China’s energy efficiency industry is emerging as a high growth sector with the country projected to spend as much as Rmb2.1 trillion (USD300 billion) over the next five years on products and services that cut energy use. The key drivers of this development are the Chinese government’s determination to curb the country’s expanding energy appetite as well as higher production and energy costs. Firms that develop cost-effective energy-saving technologies, particularly for the most energy-intensive industries, are poised to capture the opportunities. If successful, these enterprises will not only become profi table, but will also help lead China to a more sustainable energy future.