In less than a decade, clean energy transitioned from novelty products to the mainstream of world energy markets. The sector emerged not so much in a linear fashion as episodic – in fits and starts associated with the worldwide economic downturn, continent-wide debt crises, national policy uncertainty, and intense industry competition. Through it all, however, the clean energy sector moved inexorably forward, with overall investment in 2012 five times greater than it was in 2004.
Although 2012 investment levels worldwide declined 11 per cent, to US$ 269 billion, the clean energy sector weathered the withdrawal of priority incentives and initiatives offered by governments in numerous key markets, demonstrating its resilience. Reliable clean energy investment data have been collected for nine years now. Looking at the data in three-year increments, average clean energy investment increased by at least US$ 90 billion triennially – from an average of US$ 64 billion in the 2004-06 period to an average of US$ 156 billion in 2007-09 and US$ 245 billion in 2010-12.
The 12th Five-Year Plan (FYP) adopted by the Chinese government in March 2011 devotes considerable attention to energy and climate change and establishes a new set of targets and policies for 2011-2015. While some of the targets are largely in line with the status quo, other aspects of the plan represent more dramatic moves to reduce fossil energy consumption, promote low-carbon energy sources, and restructure China’s economy. Among the goals is to “gradually establish a carbon trade market.” Key targets include:
The Overseas Development Institute, working alongside Gesellschaft für Internationale Zusammenarbeit and the International Poverty Reduction Center in China, have been developing a collaborative, research, policy engagement and knowledge transfer exchange programme. The aim is to provide stakeholders with firm evidence of ways to promote effective investment in green growth. This working paper presents the findings of the programme’s scoping study, conducted in India and China, which sought to identify and better understand drivers for green growth.
The paper begins by outlining the tenets of the green growth paradigm, defining the concept of green growth as being both sustainable and inclusive. It then presents the findings of the scoping study and looks at the evolution of green growth thinking. The authors also explore the potential for sharing lessons learnt, both between India and China and with other countries, and set out a proposal for identifying policy and initiative case studies for further analysis and impact assessment.
The scoping study consisted of:
Due to high carbon emission in production and low carbon emission in consumption, China is facing a severe test in economic development and carbon emission control. If the model of western developed countries is followed, it is likely that China will take the old road of high consumption and high emission while enhancing economic growth and living standard substantially. Therefore, a complete and systematic low carbon development pattern is very important to China. The core tenet of low carbon society is to coordinate the conflict between development and carbon emission reduction target. However, it does not emphasize only on the change of economic model but tries to create a completely new form of human society development through overall transformation of social mechanism, institutional design, regional planning and life style.