Encouragement for China to Tackle Energy Efficiency

CHINESE Premier Wen Jiabao has called for greater efforts to fulfill the energy-saving and emission reduction goals set out in the nation's 11th Five Year Plan.

The plan was laid out in 2006 which stated that China will cut its per unit GDP energy consumption by 20 percent compared with 2005 levels by the end of 2010.

Jiabao said at a State Council meeting that the relevant departments must work harder to help enterprises close down old and polluting production facilities.

The departments must also suspend approval of new projects by enterprises failing to eliminate backward production capacity, he added.

He also stressed efforts to curb the expansion of high energy-consuming industry, and emphasized strict control of exports of goods produced in an energy-inefficient way.

Wen said energy-saving and emission reduction are priorities for the construction and transportation industries.

Public institutions nationwide are expected to lower their energy consumption by 5 percent year on year in 2010, he added.

More energy-conservation and emission-reduction publicity campaigns should be organized to promote the development of "green" consumption, he said.

As regards businesses China has already taken measures to promote energy saving and emission reduction in small and medium-sized enterprises (SMEs).

The government will increase its capital support for SMEs to develop business, eliminate outdated production capacity and conduct technological innovation.

China will also develop and improve the financing system and provide tax preferences for SME energy saving and emission reduction schemes.

The Ministry of Industry and Information Technology has issued a directive proposal on SME energy saving and emission reduction. Under the proposal, SMEs of key energy-consuming industries are required to cut energy consumption by about 25 percent in three to five years.

Thursday 29th April 2010

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