China set to embrace foreign green investors

Li Keqiang, the Chinese Premier, has stated that China will start allowing large private capital investments in renewable energy and environmental protection as part of a plan to reduce pollution and advance the clean energy sector.

Mr Keqiang made the announcement to foreign ministers at the China Council for International Co-operation on Environment and Development in Beijing.

Currently, foreign investors can have only limited stakes in clean energy projects but Mr Keqiang is planning to open China up to larger green investments from overseas in a bid to boost China’s energy market. In addition to encouraging the investment of private capital into the environmental field, China also hopes that its conservation and environmental protection products will enter the overseas market.

As well as making the country more competitive in the energy sector, the injection of foreign capital would help China tackle its urban pollution problems and improve the quality of life within its cities. Mr Keqiang stated that energy efficiency and environmental protection could become vital sectors for economic growth.

On top of the announcement by the Chinese Premier, the Chinese minister of environmental protection also claimed that tackling pollution would be the government’s priority over the next five years. Although China has invested in wind farms and solar projects, the country still relies heavily on coal and other imported fossil fuels which is causing very high levels of pollution. However, the increase in the amount of pollution related heath problems has forced the country to reconsider its energy usage. For example, The construction of new cola fired power plants was recently halted by the government in regions with over 30% of the countries coal-fired power generation capacity.