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By Henrique Schneider
In 2009, China passed the U.S. as the world’s biggest energy consumer. But, at the same time as a part of its stimulus package of $586 billion, a hefty $220 billion has been allotted for green projects.
Yes, China is energy-hungry, but it also has a green technology market worth between $0.5 and $1 trillion annually, that is 15 percent of its GDP. For Korean firms, which are nearby and technologically advanced, the doors to these markets are wide open; here a few examples.
Green cities
The city of Nanning calls itself a ``green city.” The island of Chongming produces heat from the waste of a piggery. Its city of Dongtan is being planned completely according to environmentalist perspectives.
In the province of Shandong, there is a green city to be planned and built near its capital. Qingdao was redesigned basing on ecological aspects as early as 2001.
A closer look on some of Chongming’s features can illustrate the concept of a green city. This island that is just two hours from Shanghai has identified four key areas for sustainable improvement.
First, ecological conservation policies, second changing the agricultural techniques, third, educating people and fourth, turning all these efforts into money by attracting eco-tourists from Shanghai and positioning itself as a better place to live.
On the operational level, Chongming is recycling city garbage into compost, renewing water and oil for further uses, for example by building houses that automatically use rain water as a reservoir and heating or turning wasted oil into biodiesel.
It is converting animal manure into fertilizer; using the waste from a piggery and chicken manure as a source for heating; using wood and bricks from demolished houses to build new ones, utilizing solar powered lamps and wind power as alternative energy generation.
Planting different trees and vegetables all over the island aims to regulate temperature naturally and to prevent erosion and damage by storms.
Of course, these are just some of the different policies the Island is implementing. Chongming Island is noteworthy in that these are not being applied as some voluntary measures, but they are the valid maxims of urbanism.
There are more cities applying the same principles and yet more to come. Moreover, the instruments being used are fairly simple and costless for consumers thus having potential for economies of scale.
Green business
Businesses are discovering real potential in going green. The construction sector that has been at best described as fast and cheap in the past is shifting to a more sustainable approach.
By using better materials, isolating more, planning what to do with water and where to get it from, calculating electrical energy costs and so on, the construction sector is increasingly promising to make buildings that have lower running costs.
As everyone is aware, running costs will rise due to the scarcity in the commodities’ markets. This argument of going green and saving money at the same time is warmly welcomed.
On a retailing level, many supermarkets noticed a change in consumer behavior: instead of buying things in the street-markets, consumers feel attracted to supermarkets like Carrefour or Jusco.
These are engaged in a fierce competition against each other struggling for differentiation. Chinese customers can spend a long time looking for a new product and learning how to use it, but once they found theirs, they will be extremely loyal and will not change brands or labels.
Supermarkets are using the label ``organic” to create new brands and new arguments for the consumers to purchase there. They are appealing to the concept of ``organic as healthy.”
In order to state themselves organic, they are for the first time improving the fresh supply chain and auditing their suppliers for sustainability.
There is still a lot to do China, the superstar of greentech. If investments keep up and the government keeps its strategic orientation as set out in the 11th five-year plan, China could become the rising star in renewable energies and green technologies.
Green investments in China are booming, especially since there is still a lot of work to do. China wants to reduce its CO2 emissions to the level of 2005 by 2050. This alone offers a whole new branch to invest, to grow and to succeed.
Henrique Schneider is a traveler in Asia as well as a political analyst. He works as a consultant and analyst in Vienna, Austria, and publishes regularly in German and English on economic and security issues related to China and other Asian countries. He can be reached at hschneider@gmx.ch. |
