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The summer’s over and the new work-year has begun. No better way to kick it off than with a reprise of our summer’s big news — China Partnership of Greater Philadelphia and the City of Philadelphia were recognized at the annual high-level U.S.-China talks in Beijing this summer with one of six new U.S.-China EcoPartnerships.  Our partner is the Tianjin Economic-technological Development Area or TEDA.  Our PHL-TEDA EcoPartnership focuses on funded projects in Tianjin for smartgrid online monitoring systems (OMS), wetlands urban water management (WUWM), and green building energy efficiency (GBEE).

EcoPartnership w Kerry, Baucus & PodestaBack row: Philadelphia Delegates Terry Cooke, CPGP (4th from left) and Gary Biehn, White & Williams (2nd from left)

Front row (from right to left) China’s State Councilor Jiechi Yang , Sec of State Kerry, Amb. Baucus & Counselor to the President, John Podesta

 

In other posts to follow this week, I’ll share some more background on what the five-year old U.S.-China EcoPartnership program is (and why it matters), give thumbnails on the other five EcoPartnership awardees in 2014, and provide a listing of the twenty-four active EcoPartners since the inauguration of the program in 2014.

 

In the meanwhile, here are links publicizing our new three-year PHL-TEDA EcoPartnership:

U.S. State Department Press Release

Secretary Kerry remarks at July 10th EcoPartnership signing ceremony

U.S. Government website for the U.S.-China EcoPartnership program

Official photo from U.S. Department of State

City of Philadelphia Press Release (on City’s blog)

City of Philadelphia Press Release (on City Facebook page)

 

Happy Year of the Snake!

I have some major catching up to do so let me begin here with a link to my book which the Wilson Center launched on September 24, 2012.  (Note: if you want to download the PDF of the book, just right-click and use the Save As option).

Book Cover

More 2012/3 updates to follow in rapid sequence.

Thanks for hanging in there,

This is the second in the 2012 series  of  Cooketop News commentaries and news recaps.

By reviewing the previous week’s top stories involving — broadly speaking —  U.S./China clean energy, the commentary section isolates one trend/dynamic which points forward and can help illuminate news-in-the-making for the week(s) ahead.  Following the commentary is a summary of the week’s top stories.

This week? We look at the headline  (Cooketop News, Friday, January 13th) that, after four years, the U.S. re-took the lead from China as the front-runner in global clean energy investment.

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From 2008-10, the U.S. visibly lost pace – and, in some instances, lead position – to China as the world’s top investor in clean energy.  In 2010, China – then just over one-third the size of the U.S. economy – invested twice the absolute amount in clean energy as the U.S.  Yet, in 2011, the U.S. bounced back, reclaiming top-spot for the first time in four years:  U.S. investment increased 33% to US$56 billion while Chinese investment remained flat at $47 billion, according to Bloomberg New Energy Finance.  What does it mean? Less than the headlines might suggest.

Here are three key points to keep in mind while tracking current results – and handicapping future results – in the global clean energy arena:

(1) It’s not a sprint, it’s a marathon.  The bragging-rights prize will ultimately go to the economy which manages the best combination of technological innovation, political support, and financial sustainability over many years.  Germany and Spain have seen political support for their heavily subsidized systems erode with the euro.  The U.S. is in near political grid-lock over how to set that balance.  China’s position looks strong on the surface but is hobbled by lack of technology innovation, political accountability and financial transparency.

(2) How high’s the bounce?  The U.S. resurgence is due to short-term programs due to expire soon, such as biofuel support programs and energy efficiency measures.  Absent a broad national consensus, there is no strong reason to expect the U.S. “bounce” to remain strong throughout 2012, an election year.

(3) The bottom-line is this is a race is against time, not a Sputnik-type competition.  For either nation’s efforts to pay off, investment will need to be scaled to a global level by investors, public and private.  That won’t happen unless there is a clear middle-way between the extremes which tend to bedevil U.S.-China relations – zero-sum, highly-nationalistic competition on the one hand vs. unrealistic and unsustainable ideas of cooperation on the other.

