A partnership for a sustainable future?

Emissions: Alexander Holst

Over the past 30 years, China has achieved a phenomenal level of economic growth. But like many countries, it now faces pressing environmental challenges caused in part as a by-product of such growth. China must find solutions to these environmental challenges while not putting its economic future at risk. In finding their way along a more sustainable path though, Chinese businesses face opposition from those fearful of the higher costs of sustainable business. But these fears are misplaced.

The key is to look to long-term objectives. And here is where it pays to consider Germany's ambitious Energiewende (transition to green energy) as an example. Germany has committed to a phase-out of nuclear energy by 2022 and to a 40 percent reduction of greenhouse gas emissions by 2020 from 1990 levels. The Energiewende has, of course, faced criticism. The scale of investment is massive. Bloomberg New Energy Finance estimates the total cost of Germany's clean energy expansion at 106 billion euros ($114 billion). Meanwhile, The Wall Street Journal quotes government sources as predicting total costs to 2040 at around 1 trillion euros.