a burgeoning economy and fending off pressures of global warming has, is, and will continue to be an interesting challenge for the Chinese government. China is a ratified member of the Kyoto Protocol (has been since 2002), yet is now the world’s top emitter of greenhouse gases. Just three years ago, China had emitted approximately 54% of the greenhouse gases of the United States. Even though the United States is still easily the largest emitter of greenhouse gases per capita, this is a testament to China’s growth. But what can we say about China’s commitment to combat global warming?
Photo:Changhua Coast Conservation Action, Creative Commons, Flickr
Accommodating
In June of this year, China unveiled a 62-page environmental plan that put reducing climate change at the heart of its energy policy. That is, this policy is positioned as an annex to the developed world’s policies, which should be taking the lead in this initiative (ahem…United States). While I see more reasons to argue for this proclamation than against, at the same time I am seeing China complete a new coal-fired power plant per week. Currently, over 80% of China’s electricity generation comes from coal. This is not to say that renewables have no place in China (the recently unveiled environmental plan includes having 10% of electricity come from renewable energy by 2010), but I have to cringe every time I read about the burning of additional fossil fuels.
In late September, Denver-based Evergreen Energy (EEE) signed a deal with China Power Investment Corporation, one of China’s five state-owned utilities, to design and construct a lignite coal refinery in Inner Mongolia. By reducing the moisture of low-grade coal, EEE’s K-Fuel(tm) process can improve the heat value of coal, thereby increasing efficiency and lowering carbon emissions. This represents a great opportunity for EEE to commercialize their product and gain a foothold in the vast Chinese market. It is also a step in the right direction for China and its mission to reduce harmful pollutants.
I hope that eventually 100% of the coal plants in China will adopt such technologies. It is unrealistic to expect all current coal plants to be suddenly shuttered in favor of renewable power. Still, it should be acknowledged that there really is no such thing as “clean coal.” We cannot forget that coal is simply fossilized carbon, and CO2 will be released into the atmosphere upon combustion, no matter how well the coal is doctored up beforehand.
There is not (yet) enough renewable energy manufacturing capacity in the region (or in the world, for that matter) to support China’s rapidly increasing appetite for electricity. As such, I cannot fault China for not undertaking a more aggressive clean energy policy. It seems to be doing what it can for the moment. I just hope that renewable energy capacity ramps up faster than China’s economic growth — that way, China will see more reasons to adopt more stringent carbon laws.
Disclosure: I do not own shares of EEE but it is on my radar screen, despite its high risk premium. I have never been to China but will one day. I hope that the U.S. will soon adopt a federally mandated greenhouse gas reduction program.