How big is China's green market? Answers vary. But in a nutshell: enormous.

For renewable energy alone, a London-based marketing consultancy has recently raised a new investment estimate of US$33 billion for China by 2020.

Last year, it says China invested US$12 billion in renewable energy, almost as much as the world green energy leader Germany.

And it predicts that by 2020 China's renewable energy will be 15 percent of China's total energy consumption mix.

The marketing consultancy KAE ASIA made the estimate in their latest report Business Opportunities for Green Technologies in China.

It says early signs that China is beginning to tackle its environmental impact are seen in some quarters as a large investment opportunity.

Restrictions imposed by the State environmental protection agency, the recent beefing up of the agency to ministry level, and the move by the State Council to issue an energy-saving regulation aiming to reduce energy consumption per unit of GDP by 20 percent by 2010 are among the signals.

"All these regulations mean the renewable energy sector is already among the top for foreign companies providing green energy-producing technologies in China," says Heiko Bugs, KAE China Director.

KAE ASIA, a branch of London-based KAE, established in 1969, interviewed CEOs, directors of the board and operations managers in various industries including automobile and food and beverage over the last months for the green report.

It is also noted that many consumer-oriented companies in China now focus on achieving a green image. China Mobile launched a plan this year to outsource system equipment and complementary equipment with energy-saving and emissions reduction features.

"We find the picture looks very different since many of the already established companies remain unaffected by the new regulations," Bugs says.

"Most local managers are extremely reluctant to invest on an environmentally friendly long-term basis due to fund shortages," he says. "Employees are measured on initial investment amounts with tight monthly budgets, none of which allows a more long-term approach."

Although implementing new technologies in a country as vast and complex as China will take time, Bugs believes that there are two sets of business opportunities for Green Technologies in China: one is in manufacturing of equipment for the renewable energy sector and the second is in supplying energy saving products.

According to the report, China is already a leading producer in renewable energy, particularly in hydroelectric and wind power and higher oil prices will lead to an even faster growth of the sector.

In 2004 China was not known as a big wind power country, but in 2008 China is already ranked No 5 in the world behind the US and some European countries.

(China Daily October 6, 2008)