While the metric of renewed investment vigor in the U.S. is encouraging, the real challenge for the future will be to define and align complementary ‘skill-sets’ in both the U.S. and China so that capital can be attracted and deployed on a global scale through these two massive markets accounting for 40% of the global GHG emissions problem.  We’ll need a discerning eye for the different strengths which our two countries can bring as complementary partners in this effort as well as a realistic understanding of our enduringly different systems and values.   Regardless of who has the momentary lead in investment level, we need to recognize that there is no path to a sustainable future for either country without  clear-eyed, realistically-based and sustained cooperation between the two.

                                              Monday, January 9, 2012

Africa & China: How it all Began

China to Tax Carbon Emissions by 2015

China Vows Backing for Firms Abroad

China Spring Festival Migration Begins

Tuesday, January 10, 2012

Hottest Solar Markets in Early 2012

12 Challenges for China in 2012

China’s Reform Irresolutions

DoE Heads Off Cleantech Materials Shortages

Wednesday, January 12, 2012

China’s Export Engine Downshifts

China Pumps In $10bn to Water Project

The Case Against Big Dams

Brand Make-Over for Philly Energy Hub

Thursday, January 12, 2012

Does the U.S. Prefer a Ma Victory in Taiwan?

The Perils of Cleantech Investing

China’s Cyber Deterrence

China Braces for Turbulent Year

                                            Friday, January 13, 2011

China’s Forex Reserves Decline

China Cedes Lead to U.S. in Cleantech Investment

China Idling New Aluminum Smelting Capacity

One of the strongest attributes of job-creation from the clean energy economy in Greater Philadelphia and its surrounding ‘super-corridor’ (NY/MA through DC/VA) is  its balanced profile.  Year after year (and despite dynamic swings in the economy), the clean energy economy in this mega-cluster area (and the Greater Philadelphia region in particular) is producing:

  • steady and dependable growth above the national average
  • a sweet-spot of middle-skill and middle-wage jobs

The following mini-slideshow of data drawn from the new Brookings study Sizing the Clean Economy: A Green Jobs Report  (released July 2011)  illustrates these trends clearly:

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The mini-slideshows in this week’s postings are provided courtesy of Mark Muro, Deputy Director of the Metropolitan Policy Program of the Brookings Institution.  They are taken from Mark’s presentation at Philadelphia’s 21st century Clean Energy Opportunity from Regional, National & Global Perspective, a program I organized in cooperation with the Academy of Natural Sciences of Drexel University and the T.C. Chan Center for Building Simulation & Energy Studies on October 11, 2011).  I am grateful to Mark Muro and Brookings for permission to share these slides with the readership of U.S./China Clean Energy.

Philadelphia enjoys key advantages in the emerging national clean economy, not least due to its linchpin position at the heart of a vibrant clean energy ‘super-corridor’ running from Albany NY and Boston MA down to Washington DC and northern Virginia (see Monday’s post).

Other advantages that Greater Philadelphia enjoys include:  (1) its position as #5 top-performing cluster nationally, (2) its participation in a national trajectory of fast-growing, high-quality jobs, (3) its profile of balance with middle-skill, middle-wage ‘green collar’ jobs;  (4) its breadth of clean economy segments (air & water purification, lighting, nuclear, mass transit, professional energy services, solar PV, solar thermal, and wind); and (5) its being home to the U.S. Government’s new Energy Innovation Hub (EIH) and Energy Regional Innovation Center (e-RIC)  at the Navy Yard — the Greater Philadelphia Innovation Cluster (GPIC) for Building Energy Efficiency.

What’s the basis of the Greater Philadelphia’s #5 ranking nationally in the Brookings’ first-of-a-kind study Sizing the Clean Economy: A Green Jobs Report  released in July 2011?  There are five strong reasons, each covered with substantive detail, in the following mini-slideshow:

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Tomorrow’s post will focus on the breadth of clean energy segments supporting Greater Philadelphia’s position as a leader among U.S. regional clean energy clusters.

If you want to help make a small push for Philadelphia’s emergence as a 21st century clean energy leader, please tweet or Like on Facebook or +1 this on G+, using the sharing tool below.  This will help spread the word.  Thanks.

