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China, US must think hard about energy cooperation

  • Source: Global Times
  • [04:09 September 03 2009]
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By Zhou Jichao

The US and China are increasingly cooperating on new energy sources, but this process still faces many difficulties. In fact, regarding the energy issue between China and the US, especially in saving energy, there exist serious mutual misunderstandings and misconceptions.

On the US side, there is a bad mistake in the reports by the Brookings Institution and the Pew Center on Global Climate Change and the signed article by Steven Chu, Minister of the Department of Energy.They all believe that China should follow the developed countries and give priority to building energy-saving buildings. But in fact, the Chinese manufacturing sector accounts for 70 percent of energy consumption.In China, over the course of negotiations on climate change, the government asked developed countries for technology transfer and fi nancial assistance. The National Development and Reform Commission has also clearly expressed the hope that developed countries will contribute 1 percent of annual GDP, about $400 billion, as the price for the technical and economic assistance given to China. But the developed countries do not have any secret energy-saving technologies.

In addition, Chinese people have some misunderstandings about saving energy, thinking that "energy-saving" is to reduce the consumption of coal, electricity or any sort of energy. Many people still hold the unprofessional view that "saving energy doesn't save money," while in fact, even profit-driven motives often lead to considerable energy savings.

Sino-US cooperation over saving energy so far is only on paper and has not been put into reality because the two sides don't know whatto talk about in details.

What can be done to further the process?

To begin with we must get rid of the blind belief in technology. There are no widely used energy-saving tips or techniques. Maybe in some industries, like chemical production, there are major breakthrough energy-saving technologies, of which, however,China could not expect
unconditional transfer. But some technologies in the US, such as automated lighting, efficient motors, energy efficiency assessment tools(software and hardware), insulation materials, and waste heat recovery equipment, can be usefully copied here.

We must also know what China is short of and target those areas. What we lack most is not technology but "soft skill" in energy saving, and the human factor is important. Ranging from the officials in charge of energy saving in development and reform commission at all levels and
designers down to the ordinary workers, everyone must receive training to improve awareness, skills and professionalism in energy-saving management.

Almost all the well-known universities in the US have a major in this fi eld, but no school in China is known to offer it. Therefore, cooperationin cultivating talent is very important.

Finally, we must also recognize the barriers to saving energy in reality. China's energy supply is basically monopolistic. For example, electricity can only be supplied by two or three companies.The experience of the US shows that without strong support from the power companies, energy-saving programs can't work in the long-term.

Now, some states in the US have passed laws separating the power companies profits from their sales amount, in order to make the companies
more enthusiastic about saving energy. We can learn from this.

Previously we have discussed the situation in the US. But how can China help the US? In some industries, we have an unmatched cost advantage and we can play an important role in producing energy-saving products.

Currently 80 percent of the energy-saving lights around the world are made in China, which provides a low-cost approach for the US and even the whole world in energy saving.I believe more energy-saving products will be produced in China. Businesses in China should seize the opportunities to occupy theenergy saving market in the US and China.

The author is deputy director of CEM China Program of the United States Association of EnergyEngineers