News Room - Business/Economics

Posted on 26 May 2009

China plans US$440b stimulus for green energy

China is planning a stimulus package worth 440 billion dollars to expand its renewable energy use, state media said, as the country aims to rely more on cleaner ways to power its growth.

 

The three trillion yuan (439.7 billion dollars) investment will see part of the focus on wind power, the Beijing Morning Post said, citing Liang Zhipeng, a State Energy Administration official.

 

The government has collected opinions from local economic planning agencies and relevant companies about a draft plan, Liang said, according to the report.

 

Under the plan, China's wind power capacity will reach over 100 gigawatts by 2020, the report said, more than triple a goal of 30 gigawatts announced in 2007 in a renewable energy development plan.

 

Zhou Xi'an, a director general at the State Energy Administration, said last week China aimed to boost the share of renewable energy, excluding hydro power, to six percent of its overall energy use by 2020, from the current 1.5 percent.

 

He said the new plan would be submitted to the State Council, or Cabinet, for approval, with a result expected soon.

 

The news about the latest stimulus plan came after China announced measures to support autos, petrochemicals and eight other sectors as part of a 584-billion-dollar package unveiled in November to tackle the financial crisis.

 

One of the world's largest greenhouse gas emitters alongside the United States, China now depends on coal for nearly 70 percent of its total energy consumption.

 

The country has also set a goal to cut energy consumption per unit of gross domestic product by 20 percent and pollution by 10 percent by 2010 from levels in 2005.