"We will aim to balance the speed of growth with quality and efficiency in our economy," Han said as he addressed more than 800 delegates attending the annual session of the Shanghai People's Congress, which opened yesterday.

During the weeklong meeting at the Shanghai Exhibition Center, the delegates will vote on several key government reports that review the activities of the past year and outline municipal action plans for this year.

In his 40-page-report, Han said Shanghai's economy is expected to grow by more than nine percent this year, investment in environmental protection will continue to expand by around three percent of gross domestic product, and energy consumption per unit of GDP will be reduced by around four percent.

The city's economy grew 12 percent in 2006 - achieving 15 straight years of double-digit increases.

"A slowdown in economic growth is essential for the city's sustainable development," said He Heyong, the SPC Standing Committee member who's in charge of environmental protection and city development.

He said Shanghai's per-capita GDP now exceeds the equivalent of US$7,000, a level that allows leaders to give more consideration to the "environmental price" of sustainable development.

He pointed out that it takes time and money to achieve technical upgrades and adopt new eco-efficient industrial equipment.

On the environmental protection front, Shanghai plans to reduce its discharges of major pollutants by two percent.

"Transformation of the economic growth model must begin with energy and resource conservation, environmental protection and efficient use of land," Han said.

The mayor said the government is committed to carrying out ten key energy-saving projects, including coal-boiler upgrades and developing more energy-friendly buildings.

The city will also promote the use of renewable resources and implement strict energy standards for all government operations.

The goal is to increase Shanghai's percentage of clean energies, such as wind and solar power, tenfold to one percent of total energy use by 2010.

The city's current three-year environmental protection plan, which ends in 2008, comprises 256 projects, including upgrades of sewage treatment facilities, flue-gas desulfurization at power plants, implementation of Euro II emissions standards and construction of new disposal facilities for solid wastes.

The city also aims to intensify its conservation policies on Chongming Island, the country's second-largest.

In addition to environmental protection, the government will continue its reform policies to improve the international investment climate.