 

 

 

 

Yesterday’s mini-slide show focused on the five principal clusters in the northeast Clean Energy super-corridor:

  • Albany -Schenectady-Troy, NY
  • Boston-Cambridge-Quincy, MA-NH
  • New York-Northern New Jersey-Long Island, NY-NJ-PA
  • Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
  • Washington-Arlington-Alexandria, DC-VA-MD,WV

Today’s mini-deck focuses on how the clusters in this super-corridor are creating the right kind of jobs for today’s globally-connected economy:

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The findings presented above and in posts throughout the week come from Brookings’  Sizing the Clean Economy: A Green Jobs Report  released in July 2011.  The PowerPoint slides are courtesy of Mark Muro, Deputy Director of the Metropolitan Policy Program of the Brookings Institution.  The video clip is extracted from Philadelphia’s 21st century Clean Energy Opportunity from Regional, National & Global Perspective, a program I organized in cooperation with the Academy of Natural Sciences of Drexel University and the T.C. Chan Center for Building Simulation & Energy Studies on October 11, 2011).  I am grateful to Mark Muro and Brookings for permission to share these slides with the readership of U.S./China Clean Energy.

If you want to help push for the emergence of any of these five cluster regions as national and global clean energy leaders, please consider tweeting us on Twitter, liking us on Facebook or +1’ing us on G+, using the sharing tool below.  Thanks.

This week, I’ll be providing five mini-slideshows to add context and substantive detail to last week’s post and video clip on Brookings Touts Philadelphia’s Top 5 Strengths in U.S. Clean Economy.
Number 1 in the docket is the Cleantech Mega-Cluster stretching from New England though the southern Mid-Atlantic — with Philadelphia at its center.

This slideshow requires JavaScript.

The findings for today’s slideshow, as well as those for the remainder of the week, come from Brookings’  Sizing the Clean Economy: A Green Jobs Report  released in July 2011.  The PowerPoint slides are courtesy of Mark Muro, Deputy Director of the Metropolitan Policy Program of the Brookings Institution.  The video clip is extracted from Philadelphia’s 21st century Clean Energy Opportunity from Regional, National & Global Perspective, a program I organized in cooperation with the Academy of Natural Sciences of Drexel University and the T.C. Chan Center for Building Simulation & Energy Studies on October 11, 2011).  I am grateful to Mark Muro and Brookings for permission to share these slides with the readership of U.S./China Clean Energy.

If you want to be sure you see this week’s series of posts, please click the “Follow” button on the WordPress toolbar immediately above this blog’s heading and an email will automatically be sent to you as soon as each post appears.

 

On October 11th, Mark Muro, Policy Director of The Brookings Institution’s Metropolitan Policy Program, presented the national-level chapter of the story of ‘Greater Philadelphia’s 21st century Clean Energy Opportunity’ at an event I organized in Philadelphia for the Academy of Natural Sciences of Drexel University and the T.C. Chan Center for Building Simulation & Energy Studies of the University of Pennsylvania.

According to Muro, Philadelphia enjoys key advantages due to: (1) its position as #5 top-performing cluster nationally, (2) its participation in a national trajectory of fast-growing, high-quality jobs, (3) its profile of balance with middle-skill, middle-wage ‘green collar’ jobs; (4) its breadth of clean economy segments (air & water purification, lighting, nuclear, mass transit, professional energy services, solar PV, solar thermal, and wind); and (5) its location in the middle of the most vibrant clean economy corridor in the country (from Albany NY and Boston MA down to Washington DC and northern Virginia).

Future posts will help tell the other chapters of this story, including the City of Philadelphia perspective (Alan Greenberger, Deputy Mayor for Economic Development), the regional perspective (Mark Hughes, Task Leader for Policy, Markets & Behavior at the Greater Philadelphia Innovation Cluster for Building Energy Efficiency (GPIC), the global perspective (Amy Fraenkel, UN Environmental Programme Regional Director for North America) and the U.S./China strategic opportunity (Terry Cooke, Founding Director of the China Partnership of Greater Philadelphia.

Stay tuned for more!

Note 1:  If you want to be sure you see each of these upcoming posts reliably and promptly, please click the “Follow” button on the WordPress toolbar immediately above this blog’s heading and an email will automatically be sent to you as soon as each post appears.

