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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, 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)

 


The China Partnership of Greater Philadelphia (CPGP) is a non-profit organization that promotes collaboration on public/private cleantech initiatives between Philadelphia and the People’s Republic of China. We operate on the principles of openness, inclusivity, and transparency in order to maximize engagement from all relevant stakeholders throughout the Philadelphia area. Our objective is to accelerate job creation, attract investment, and support cleantech business incubation in Greater Philadelphia through strategic linkages to leading Chinese corporate, governmental, and academic organizations. CPGP leverages both established and emerging programs and initiatives including:

  • The new $129 million Greater Philadelphia Innovation Cluster (GPIC) for energy efficient buildings, funded primarily by the U.S. Department of Energy (DOE)
  • The City of Philadelphia’s 30-year old official Sister City relationship with Tianjin, China. Tianjin, the fastest-growing Special Economic Zone (SEZ) in China, also has a national mandate for clean energy leadership under China’s 11th and 12th Fiver-Year Plans
  • The $150 million U.S.-China Clean Energy Research Center (CERC) program, with a dedicated building energy efficiency initiative led by Lawrence Berkeley National Lab (LBNL) in the US and the Ministry of Housing and Urban-Rural Development (MOHURD) in China

CPGP harnesses the Greater Philadelphia region’s broad base of resources and expertise to create synergy between regional and national initiatives in both countries through a single innovative program focused on cleantech jobs, business development, and investment. To support these goals, we have developed plans for:

  • Export & investment initiatives including an open-consortium incubator (involving government, academia, business, and related associations) planned for the Philadelphia Navy Yard and leading to a world-class public demonstration facility
  • A CEO Summit entitled, “Greater Philadelphia & China: Toward a Sustainable Future,” planned for the spring 2012 focused on four areas: carbon finance, water, green building, and clean energy
  • An official U.S. State Department city EcoPartnership with Tianjin, China
  • The expansion of our already extensive network of universities and think tanks on the local, regional, national, and international levels.

The Partnership includes members from a wide range of Philadelphia area stakeholders. Business: Capitol Project Partners, The China Business Network, Cozen O’Connor, Delmarva Group LLC, Deloitte, Deutsche Bank, Ecolibrium Group, GreenWorld Capital LLC, HSBC, KSW Consulting, Philadelphia Industrial Development Corp, VerdeStrategy, White and Williams LLP. Government: City of Philadelphia, International Visitors Council. Academic: Academy of Natural Sciences, Drexel University, Penn International Sustainability Association, Temple University, University of Pennsylvania’s T.C. Chan Center. Associations: Global China Connection, Greater Philadelphia China Center for Culture and Commerce. (Note: All work conducted by these organizations is done by individuals on a pro-bono basis.)

For further information, please contact Deputy Executive Director Nora Sluzas at nsluzas@post.harvard.edu

The following post was co-authored by Shawn Lesser (Watershed Capital Group) and me and appeared initially on the Cleantechies blog:

A number of the cleantech efforts between the United States and China reflect the need for cooperation on issues surrounding climate change and clean energy as it is a major factor in the relations of these two countries. Although there are still issues to resolve in many of the collaborations, it is believed that if the United States and China can continue in their cleantech collaborations, that it will show the world that two major players on the international platform are serious about combating the challenge of climate change, and it will also encourage other countries to create alliances. Through collaboration, the two largest greenhouse gas emitters will be able to create technologies required to combat climate change. Not only that, but tangible benefits will be developed, not just for the United States and China, but the world as a whole.

1) United States – China Ten Year Framework for Cooperation on Energy and Environment was established in 2008, and it “facilitates the exchange of information and best practices to foster innovation and develop solutions to the pressing environment and energy challenges both countries face.” It also led to the creation of “EcoPartnerships” – a way to encourage both United States and Chinese stakeholders to strengthen their commitment to sustainable economic development within the local level.

2) United States – China Clean Energy Research Center (CERC) has its main headquarters in both countries. It will facilitate research and development of technology by a team of leading scientists and engineers in the clean technology industry. The research center receives both private and public funding which is split evenly for each country. The initial research priorities of the United States – China Clean Energy Research Center includes building energy efficiency, clean vehicles, and clean coal, which includes carbon capture and storage. It was founded in 2009 by United States President Barak Obama and Chinese President Hu Jintao. The goal of the research center is to “build a foundation of knowledge, technologies, human capabilities, and relationships in mutually beneficial areas that will position the United States and China for a future with very low energy intensity and highly efficient multi-family residential and commercial buildings.”

3) United States – China Energy-Efficient Buildings (CERC-EEB) Action Plan enables the United States and China to work alongside the private sector in an effort to develop energy efficient rating systems and building codes, benchmark industry energy efficiency, provide training to building inspectors as well as energy efficiency auditors at industrial facilities, synchronize test procedures and performance metrics for consumer products that are energy efficient, exchange energy efficient labeling systems best practices, and assemble a new annual United States – China Energy Efficiency Forum. The action plan will be achieved through green building and communities, industrial energy efficiency, consumer products standards, advanced energy efficiency technology, and public and private engagement.

