Multinational companies want to share China's emission reduction opportunities

At the 2007 Guangdong Economic Development International Consultation Conference held in Guangzhou from November 15th to 16th, the Swiss ABB Group stated that it will continue to carry out strategic cooperation with Guangdong Province on energy conservation and consumption reduction, and will provide relevant technologies and programs to assist Zhongshan City in the realization of the year. The target value of energy consumption for yuan output fell by 3.8% year-on-year.

It was at this conference that BP, DuPont, Shell, Siemens and other multinational corporations proposed to Guangdong Province to vigorously develop circular economy and improve energy-saving and emission-reduction capabilities, and put forward related cooperation programs and projects. At the 2nd China-Japan Energy Saving and Environmental Protection Forum held last month, the National Development and Reform Commission issued the “Guide to Energy Conservation and Environmental Protection Investment Cooperation” and preliminary formulated the key areas for energy conservation and environmental protection investment cooperation between China and Japan, including 23 energy-saving technologies and 9 items. Water-saving technology, comprehensive utilization of 18 resources and 13 environmental protection technologies. A number of Japanese companies have signed agreements on energy saving and environmental protection cooperation projects with some local governments and enterprises in China, involving energy conservation, emission reduction and energy-saving financial services in the petroleum and chemical industries. In addition, multinational corporations such as LANXESS, Rohm and Haas, and Akzo Nobel have all recently emphasized the contribution of their Chinese factories to energy conservation and emission reduction, and have further plans for action. Dr. Robinson, who is responsible for BASF’s business in the Asia-Pacific region, recently stated that BASF has a large number of advanced technologies that can help China achieve energy conservation and emission reductions.

Multinational corporations have set foot in China's energy-saving and emission reduction projects because they saw the enormous business opportunities brought by China's energy-saving and emission reduction plans. Industry insiders predict that in the next five years, 30% of the world's orders for energy-saving and environmental protection equipment will come from China, and the Chinese market will reach US$300 billion. The "Comprehensive Work Program for Energy-saving and Emission Reduction" issued by the State Council in May this year proposed that China should continue to broaden the scope and scope of international cooperation in energy conservation and environmental protection, and actively introduce foreign advanced energy-saving environmental protection technologies and management experience. According to relevant sources, during the implementation of energy-saving emission reduction measures, China will purchase a large number of energy-saving environmental protection technologies and equipment, which will introduce a large number of foreign advanced technology and equipment. For example, building energy efficiency alone, China has over $200 billion in investment potential, which has greatly stimulated the development of new construction materials and other related industries, and has attracted many multinational companies to participate.

The entry of these transnational corporations will greatly promote the development of energy conservation and environmental protection in China, and will also help oil and chemical companies, which are large energy users and large emitters, achieve energy conservation and emission reductions. For example, in the next five years, ABB Switzerland will help more than 1,000 energy-consuming households in Guangdong Province to seek energy-saving and consumption-reduction measures and methods, and proposes to apply Guangdong energy-saving technology standards. At present, ABB has trained a batch of petrochemical enterprises in Guangdong Province and introduced these enterprises to experience and technology in energy saving and consumption reduction. The Energy Conservation Office of the Yunnan Provincial Government has signed an agreement with Hitachi, Japan, to jointly engage in energy-saving retrofit projects for the motor systems in Yunnan's chemical industry, which will help chemical companies reduce their electricity consumption. Wuhu Municipal Government of Anhui Province, China Environmental Protection Corporation and Japan Sunway Company have reached an agreement on the project of comprehensive utilization of municipal waste and straw resources. LANXESS has created a low-energy, low-emission Wuxi tannery.

The most direct reason why transnational corporations are so active in pursuing relations with China in energy conservation and emissions reduction projects and engaging in cooperation is, of course, interest. As the saying goes, no profit can not afford to get up early. This is especially true of multinational companies. They regard China's energy-saving emission reduction as an investment point for capital, technology, and humanistic ideas, and believe that there are substantial returns. However, some domestic enterprises and government departments still regard energy conservation and emission reduction as “political missions” and even as a burden. In contrast, the concept and reaction of the two in the market economy are so different.

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