By Xiao Wan (China Daily)
Updated: 2008-02-01 09:07

Sino-German collaboration on renewable energy can set a good example for other countries, a senior official with the National Development and Reform Commission (NDRC) said yesterday.

China and Germany should expand cooperation to promote the use of renewable energy and achieve more sustainable development, Wu Guihui, deputy director of the energy bureau of the NDRC, told an energy forum.

"It (use of renewable energy) is really important now as China is making great efforts in energy saving and environmental protection," he said.

China is improving energy efficiency and using more renewable energy sources, and thus playing an important role in combating global warming, said German Environment Minister Sigmar Gabriel.

As big energy consumers the two nations can expand cooperation in environmental technology, he said.

As the world's fastest growing major economy, China has set a target of cutting energy consumption per unit of GDP by 20 percent and pollutant discharges by 10 percent from 2006 to 2010.

The world's second-largest energy consumer is also making increased use of renewable energy such as wind and solar power. The government has set a target of raising the ratio of renewable energy in its total energy mix to 10 percent by 2010 and 15 percent by 2020. Renewable energy currently accounts for 8 percent of the total energy consumption.

In some sectors such as wind power, China has seen over 100 percent annual growth in the past three years.

A total investment of 2 trillion yuan ($277.8 billion) is needed to meet the renewable energy target by 2020, according to the NDRC, the nation's top economic planning body.

The Chinese market provides major opportunities for German companies, said Jurgen Heraeus, a representative of the Federal Association of German Industry. Leading wind power company Nordex, for example, has seen over 50 percent annual growth of its business in China.

Several German energy majors said they are keen on China's energy sector. Siemens earlier said it plans to inject half of its 10 billion yuan mid-term investment in China into energy-saving and environmentally friendly technologies.