China is often singled out for criticism whenever the subject of global warming crops up. ‘What is the point of us doing anything to reduce our greenhouse gas emissions,’ goes the refrain, ‘if the likes of China continue its unabated, fossil-fuelled growth?’ But this is a weak excuse for inaction, not only because we are all in this mess together but also because China, it might surprise some people to learn, has in fact already begun to address the problem. Indeed, nowadays the country is actively re-positioning itself from climate change villain to global leader in the ‘cleantech’ race to find better, greener ways of doing things.

This change of direction has been prompted by a growing recognition among China’s leadership that the economic ‘miracle’ they have fostered over recent decades has come at a severe environmental cost. In the 30-odd years since free-market reforms were introduced there, China has been transformed from a largely agrarian society into an industrial powerhouse. It is currently the world’s third-largest economy – well on its way to becoming the world’s largest by the middle of this century. For many Chinese, living standards have been radically improved, at least in material terms, but the flip side of double-digit annual GDP growth has been a burgeoning environmental crisis that can no longer be ignored.

A 2007 World Bank report identified 16 of the world’s 20 most polluted cities as Chinese. And just last month, Dr Anthony Hedley, a professor at the University of Hong Kong’s School of Public Health, said that he was leaving the city because of the adverse effects of its polluted air on his health. Noxious air and contaminated water have led to a spike in pollution-related disease across China: the country has the highest death rate from air pollution in the world, and heavily polluted areas are reporting alarming levels of birth defects and cancers. In addition, a third of the country is affected by acid rain, and land degradation coupled with desertification – especially in the north of the country – is putting real pressure on the amount of arable land available. All this amounts to what National Geographic has described as ‘the dark side of China’s economic miracle.’

Traditionally, the Chinese government’s approach has been to subordinate environmental concerns to economic development, the idea being to ‘pollute first and clean up later.’ China has even, and not without justification, asserted its ‘right’ to pollute, emphasising the principle of ‘common but differentiated responsibilities’ at international negotiations on climate change. Although China overtook the US in 2006 as the world’s largest overall emitter of greenhouse gases, in per capita terms, Westerners are still far worse emitters than the Chinese. From Beijing’s point of view, the developed world industrialised and grew rich on fossil fuels long before their use became environmentally contentious – would it not be unfair to deny China, or indeed any other developing nation, the opportunity to do likewise? There is also the valid point that a good proportion of China’s emissions result from it having become the ‘workshop’ of the world – in effect, we in the developed world have outsourced the pollution costs of our lifestyles to China (along with many of our manufacturing jobs).

To a certain extent, however, apportioning blame for global warming is pointless. All countries, especially the biggest emitters (both historical and current), share a clear moral imperative to join together in combating the threat of dangerous climate change. Fortunately, there are also compelling economic incentives for doing so. Another recent World Bank report estimated the total economic cost to China of pollution and its consequences at around 5.8 per cent of GDP – in other words, the environmental situation there is so bad that it represents a hindrance to development. As a result, China’s leaders are waking up to the fact that the traditional, polluting path to development is something of an economic blind alley.

The second powerful economic incentive for change is the opportunity to become a leader in the new and lucrative market for environmentally sustainable solutions. Cleantech products and services are expected to constitute one of the key growth sectors of the world economy over the coming decades, and the race is on to grab a share of it – in the long run, this contest is likely to achieve more in curbing emissions than any number of international conferences. Contrary to popular understanding, the Chinese words for ‘crisis’ and ‘opportunity’ are not quite the same; but even so, there can be no doubting that this particular crisis represents a major economic opportunity.

Yet another good reason for China to look beyond fossil fuels is straightforward energy security. China, which has very limited oil and gas reserves, does not want to be over-reliant on increasingly expensive imports (especially when it is already the world’s second-largest consumer of energy). It is also keenly aware that the future health of its huge manufacturing sector will rely on adequate and affordable supplies of oil for things other than energy supply. As Professor David MacKay of Cambridge University argues in his recent book, Sustainable Energy Without the Hot Air, ‘…given that fossil fuels are a valuable resource, useful for manufacture of plastics and all sorts of other creative stuff, perhaps we should save them for better uses than simply setting fire to them.’

In 2007, President Hu Jintao signalled a green shift in thinking by calling on the Chinese Communist Party to build an ‘ecological civilisation.’ Since then, China has taken significant steps to improve sustainability and embrace the possibilities of a cleantech world. The government now has a Ministry of Environmental Protection and, as of the start of 2010, a National Energy Commission led by Premier Wen Jiabao. Targets have been set: 20 per cent of the country’s electricity is to come from renewable sources by 2020, while the country’s ‘carbon intensity’ (greenhouse gas emissions per unit of GDP) is to be reduced by 40 per cent over the same period. China also devoted a major tranche of its fiscal stimulus package in response to the financial crisis to supporting clean energy projects. China’s 11th Five-Year Plan, which expires this year, includes sustainable development measures such as a programme to raise the energy efficiency of the country’s thousand largest industrial enterprises; Lawrence Greenwood, Vice-President of the Asian Development Bank, has said that he expects the 12th Five-Year Plan (2011-15) to put even greater emphasis on a green path to development.

That China has already made rapid progress along that path is highlighted in a new report by The Pew Charitable Trusts entitled Who’s Winning the Clean Energy Race? It shows China leading the way in a league table of investments in low-carbon energy technology by G-20 nations, outspending the US by almost double in 2009. China is now the world’s largest manufacturer of solar panels, wind turbines and solar hot water heaters, and according to the Chinese Renewable Energy Industries Association, the country’s renewable industries already employ well over a million people – proof that doing things in cleaner ways can also be good for the economy. New standards have been set for vehicle fuel economy and for the energy efficiency of appliances and buildings – the latter especially significant considering that half of all new construction in the world will be in China by 2015.

China boasts several advantages in seeking to exploit the emerging cleantech economy, not least its vast internal market. It also controls most of the world’s reserves of ‘rare earth minerals’ – a group of elements that are crucial in the manufacture of everything from hybrid cars to low-energy lighting. Finally, its command economy structure allows decisions to be fast-tracked – indeed, much has already been done to accelerate research and development in the cleantech sector through a wide range of government subsidies, of which the ‘Golden Sun’ subsidy for utility-scale solar power installations is but one example.

There have also been setbacks, notably the abandonment of plans for the construction of Dongtan, which was to have been an eco-city on Chongming Island, at the mouth of the Yangtze. Meanwhile the sheer scale of China and its speed of growth mean that, despite efforts to reduce them, absolute emissions will continue to grow. Ultimately, however, China’s economic development, like that of the rest of the world, will become environmentally sustainable simply because there is no other option. There is a long way to go, but one thing China does not lack is ambition. Signs of a greener China are already visible, and if the past is any guide to the future, expect rapid transformation in the years ahead.