Strong words and stronger actions on U.S.-China clean energy cooperation during President Hu's visit

On the second day of Chinese President Hu Jintao’s state visit to Washington, leaders in energy and climate from both countries concluded a far-reaching strategic forum assessing the benefits and prospects for cooperation in these areas. The two-day event, following up on the October 2009 event in Beijing, drew high-profile ministerial- and CEO-level participation, reminding us once more how much our two governments and clean tech industries have to gain in cooperating to realize a clean energy future.

A global challenge requiring strong U.S.-China collaboration

Among the many challenges that are occupying Presidents Hu and Obama these days, energy security and climate change are certainly among the most complex. The U.S.-China Joint Statement issued today discussed the progress made in numerous bi-lateral initiatives designed to face these challenges. The reasons – and necessity – for U.S. and China working together are manifold, but Assistant Secretary of Energy David Sandalow laid out the salient figures which speak for themselves:

• The U.S. and China together account for 37%  of the world’s energy consumption and 42% of its GHG emissions (2008 data)
• Annual motor vehicle production in China is double that of the U.S. (surpassing the U.S. only three years ago)
• China will build the entire floorspace of the U.S. (300 billion ft2) in the next 15-20 years as 300 million of its citizens move to the cities

In all of the key energy-intensive sectors – transportation, buildings, industry, etc. – the U.S. and China face significant challenges in transitioning to low carbon, clean technologies. But, as several China watchers pointed out, and as Secretary of Energy Steven Chu pointed out in November when he likened the race to a clean energy future to a “Sputnik” moment, with this challenge also comes great opportunity to strike out on a new path of innovation.

Science & technology cooperation are an essential part of U.S.-China relations

 Since the signing of the U.S.-China Science and Technology Agreement in 1979 – the first formal agreement following normalization of relations – both countries have benefited from sustained exchanges and joint research initiatives. And as Presidential Science Advisor John Holdren and his counterpart Minister of Science and Technology Wan Gang indicated during the conference, this aspect of the relationship has wholly embraced clean energy and is as robust as ever.

Two points worth mentioning, from Dr. Holdren’s presentation, are that the two countries are test beds for each other’s new energy technologies, and that the cooperation and competition inherent in the relationship are complementary, contributing to even greater innovation by both countries.  At the working group on renewable energy, the discussion moved beyond what to innovate, instead grappling with how to innovate. In a rapidly changing economy such as China’s, companies thrive by innovation, and thus it was not surprising to hear about some of the enterprising new US-China energy deals announced, such as American Electric Power evaluating carbon capture technology from China Huaneng, and AES expanding wind operations into Western China with Chongqing Energy Investment Group.

Increasing people-to-people exchanges is key

Today, First Lady Michelle Obama also addressed a packed auditorium of American students two miles to the north on the benefits of U.S.-China educational exchanges, reiterating the goals of the 100,000 strong initiative, aiming to send 100,000 Americans to study in China over the next four years: “It’s not just about whether you can compete with your peers in other countries to make America stronger.  It’s also about whether you can come together, and work together with them to make our world stronger.

This rings just as true with achieving energy and climate goals. Ambassador Jon Huntsman elaborated yesterday that cooperative efforts only work by promoting mutual understanding and expanding points of contact between the two countries. For the scholars and practitioners gathered, this may not need repeating, but it’s more important than ever to demonstrate to our two publics the tangible benefits of the relationship.

Concrete agreements signed

It was exhilarating to see the strategic forum become a springboard for a host of new concrete initiatives from the private sector. Companies such as AES, Alcoa, American Electric Power, China Power Investment Corp., Duke Energy, Ener1, GE, Shenhua Group and Westinghouse are jointly spending billions innovating the next generation of clean energy. (See this listing of some of the business deals made in connection with President Hu’s visit.)

Together with the China Renewable Energy Society (CRES), NRDC became a founding member of the new China-U.S. Renewable Energy Promotion Center (CUREPC). Joining venture capital firms, industry associations and clean tech companies, the center will find common interests among U.S. and Chinese clean energy businesses, jointly creating markets and opportunities to work together.

The three US-China Clean Energy Research Centers also finalized their work plans during the conference. NRDC is a member of the building energy efficiency consortium, and as my colleague Barbara Finamore pointed out, energy efficiency is one of the most promising areas of bi-lateral cooperation. This summary of clean energy cooperation by DOE touches upon some key points of government-led public-public and public-private partnerships.

The groundwork has been laid, and as Secretary of Energy Steven Chu said today in the Huffington Post:

While the United States is competing for leadership in energy innovation, we have much to gain by cooperating with China. Together, we can develop and test new technologies, accelerate their deployment, and bring down their costs. We can boost exports and create new jobs…And we can build a sustainable energy future for the U.S., for China and for the world.

This post was coauthored with NRDC China Climate and Energy Policy Director Alvin Lin.