The need to ensure sustainable energy related technology transfer from OECD countries to industrializing nations and nations in transition is considered. Particular reference is made to the issues and challenges associated with China. This is an industrializing nation with a strong need to achieve significant improvements in overall energy efficiency and the associated environmental impact. This together with an overwhelming dependence on coal in all market sectors highlights the challenges that need to be surmounted. Copyright (C) 2000 John Wiley & Sons, Ltd.