China, US to establish clean energy SEZs

China and the US signed eight initiatives of the China-US clean energy cooperation Monday in Shanghai. According to the agreement, both sides would establish clean energy special economic zones (SEZs) to enhance cooperation on clean energy.

The eight initiatives of the China-US clean energy cooperation were proposed in February by the US-China Clean Energy Forum, a non-governmental organization.

The detailed initiatives include: establishment of a joint energy laboratory; sharing smart grid technology; stepping up the pace of the use of clean energy like clean coal, solar energy, and new energy vehicles and biofuels technology; and the establishment of clean energy SEZs.

Han Wenke, head of Energy Research Institute of the National Development and Reform Commission, said that several cities have applied to be the SEZs, including Shanghai, Shenzhen, and Tianjin, but they have yet to be decided. Democratic senator Maria Cantwell also said that the establishment of clean energy SEZs in the US is underway.

National People's Congress official Fu Zhihuan hopes that this deal can have substantial progress, not just be an agreement on paper.

US President Barack Obama will visit China in November. At that time, both sides can negotiate on clean energy cooperation and are expected to sign a bilateral agreement to combat climate change in preparation for the UN Climate Change Conference held at the end of this year.

While there were still disagreements, the American Clean Energy and Security Act was passed on June 22. According to the act, the US can levy "carbon tariffs" on countries, including China, that do not have fixed quotas on greenhouse gas emissions. This sparked domestic criticism of American protectionism.

Shi Zhenrong, chairman of Suntech Power Holdings, a leading enterprise in the photovoltaic industry said that China and US should cooperate with each other and not promote protectionism in the name of anti-dumping since the cost of new energy products including those in the photovoltaic industry are lower now.
 

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