Ecofys in China

With a population of 1.3 billion and annual economic growth of over 10%, China has become one of the main challenges in terms of global energy supply. Around five years ago Ecofys first got involved in this Land of Great Opportunities. We are now applying our vision of a sustainable future and our global experience in developing a sustainable energy market in China.

Beijing

The capital Beijing, which is currently hosting the 2008 Olympics, is the home base for all of Econcern’s business activities in China. The Beijing office has been in operation under the name 'Azure International' for over five years now. Since launching CDM project development in China in 2005, close cooperation between Azure International and Ecofys led to the acquisition of Azure by Econcern.

With Azure founders Juanli Han, Stephen Terry and Chris Raczkowski still working as directors, and forming the senior management team, the Beijing office continues to expand rapidly in parallel with the growth of Econcern business in China.

The Beijing office, which is staffed by over 40 full-time employees, provides great opportunities for business development in China by offering expertise and experience in a number of key areas.

The Ecofys Azure office is an excellent partner for China-based clients, both local and international companies, by leveraging local knowledge and expertise with experience acquired at Ecofys offices around the world. There are also increasing numbers of clients with an interest in China in the global business network of our holding company Econcern, which is the leading global player in sustainable energy.

While we have carried out many projects in China, the following two are particularly worthy of mention:

Biogas Facility Design – The SiYuan Project:

For the past two years, the team in Beijing has been working on developing biogas projects in cooperation with large sugar, ethanol and starch manufacturing companies. The first of these is in South China with a sugar/ethanol company named SiYuan. This project will be invested in and operated by Econcern – and the facility design is being done by Ecofys, led by the renowned expert Tico Cohen.

“The Value of Carbon in China” – A report for WWF:

China is now the leading producer of anthropogenic greenhouse gases. With our base in Beijing, Ecofys is perfectly positioned to have a comprehensive understanding of the market and the political forces that shape this situation today and into the future. In cooperation with our OneCarbon team, Ecofys completed a seminal report commissioned by WWF, entitled “The Value of Carbon in China.” This report was released during a major press conference in Hong Kong, which was attended by four of our Beijing office staff. It is expected that the report will be a major reference document for the China carbon industry. Please visit the WWF website to download the report. See also the article in this newsletter about the Value of Carbon in China.

For more information, contact us at marketing@ecofys.com.

Sustainable building in China

The Chinese building sector is growing faster than anywhere else in the world. Its impact on climate-change can be effectively reduced through greater energy efficiency. Yet, although sustainable energy projects are surging ahead, energy saving in buildings is lagging behind. Himin – the largest solar heating manufacturer in the world – is currently erecting new headquarters in the city of Dezhou, which will accommodate 2,000 employees in a total floor area of 50,000 m2. At Ecofys we are not only cooperating with Himin to make these four buildings a showcase of sustainability, but also to strengthen sustainable building in the Chinese market.

Model approach

By applying the 'trias energetica' principle – first reduce energy use, then use renewable energy, complemented by ‘clean’ fossil fuel energy – the use of fossil fuel-based power in Himin’s headquarters can be kept to a minimum. Optimal use is made of insulation and insulating glazing, shadowing, and ventilation with heat recovery. Heating and cooling are provided by no less than 5,000 m2 of solar collectors.

Spin-offs
During the development of Himin’s headquarters, Himin and Ecofys set up Heres, a joint venture that combines our expertise with their products and market position. Heres provides sustainable solutions for advanced building projects in China. For example, the company is designing buildings based on an optimal energy approach that uses daylight, solar energy and heat pumps in a project in Shenzhen. And in the same city Heres is cooperating with a local developer to build zero-energy houses.

Other innovations

One technology that we have brought to China is the smart use of heat and cold, sometimes combined with active storage. We are also investigating the feasibility of Sea Water Air Conditioning in buildings near the coast or big lakes. Cool water from the lake or the sea is used to cool buildings, replacing large electrical or gas-fired air conditioning units.

For more information, contact us at marketing@ecofys.com.

Demonstrating carbon commitment in the Pearl River Delta in China

Consumers around the globe are becoming increasingly aware of climate change. Retailers are now expected to demonstrate their carbon awareness and leading branded companies are responding by assessing, reducing and communicating the carbon content of their products, supply chains and business operations. Ecofys helps companies differentiate themselves through carbon commitment. Ecofys is developing the key features of a carbon accounting and labelling program (Low Carbon Manufacturing Program, LCMP) for manufacturers in the Pearl River Delta.

Buyers and manufacturers depend on reliable information from their supply chains, and suppliers increasingly receiving requests from retailers to provide data on their carbon emissions. A huge number of manufacturers are located in the Pearl River Delta, a region which has the largest concentration of manufacturers in the world.  Thus, this LCMP program has the potential to be a significant factor in helping many manufacturers and buyers to manage their carbon footprints.

