The EU expects to expand its investment in China's growing efforts on energy efficiency and environmental protection which have paid off well so far.
At a press conference in Beijing for the Second EU-China High-level Economic and Trade Dialogue to be held in Brussels on May 7 and 8, Ambassador Serge Abou, Head of a Delegation for the European Commission to China, said European companies expect to increase participation in China's endeavor on improving the country's energy efficiency and environmental protection.
Both Environment Commissioner and Director General for Transport and Energy are on the list of the 14-member EU delegation (nine commissioners and five DG) led by Trade Commissioner Ashton who will chair this most important annual trade dialogue jointly with Chinese Vice Premier Wang Qishan.
In his article published on New York Times on May 5, Vice Premier Wang Qishan said China hopes that the EU would "enhance cooperation with China on the development and application of clean energy, new energy and renewable energy".
According to the press release by the European Commission on May 6, sustainable development including low-carbon economy, and energy" are part of the agenda of the dialogue.
Mr. Abou said that China contributed 57 percent of the world's certified emission reduction (CER) produced with more than 500 UN-registered CDM projects. According to the Kyoto Protocol, developed countries can reduce their emission by providing fund or technologies in projects under the Clean Development Mechanism, or CDM, in developing countries.
European companies are major buyers of China made CER. Such deals, said Mr. Abou, involve a large number of tech transfers.
China is the most important CDM market in the world, according to the Position Paper 2008/2009 issued by the European Union Chamber of Commerce in China.
However, foreign companies can only hold a maximum of 49 percent of stakes in CDM projects in China. European companies hope that restriction be relaxed. Mr. Abou said they would be more willing to bring the most advanced technologies to China only when they can participate as the controlling party to protect their intellectual property rights.
The EU is the largest source of China's tech imports. IPR is also on the agenda at this dialogue.
As China's largest trading partner, the EU holds a huge deficit in its trade with China. As the fourth largest source of foreign direct investment that China receives, EU investment in China is also relatively small in its total overseas investment.
Bilateral trade contracted by nearly 20 percent in the first quarter of this year after some 20 percent increase per year in recent years. No EU company has decided to leave the China market although they may have to reduce their investment or production here, said Mr. Abou.
In the High-Level Dialogue the two sides will probably reach agreements on energy efficiency in buildings and the launch of China-EU clean energy center this year.
Mr. Abou thinks that China has done a much better job on energy efficiency and environmental protection in 2008 than it did in the previous years of its 11th Five-year Plan.
Data announced by the National Bureau of Statistics shows that China's energy consumption per GDP was down by 4.6 percent in 2008, which was much higher than that in 2006 and 2007. In the first quarter of 2009, the energy consumption in GDP shrank 2.89 percent, compared with the 2.62 percent decrease in the first quarter of 2008.
China has set the goal of 20 percent of energy intensity cut by 2010, the last year of its 11th Five-year Plan period.
China can achieve that goal if it continues to increase investment on energy efficiency, said Mr. Abou.
A report released in March by Chinese Academy of Sciences presents a vision of China's low-carbon economy that has apparently aroused the EU's attention. That report proposes a 50 percent reduction of carbon dioxide emissions and 40 percent to 60 percent reduction of energy intensity per GDP from that of 2005.
Of China's four trillion yuan (about 586 billion USD) economic stimulus package announced in November last year, 210 billion will go to energy efficiency and ecological protection projects.
The EU is glad to see signs of recovery in China's economy in March as the result of rapid implementation of the four trillion yuan package. Rebound of the Chinese economy is also “good for the EU”, said Mr. Abou.
By People's Daily Online
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