Energy service industry booming in China

With increasing demand for energy conservation, China's energy service industry is booming. At the end of 2008, the sector's output value topped 40 billion yuan. Insiders say the total market value is expected to reach 450 billion yuan. Development of low carbon cities will also trigger a steep increase in the number of energy service companies nationwide.

Many cities across the country, including Beijing and Shanghai, are showing interest in the industry. They are giving financial support to energy management mechanisms in order to promote energy conservation services. As a result, more companies have started to enter the industry.

The energy conservation industry is still in its early stages in China. With a new model of energy conservation investment, the sector is widely seen as a necessity to achieve the country's proposed target of carbon dioxide emissions reduction in 2020.