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China's Botoxed image

By Arthur Thomas - posted Wednesday, 16 December 2009


Indonesia and Brazil see large-scale investment in reafforestation with palm oil and commercial forests, a strategy requiring clear felling and burning of existing carbon absorbing forests as well as destruction of vast peat reserves and produce massive carbon emissions. The practice leaves a substantial gap in carbon reduction before the "new" forests begin to develop the equivalent carbon absorbing capabilities. It is in fact a step backwards.

China ignores the purpose of CDMs to "reduce carbon emissions below normal trends". China's CDM projects included a range of Chinese wind, hydro and other energy projects that are "self sufficient" with no need to reduce emissions below normal trends. CDM's are driving an investment hungry industry for the world's fastest growing developer of wind power with minimal carbon reduction.

The situation becomes laughable as wind farm operators seek approval to construct coal-fired plants as backup generation the equivalent to 66 per cent to 75 per cent total wind capacity yet still intend to claim credits for total wind generating capacity.

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CDMs appear more prioritised towards foreign direct investment in growing state owned enterprises.

Combined, the US and Europe are major emitters in terms of total emissions. China however, is the world's biggest emitter and its increasing carbon input is primarily due to aggressive, unsustainable industrial and urbanisation policies that form the basis of Beijing's proclaimed intention to raise China's standard of living with that of the West.

Green industry jobs

Government, opposition, environmentalists, and academics alike trumpet the untapped potential for climate-change to drive new green industries.

Australia's recent stimulus package successfully invigorated growth of green related industries in building insulation, photovoltaic power generation and solar hot water systems, all of which were heavily subsidised. Insulation and solar hot water systems contributed to local manufacture and employment.

Scrutiny of the photovoltaic contribution however, reveals that the cheap prices driving the "incentives" were a direct result of massive inventories of silicon wafers, cells and panels piling up in Chinese factories and "unloaded" at what could be argued at "below cost".

There is no doubt that Australia benefited and achieved some reduction in individual household energy demand but where are the thousands of green jobs in the wind and solar power industries in the future? The answer lies in China.

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The global major producers of wind generation equipment are now producing in China under joint venture agreements with major Chinese SOEs.

The same applies to photovoltaics. China has created a massive overcapacity in silicon wafer, solar cell and panel production. To reduce costs, major US and European manufacturers relocated cell production and panel assembly to China at the cost of thousands of jobs at home.

This raises a crucial question for Australia. Can Australia's wind and solar power generation companies compete against China on domestic or international markets without substantial government subsidies? The prospect of manufacturing wind tower casings to carry imported turbines and blades is questionable.

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About the Author

Arthur Thomas is retired. He has extensive experience in the old Soviet, the new Russia, China, Central Asia and South East Asia.

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Creative Commons LicenseThis work is licensed under a Creative Commons License.

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