(China Daily)
Updated: 2007-08-27 06:53

The global economy has changed significantly in the past 15 years as a result of technological innovations and the rise of new powerful players.

The high growth rate of the global economy benefits not only the industrialized, but also the emerging and developing countries.

Economic globalization has given rise to a series of problems. The relentless pursuit of economic progress has led to environmental abuse, with the result that climate change is now a grave global threat.

Countries around the world have recognized the seriousness of the situation, and are making efforts to protect the climate and prevent further damage.

The Intergovernmental Panel on Climate Change has this spring presented its new study on global climate development until 2100.

Europe has been pressing ahead on this issue. The EU Summit held in March this year set a new climate protection goal for 2020. By then, its 27 member countries are to jointly cut their carbon dioxide emissions by 20 percent compared with 1990 levels.

Germany, as the largest country in the EU, is seeking to play a pioneering role in this field.

The EU objective for 2012 that was agreed in 1997 - an 8-percent carbon dioxide reduction - can only be achieved if Germany fulfils its national target. Germany alone is responsible for three quarters of the total EU projected reduction .

At the G8's Heiligendamm Summit in June, president country Germany sent out a clear signal for a liberal and open global economic system.

Under the motto of Growth and Responsibility, Germany is setting a clear focus on the global economy and wishes to take account of its changed framework in focal areas like climate protection and energy efficiency.

According to the regulations of the Kyoto Protocol, which came into force in 2005, Germany is expected to reduce its output of six important greenhouse gases (substances such asand nitrous oxide, in addition to carbon dioxide) by 21 percent by 2012.

By 2006, a reduction of 18 percent had already been achieved. Further, the German government plans to increase efforts in climate protection.

Aside from the proportion of carbon dioxide reduction, the application of renewable energies in Germany will be another crucial factor.

"We already have many technologies that would enable us to work at far higher levels of efficiency and with a fraction of current carbon dioxide emissions," said Professor Stefan Rahmstorf, a climate researcher with the Potsdam Institute for Climate Impact Research.

Twelve percent of the electricity consumed in Germany is already being generated from wind, solar and water power.

The German federal government is also planning to tap into potentials in the thermal energy sector to save energy.

Germany is currently also supporting sustainable energy endeavors in other countries. It taps wind power for Egypt, geothermal power for Kenya, biogas for Nepal and water power for Indonesia.

In China, small-scale power plants using solar, wind and water power will be set to supply electricity with the assistance of Germany. All these actions will bring a new era of global cooperation.

Climate change also engenders huge business opportunities.

For German industry, sales of solar, wind and water technologies have emerged as export strengths and the environment industry is a boom sector.

The Renewable Energy Federation of Germany registered exports worth 6 billion euros (US8 billion) in 2006.

"The eco-industry is becoming a key sector in Germany. It is already a job creation engine," says Torsten Henzelmann, partner of Roland Berger, a leading international consulting firm.

"By the year 2020, the sector will employ more people than mechanical engineering or the automotive industry," he says.

Deutschland magazine

(China Daily 08/25/2007 page11)