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China, UK ink $15m low-carbon technology deal

By Zuo Likun (chinadaily.com.cn)
Updated: 2009-05-06 14:07

Beijing -- Britain and China have launched a ￡10 million (US$15 million) joint venture on low-carbon technology transfer to help clean the coal consumption of the world's largest developing economy, a visiting UK official announced Monday.

The deal came as calls are growing louder for major global economies to engage in more cooperation in curbing carbon dioxide emissions in the run up to international talks in Copenhagen in December for a new treaty to replace the Kyoto Protocol, which is set to expire in 2012.

Ed Miliband (R, front) exits the speech room at Peking University in Beijing, Monday May 4, 2009. [chinadaily.com.cn/Zuo Likun]

The joint venture between UK's Carbon Trust and the Chinese Energy Conservation Corporation (CECIC) will boost innovation of carbon capture and storage solution and offer financial support to low-carbon industries in China, Ed Miliband, Britain's Secretary of State for the Department of Energy and Climate Change, said during a speech at Peking University.

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"Britain and China will benefit from this [low-carbon technology] investment. And this is just the cooperation we need," Miliband said, assuring his belief on the huge potential of China's green energy technology market.

According to a WWF report last December, some $1.5-$1.9 trillion may be invested in environmentally-friendly technologies in China before 2020.

However, low-carbon knowledge transfer from developed countries to emerging economies like China is still controversial. Questions remain in Britain over how much profits the UK should exploit as a technology leader, rather than give away the know-how for free, Sunday's Guardian reported.

China has indeed geared up its move towards a clean-energy economy as a necessity rather than an alterative. Of the $585 billion stimulus package issued last year, $30.8 billion will be allocated to energy conservation and ecological engineering, with the aim to double its renewable energy to 15% by 2015.

"China's commitment to this cause will propel others to commit to it too. If China acts, others are more likely to follow," Miliband said to a room of college students, a younger generation who he believes faces more of the climate problem in the future.

During the minister's visit, the Chinese Ministry of Science and Technology and the British Council will sign a Memorandum of Understanding in which both sides commit to raising public awareness about climate change.