4) United States – China Electric Vehicles (CERC-EV) Initiative builds upon the previous United States – China Electric Vehicle Forum which was held in 2009. The initiative comes from the shared interest in increasing the utilization of electric vehicles to decrease oil dependence and greenhouse gas emissions, while promoting viable economic growth. This initiative includes a joint standard in development, demonstration projects in multiple cities in each country, technical road mapping, as well as projects to provide the public with more information.

5) 21st Century Coal Program (CERC-ACTV) promotes a cleaner use of coal resources, such as large-scale carbon capture and storage projects. The program calls for collaboration between a number of companies in the United States, including General Electric, AES, and Peabody Energy, which will be working with a number of Chinese companies to develop an integrated gasification combined cycle power plants, methane capture, as well as a number of other technologies.

6) China Greentech Initiative was founded in 2008 and has rapidly grown to become the only China-international collaboration platform of 100+ organizations, focused on identifying, developing and promoting green technology solutions in China. CGTI released its first free public deliverable, The China Greentech Report at the World Economic Forum in Dalian, China in 2009. With over 50,000 copies in use, the report is commonly referred to as the ‘primer’ by which to understand China’s greentech markets.

7) United States Alliances in Chinese Cleantech Industry includes the availability of a number of United States cleantech companies to invest into the Chinese cleantech industry. Currently, many companies from the United States are finding opportunities through alliances and cleantech and capital technology transfer investments. This leads to an increase in opportunities to assist cleantech into becoming one of the largest industries on a global platform. There has been much in the way of cross-border collaboration in many cleantech sectors, including solar and wind generation, water technologies, smart grid infrastructures, and electric transportation.

8 ) United States – China Renewable Energy Partnership develops roadmaps for widespread and continual renewable energy research, development and deployment in the United States and China, including renewable energy road mapping, regional deployment solutions, grid modernization, advanced renewable energy technology research and development collaboration in advanced biofuels, wind, and solar technologies, and public-private engagement to promote renewable energy and expand bilateral trade and investment via a new United States – China Renewable Energy Forum held annually. In connection with the U.S.-China Renewable Energy Partnership, another important area of U.S.-China cooperation is the Shale Gas Initiative.

9) United States – China Energy Cooperation Program describes itself as the only non-governmental organization that focuses on the United States – China business development within the clean energy sector. The partnership’s purpose is to “promote commercially viable project development work in clean energy and energy efficiency, and support the sustainable development of the energy sectors in both countries.” It was founded in Beijing in 2009, initiative by the United States commercial sector, and provides a vehicle allowing companies from both countries to work together and pursue clean sector market opportunities, address any trade impediments, and increase sustainable development.

10) Key U.S.-China Regional Cooperation Initiatives. An important layer of ‘connectivity’ in the U.S.-China clean energy business landscape is provided by long-standing, regionally-based cooperative initiatives. Top among these are the U.S.-China Green Energy Council (based in the Bay Area), the U.S.-China Clean Energy Forum (based in Greater Seattle with a Washington DC presence), and the Joint U.S.-China Cooperation on Clean Energy (based in Beijing, Shanghai and Washington DC).

Article by Shawn Lesser & Terry Cooke.

Shawn is president and founder of Atlanta-based Sustainable World Capital, which is focused on fund-raising for private equity cleantech/sustainable funds, as well as private cleantech companies and M&A. He is also a co- founder of the Global Cleantech Cluster Association (GCCA), and can be reached at shawn.lesser@sworldcap.com

Terry Cooke is Strategic Advisor for Global Partnerships for the Global Cleantech Cluster Association (GCCA).  He is also a 2010 Public Policy Scholar on U.S.-China Clean Energy at the Woodrow Wilson Center and author of the forthcoming Sustaining U.S.-China Clean Energy Cooperation being published by the Kissinger Institute of the Wooldrow Wilson Center.   His website is www.terrycooke.com .


I include some excerpts here from an interview which Energy Secretary Steven Chu just gave with Platts Energy Week television (http://www.plattsenergyweektv.com/) an independent all-energy news and talk show with ownership links to McGraw Hill.

The U.S. engine for clean energy innovation and economic growth is a four-cylinder engine but only three cylinders are firing now. Technology innovation, investment and state-level policy are all producing horsepower but federal level policy to create a long-term framework in support of technology innovation, long-term investment, and state support is seized up.

These extracts from Sec. Chu represent to my mind the best way forward and perhaps, in a time of polarized partisanship, the only way forward:


The White House, its Democratic allies and Republicans need to “look for the things that the vast majority of Americans will say, ‘This is good for me, this is good for America, this is good for my state,’ and move forward on those issues,” Chu told program host Bill Loveless. The interview, available at this link, airs in Houston tonight and was aired Sunday in Washington, D.C.

