A. CROSS-CUTTING INITIATIVES

China and the United States are large and influential countries, and the sum of their energy production in the next century will represent a major portion of world total. Energy issues and especially the implications of increased energy demand and use are of great concern, not only to each country but to the global community. Successful cooperation between China and the United States will help the energy industry in the world to develop along a more sustainable path.

Many significant recommendations and initiatives for cooperation have been presented here for different fields, and both Chinese and U.S. experts have highlighted the technical areas in which opportunities might exist. There are many relationships and mechanisms for collaboration and the following institutions should be involved:

  • government departments, ministries, and agencies;

  • academic, scientific, nongovernmental, and trade association entities;

  • private industry collaboration in the context of an expanded and deregulated commercial regime; and

  • multilateral development banks.

Continued Cooperation Among the Academies

To promote cooperation between China and the United States, the Chinese Academy of Sciences, the Chinese Academy of Engineering, and the U.S. National Academies could help to sustain programs on the new and ambitious recommendations and initiatives suggested by the four Academies and others.

A1) The Committee on Cooperation in the Energy Futures of China and the United States (CCEF) recommends that a standing committee be established among the four Academies to identify opportunities for research, development, demonstration, and deployment of cleaner and more efficient energy technologies. The Academies are well suited to this task because they maintain strong contacts with government, industry and the international lending community and have the capacity to evaluate the technical merits of particular energy approaches and the framework necessary to implement them. A mix of government and private support would need to be found to support such a standing committee.

Such a standing committee should consider in particular the policy, regulatory, and incentive structure necessary to support clean and efficient energy production and use, one that clearly reflects external costs. Continued interaction on these issues is necessary because particular market conditions change rapidly as economies develop. Even if technologies well suited for Chinese markets are readily available, the institutional and regulatory environments may not be conducive to their use. To address barriers such as enforceable environmental requirements, confidence in protection of property rights, market pricing for en-



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