Nation poised to lead green tech industry

By Guo Lu in Dalian

China's green technology market could grow to $1 trillion, or 15 percent of GDP by 2013, according to a report by the China Greentech Initiative (CGTI) released Thursday in Dalian.

The China Greentech Report 2009 focuses on 125 green technology solutions across seven sectors, including cleaner conventional energy, renewable energy, integrated electric power infrastructure, green building, cleaner transportation, cleaner industry and clean water.

The report makes clear that the country will grow into one of the world's largest markets for green technologies, products and services.

The country is already laying the proper foundation for future development, said the report.

Renewable energy utilization is growing at a double digit rate from a year ago, while intensive energy usage has been declining for decades, according to the report.

"China is positioned as a leading player in green technology," says Richard Gledhill, an analyst with Climate Change & Carbon Market Services at PricewaterhouseCoopers LLP.

"The combination of continuing economic growth, its technological and manufacturing capability and strong government commitment, driven by growing concerns about climate change and other environmental threats, are creating real momentum in the green technology sector," he said.

"The country has the potential to get a jump on its global competitors, with an early transition to a lower carbon economy and more sustainable long-term growth," Gledhill noted.

However, the report also pointed out that challenges from technology, financing and regulations still need to be overcome.

"Compared with developed countries, there are generally fewer options in China for raising debt or equity capital across the life cycle of green technology solutions," says the report.

The report also noted that complex regulations and policies in China are difficult to understand which may be an impediment to the industry's growth.

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