September 05, 2007	Wednesday	Sha'aban 22, 1428

BEIJING, Sept 4: China plans to invest 2 trillion yuan ($265 billion) in renewable energy by 2020, most of it corporate cash, to wean itself off polluting coal as it aims for cleaner growth, a top energy planner said on Tuesday.

Chen Deming, vice-chairman of the National Development and Reform Commission, added that China aimed to be using domestically made and designed equipment by then, which could cut prices for clean energy worldwide.

“We expect the majority of the funds to come from companies,” Chen said when asked about the 2 trillion yuan forecast.

The cash would help China meet its target to boost the portion of its energy that comes from renewable sources to 15 per cent by 2020, up from 7.5 per cent in 2005, as it wrestles with the legacy of decades of promoting growth at any cost.

Of around 1 trillion yuan slated for spending on pollution reduction and energy efficiency goals for 2010, 80pc would come from companies and just 10 per cent from central government with local authorities and others making up the rest, he added.

Over half the proposed investment will go into large dams, which environmentalists criticise and some scientists believe are a significant source of greenhouse gas methane.

But Chen said the benefits of dams outweighed their costs.

Beijing is also coming under increasing international pressure to curb its emissions of greenhouse gases, expected to overtake those of the United States this year -- although on a per capita basis these are far below developed world levels.

—Reuters