal technology and enhanced environmental protection and help the economy in the meantime.