Danfoss CEO says better energy efficiency will hasten China's transition to green economy
Danfoss of Denmark, a world giant in green technology and business, said higher energy efficiency standards are urgently needed to improve the competitiveness and sustainability of the Chinese industry. The company has extensive production, research and development facilities in China. Niels B. Christiansen, CEO of Danfoss, said “Higher energy-efficiency standards, rational prices on carbon and deep investments in urban energy infrastructure could quicken China’s transition to a green economy.”
In an interview with Xinhua News Agency, Christiansen said, “China could make financial savings and improve living standards by adopting tougher regulation governing energy efficiency of homes, offices and factories, among others.”
China has taken steps towards a greener economy on multiple fronts under its on-going 12th Five-Year Plan, which includes reducing the country’s dependence on coal-fired plants and replacing those with facilities that run on renewable sources like biomass, wind energy and solar power. The 12th Five-Year Plan also calls for a wider and improved deployment of nuclear power. Other such measures include better insulation of homes and offices to cut heating bills, combined urban heating and power networks, improved energy-efficiency of production facilities, and the use of alternative-fuel cars.
Christiansen said China has to think about getting into “best in class standards” to make everyone competing in a specific market work towards meeting certain levels of quality standards. He believes China can aggressively concentrate on such issues as putting a reasonable price on carbon dioxide emissions; pricing energy at its “real cost” (without subsidy) so that companies are encouraged to use energy-saving technologies; and boosting research and development into clean energy, thereby accelerating the green transition. He also cites Denmark’s recent success in promoting urban heating, a program that China can adapt.
The Chinese government has divulged plans to increase the share of non fossil-based energy in the country’s total energy consumption from 8.3% in 2010 to 11.4% in 2015. China is now the leading global maker of wind turbines and solar panels. Christiansen said if energy prices continue to rise, it would be more expensive to use CO2-emitting fossil fuels, and the appeal of renewable energy would likely increase. Denmark has shown this to be true: its economy has grown by 78% since 1980, and the country kept energy consumption more or less constant while slashing CO2 emissions. (October 31, 2012)
