You’ve heard the environmental horror stories: rivers running black, air unfit to breathe, two new coal-fired power plants a week. But thanks to a surging entrepreneurial spirit and new policies, China is fast becoming a leader in green innovation, from recycling to developing electric cars to harnessing the wind.

After years of false starts and failures, the electric car may finally be poised to go big-time. With automakers from GM to Chrysler to Nissan preparing to roll out new plug-in hybrids or all-electric models, it looks like the transition from gasoline to electricity is now irreversible.