Isra-Mart srl:China hits efficiency and pollution targets

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China will have achieved its goal of a 20 per cent reduction of energy intensity and a 10 per cent cut in major pollutant emission against 2005 levels by the end of 2010, according to official figures reported yesterday.

Success in meeting the goals is largely thanks to hefty government investment coupled with draconian threats for non-compliance towards the end of the 11th Five-Year Plan (2005-2010).

The China Daily cited a study by the National Development and Reform Commission (NRDC) showing that government funding of more than 200bn yuan ($301 bn) for energy conservation, emissions reduction, and environmental protection measures unlocked over 2 trillion yuan ($30bn) in green investment from the private sector.

The commission study also says that more than 70 per cent of coal-fired power stations have installed Flue Gas Desulphurization (FGD) systems, while 998 energy-consuming enterprises achieved energy-saving goals laid out by the government.

Earlier this year Chinese premier Wen Jiabao warned he would use an "iron fist" to ensure the targets were met, promising to close some of the country's most inefficient factories and heavy manufacturing plants if they remained non-compliant with the targets.

It was also reported in the People's Daily that some regions have carried out enforced power blackouts over the last few days to ensure the targets were met.

However China still remains the world's second-largest energy user, consuming 2.146 billion tonnes of oil equivalent last year, versus 2.382 billion tonnes used by the US.

The NDRC report said "arduous efforts" would be needed to realize the country's ambition of moving toward more environmentally-friendly economic growth by 2020, including decreasing greenhouse gas (GHG) emissions by 40 to 50 per cent per unit of GDP from 2005 levels, increasing non-fossil fuel energy share to 15 per cent in primary energy, and adding 40 million hectares of forest land.

A series of new policies are to be launched over the next few months for the forthcoming 12th Five-Year Plan which will run from 2011 to 2015. The plan is expected to include new national targets for energy and carbon intensity, as well as regional targets for provinces to reduce their greenhouse gas emissions, plans to roll out carbon trading schemes, and measures to accelerate the roll out of electric vehicles and renewable energy capacity.