The creation of a "low carbon" economy that will provide jobs and clean up industry is now a crucial policy objective for countries trying to spend their way out of the world economic downturn. A recent report by HSBC calculates that the United States is allocating 12 per cent of its fiscal stimulus to the green economy and China, 34 per cent.

There is a compelling scientific, economic and strategic case for low carbon development and the first movers have a lot to gain with worldwide investment in renewable energy having grown by 65 per cent a year since 2004, and projected to reach $600 billion a year by 2020.

China's 11th Five-Year Plan (2006-10) includes a target to reduce energy intensity by 20 per cent during that period. This would translate to a saving of emissions around four times greater than the European Union's current commitment under the Kyoto Protocol.