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By Fu Jing (China Daily)
Updated: 2008-01-09 20:29

China needs to draw detailed incentives to encourage Chinese private enterprises to cooperate with foreign partners in finding cleaner solutions to energy use, an industry leader today urged.

Yao Wenping, Vice-president of China Chamber of Commerce for Import & Export of Machinery and Electronic Products said the incentives should become part of China's overall strategy, which has given solid emphasis on renewable energy and cleaner development.

"The policy incentives, financial subsidies and information services are vital to promote Chinese companies to obtain more cooperation opportunities from foreign partners in cleaner energy," Yao told China Daily in an exclusive interview.

She said the United States, the world's leading player in clean energy technology, now has shown strong willing to cooperate with China in the surging business. "The cooperation climate is sound and the Chinese government should take the good chance to push forward cleaner technologies jointly."

In December when the two countries held economic strategic dialogue, minister of National Development and Reform Commission (NDRC) Ma Kai has requested the United States to cooperate with China in energy efficiency and clean energy.

"So far the US government doesn't prevent export of wind, solar and other clean energy technologies to China and this is good momentum to strengthen the cooperation," said Yao.

China has already decided to top clean and renewable energy on its development agenda. Last month, the government has emphasized the strategy in the first-ever energy white paper and it will focus on development of hydropower, biomass energy, wind power and solar power in the future, according to a medium and long-term plan for renewable energy. And NDRC has already listed the area as development priority in the newly amended industry catalogue for foreign investment.

However, the majority of the business opportunities in clean energy are currently owned by the private enterprises in China. "The business development in the area is fledging and chaotic to some degree," said Yao.

She said the government needs to draw detailed arrangement to bolster the cooperation with the foreign companies, which have hold high-end technologies in the areas.

Last month, the central government revealed that it has already mapped out a guideline with dozens of suggestions on cooperation in power generation, coal, petroleum and natural gas, renewable energy, as well as energy conservation and environmental protection, in a bid to boost joint energy development.

"Joint energy development between the two countries would be mutually beneficial," Yao said, adding it would not only help China improve energy consumption structure, reduce greenhouse emissions and cut pollutant discharges, but could also bring commercial benefits to the US side.

"The development will bring a lot of green jobs for the US people," said Yao.

The commission said China would lift the proportion of renewable energy consumption to about 10 percent by 2010, and to 20 percent by 2020. Almost 70 percent of China's energy use came from coal in 2006, with other forms of energy each accounting for a tiny proportion.