Thursday, November 13, 2008

China: One Trillion Yuan ($146 Billion) to Environment, Renewables next Three Years

Before folks get too excited about China as a model for other countries, they should look into the various ways the Chinese will be gaming the CDM to lower the cash costs of their solar/wind build-out. Additionally, many coal fired power plants will earn as much (European) money from being shuttered as they do now from producing electricity. It is a pretty sweet racket.
That said, $146 Bil. is a lot of money, period.

China´s infrastructure projects to boost environment protection

The main aim of new infrastructure projects is to boost domestic demand and keep growth stable. But there could be other benefits. The huge surge in fiscal spending could inject new life into efforts to protect and conserve the environment.

The Ministry of Environmental Protection announced on Wednesday that 1 trillion yuan will be spent on projects to protect the environment over the next three years. And the huge investment is expected to help the industry play a leading role in boosting the country's economy.

Zhou Shengxian, Minister of Ministry of Environmental Protection said "We will not allow polluting companies which have been shut down to restart. While 1 trillion yuan will be invested in the environmental protection industry."

Zhou says the investment will be focus on renewable energy development, water- and energy-saving technologies. Nuclear, wind and solar power are likely to emerge as top priorities....MORE


“New Deal” Roll Out: Where's the Money All Going To?

Chairman Mao Zedong once said: “Ten thousand years is too long. Seize the day, seize the hour!” Currently the Chinese economy is undergoing an unprecedented cooling. Banks are unwilling to lend, export growth is slowing, corporate profits are sagging, tens of thousands of companies are closing or going broke, and the stock market has slumped by almost 70% with investors having lost all confidence. Unchecked, it is hard to see this all leading anywhere except to large scale unemployment and social turbulence.

With Chinese leaders realizing the peril of the situation, the government has begun to intervene in the economy with a “heavy hand.” Central government ministries and departments, local governments, and large state-owned commercial banks and enterprises are working overtime to seize the moment to inject the government’s newly announced 4 trillion yuan support package into China’s real economy.

Environmental protection: 1 trillion yuan

Minister of Environmental Protection (MEP) Zhou Shengxian announced recently that China would raise 1 trillion yuan from various channels in the next three years for environmental projects. “The government is now working to expand internal demand and is increasing investment in environmental protection. Eco-departments must seize this unique opportunity.”

Those departments have recently accelerated environmental impact assessment and approval. On November 11, MEP approved environmental impact assessments on three projects including Stora Enso’s 0.9-million-ton pulp project in Guangxi, and the IPO of nine companies including Jiangxi Yongsheng Mining Co.

Zhou Shengxian claimed these projects “all meet the requirements of relevant laws and policies, and are not only conducive to economic growth, but also help to promote structural adjustment…Besides, these projects are also positive for energy-savings and emissions reduction.”

“Environmental interests cannot be sacrificed again in the process to stimulate economic growth,” said Børge Brende, Managing Director of the World Economic Forum yesterday, “I’m glad to see the statement of the Chinese government that although economic growth has slowed, it won’t weaken environmental protection.”

Brende believes the financial crisis has offered China a precious opportunity to develop a low-carbon economy, and China should transform the external and internal crisis into an opportunity for sustainable development.

Railways: 150 billion yuan for Q4

The Ministry of Railways (MoR) is expected to invest 350 billion yuan this year, at least 150 billion yuan of that in the fourth quarter alone. It is planning to put 600 billion yuan into basic construction next year....MORE