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This chapter outlines the potential market of methane (especially LNG) as vehicle fuel in Europe and China.

A comprehensive report on the existing framework in terms of market capacity, regulations, and incentives is presented. Moreover, the feasibility of using biogas as environmental friendly source gas is considered.

The transport sector represents a major element in the global balance of greenhouse gas (GHG) emissions. Natural gas is considered the alternative fuel that, in the short-medium term, can best substitute conventional fuels in order to reduce their environmental impact, because it is readily available at a competitive price, using technologies that are already in widespread use. It can be used as compressed gas (CNG) or in the liquid phase (LNG). The former is more suitable for light vehicles, while the latter for heavy-duty vehicles. Some barriers need to be overcome for the diffusion of this alternative fuel, especially concerning the supply problem. The incentive policy has been shown to cover a major influence in the feasibility evaluation.

This work shows the state of the art of natural gas as fuel, especially from biogas source, in Europe and China and assesses the incentive scheme necessary to make liquefied biomethane feasible on the basis of the existing scenario in Italy.

The objective of this chapter is to analyze China’s outward foreign direct investment (OFDI) to the European Union in environmental industries.

We combine a narrative approach with statistical analysis. We first review the policy background concerning China’s OFDI and environmental protection. Then, we provide statistics on China’s OFDI to the EU in environmental industries, using firm-level data from one of China’s major provinces: Jiangsu.

We find that the OFDI to the EU in environmental industries experienced a considerable growth in terms of number of investing firms and investment value. The OFDI in environmental industries to the EU was highly concentrated in a few countries, particularly Germany and Luxemburg, and a few industries, particularly new energy.

Using firm-level data from only one province may limit the generalizability of our findings. However, we believe the case of Jiangsu province sheds much light on the situation of entire China because Jiangsu is one of the most important Chinese provinces in terms of OFDI.

The detailed analysis of our Jiangsu’s OFDI in EU’s environmental industries in this chapter can help to inform the investment cooperation in environmental industries between China and EU in terms of both scope of investment partners and target industries.

This study is one of the first to provide a detailed summary statistics on China’s OFDI to the EU in environmental industries. Given China’s growing concerns regarding environmental protection and OFDI, we believe the question merits further analysis.

This chapter will introduce three novel technologies demonstrated in Sino-Italian Green Energy Lab of Shanghai Jiao Tong University for the hot summer and cold winter climate zone.

Experimental and modeling works have been conducted on the application of these systems. A comprehensive review on the features of these novel technologies, their adaptability to local climate condition have been carried out, and some initial study results have been reported.

Solar PV direct-driven air conditioner with grid connection, home used small temperature difference heat pump, smart house energy information and control system are appropriate energy technologies with reduced CO₂ emission, which can be applied efficiently in the hot summer and cold winter climate zone. More useful data will be obtained in the future demonstration tests in Sino-Italian Green Energy Lab.

This work shows combining renewable energy technologies and information technologies is crucial to improve the energy efficiency and the comfortableness for indoor environment.

The Chinese electricity sector is in the midst of a transition from a state-owned monopoly to a market-oriented structural unbundling. In the process of restructuring, the power system is facing significant deficiencies which hinder integration of sustainable solutions and dramatically impact the environment.

The chapter provides a qualitative analysis of the legislative, regulatory, and administrative provisions that have been recently implemented in the Chinese electricity sector, in order to identify the barriers that limit implementation of sustainable solutions and suggest prospects of change.

Despite a strong commitment to renewable energy, integration of sustainable solutions in the Chinese power system is hampered by an inefficient coordination between the players variously operating in the electricity sector and a lack of consistency at the regulatory design stage.

A clear picture of the legislative, regulatory, and administrative inconsistencies that characterize the Chinese electricity sector may help Chinese policy makers to overcome issues that hinder efficiency and hence develop a systemic approach useful to make the economic growth sustainable.

