Capital Intensive China

A new big theme: Energy saving

  • Published 22 Apr 2010

Companies that find ways to deliver energy savings are capitalising on Beijing's stricter insistence on reducing energy intensity.

Energy service companies (ESCOs), which help businesses to save money by cutting their energy costs, have had a hard time in China. Held back by banks' reluctance to lend to them – not to mention clients' unwillingness to pay on time – they have struggled to take root in a business culture focused on quick returns. Now, however, things seem poised to take a turn for the better. In pursuit of its ambitious energy intensity goals, Beijing is gearing up to get behind them with powerful though as yet little-noticed policy support. Over the next year or so, investment opportunities, already beginning to bubble to the surface, look set to multiply as the new policies kick in.

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