China Steps Up Energy Saving Drive, Targets Industry
Date: 05-Mar-07
Country: CHINA
Author: Benjamin Kang Lim
In annual reports to the National People's Congress, China's parliament, Premier Wen Jiabao and top finance and energy officials will say regulation and punishments have not been strong enough to meet government plans to boost efficiency.
Driven by worries about energy security amid booming oil imports, and the rising economic and social cost of pollution, Beijing is trying to reverse years of promoting economic growth at any cost and push for greener development.
"Quite a few companies did not do enough to curb energy and protect the environment. Some energy reduction programs need time to take effect," the work report from the energy policy setting National Development and Reform Commission (NDRC) says.
"Since enforcement isn't enough and the cost of violations is low, illegally wasting resources and damaging the environment hasn't stopped," it added, according to excerpts seen by Reuters.
Wen singled out heavy industry for criticism, saying it had expanded rapidly, sometimes ignoring standards, and outdated plants that had been ordered to shut failed to do so.
China now aims to set energy quotas for manufacturing a range of products and for public buildings, close down capacity in industries from power to steel and use tax and finance policies to raise the cost of polluting, the reports said.
Last year the country fell short of a target of cutting by 4 percent the amount of energy used to generate each dollar of national income. Neither Wen, the NDRC nor a finance ministry report mentioned a similar goal for this year.
Instead they emphasized a commitment to long-term goals of a 20 percent energy cut and a 10 percent reduction in emissions of pollutants including acid rain-causing sulphur dioxide by 2010.
"The government takes these targets very seriously and they should not be revised. We will steadfastly try to meet them," Wen said in his work report.
TAX, PRICING
Analysts say low, state-set prices for power, gas and oil hinder energy efficiency drives, and China pledged to press on with reforms but did not set any timeframe.
The Finance Ministry listed preparation of a long-touted fuel tax, and selection of an appropriate time to implement it, among its priorities for the year.
China also plans to set up an energy saving fund, although it did not say how the cash would be used, and improve pricing policies including fees for waste water and rubbish management, and support for renewable energy.
In a nod to concerns about implementation and supervision, the NDRC also said it would develop a specialised programme for monitoring energy saving and pollution reductions.