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In recent years, a lot of foreign companies have been intensively involved in the environmental protection and energy-saving industry.
On November 5, Nathalie Kosciusko-Morizet, Minister for Sustainable Development of France, and Jean-Louis Chaussade, CEO of Suez Environment, were present at the foundation laying ceremony of a waste water disposal plant in the chemical park of Wuhan.
On July 28, 2011, Sino-French Water Development Com- pany Ltd, Wuhan Chemical Xincheng Engineering Co., Ltd, Deliman Water Disposal System (Beijing) Co., Ltd and Shanghai Chemical Park Investment Company Ltd – all are the subsidiaries of Suez Environment in China – contributed capital to found Wuhan Sino-French Waste Water Disposal Co., Ltd(hereafter Wuhan Sino-French for short). According to the agreement, Wuhan Sino-French is to be responsible for the design, construction and management of waste water disposal plants in the Wuhan Chemical Industry Park for the next thirty years. The total amount of waste water that is to be disposed of will reach 60 thousand tons per day. In addition, a water supply plant that can provide 300 thousand tons of water every day will be put into construction from 2013.
France-based Suez Environment has already been developing in China for 30 years. In 2010, its income from China had reached 938 million euros. Suez Environment is an established and experienced foreign company in the environmental protection and energy saving industry in China. But in recent years it is no longer alone in this field. Other foreign companies have risen and started to catch up with it.
Foreign Companies’Intensive Activities
On October 31, Siemens Green Regional Headquarters was inaugurated in Shanghai and put into operation. As a global leading energy-saving product and solution supplier, Siemens has about 30 thousand patented solutions that are related to environmental protection and climate. Take the building of technology for example: in this field, the German company has over 150 advanced technologies and thousands of products. It can provide tailor-made solutions for saving energy in buildings for its customers. Meanwhile, Siemens is an official member of the U.S. Green Architecture Committee’s “LEED Accreditation”. In 2009, the building which serves as the headquarters of Siemens China – Siemens Center (Beijing), was finished. Now, the energy consumption of this building is 28% lower than buildings of the same size but without energy-saving measures. The emission of carbon dioxide can be reduced by 1200 to 1600 tons every year.
The Green Regional Headquarters cost Siemens 710 million yuan (USD 111.8 million). It is the most important real estate investment project for Siemens in the world and could serve as a perfect example for Siemens to show its energysaving solutions. Peter L?scher, CEO and president of Siemens AG, said: “China, especially Shanghai, is not only an important market for Siemens, but also a source for our crucial talents, originalities and innovations. Siemens’ headquarters in China is an exemplary building of high efficiency and sustainable development. That is a witness for our close cooperation with Shanghai and China.”
Siemens is not only involved in the energy saving of buildings; instead, it extends its arms to all fields of the energy-saving industry in China. On October 31, 2011, Siemens launched a high-efficiency and energy-saving engine SimoticsGP1LE0 for the middle-end market of China. Compared with ordinary engines, the utilization efficiency of this engine is 10% higher and can save up to 40% of energy consumption. Then, in the “2011 Beijing International Urban Railway Transportation Exhibition”from November 1-4, 2011, Siemens presented its comprehensive and innovative solutions in urban railway transportation. Dr. Xiao Song, regional president of infrastructure and urban business, Siemens Northeast Asia, said: “the fast urbanization of China brings great challenges to urban transportation. As a global leading supplier of solutions in urban railway transportation, we have confidence in helping our clients to build a sustainable urban railway transportation system in China.”
If Siemens is a representative of the manufacturing enterprise, then foreign companies engaged in the service industry will also hold the same interest in the environmental protection and energy-saving industry.
On November 3, Roland Berger Strategies Consultants and Beijing Great Ideal Energy Saving Investment Co., Ltd signed a strategic cooperative agreement in Beijing, according to which the two companies will build an all-round strategic cooperative relationship throughout the world. It is reported that this contact will pave the way for Roland Berger to get into the energy saving and environmental protection market, whose value is estimated at 3 trillion yuan (USD 472.5 billion).
It is known that Roland Berger will help Beijing Great Ideal fix detailed innovative strategies with global visions and give the Chinese company full support in resource introduction, plat- form promotion, and business improvement. Charles-Edouard Bouée, president of Roland Berger Asia, said: “we have already accumulated many experiences in the carbon trade industry in these years and we can share them with Beijing Great Ideal.”
Late Coming Out of Plans
The fast development of China’s energy-saving industry attracts a lot of industrial and financial capital. According to financial data, the annual compound growth rate of China’s energy-saving and environmentprotection industry was maintained at 15% to 20% during the “11th Five-year Plan”(2006-2010), much higher than the industrial growth rate. The total industrial value is expected to exceed 3 trillion yuan by 2015 and could account for 8% of the GDP of China.
