Through strong policies and financial support, the Chinese government has been a major driver of China's clean energy markets. In addition to numerous fiscal incentives and subsidies for clean energy, China's economic stimulus plan allocated 37% of its US$586 billion ($4 trillion yuan) to "greentech" sectors. China is also planning a new stimulus to invest $440 to $660 billion over 10 years focusing specifically on renewable energy.
The government's policy actions have laid a sturdy framework for the growth of clean energy markets, a gradual transition to a clean energy economy, and global leadership in clean energy technologies. The report overview cites China's success in the wind sector as an example:
"China's wind power capacity, for instance, has doubled for four consecutive years since 2005, with China now ranking fourth in the world and representing 10% of total installed capacity."The report also suggests there is plenty of room for China to expand its clean energy sector. Even though the government will continue to play a leading role in China's clean energy markets, stakeholders, including the private sector, still have significant room to speed the growth of these markets.
Some analysts have suggested that China's massive government investment in clean energy represents a "Sputnik moment" for the United States, which has thus far made comparatively little progress in clean energy technology relative to its Asian competitors.
By demonstrating China's realized gains from the clean energy sector and the potential for future market growth from large-scale government investment, it is particularly telling that this Greentech report is predominantly led by prominent U.S. companies. Without a stable, long-term clean energy public investment strategy in the U.S., these companies will look to China as the new center of the global clean energy industry.