BEIJING - CHINA, the world's top greenhouse gas polluter, has become Asia's top investor in clean energy as the country looks to the green industry for a new economic fillip.

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China invested US$15.6 billion (S$22.7billion) in green projects last year, according to a new report released last week by the United Nations Environment Programme. The country is leading Asia's alternative energy investment trend, it said.

The figure accounted for about 10 per cent of the global spending of US$155 billion, said the report on worldwide trends in sustainable energy investment.

It was also an increase of 18 per cent over China's own outlay in 2007.

Wind-energy generators and biofuel made up most of the country's spending last year. It is now the world's second largest wind-power market.

China's green shift was also underscored yesterday in comments by a senior government official, who said development of green technology will become a driver of economic growth.

Mr Zhang Lijun, the Vice-Minister of Environmental Protection, said at a renewable energy conference in Tianjin that out of China's 4 trillion yuan (S$853 billion) economic stimulus package unveiled earlier this year, 210 billion yuan would be used for energy conservation, emissions reductions and environmental protection projects.

He also revealed that 156 highly polluting industrial projects worth 473 billion yuan were closed last year.

The economic slowdown has given the country an opportunity to adjust its economic model, Mr Zhang noted, adding that green businesses 'will help increase domestic consumption in the economy and change our pattern of growth'.

Beijing now recognises that its future economic progress will be in jeopardy if it does not stop the damage from polluting industries, said Mr Hu Zhaoxin, a Shanghai-based scholar in sustainable development.

Read the full story in Tuesday's edition of The Straits Times.