From the second half of 2010, the Chinese government issued a series of policies that support the development of environmental protection and energy saving industries. The Decisions of the State Council on Promoting the Development of Strategic Emerging Industries issued this September for the first time mentioned that the energy saving and environmental protection industry will receive core support as one of the seven strategic emerging industries. It also stresses the importance of developing devices and products with high performance in saving energy and improving resource utilization efficiency.
The energy saving and environmental protection industry is listed as one of the seven emerging industries of China in the “12th Five-year Plan” (2011-2015). The Chinese government requires priorities in the development of energy-saving products, improvement of resource utilization and environmental protection technologies and promises to give support in finance, tax and policies.
The Plan for the Development of the Energy Saving and Environmental Protection Industry in the 12th Five-year Plan, which is highly anticipated by experts and entrepreneurs, has not come out yet, but an insider from the government confirmed that the plan would come out no later than December 2011.
However, foreign companies’ deployment in the energy saving and environmental protection industry is not influenced by the late supporting policies. Therefore, experts believed that the coming out and following implementation of the policy will give the energy saving and environmental protection industry a broader development space, which could reassure foreign investors who have invested or plan to invest in this field.
This September, the Ministry of Commerce and the National Development and Reform Commission jointly issued the Guiding Opinions on Promoting the Development of Strategic Emerging Industries through International Cooperation, which definitely points out that promoting the international cooperation in the development of strategic emerging industries is to make use of the new features of globalization. It requires further and further international cooperation. The higher the cooperation level is, the more accomplishments China will achieve.
Clear and correct role of international cooperation is needed for China’s energy saving and environmental protection industries. So is the direction of development. Firstly, the level of international cooperation in design, development and marketing should be improved to upgrade the competitive power of China in that field; secondly, talents training, industrial alliance and innovation base need development for better international cooperation; thirdly, the government should create better legal and financial environments for international cooperation in the energy saving and environmental protection industry; fourthly, development of the independence of China’s own industry instead of relying too much on international cooperation.
The energy saving and environmental protection industry is expected go through intense development in the next five to ten years and during that period the overall growth rate can be maintained at 15%-20% every year. Foreign investment in this field will be further enhanced. But some experts suggest that the Chinese government should issue policies to guide Chinese domestic companies in cooperating with foreign companies, which is good for the improvement of China’s own primary innovation ability, integrated innovation ability and the ability to re-innovate based on the absorption and assimilation of foreign technologies. Only in this way could China experience real development of its energy saving and environmental protection industry.
On November 5, Nathalie Kosciusko-Morizet, Minister for Sustainable Development of France, and Jean-Louis Chaussade, CEO of Suez Environment, were present at the foundation laying ceremony of a waste water disposal plant in the chemical park of Wuhan.
On July 28, 2011, Sino-French Water Development Com- pany Ltd, Wuhan Chemical Xincheng Engineering Co., Ltd, Deliman Water Disposal System (Beijing) Co., Ltd and Shanghai Chemical Park Investment Company Ltd – all are the subsidiaries of Suez Environment in China – contributed capital to found Wuhan Sino-French Waste Water Disposal Co., Ltd(hereafter Wuhan Sino-French for short). According to the agreement, Wuhan Sino-French is to be responsible for the design, construction and management of waste water disposal plants in the Wuhan Chemical Industry Park for the next thirty years. The total amount of waste water that is to be disposed of will reach 60 thousand tons per day. In addition, a water supply plant that can provide 300 thousand tons of water every day will be put into construction from 2013.
France-based Suez Environment has already been developing in China for 30 years. In 2010, its income from China had reached 938 million euros. Suez Environment is an established and experienced foreign company in the environmental protection and energy saving industry in China. But in recent years it is no longer alone in this field. Other foreign companies have risen and started to catch up with it.
Foreign Companies’Intensive Activities
On October 31, Siemens Green Regional Headquarters was inaugurated in Shanghai and put into operation. As a global leading energy-saving product and solution supplier, Siemens has about 30 thousand patented solutions that are related to environmental protection and climate. Take the building of technology for example: in this field, the German company has over 150 advanced technologies and thousands of products. It can provide tailor-made solutions for saving energy in buildings for its customers. Meanwhile, Siemens is an official member of the U.S. Green Architecture Committee’s “LEED Accreditation”. In 2009, the building which serves as the headquarters of Siemens China – Siemens Center (Beijing), was finished. Now, the energy consumption of this building is 28% lower than buildings of the same size but without energy-saving measures. The emission of carbon dioxide can be reduced by 1200 to 1600 tons every year.
The Green Regional Headquarters cost Siemens 710 million yuan (USD 111.8 million). It is the most important real estate investment project for Siemens in the world and could serve as a perfect example for Siemens to show its energysaving solutions. Peter L?scher, CEO and president of Siemens AG, said: “China, especially Shanghai, is not only an important market for Siemens, but also a source for our crucial talents, originalities and innovations. Siemens’ headquarters in China is an exemplary building of high efficiency and sustainable development. That is a witness for our close cooperation with Shanghai and China.”
