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Have US and Europe already Lost the Green Industry Leadership to China

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China is recognized as the manufacturing hub of the world due to its low cost of labor and capital coupled with theĀ  pro industry policies of the government.These advantages are now being leveraged by the country to establish leadership in Green Energy which many recognize as the next Big Industry . Despite rhetoric from Obama , US had done precious little to help the renewable energy in the US except for some off and on tax credits and grants. Compare this to China which gives electric subsidies,cheap billion dollar loans and a steady supply of cheap labor. In solar China has already captured almost 50% of the world marketshare and is on its way of doing it in Wind as well.

Europe has been the biggest loser due to their distorted wage/productivity which is leading to mass migration of companies from Europe to Asia.US never had any big base due to its lax climate policies.However US is far ahead of Europe in terms of innovation.Most of the new technology and process innovation is coming from the Silicon Vally.Companies like First Solar,NanoSolar,Enphase,Solaria,American Superconductor and many others showcase the hotbed of technology that US is.But the manufacturing leadership is going to China and with that the technology might migrate there as well like Applied Materials.

Europe on the other hand does not have technology nor manufacturing except in the case of Germany.Like in Semiconductors, Europe seems destined to remain a bit player in the Green Industry of the future.US has a chance to take back the leadership backed on its technology might but for that the government has to become more proactive .

U.S. lags China on climate change: Europe climate chief – Reuters

The United States’ future as a global economic power depends on what it does to fight global warming and it is lagging behind other countries like China, Europe’s climate chief said on Wednesday.

European Commissioner for Climate Action Connie Hedegaard told Reuters it was a positive step for the United States to have “finally” unveiled legislation to combat climate change on Wednesday.

“This is one of the crucial battlefields over who is going to be the economic leaders of our century,” Hedegaard said of the fight against global warming.

Democratic Senator John Kerry and independent Senator Joseph Lieberman presented a long-awaited climate bill on Wednesday, which aims to cut planet-warming emissions by a 17 percent in the next decade.

While President Barack Obama supports the legislation, it has slim chances of passing unless Kerry and Lieberman win over a group of moderate Democrats and Republicans.

“It’s not something an ordinary European citizen would say ‘Wow, that’s really ambitious,'” Hedegaard said. “On the other hand, we know that the United States has been among the later starters, so the important thing now is to get started.”

The 27-nation European Union has long claimed to be a world leader in the fight against climate change.

While the United States and China bicker in negotiations for a new global deal to combat climate change, Hedegaard said Beijing was making great strides against global warming.

“The irony is that in the real world outside the negotiation rooms they are just moving,” she said of China’s efforts to fight global warming. “They are just doing it and they are doing it big scale.”

Hedegaard praised the United States for including a cap and trade system for reducing carbon pollution by electric utilities and factories in the new climate bill. She said such a system had worked in Europe and China was also considering such a move.

Negotiators from 194 nations will gather in Cancun at the end of the year to try to build on the Copenhagen accord signed last December with the ultimate aim of reaching a legally-binding treaty that would set the tempo for global CO2 cuts over the next decade.

“There is this feeling now that there is something to build upon,” Hedegaard said


Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

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