According to statistics, about 40 percent of Sweden's energy consumption is sourced from renewable energy resources, well ahead of the European Union average of 8.5 percent.

China has set a target of using renewable resources to meet 40 percent of its energy needs by 2050.

Thus, countries like China have turned to Sweden in search of new clean-tech solutions.

Chinese energy giant State Grid Corp, through its subsidiary National Bio Energy, and China's Dragon Power Group Ltd have invested in a Swedish bio-energy joint venture called NBE Sweden.

"Our investment in cellulose-based ethanol production in Sweden is aimed at developing technology for biomass power generation projects in China," said Kai Johan Jiang, chairman of Dragon Power Group and National Bio Energy Group Ltd China.

"Success will set a good example for China-Sweden cooperation in the areas of environmental protection, improvement of rural living standards and development of alternative energy," Kai said.

ISA's Sandlund said Chinese enterprises might first invest in a small-scale research and development (R&D) center in Sweden, and work with the Swedish companies.

Then they might set up joint ventures and bring their technologies to China for broader commercialization and utilization, he said.

"Apart from directly buying technologies or importing professionals, it is more effective and sustainable for Chinese companies to be more involved in R&D for new technologies by taking advantages of laboratory resources in Sweden," Sandlund said.

Eco-cities

Eddie Chen, chief representative of ISA China and also chief investment advisor for the Embassy of Sweden, said that Sweden also has expertise in "eco-city" development, which involves building urban infrastructure that does not cause as much environmental harm as traditional projects.

China and Sweden earlier this year became partners in the construction of an eco-city in Caofeidian in Hebei province.

Under the partnership agreement, Sweco, a Swedish engineering firm, will send more than 40 designers and experts to be in charge of the design and layout of the city. The engineers also will oversee energy management, water treatment, waste treatment and also emission reduction and energy conservation in architecture and transportation.