For example, electronics and textiles produced in this region account for 57% of the total value of Chinese exports. While the energy intensity of these sectors is relatively low, the sheer scale means that the potential for carbon reduction and energy efficiency is huge. Typical savings through energy audits and energy management systems alone are in the order of 5-25%.

Companies that report on their carbon emissions in this way, and those that can demonstrate reductions, will have a big advantage in an increasingly competitive international business environment.

For more information, contact us at marketing@ecofys.com.

The value of carbon in China

China has become a key player in the global carbon market. Since the Clean Development Mechanism (CDM) has been introduced, a booming market has led to many projects that are generating substantial emissions reductions (CERs). A recent report co-produced by Ecofys-Azure and WWF analysed the contribution of carbon finance to further sustainable development in China. Conclusion was that one needs to look at the market from the perspective of the energy system and not just that of the carbon trading desk.

Traders see one tonne of carbon as equal to any other, but WWF felt that a more detailed picture was needed of how carbon is affecting China’s growing energy market. Ecofys therefore carried out research that provides valuable insights into the role of carbon finance in driving the sustainable energy transition. Although the scale of carbon capital flows is still relatively small, CDM projects are helping to make emissions trading the tool of choice for pricing carbon on China’s energy markets.

Diverse pipeline

The increasing diversity of China’s project pipeline is bringing carbon financing to new technology sectors and in particular to renewables. The share of hydropower projects in particular has increased dramatically since the end of 2006 and it now dominates the pipeline.

Government involvement

The Chinese government has played a key role by promoting CDM, alongside other incentives for renewable energy. For methane-based projects, where carbon returns are substantial, CDM clearly provides additional value. For grid-based CO2 reduction technologies such as wind and small-scale hydro electricity, the financial benefits are less clear-cut. Regulatory intervention will continue to be required to improve additionality and maintain the credibility of the CDM.

Future opportunities

One challenge is a lack of finance. Most Chinese banks lack risk assessment and due diligence capabilities. However, satisfactory financing options are available and can be further improved. What’s more, the report points out that there are plenty of future opportunities.

Focus on energy efficiency

Most encouraging is the potential for energy efficiency projects, including those involving waste/heat gas recovery, which are now equivalent in value to wind power projects. Perhaps even more than renewables, energy efficiency will benefit from the entrepreneurial spirit engendered by the carbon market.

For more information, contact us at marketing@ecofys.com.

Are you visiting the Conference of the Parties 2008? Than make sure you don’t miss out on the Econcern Sustainable Energy Event.

From 1 - 12 December 2008, the City of Poznan, Poland will host the Conference of the Parties (COP) 14, which is organised by the United Nations Framework Convention on Climate Change (UNFCCC). The Conference of the Parties – the most prestigious forum of political discussion on climate protection – attracts the attention of the entire world.

The upcoming COP 14 is expected to be a historical turning point in the movement towards a global agreement on reducing greenhouse gas emissions and will therefore be a perfect stage for sustainable companies to show the world that ambitious climate goals can be realized.

During the COP 14, Econcern will organise the Econcern Sustainable Energy Event: the place to be for those interested in sustainable business. The event will be held at the World Trade Centre, which is only a minutes’ walk from the conference center.

The programme of the Econcern Sustainable Energy Event, which lasts 12 days, will include various interesting seminars, inspiring network meetings, commentary sessions and edifying presentations of by well-known speakers, including Ricardo Lagos, Lord Nicolas Stern of Brentford and C.K. Prahalad.

For more information about the programme and registration to one or more events, a website will be available from 1 September 2008: www.cop14poznan.com.

We are looking forward to welcoming you at the event.

Coming months Ecofys will participate in several events. Please visit our stand at:

Ecobuilding: 24 – 26 September 2008, Zaragoza, Spain

A high level event on efficient and sustainable energy, advanced technology for waste-to value and waste management, sustainable construction and energy efficiency in buildings. For more information about this event, click here.

Exporeal: 6 – 8 October 2008, Munich, Germany

EXPO REAL, the International Commercial Property Exposition, is an important trade fair of its kind. The theme of the conference is dominated by business networking with real estate professionals across the world in projects, investments and finance. For more information about this event, click here.

POLEKO: 27 – 30 October 2008, Poznan, Poland

A large environmental fair in Central and Eastern Europe that offers hundreds of new products, special expositions, branch presentations and also has a rich programme of specialist conferences and seminars. For more information about this event, click here.

Report

The Gold Standard version 2 is out now!

The Gold Standard is a premium quality label for carbon credits. Ecofys upgraded all rules and guidance. The standard is supported by more than 60 NGOs and has a technical advisory committee with leading figures in the field of sustainable development. Ecofys focused on strengthening the criteria on stakeholder participation and contribution to sustainable development. At the same time the user-friendliness and transparency for all Gold Standard users has been increased.

For more information about the Gold Standard, please click here.
For the report, please click here.