The House passed a comprehensive energy and climate-change bill last year that would have put a price on carbon emissions, but the measure died in the Senate. Nevertheless, Chu said there were other options for moving the U.S. towards a clean-energy future.

“Absent a price on carbon, what are the things you can do? Well, you can create a demand for this thing, whether it be wind or solar or any form of renewable energy [and] say, ‘This is where we are heading,'” Chu said. “These are many of the things that we as a country should wrestle with and think about.”

In the interview with Platts, Chu struck a conciliatory note, saying it wasn’t up to him to pick the policy — such as a price on carbon or low-carbon energy-use mandates — that would support renewable energy “or clean energy” projects.

“This is a discussion that has to be held with Congress, with the American people,” Chu said. “What the country really wants, and what business really wants, are those long-term signals to say, ‘This is where the country is heading.’ “

He also said there would be other opportunities for common ground with Republicans in Congress, such as retrofitting buildings and homes to cut down on energy bills.

“We are working on ways to do this so it doesn’t require massive public-sector investment, but it is private-sector investment because it is going to be saving money,” Chu said. “I think that is a common ground.”

The full article on this interview is available at http://bit.ly/eVBdWp

Dominique Doms of the International Trade Examiner shared the following observations on the recent clumsy steps in the pas-de-deux between the U.S. and China on climate change and clean energy policy coordination.  These missteps are beginning to follow a regular rhythym.  Last November, the COP15 in Denmark stumbled into acrimony when the Chinese negotiating team responded to Obama’s open hand with a pointed finger and the meeting broke up without a global framework deal to support cap-and-trade.  The approach to this November’s COP16 meeting in Mexico is already looking wobbly in light of two issues:

  1. The filing on September 9, 2010 of a trade action by the United Steelworkers against China for unfair subsidization of its renewable energy exports.  (Bearing in mind the ringside seat perspective I had on the U.S.-Japan auto trade dispute in the early 1990s, I see this move by U.S. labor on the global chessboard as natural and expected but hardly commendable.  At best, it will serve as a palliative and not a remedy).
  2. The clumsy steps China took to embargo strategic minerals essential for the manufacture of many clean energy products without official explanation.

Whatever happens in Mexico, the dance will have to go on.  As Bloomberg New Energy Finance has pointed out, the U.S. and China are effectively “joined at the hip” as a de-facto G2 burdened with the responsibility of maintaining global environmental and economic sustainability.

The ultimate remedy will be for U.S. policymakers to look into the mirror and understand that the real issue is not an either/or issue of cooperation v. competition with China, though both are inescapable facts of the matter.   The ultimate challenge is for us to realistically assess what we have and have not done to move our country into the future.  We can compare ourselves with  China but that comparison must be based on a realistic assessment of how our national systems are different and on different pathways we will need to follow to move our country forward.  Just like with Sputnik, our goal should not be to hold China’s clean energy development back, it should be to marshall our resources to move our country’s clean energy development forward.  In the final analysis, the U.S. and China will need to be partners in this global effort but that global partnership — in order to be effective — must be based on maximum effort by each of the partners as well as on a respectful and realistic understanding of the strengths and weaknesses of each partners system.  tc

Beginning of Dominique Doms comment:

“Clean and renewable energy production has become a new dispute between the US and China and centers around Chinese subsidies that unfairly give an advantage to local companies and price US producers out of the market.  Stephen Chu, US Energy Secretary, told the international press that the US government welcomes Chinese green companies but that there has to be a level playing field for US companies as well.

At the center of the dispute are large subsidies to Chinese manufacturers of solar panels and wind turbines that allow them to gain an unfair and competitive advantage over US companies that are not entitled to the same government stimulus.  The US is requesting from China, through the World Trade Organization, that US companies that manufacture green energy components have access to the same stimulus funds as their Chinese owned counterparts.  It is expected that China will ultimately reach an agreement with the US as both countries believe that government subsidies are a key factor in the development and manufacturing of green and renewable energy sources.

The goal of both countries is to further reduce carbon emissions to halt global warming by lowering global pollution.  China holds an advantage over the US as the largest manufacturer of solar panels. The edge in the global market with a very high demand for renewable energy sources is the direct result of China’s near monopoly of the rare earth minerals market.

China controls 93% of the RE market both in raw materials as well as its alloys that are used in solar panel reflection mirrors.  The US has reopened some of its RE mines again after having been absent in the market for 20 years. That alone may not be sufficient to close the competitive gap with China but subsidies to American producers may result in a better pricing balance.

Discussions between Mr. Chu and his Chinese counterparts have been ongoing since the opening of the US-China Clean Energy Research Center last week.

The center is the largest research center of its kind where scientists from both countries will jointly develop green and renewable technologies.  A permanent agreement may be reached prior to the COP-16 meeting to be held in Mexico from November 29 through December 10.”

(end of Dominique Doms comment)

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