China's low carbon economy needs more funds

The low carbon industry, which includes wind, solar, nuclear power and new energy vehicles has started to attract Chinese investors. The industry's potential is considered to be huge in China. But,the lack of technology and capital is its biggest problem.

Climate organizations released a report last month, saying that China has become a leader in responding to climate change and practicing a low-carbon economy. The report says the market in China is growing rapidly for low-carbon products and services. According to Morgan Stanley, the value of the market in China could be 800 billion yuan.

Chief researcher, Fan Gang, China CTR, Intl. Economic Exchange, said, "Chinese companies have some advantages in technologies and products. How can we grasp the opportunity? So, we can save natural resources, and at the same time our companies can pursue further development in the global market."

In the development of the low carbon economy, technology is the focus. But many Chinese enterprises don't have such technology. For example, even though the auto industry is booming in China, the key technologies for electric control systems and power transmission are dominated by the international big guns.

Fan said, "The biggest problem is Chinese companies' lack of technologies. So the market in China will not come into being if the developed countries don't transfer their money and technologies to our infrastructure development."

A McKinsey report says 4 trillion yuan of investment should be made by 2030 to build a green economy in China. So, it is not enough to rely on the Chinese government's fiscal budget. More funds are needed from other channels.