Infrastructure Initiative



US-China Smart Green Infrastructure Initiative


Background of the Initiative & the Infrastructure Industry  

 It has become an important field in the Sino-U.S. energy cooperation that how to boost economy by upgrading infrastructure and energy development in a sustainable and green way, and meet local residents’ basic needs of housing, clean water, health, and reliable electricity.  At the latest U.S.-China Strategic and Economic Dialogue (7th S&ED, June 22-24, 2015),  “Smart infrastructure” and “green infrastructure” were clearly addressed and highlighted in the strategic outcomes for further cooperation between US and China under the Climate Change and Energy Cooperation big umbrella, .

Additionally, “ upgrading infrastructure” has been put on the China’s 13th FYP (2016-2020) agenda and is highlighted as one of the important national strategic focus areas: Undertake major public utilities and infrastructure projects; Drive economic growth by integration of internet technologies, and acceleration of building a new generation of network infrastructure, which is fast, safe, mobile, and wide spread; Upgrade the infrastructure network of water conservancy, railway, highway, bridge, waterway, civil and general aviation, tunnel, postal facilities; Enhance safe energy reservation policy; Develop city public transportation, flood and waterlogging protection infrastructure; Upgrade city underground pipelines; Open up the competition in the natural monopoly industry, such as electricity, telecommunication, transportation, petroleum, natural gas, municipal utilities, etc. “Development of people’s livelihood” has played a critical role in the regional development, especially for west China and other remote and developing regions along the Belt and Road, where there is huge demand of basic electricity, clean water, road, and other public utilities.

The infrastructure market including new construction projects and retrofit projects in China and One Road One Belt Region are growing rapidly: cities projects, airport /railway station construction projects, industry parks, new economic and development zone projects are available for advanced technology/solution companies to get involved.  From central level, there are some infrastructure construction focus new national strategies are released and in developing.  For instance, the “one belt one road” strategy and triple “J” region develop strategy, and the transportation (airport and railway station) related infrastructure construction projects investment is one prioritized infrastructure investment in the next few years.   Smart green infrastructure construction field will be the natural focus area for industry players from both sides to showcase and demonstrate.  

As such, US China Energy Cooperation Program (ECP), together with the leading companies in the clean energy and environmental protection industry, initiated this “Sino-U.S. Smart Green Infrastructure” Initiative. It is believed that there are huge opportunities to work together in the key infrastructure development projects to drive regional economic growth. This is also one of the main cooperation area between China and U.S. in the future. It is expected through cooperation, the best practices and powerful resources could be introduced to China, contribute to China’s economic development according to the 13th FYP.

· In 2016, ECP established a new ECP working group, ECP/Urban Infrastructure Working Group.  Urban Infrastructure is an important foundation for urban development, as key indicator of urban economic level. Smart green development for the infrastructure sector plays the significant role to fulfill the carbon emission reduction commitments. Smart and green infrastructure defines the full life cycle of infrastructure, including primary design, site selection, construction, operation and maintenance, and decommission removal. It aims to 1) improve the system efficiency by technical innovation; 2) reduce the greenhouse gas emissions; 3) reduce the energy consumption and environmental pollution; 4) reduce the damage of ecosystem.

· In May 2016, ECP and some members supported and participated the TDA Green Airport Construction RTM and received and showcased to key Chinese stakeholders in the airport infrastructure field in US.  

· In June 2016, during the 2nd US China Climate City Leadership Summit, on behalf of US companies, ECP/Urban Infrastructure Working Group together with several leading Chinese industry stakeholders launched the “US-China Smart Green Infrastructure Initiative “and officially established a “US-China Low-carbon Sustainable Infrastructure Cooperation Alliance “.  

· In August 2016, the first US China Smart Green Infrastructure Cooperation Forum was organized in the first selected region, Xinjiang.  The goal of this great initiative, industry players from US and China both sides hope to establish an immediate and healthy communication with the selected strategic partners in both Greater China market and overseas market.  

· More tailor-made smart/green infrastructure activities will be designed as needed.  A Smart Green Airport Seminar is scheduled in Oct. 2016 to focus on the commercial cooperation in those airport construction or retrofit field.  