Note 2:   See   Brookings Backgrounder  for additional information on:  (1) the Brookings Institution’s Metropolitan Policy Program initaitive for clean energy clusters; (2) the intellectual antecedents of this policy work in the work of Michael Porter at Harvard University; and (3) how David Sandalow and Brookings helped translated this thinking into U.S. Government policy through the closely-connected Energy Innovation Hub (EIH) program and the U.S.-China Clean Energy Research Center (CERC) program (via the John L. Thornton China Center at Brookings).

Note 3: If you want to help push for Philadelphia’s emergence as a 21st century clean energy leader, please tweet or Like on Facebook or +1 this on G+, using the sharing tool below.  Thanks.

I was asked today what accounts for China’s outsized role in solar PV , amounting currently to roughly 50% of global share of production despite having a Lilliputian share of global consumption.  It comes down to three inconvenient truths.   That said, the degree of inconvenience of each truth varies with the point of view (e.g., ‘panda hugger’ vs ‘dragon slayer’ in the U.S. vs  ‘patriotic netizen’ in China) of who you happen to be talking with :

(1) Post-WWII, Asia (and notably China since 1982) has had clear advantages of cheaper land, cheaper labor and cheaper facilities relative to manufacturers in higher per capita income markets in the West. Since solar panel production has some basic similarities to the manufacturing process for computer memory chips (which in the 1990s were the basic ‘rice’ commodity of the IT boom in Asia), solar manufacturing has benefited from the natural ‘cluster effect’ of decades of chip manufacturing know-how of Chinese, Taiwanese and other investors on the mainland.

(2) The barriers to entry for solar manufacturers are lower than the earlier tech waves of integrated circuits and bio-technologies so national and local
government in China has seized on it to bootstrap their economies to a higher rung of the global value chain. This has meant various government subsidies (on the producer side) to the point of a casino mentality — more than 100 solar manufacturers in the single town of Dezhou in Shandong Province. (The Chinese government also rounded up and ramped up polysilicon supply when that key input for solar PV production tightened in 2010/11);

(3) There’s not yet an established market for solar products in China so almost everything is exported to Western markets — especially to those national
markets like Germany and Spain and state markets in the U.S. such as New Jersey that have been subsidizing the industry (on the consumer side). [Note: World Trade Organization rules tend to allow/encourage consumer-side subsidies and to sanction producer-side subsidies, hence the recent trade action by the 7 Western solar firms against China. However, these actions take time to work their way through the ‘python’ of WTO process).

As a wrote almost a year ago ( click here for link ), there’s a global boom/bust going on in PV solar and China is in the thick of it.

In 2008 China could be seen rapidly closing the gap with the traditional wind market leaders – the U.S., Germany and Spain. By 2009, China, riding a massive post-GFC stimulus program, became the world’s largest buyer of wind turbine equipment. In that same year, the U.S. managed to maintain its strong pace of wind installations but Spain and Germany started falling off the global pace as post-GFC austerity forced them to drop governmental price supports (so-called “feed-in-tariffs” or FiTs) for wind installations. Finally, in 2010, China surpassed the U.S. in wind-power installations (18.9GW vs. 5.6GW) and emerged as the clear global front-runner for wind-energy purchases and installations.

But three caution flags are now waving for China:

(1) For the moment, there is still a huge asymmetry in the number of installations which GE has made in the Chinese market (over 1,000 in China alone, over 14,000 worldwide ) versus the number of installations Chinese wind-power companies have made in the U.S. market (3 installations, as of December 2010). Moreover, lingering tight credit strongly favors established market leaders when it comes to wind energy projects and, for now at least, financing costs are currently prohibitive for new entrants.  This is a substantial market hurdle for Chinese entrants to the lucrative U.S. market, not a government barrier.

(2) In a mid-summer 2011 settlement announced by the Office of the U.S. Trade Representative, the Chinese government agreed to stop subsidizing its wind power manufacturers. This put an end to a six-year, WTO-inconsistent effort known as Notice 1204 and led by National Development and Reform Commission, to favor Chinese suppliers in the manufacture and installation of Chinese wind-turbines.

(3) Earlier this week, China’s government adopted stricter regulations in anticipation of an expected “bloodbath among turbine producers” as reported by the Financial Times on October 24th.

It’s a marathon, not a sprint to the wind-energy future. Far too early to proclaim China the winner.

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