by Claudia Bruemmer

Since the recession, many U.S. companies have been exporting goods overseas to markets with demand for  technology products. In fact, the U.S. government would like to see the nation’s exports double by 2015 as a way to increase U.S. jobs. Many U.S. manufacturers produce products in demand worldwide. For instance, green technology is one sector where demand is up due to the energy crisis. Green technology firms in California can take advantage of the need for clean energy, air and water in China.

The only way the U.S. can gain substantial growth in its green technology industry is from increased penetration of foreign markets which have over 95 percent of the world’s consumers and two-thirds of the world’s purchasing power. U.S. manufacturers can explore ways to increase their sales potential by going into a growth industry like the renewable energy technology industry.

According to the U.S. Department of Commerce, the United States wants to work with China to expand the global economy and promote the development of the green economy. The Department wants to promote exports of leading U.S. technologies related to clean energy, energy efficiency, and electric energy storage, transmission and distribution. California has shown an interest in promoting green technologies, with former Governor Schwarzenegger promoting it as an important statewide initiative.

California manufacturers can explore ways to increase sales through the Green Export Enabler Program (GEEP). This program is offered through various training centers in collaboration with the U.S. Department of Commerce, the Export-Import Bank of the United States and California Manufacturing Technology Consulting. GEEP seeks ways to increase global competitiveness and exports in California green technologies to China by using a 7-step process to help California companies enter and develop the markets in China, increasing their market exposure and establishing effective representation in China for ongoing export sales.

Over $3 billion in venture capital money was invested in California clean-tech companies in 2008, which was over 57 percent of all U.S. investment in the green sector. California has the highest number of patents in the solar, wind and battery industries. Energy productivity (total GDP produced per unit of energy) is 68 percent higher in California than in the entire U.S. Additionally, California generates $2.17 in GDP for every 10,000 BTU of energy it uses, compared with $1.29 for every 10,000 BTU of energy used by the entire country.

There is potential for green export growth in China because China has a great need for clean energy, air and water due to pollution. Additionally, China is best able to afford the massive investment and imports to meet this need. Under the Chinese Government’s $585 billion Economic Stimulus Plan, $105 billion alone is slated for rural area water safety projects, urban wastewater treatment, key water body pollution control and ecological environment protection. The Government projects an increase in China’s green technology market from $186 billion in 2010 to $555 billion in 2020. Chinese projects already underway or planned for the future offer a big opportunity for California green technology companies.

There is no cost to GEEP clients for counseling because of a three-year federal Market Development Cooperative Program agreement from the U.S. Department of Commerce. The Department offsets the $7,500+ market value of the Green Export Enabler Program by offering it at an entry cost of $1,000, which is more than offset by a $1,500 subsidy applied toward export promotion services provided by the Department.