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Green technology may spark new US-China trade boom

(Xinhua)
Updated: 2009-09-06 15:21

WASHINGTON: Many experts foresee a green trade boom between the United States and China due to their enormous energy demand, but when that will come and how large it will be remain unclear.

Energy experts differ so widely in their opinions on the issue that those who look forward to a boom consider its potential "huge." Others, however, are more cautious in their outlook.

"It's going to be huge because it has to be huge...there is no choice but for the sector to become enormous," said Julian L. Wong, a senior policy analyst at the Center for American Progress.

Wong cited the International Energy Agency's forecast that $26 trillion will be needed by 2030 to meet global energy demands.

With both China and the United States planning cuts in carbon emissions, the two -- the world's largest energy consumers -- can play leading roles in developing renewable energy equipment and technologies, experts say.

For its part, the US announced recently that it would provide tax credits worth 2.3 billion dollars to companies manufacturing clean energy equipment. The move falls in line with US President Barack Obama's goal of making America the world's largest renewable energy exporter.

Jing Su, director of the US-China program at the American Council on Renewable Energy, said America could provide technology to help China convert its infrastructure to lower carbon platforms.

"Many low carbon zones and cities (in China) are being planned, " she said. "(Green) technologies for mass transportation, building efficiency and power generation are greatly needed."

China is calling for more technology transfers from the US and Senator John Kerry, a Democrat from Massachusetts, said recently that the United States would push toward that goal.

"If the US is willing to engage fully with China in bilateral cooperation or joint research and development, it will mean a transfer of technological assistance," he said.

Wong called the recent launch of a joint US-China research project to produce more fuel-efficient motor vehicles and buildings an important first step, despite its modest 15-million-dollar budget.

"I see great potential to link China's great demand to build transformational infrastructure (using) technologies here in the US," she said.

Su went even further to predict a close partnership between the United States and China.

Su said technology such as carbon capture and sequestration -- the process of removing carbon dioxide from the atmosphere to mitigate the effects of greenhouse gasses -- would require collaboration from both countries to bring it to maturity.

This is the "key component" of the solution to climate change in the short term, she said.

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