Chinese Government to Support Clean Tech Exports with $2.9 Billion
By Yael Borofsky for the Breakthrough Institute, November 30 2009
The Export-Import Bank of China inked a $2.9 billion deal last week to finance exports of China Energy Conservation Investment Corporation (CECIC), out-doing a $250 million outlay announced by the U.S. Export Import Bank earlier this month.
China's Ex-Im Bank is also financing the controversial 600 MW Texas wind farm, which will be the first U.S. project to use imported Chinese turbines. The Ex-Im Bank supports companies like CECIC, an energy-efficiency and renewable energy project developer, because they tend to have less access to the global banking system. Government support for clean tech export financing will further boost Chinese exports of energy efficiency and clean energy technologies to international markets, particularly in developed countries, where demand for clean energy technologies is greatest.
As Reuters reported in early November, even though the U.S. Ex-Im Bank's $250 million dollar export finance plan is designed to make the U.S. competitive in the clean energy technology export market, in comparison, the Chinese Ex-Im Bank's investment will be more than an order of magnitude greater - making the U.S. investment look like pocket change.