Fast-growing industry and a reliance on coal-fired power plants turned China into the world's largest emitter of greenhouse gas a few years ago. Clouds of smog far thicker than that of Los Angeles hang over many of its cities and much of the water is densely polluted. But that's something the central government aims to change.

China plans to reduce energy consumption per unit of its gross domestic product (GDP) by 20% of 2005 levels by the end of next year. It's more immediate goal is to reduce reliance on coal-fired plants to 60% of its energy production from 70%, and replace with renewable energy sources like wind and solar.

Since 2007, about 54 gigawatts – about 7% of the nation's electricity-generating capacity – of coal and oil-fired power plants have been closed down as part of the effort to reduce carbon emissions.

Alternative energy sources, including wind, solar, and hydropower, are in line to replace fossil fuels. China's market for green technology could reach $1 trillion annually, or about 15% of the country's forecast 2013 GDP, according to a report released last week by the China Greentech Initiative and the American Chamber of Commerce.

"Climate change brings a range of new risks and challenges for business, but it is also creating huge opportunities, particularly in the greentech sectors," Richard Gledhill, global leader on climate change and carbon market services for consultancy PricewaterhouseCoopers, told the People's Daily. "The International Energy Agency predicts that we will have to spend an additional $9 trillion over the next 20 years to deliver a stabilization scenario of two degrees Celsius."

Already solar companies in China are benefiting from the government's push for clean technology.  China plans to install more than 500 megawatts of solar pilot projects in two to three years.