· More roundtables/activities on EPC for overseas market will be designed and planned for Q4 2016 and 2017.  

 US industry Interest areas and US players mapping

Smart-green infrastructure industry covered design, engineering, construction, and operation and management sectors.  US companies in the green engineering and design, building energy efficiency technology and products, distributed energy combined cooling, heat and power system technology and products and construction waste treatment technology will definitely show great interest to interact with related Chinese stakeholders and these US technology companies believe that their technology and projects could be easily applied in these green infrastructure construction projects.     

· Service providers in the design & Engineer field: AECOM, Autodesk, Fluor, United Technologies-EMSI, IBM, NuCloud Energy, BakerBotts, Gensler, Black & Veatch.

· Technology and equipment providers in the construction field: Caterpillar, Fluor, Terex, General Electric, United Technologies, Honeywell, Johnson Controls, Dow.

· Smart/IT system solution providers: Trimble, IBM, Intel, Honeywell, Johnson Controls, NuCloud Energy.

Chinese industry players mapping

 Since we launched this initiative, more and more key players in the infrastructure sector joined this bilateral industry alliance to promote the industry cooperation in infrastructure sector through platform power.

 · So far, ECP and members identified and confirmed two powerful Chinese EPC industry associations: China Chamber of Commerce for Import & Export of Machinery & Electronic Products, “CCCME”, and China International Contractors Association, ”CHINAC”. CCCME and CHINAC’s member companies are leading Chinese EPC SOEs who are the major players in the infrastructure business. Please see CCCME and CHINAC websites, ,  for more details.

 · Meanwhile, we identify the key regions for cooperation for further replication in identified provinces and regions.  We have screened and picked “One Road and One Belt” region or nearby overseas regions as the priority region.  We delivered the first target region Xinjiang  in August 2016.  More follow up action plans were in pipeline.  More solid cooperation areas are in developing, such as the EPC cooperation in overseas market and high-end equipments financing for infrastructure EPC projects between US companies and Chinese EPC players.  

Proposed timetable

 At the 7th U.S.-China Strategic and Economic Dialogue (S&ED) June 22-24, 2015, “Smart infrastructure” and “green infrastructure” were clearly addressed in the strategic outcomes for further cooperation between US and China, particularly in the fields of “Climate smart cities in pilot and demonstration projects”.   See outcome 54 & 55 under the “Cooperation on Climate Change and Energy” session.

Sept. 2015, organized Chinese EPC SOE players to US for Green Infrastructure Reverse Trade Mission (technology exchange and best practice demonstration) funded by US TDA and supported and participated by ECP members.

Sept. 2015, “Green Infrastructure” was highlighted at the First US China Climate City Summit as an important session/cooperation topic in Los Angeles together with Chinese infrastructure players.

March 2016, officially formed the ECP/Urban Infrastructure Working Group. Actively plan and drive the “Smart Green Infrastructure Construction” Initiative via ECP platform and all related partners.  

By end of May, screen and select potential partners (central and regional partners) for the initiative for further project scale up and commercial cooperation.  Plan to form a “US China Smart Green Infrastructure Alliance”.

June 2016, target to announce the Initiative at the coming SE&D.

August 2016, Smart Green Infrastructure Construction for Xinjing, the official first stop of the initiative to screen potential commercial cooperation through pilot projects in Xinjiang.  

Oct. 2016, smart green airport seminar and working on the airport construction projects and retrofit projects.  

Q4 2016, Industry roundtables with Chinese EPC SOEs to discuss cooperation areas and new topics.  For example, cooperation around “One Road One Belt”, “EPC Project cooperation in the overseas market”.

Continue to develop quality and stable US and Chinese players in the smart/green infrastructure field.  

 A EPC financing feasibility study project is in discussion and aim to launch a pilot project in 2017 with partial TDA feasibility studying funding.  

August 2016 ~2017 JCCT, further support and facilitate industry/commercial/project cooperation in the field of smart green infrastructure.  Target outcomes to be released at 2017 JCCT, could be partnerships, pilot projects, or commercial projects.