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          Meeting energy goal a tough job

          By Sun Xiaohua (China Daily)
          Updated: 2007-06-23 06:58

          If industries responsible for high energy consumption and severe emissions do not slow their rapid growth, the country will once again miss its energy-conservation target, a senior official said on Friday in Beijing.

          Xie Zhenhua
          Xie Zhenhua, deputy director of the National Development and Reform Commission (NDRC), made the comment during an online interview.

          He said the expansion over the first four months this year of the country's heavy industries - chemical, construction materials, iron and steel - had sent a warning signal to the government, which plans to cut energy consumption by 20 percent and reduce pollutant levels by 10 percent per unit of gross domestic products (GDP) between 2006 to 2010.

          The National Bureau of Statistics said that from January to April, the output value of heavy industries was up 19.1 percent on the same period in 2006, compared with a 15.9-percent increase for light industries.

          Xie said some measures, such as eliminating or reducing tax rebates for high energy-consuming and resource-intensive companies, and requiring heavy polluters to improve their waste-treatment facilities, had been introduced to cool the sector, whose growth has been partly driven by export demand.

          "But it will still be tough for China to hit its target," he said.

          The target requires China to use less than 1 ton of coal equivalent for each 10,000 yuan ($1,300) of GDP by 2010, compared with 1.2 tons in 2005.

          "If China maintains its annual GDP growth at 10 percent until 2010, it will have to save 600 million tons of coal equivalent," Xie said.

          The country plans to save 200 million tons of coal equivalent by enhancing its service sector and developing hi-tech industries, while the rest will come from eliminating production methods based on backward technologies and operating key energy saving projects.

          "Factories will play a major role in this green campaign," Xie said.

          "Departments are working together to bring in preferential polices that encourage energy saving through market tools."

          Legislators are also developing new laws to help the drive, Xie said.

          The new energy conservation law and circular economy law will come into force from the end of the year.


          (For more biz stories, please visit Industry Updates)



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