Washington (Platts)--17Nov2009/1148 am EST/1648 GMT

The US and China on Tuesday announced several joint initiatives on clean energy, after the presidents of the two countries agreed to step up their efforts to combat climate change.

"The two sides agreed that the transition to a green and low-carbon economy is essential and that the clean energy industry will provide vast opportunities for citizens of both countries in the years ahead and welcomed significant steps forward to advance policy dialogue and practical cooperation on climate change, energy and the environment," the countries said in a joint statement.

US President Barack Obama is in China this week for meetings with Chinese President Hu Jintao.

The joint initiatives include the establishment of a US-China Clean Energy Research Center that will be supported by public and private funding of at least $150 million over five years, split evenly between each country.

The US and China also created an electric vehicles initiative to develop joint standards, set up demonstration projects and create public education projects. Obama and Hu "emphasized their countries' strong shared interest in accelerating the deployment of electric vehicles in order to reduce oil dependence, cut greenhouse gas emissions and promote economic growth," the White House said.

The presidents also announced a joint energy efficiency action plan to improve the efficiency of buildings, industrial facilities and consumer appliances. The countries will enter a US-China Renewable Energy Partnership to support renewable energy deployment and electric grid modernization, and they agreed to cooperate on clean coal research, including large-scale carbon capture and storage projects.

In addition, the US and China will seek to develop China's shale gas potential, and the countries will establish an energy cooperation program that includes 22 companies, focusing on renewable energy, smart grid, clean transportation, green buildings, clean coal, combined heat and power and energy efficiency.

--Herman Wang, herman_wang@platts.com