THE REAL STORY BEHIND CHINA’S ENERGY POLICY—AND WHAT AMERICA CAN LEARN FROM IT --UNITED STATES SENATE REPORT

Executive Summary

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The facts about ―clean energy‖in China are clear: non-hydro renewables, despite considerable government support, make up less than 1 percent of China’s energy portfolio—a fact that will change little over at least the next two decades.

1.  China is not leading a green energy revolution: it is leading a global race for oil, natural gas, coal, and nuclear power—energy sources fueling China’s growing population and economic growth.

1.  Rare earth minerals are necessary to produce wind turbines, solar panels, advanced batteries, energy efficient lighting, and many other energy technologies. China produces about 97 percent of the world’s supply, while the U.S. produces none. China’s dominance in developing rare earth minerals provides enormous trade leverage over American manufacturers. We should reduce this dangerous dependence by encouraging more domestic mineral production.

1.  A clean-energy manufacturing sector must have stable, affordable, energy costs to thrive and expand. Renewable energy mandates and cap-and-trade make energy more expensive, and would send manufacturing jobs overseas.

Facts on China

Coal

 China is both the largest consumer and producer of coal in the world. China is using more coal than the United States, Europe, and Japan combined.

1.  China could account for 50 percent of global coal demand by 2035.

Oil and Natural Gas

 China is the world’s second largest oil consumer, behind the U.S., and the world’s fourth largest oil producer.

1.  China is investing in oil development projects in Cuba, Iran, Iraq, Myanmar, Kazakhstan, Nigeria, Venezuela, and Argentina.

1.  China will become the top natural gas consuming country in the Asia Pacific region, overtaking Japan by 2015.

Nuclear

 China aims to at least quadruple its nuclear capacity from that operating and under construction by 2020.

Renewables

 The vast majority of China’s 15 percent renewable energy target will be met with new hydropower (dams) and new nuclear power plants.

The Bottom Line

Point #1: Activists and the Obama Administration believe a ―price on carbon‖ and government mandates are essential for the U.S. to produce innovations in wind, solar, and other energy technologies. But in truth, such policies would be ruinous to jobs, new energy technology, and the global competitiveness of America’s manufacturers.

Point #2: China is rapidly expanding by embracing the reality that fossil fuels, along with nuclear power, are the engines of economic growth and prosperity. Policymakers in the U.S. must also embrace this reality—and resist the misguided and unfounded temptation that government mandates are the pathway to America’s economic resurgence.

Point #3: America has an array of clean energy technologies that are readily deployable. Their development can create thousands of jobs, provide affordable, reliable electricity, and keep America’s manufacturers globally competitive, especially with China. But environmentalists oppose nearly all of them.

Full pdf of the report here. Via AmSpecBlog