Siemens is not only involved in the energy saving of buildings; instead, it extends its arms to all fields of the energy-saving industry in China. On October 31, 2011, Siemens launched a high-efficiency and energy-saving engine SimoticsGP1LE0 for the middle-end market of China. Compared with ordinary engines, the utilization efficiency of this engine is 10% higher and can save up to 40% of energy consumption. Then, in the “2011 Beijing International Urban Railway Transportation Exhibition”from November 1-4, 2011, Siemens presented its comprehensive and innovative solutions in urban railway transportation. Dr. Xiao Song, regional president of infrastructure and urban business, Siemens Northeast Asia, said: “the fast urbanization of China brings great challenges to urban transportation. As a global leading supplier of solutions in urban railway transportation, we have confidence in helping our clients to build a sustainable urban railway transportation system in China.”
If Siemens is a representative of the manufacturing enterprise, then foreign companies engaged in the service industry will also hold the same interest in the environmental protection and energy-saving industry.
On November 3, Roland Berger Strategies Consultants and Beijing Great Ideal Energy Saving Investment Co., Ltd signed a strategic cooperative agreement in Beijing, according to which the two companies will build an all-round strategic cooperative relationship throughout the world. It is reported that this contact will pave the way for Roland Berger to get into the energy saving and environmental protection market, whose value is estimated at 3 trillion yuan (USD 472.5 billion).
It is known that Roland Berger will help Beijing Great Ideal fix detailed innovative strategies with global visions and give the Chinese company full support in resource introduction, plat- form promotion, and business improvement. Charles-Edouard Bouée, president of Roland Berger Asia, said: “we have already accumulated many experiences in the carbon trade industry in these years and we can share them with Beijing Great Ideal.”
Late Coming Out of Plans
The fast development of China’s energy-saving industry attracts a lot of industrial and financial capital. According to financial data, the annual compound growth rate of China’s energy-saving and environmentprotection industry was maintained at 15% to 20% during the “11th Five-year Plan”(2006-2010), much higher than the industrial growth rate. The total industrial value is expected to exceed 3 trillion yuan by 2015 and could account for 8% of the GDP of China.
From the second half of 2010, the Chinese government issued a series of policies that support the development of environmental protection and energy saving industries. The Decisions of the State Council on Promoting the Development of Strategic Emerging Industries issued this September for the first time mentioned that the energy saving and environmental protection industry will receive core support as one of the seven strategic emerging industries. It also stresses the importance of developing devices and products with high performance in saving energy and improving resource utilization efficiency.
The energy saving and environmental protection industry is listed as one of the seven emerging industries of China in the “12th Five-year Plan” (2011-2015). The Chinese government requires priorities in the development of energy-saving products, improvement of resource utilization and environmental protection technologies and promises to give support in finance, tax and policies.
The Plan for the Development of the Energy Saving and Environmental Protection Industry in the 12th Five-year Plan, which is highly anticipated by experts and entrepreneurs, has not come out yet, but an insider from the government confirmed that the plan would come out no later than December 2011.
However, foreign companies’ deployment in the energy saving and environmental protection industry is not influenced by the late supporting policies. Therefore, experts believed that the coming out and following implementation of the policy will give the energy saving and environmental protection industry a broader development space, which could reassure foreign investors who have invested or plan to invest in this field.
This September, the Ministry of Commerce and the National Development and Reform Commission jointly issued the Guiding Opinions on Promoting the Development of Strategic Emerging Industries through International Cooperation, which definitely points out that promoting the international cooperation in the development of strategic emerging industries is to make use of the new features of globalization. It requires further and further international cooperation. The higher the cooperation level is, the more accomplishments China will achieve.
Clear and correct role of international cooperation is needed for China’s energy saving and environmental protection industries. So is the direction of development. Firstly, the level of international cooperation in design, development and marketing should be improved to upgrade the competitive power of China in that field; secondly, talents training, industrial alliance and innovation base need development for better international cooperation; thirdly, the government should create better legal and financial environments for international cooperation in the energy saving and environmental protection industry; fourthly, development of the independence of China’s own industry instead of relying too much on international cooperation.
The energy saving and environmental protection industry is expected go through intense development in the next five to ten years and during that period the overall growth rate can be maintained at 15%-20% every year. Foreign investment in this field will be further enhanced. But some experts suggest that the Chinese government should issue policies to guide Chinese domestic companies in cooperating with foreign companies, which is good for the improvement of China’s own primary innovation ability, integrated innovation ability and the ability to re-innovate based on the absorption and assimilation of foreign technologies. Only in this way could China experience real development of its energy saving and environmental protection industry.