The chapter considers integration of sustainable solutions as related to the policy makers’ ability to conceptualize systemic efficiency in relation to an original understanding of proximity between efficient energy systems to be developed on a regional basis.

This chapter seeks to analyze trade in environmental goods between China and the EU and highlight prominent problems and future opportunities.

We explore trade empirically, based on the definition of environmental goods proposed by OECD and database from UN COMTRADE (HS96).

We find that value of trade in environmental goods between China and the EU has increased from $2.759 billion in 1996 to $42.446 billion in 2012, with an average annual growth rate of 21%. Trade is concentrated in Germany, the Netherlands, Italy, France, and Belgium (together accounting for 82%). China has a trade deficit in most categories of environmental goods. Overall, although trade in environmental goods between China and the EU has increased rapidly, the trade structure is unbalanced and the competitiveness of China’s environmental goods trade is still low.

This chapter provides a robust basis for analysis of trade in environmental goods between China and the EU.

Discussions on environmental goods trade are complicated by a lack of clear definition and lack of consistent data. This chapter provides a clear and consistent data set in order to have a robust basis for analysis of this important phenomenon.

This chapter investigates and explores the array of political and social factors which influence the Chinese system of environmental protection, shedding light on the Chinese political and juridical process in constructing a stricter and more incisive legal framework.

Starting by observing national macroeconomic data, this chapter explores how the Chinese governance system affects the implementation of the legal framework of environmental protection. In addition, it also traces a brief panorama of the most important laws framing environmental protection in China.

Over the years, the Chinese environmental protection system has been strongly affected by the national multilayered governance system. Nevertheless, the initiative launched by China (more intensively starting from the 11th five-year plan) to build a more virtuous environmental protection system now seems to be returning positive results, in both the renewed legal framework and – even more so – in the attempt (through addressing environmental issues) to reform the entire apparatus of national governance.

The multi-structured national system, which hides conflicting political and economic interests at central and local levels, represents one of the biggest problems for China. This chapter argues that only through a deep reform of the national management scheme can China really guarantee a better future for its environment.

Literature on Chinese environmental protection tends more often to investigate the legal aspect when edifying its environmental legal framework. Very few studies combine economic data and political analysis when studying the Chinese legal framework and its implementation.

CSR is a relatively new concept which can be defined as the set of rules by which a company equips itself in order to ensure compliance to various regulations, as well as ethical and environmental standards, that have to be addressed in relation to the sector in which it operates. Despite this international definition, it is hard to deal with this notion in a legal perspective. The chapter investigates how the notion is operating in the European and Chinese Green Energy Industry.

The approach is functionalist in nature and is based on comparative law method.

The insights about the diverse notions of CSR in the energy industry can be useful for lawyers and compliance managers working in transnational contexts.

CSR represents a way of marketing for consumers and society. Understanding the real functioning in the world of affairs beyond the policy declamations may increase the public accountability of the CSR processes.

The functionalist approach based on comparative law method has never been applied to the intertwined issues about CSR in the energy industry.

Chinese foreign direct investments (FDI) to developed countries, such as Germany, seems to follow unique rules, which are different to traditional international business (IB) practices in terms of entry modes, speed of internationalization, and target countries. To shed light on these unique rules, we analyze motivation and location choices of FDI from China to Germany by describing a sample of five companies from the environmental industry.

A multiple case study research design is adopted. The study is based on five Chinese companies investing in Germany in the environmental industry through FDI (Greenfield Investment and Merger and Acquisition). Chinese managers were interviewed on the basis of semi-structured questionnaires.

According to the main findings from the interviews, when investing in Germany, managers take into account a series of factors. Chinese firms go global for traditional motives such as market-seeking purposes and with the aim of improving their production process through skills and know-how acquisition. Additional motives, such as labor cost and fiscal incentives are not considered relevant as factors for internationalizing. Entry mode choices are mainly driven by legal factors in the environmental industry.

The analysis is conducted at industry level with the aim to contextualize the results within the environmental sector. The case studies are focused on Chinese investments in Germany.