China Dominates the Clean 200 List: Chinese companies continue to top the list of the world's 200 green energy and technology companies, covering multiple industries including biofuels and batteries. This achievement reflects China's global leadership in the growing clean energy economy. The Clean 200 List, released on February 21 by As You Sow and Corporate Knights, includes 71 Chinese companies, more than a third of the total, almost double the number of US companies (41). Japanese companies ranked third with 20 on the list. The two leading Chinese companies are Xinjiang Goldwind Science & Technology Co., Ltd., a wind turbine manufacturer, and GCL Energy Holdings Co., Ltd., a producer of solar-grade polysilicon, demonstrating the reaping of the Chinese government's large-scale investments in renewable energy in recent years. Only two UK companies made the list: SSE Plc, a utility company, ranked 9th, and Dialog Semiconductor, ranked 161st. Toby Heaps, president of Corporate Knights and one of the authors of the Green 200 report, noted that the achievements of clean energy companies are truly remarkable, given that China's stock market is only half the size of that of the United States. Launched in 2016, the list serves as a control group for the "Top 200 Companies with the Strongest Carbon Emissions." The latter ranks companies based on the carbon content of their petrochemical reserves, and all companies on the list have experienced capital outflows. The rankings are based on data from Bloomberg New Energy Finance. Since the signing of the Paris Agreement in December 2015, institutional and private investors have launched a divestment campaign, withdrawing over $5 trillion in assets from high-carbon economies, and this divestment is expected to continue over the next five years. Siemens tops the list of Green 200, followed by Toyota and Schneider Electric. Other top-ranked companies include Johnson Controls, Panasonic, Vestas, Bombardier Phillips, Emerson Electric, Dong Energy, Xinjiang Goldwind Technology, Tesla, First Wind Solar, and Samsung. The top ten countries in terms of the number of companies on the list are, in order: China, the United States, Japan, Germany, India, Canada, South Korea, Switzerland, Denmark, and Spain. The report indicates that the top three companies in the Green 200 have a combined revenue of $355 billion, with $103 billion coming from the low-carbon economy. This demonstrates that large multinational corporations continue to monopolize clean energy profits, and this trend is expected to strengthen further next year. While wind and solar companies lead in green revenue in China, new entrants from various technology sectors are constantly emerging. In the near term, driven by the development of electric vehicles and smart grids, biofuels and batteries will attract significant investment. "Wind, solar, and bioenergy are all driving the development of the renewable energy economy in their respective fields and providing energy to their regions. More technologies will be integrated into this trend in the future, including geothermal and solar thermal power generation," said Peng Peng of the Renewable Energy Professional Committee of the China Circular Economy Association. Despite stable revenues for Chinese companies, the number of companies on the list decreased from 77 last year to 71. The report authors explained, "The decrease in the number of Chinese companies on the list is not necessarily related to a decline in their clean energy revenues. These 71 companies have a total clean energy revenue of $43.2 billion, compared to $43.7 billion on the list last August." Does this decrease in the number of Chinese companies on the list indicate a decline in their market share relative to US and EU companies? Andrew Behar, president of Heaps and As You Sow, said, "It's hard to say. Looking at the geographical distribution of revenue sources, some US and European companies (such as Gamesa) saw a continuous increase in their market share in China from 2013 to 2015. On the other hand, Chinese companies like Hanergy Holding also saw steady revenue growth in the US market." What is certain is that the declining cost of renewable energy is driving the accelerated expansion of the low-carbon economy, which has become a trend. Research by the Grantham Institute and Carbon Tracker found that by 2040, solar energy will account for 29% of the global electricity market, while natural gas will only account for 1% (Exxon estimates renewable energy will account for only 11% by 2040). The same report also indicates that electric vehicles will account for approximately 35% of the road transport market by 2035, while coal and oil demand will peak in 2020, and natural gas demand will also be constrained. The success of Chinese renewable energy companies is attributed to strong support from central government policies and regulations. In 2014, renewable energy financing in China increased to $89.5 billion, a 32% increase from the previous year, nearly 73% more than the United States, the world's second-largest investor. In its 13th Five-Year Plan, China set an ambitious target of reducing carbon intensity by 18% compared to 2015. As Chinese companies increasingly seek overseas development opportunities, they must face new challenges and adapt to a new regulatory environment without domestic market protection. Peng Peng said, "With the advancement of the 'Belt and Road Initiative,' more and more Chinese companies will go global and explore international markets." Source: chinadialogue (February 22, 2017) (Compiled by PIDC)
