Over the past few years, more production has been shipped to China than ever before in the Bicycle, Outdoor and SnowSports industries. The country offers a seemingly endless workforce, low wages, and a per-item production cost lower than many though possible. These benefits do not come without a price. Shipping costs can be astronomical and lead times are much longer than domestic facilities.
One additional major concern for many companies is environmental responsibility. The Chinese government has been focused on rapid economic growth and building the power and transportation infrastructure to support this growth. As a result, sustainability has until recently taken a back seat.
The Chinese government is taking some very significant steps to change that. Earlier this week, the Chinese top legislature voted to pass China's first renewable energy promotion law, which will help the country meet ambitious targets for the uptake of renewable energy.
The Renewable Energy Promotion Law, which takes effect on the January 1, 2006, is designed to spur growth in the renewable energy industry in China. The law guarantees grid access for renewable energy producers as well as spreading the costs of these new technologies across the electricity sector.
“If the definition of renewables and the details are right, then the international community will get behind China and support its ambition to become an international clean energy powerhouse,” said Steve Sawyer from Greenpeace International.
According to Greenpeace, growth of wind energy in China last year was 35%, even without the new law. China has similarly huge potential for solar, wave, tidal and biomass power and with energy efficiency could meet all its needs solely from clean energy.
Environmental groups, like Greenpeace, are hoping that this is a signal of China's intentions in relation to global climate protection efforts. At present, both the U.S. and China have no binding obligation under the Kyoto protocols, but as the world's first and second largest emitter of CO2, international attention has focused on these countries and their efforts to curb emissions growth.
