Rani Jarkas: Opportunities in Sino-US clean technology collaboration

In November 2009, US President Obama and then-President Hu Jintao formalized a renewable energy partnership, including the establishment of clean-energy research centers focused on electric vehicles, cleaner coal and water energy programs. Five years later, Obama and Xi Jinping announced that the two countries would work together on climate change, with China announcing it would try to cap its greenhouse gas emissions by 2030, or sooner if possible.

According to the Frankfurt School's Center for Climate and Sustainable Energy Finance in Germany, China invested a record $83 billion in renewable energy in 2014. And the total environmental expenditures are expected to exceed $1 trillion during the execution period of the 13th Five Year Plan. This amounts to a 60% increase over the last Five-Year Plan. But, the Chinese government estimates that it will only fund about 15 percent of this initiative.

The situation presents myriad opportunities for the private sector to support China's ambitious environmental goals. A recent report by Goldman Sachs states that cleaning up China's environment will be multibillion-dollar opportunity for the domestic and international private sector. In fact, financing from the private sector -- either directly or in public private partnerships -- will bring new technologies to China, spur innovative solutions and create jobs in environmental reform, a growing field.

During Chinese President Xi Jinping’s 3-day U.S. visit in last September, clean technology has been a priority for the worlds’ largest economies and the biggest emitters of greenhouse gases.

"Improving cooperation and collaboration is really a necessity," said Brian Young, Washington State’s director of economic development for the clean technology sector. "Second, it's a huge business opportunity. Both sides recognize the opportunity for job creation."

Rani Jarkas, Chairman of Cedrus Investments, a trusted resource and clean-tech industry expert and a well-regarded figure in financing industry, said “Collaboration between China and US in clean technology field is presenting new opportunities for the private sector, which could be a bright spot for the global economy.”