EU commits 40 mln eur to China energy, environment project

BEIJING (AFX) - The European Union (EU) will contribute 40 mln eur to China for a program focused on energy and the environment, EU energy commissioner Andris Piebalgs said.

He also told media in Beijing that the EU will contribute 5.0 mln eur for a phase one feasibiltiy study for near zero emission power plant projects in China under a memorandum of understanding signed with the Chinese government.

Piebalgs met with Chinese officials from the National Development and Reform Commission today and said that both sides agreed on the need for a collective response on the issues of the security of global energy supply and climate change.

"I am glad that during my visit in the meetings with Chinese officials we have agreed on these two important challenges that we should address in a common way," he said.

He added that the EU and China will cooperate in the areas of energy efficiency and renewable energy.

He said the EU would lend its expertise in regulatory frameworks meant to encourage progress in these areas.

He said he discussed with Chinese officials the crucial role that markets should play in securing global energy supply.

"We agree that markets are the best way to answer the challenges of security of supply," he said, adding that markets should be transparent.

China is taking steps towards liberalizing its eletricity market, he said, but noted that there is a need for third party access to networks, as well as liberalization in the generation and supply sectors.

He also said his Chinese counterparts agreed that nuclear energy should play some role in China's energy mix, but that it is "not placed at the top of the agenda."

Piebalgs said he believes nucler energy should play a "substantial part" of the EU's energy mix.