Chinese Companies Turn to U.S. Technology to Support GHG Reduction Goals

July 31st, 2009 Robert Johnson

Earlier this week, members of the Obama administration and representatives from China held meetings to discuss a variety of trade and commerce issues. Discussion topics included the administration’s interest in encouraging the Chinese to reduce their greenhouse gas (GHG) emissions. Of course, the official position of the Chinese has been to decline implementation of broad legislation mandating GHG reductions.

However, behind the scenes, some Chinese companies are quietly taking significant steps to manage GHG emissions.

For instance, companies like PetroChina, and its parent CNPC, launched major emission management programs several years ago, including implementation of enterprise-wide technology platforms that serve as the foundation for those initiatives. Although there has been little fanfare surrounding the company’s actions, it’s important to note that PetroChina’s program was a significant step that was taken without external prompting from government regulators. As a major player in oil and gas acquisition and distribution markets, company officials recognized the need to exercise responsible environmental stewardship in order to maintain its standing with its Western competitors.

In Hong Kong, officials earlier this year adopted a regulatory system that provides financial incentives for electric utilities to reduce emissions to regulatory limits. The long-term agreement between Hong Kong and electric generating companies CLP and Hong Kong Electric would allow the companies to adjust rates to generate a rate significant increase, plus a bonus if they reduce emissions below permitted levels.

Of course, ESS is providing technology solutions that support several of these groundbreaking initiatives. That’s why we’ve found it interesting to note that while government negotiators are debating climate change amid broad trade policies, Chinese companies are doing business with U.S. technology companies like ESS to support responsible corporate emissions management. We’re looking forward to many more opportunities to promote effective sustainability programs in China and elsewhere along the Asia-Pacific rim.

Tags: asia pacific china clp cnpc emissions management ess ghg emissions Hong Kong Electric oil and gas petrochina

Entry Filed under: Operational Risk Management, Sustainability, Greenhouse Gas Emissions, Corporate Responsibility, Corporate Governance, ESS, EHS/HSE Technology, Green Technology, Oil & Gas Industry, Energy Efficiency, Utility Industry, GHG Regulations and Voluntary Reporting, Non-Financial Risk Management